Axfood AB (AXFO) AI Stock Analysis

• Market Cap: kr65.99B
• Dividend Yield: 2.87%
• Average Volume (3M): 213.45K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.20
• Revenue Growth: 5.39%
• EPS Growth: -11.37%
• Country: SE
• Employees: 15,000
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Grocery Stores
• EPS (TTM): 2.83
• Shares Outstanding: 216,843,250
• 10 Day Avg. Volume: 289,621
• 30 Day Avg. Volume: 213,451
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr312.50
• Price Target Upside: 2.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: kr335.00 ▲(9.69% Upside)

Axfood AB's overall stock score is driven by solid financial performance and strong technical indicators. While the high P/E ratio suggests potential overvaluation, the company's robust cash flow and efficient operations support its position in the grocery industry. Investors should be mindful of the stock's nearing overbought technical levels and high leverage.

Axfood AB Business Overview & Revenue Model

Company Description

Axfood AB (publ) engages in the food retail and wholesale businesses in Sweden. It operates through Willys, Hemköp, Dagab, and Axfood Snabbgross segments. The company operates its retail business through Willys, Hemköp, and Eurocash chains; and the online store, Mat.se. It is also involved in the e-commerce business; and provision of private label products. In addition, it offers home delivery of meal kits under the Middagsfrid name, as well as operates Urban Deli, a combined restaurant and market hall concept; and Apohem, an online pharmacy solution. The company serves restaurants, foodservice operators, and cafés; and retailer-owned stores, mini-marts, service stations, and other convenience retailers. It operates 65 Hemköp, 219 Willys, and 26 Snabbgross group-owned stores; and 133 Hemköp and 126 Tempo franchises. The company was founded in 1958 and is headquartered in Stockholm, Sweden. Axfood AB (publ) is a subsidiary of Axel Johnson AB.

How the Company Makes Money

Axfood generates revenue primarily through the sale of groceries and related products across its various retail formats. Its key revenue streams include sales from supermarkets and discount stores, as well as from its wholesale operations. The company benefits from economies of scale, allowing it to offer competitive pricing while maintaining profitability. Additionally, Axfood has established partnerships with suppliers and manufacturers to ensure a steady supply of products at favorable terms, which further enhances its margins. The company's focus on e-commerce and online grocery shopping has also contributed to revenue growth, particularly in response to changing consumer behaviors.

Axfood AB Financial Statement Overview

Summary

Axfood AB demonstrates solid financial health with consistent revenue growth and strong cash flows. Profitability margins are under slight pressure, but efficient operations and strong return on equity mitigate risks. Increased leverage is a concern, but overall, the company is well-positioned in the grocery industry.

Income Statement

Axfood AB shows consistent revenue growth with a TTM increase of 2.3%. Gross profit margin is stable at around 14.7%, though slightly lower than historical highs. Net profit margin has decreased to 2.4% in TTM, indicating some pressure on profitability. EBIT and EBITDA margins are stable, reflecting efficient operations despite competitive pressures.

Balance Sheet

The company's debt-to-equity ratio has increased to 2.48 in TTM, indicating higher leverage, which could pose risks if not managed carefully. However, the return on equity remains strong at 33.1%, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Axfood AB's cash flow is robust, with a significant free cash flow growth of 23% in TTM. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to net income. Free cash flow to net income ratio remains solid, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.80B	84.06B	81.11B	73.47B	57.89B	53.70B
Gross Profit	12.77B	12.23B	11.33B	10.08B	8.95B	8.55B
EBITDA	7.13B	6.68B	6.47B	5.78B	5.16B	4.82B
Net Income	2.12B	2.19B	2.36B	2.36B	2.15B	1.91B
Balance Sheet
Total Assets	36.14B	35.43B	30.02B	28.62B	23.73B	18.81B
Cash, Cash Equivalents and Short-Term Investments	374.00M	735.00M	688.00M	559.00M	734.00M	-5.71B
Total Debt	15.42B	15.30B	9.76B	9.25B	8.00B	5.71B
Total Liabilities	29.57B	28.04B	22.83B	21.72B	18.55B	14.25B
Stockholders Equity	6.22B	7.05B	6.88B	6.61B	4.95B	4.33B
Cash Flow
Free Cash Flow	4.38B	3.92B	3.86B	3.33B	2.77B	3.82B
Operating Cash Flow	6.05B	5.46B	5.81B	5.93B	4.59B	4.85B
Investing Cash Flow	-3.28B	-3.18B	-2.21B	-2.78B	-3.84B	-1.08B
Financing Cash Flow	-3.04B	-2.23B	-3.47B	-3.32B	-1.55B	-3.04B

Axfood AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 305.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AXFO, the sentiment is Positive. The current price of 305.4 is above the 20-day moving average (MA) of 303.13, above the 50-day MA of 295.55, and above the 200-day MA of 255.75, indicating a bullish trend. The MACD of 2.22 indicates Positive momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 70.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:AXFO.

Axfood AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXFO	75 Outperform	kr65.99B	31.11	34.34%	2.87%	5.39%	-11.37%
Sector *	63 Neutral	$20.52B	14.79	-2.72%	3.09%	1.95%	-4.74%
CLOEF	―	$1.02B	16.22	11.94%	3.70%	―	―
9KF	―	€107.26M	58.45	0.63%	2.64%	―	―
2DU	―	€389.63M	19.61	6.56%	―	―	―
B39	―	€336.56M	40.89	1.69%	―	―	―
SCST	65 Neutral	kr6.24B	21.97		2.51%	4.70%	0.33%

Axfood AB Corporate Events

Axfood AB Reports Strong Q2 2025 Performance with Market-Leading Growth

Axfood AB reported a strong second quarter in 2025, with growth significantly surpassing the market average. The company’s strategic investments in automation and logistics have enhanced efficiency and competitiveness, contributing to a 23% increase in retail sales, driven primarily by Willys. The acquisition of City Gross has expanded Axfood’s presence in the hypermarket segment, with plans to achieve profitability by the second half of 2026. The company also emphasized its commitment to sustainability by opening Sweden’s largest solar park and increasing the use of renewable fuels in transportation. These developments are expected to lead to annual cost savings and further investments in enhancing competitiveness.

The most recent analyst rating on (SE:AXFO) stock is a Buy with a SEK330.00 price target. To see the full list of analyst forecasts on Axfood AB stock, see the SE:AXFO Stock Forecast page.

Axfood AB to Present Q2 2025 Interim Report

Axfood AB has announced an upcoming presentation of its second quarter 2025 interim report, scheduled for 11 July. The company’s President and CEO, Simone Margulies, along with CFO Anders Lexmon, will present the report in English. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market position and investor relations.

The most recent analyst rating on (SE:AXFO) stock is a Buy with a SEK330.00 price target. To see the full list of analyst forecasts on Axfood AB stock, see the SE:AXFO Stock Forecast page.

Axfood Announces Capital Markets Day to Unveil Long-term Strategy

Axfood AB has announced its upcoming Capital Markets Day, scheduled for September 18, 2025, in Stockholm. The event aims to update institutional investors, analysts, and financial media on the company’s long-term strategy, featuring presentations by senior executives and a tour of the refurbished Hemköp Torsplan store. This initiative reflects Axfood’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (SE:AXFO) stock is a Buy with a SEK330.00 price target. To see the full list of analyst forecasts on Axfood AB stock, see the SE:AXFO Stock Forecast page.