Axfood AB (AXFO) AI Stock Analysis

• Market Cap: kr59.88B
• Dividend Yield: 3.25%
• Average Volume (3M): 224.26K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.17
• Revenue Growth: 3.33%
• EPS Growth: -14.82%
• Country: SE
• Employees: 15,000
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Grocery Stores
• EPS (TTM): 2.08
• Shares Outstanding: 216,843,250
• 10 Day Avg. Volume: 192,753
• 30 Day Avg. Volume: 224,258
• PEG Ratio: 2.99
• Price to Book (P/B): 9.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.28
• 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: kr290.00
• Price Target Upside: 5.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ―

Axfood AB's overall stock score reflects its stable financial performance and strong cash generation capabilities, despite high leverage risks. Technical analysis suggests cautious optimism due to potential overbought conditions. Valuation appears high, indicating expectations of growth. Investors should be mindful of financial leverage and market momentum.

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 AB generates revenue primarily through its retail and wholesale operations. The company earns income from the sale of grocery products and related services through its chain of retail stores, including Willys and Hemköp, which cater to both budget-conscious and more premium market segments. Additionally, Axfood supplies products to independent retailers via its wholesale division, Dagab, which acts as a distribution hub. Key revenue streams include in-store sales, online sales, and distribution services. Significant partnerships with suppliers and strategic acquisitions also contribute to Axfood's earnings, enabling the company to expand its product offerings and operational footprint effectively.

Axfood AB Financial Statement Overview

Summary

Axfood AB exhibits stable financial performance with solid revenue growth and operational efficiency. Profitability margins are decent but have room for improvement. The high debt-to-equity ratio suggests reliance on debt, posing risks. Strong cash flow ratios highlight robust cash generation despite a recent decline in free cash flow.

Income Statement

Axfood AB's income statement reveals a consistent growth trajectory. The TTM revenue growth rate is 0.94%, reflecting stable sales expansion. Gross profit margin stands at 14.57%, while net profit margin is 2.45%, indicating efficient cost management though there's room for improvement in profitability. EBIT margin is 3.76%, and EBITDA margin is 8.04%, both demonstrating solid operational efficiency.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 2.82, suggesting high leverage which could be risky if not managed properly. Return on equity is 37.03%, indicating strong profitability relative to equity. The equity ratio is 15.85%, suggesting a lower proportion of the company's assets are financed by equity, pointing to potential financial vulnerability.

Cash Flow

Cash flow analysis indicates a free cash flow growth rate of -9.18%, showing a decline which may warrant concern. However, the operating cash flow to net income ratio is 2.40, and the free cash flow to net income ratio is 1.71, demonstrating strong cash generation capabilities relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
84.85B	84.06B	81.11B	73.47B	57.89B	53.70B
	Gross Profit
12.37B	12.23B	11.33B	10.08B	8.95B	8.55B
	EBIT
3.19B	3.29B	3.35B	3.10B	2.70B	2.51B
	EBITDA
6.82B	6.68B	6.47B	5.78B	5.16B	4.82B
	Net Income Common Stockholders
2.08B	2.19B	2.36B	2.36B	2.15B	1.91B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
335.00M	735.00M	688.00M	559.00M	734.00M	-5.71B
	Total Assets
35.48B	35.43B	30.02B	28.62B	23.73B	18.81B
	Total Debt
15.84B	15.30B	9.76B	9.25B	8.00B	5.71B
	Net Debt
15.51B	14.56B	9.08B	8.69B	7.27B	11.42B
	Total Liabilities
29.52B	28.04B	22.83B	21.72B	18.55B	14.25B
	Stockholders Equity
5.62B	7.05B	6.88B	6.61B	4.95B	4.33B
Cash Flow		Free Cash Flow
3.56B	3.92B	3.86B	3.33B	2.77B	3.82B
	Operating Cash Flow
5.00B	5.46B	5.81B	5.93B	4.59B	4.85B
	Investing Cash Flow
-3.23B	-3.18B	-2.21B	-2.78B	-3.84B	-1.08B
	Financing Cash Flow
-2.25B	-2.23B	-3.47B	-3.32B	-1.55B	-3.04B

Axfood AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 273.70
• 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 Neutral. The current price of 273.7 is below the 20-day moving average (MA) of 274.68, above the 50-day MA of 258.75, and above the 200-day MA of 245.85, indicating a neutral trend. The MACD of 4.36 indicates Positive momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 32.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:AXFO.

Axfood AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXFO	66 Neutral	kr59.88B	28.72	36.99%	3.25%	3.33%	-14.82%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
CLOEF		$1.03B	17.80	11.12%	0.32%	―	―
9KF		€117.70M	33.95	1.23%	0.21%	―	―
2DU		€422.76M	19.89	6.76%	4.86%	―	―
B39		€355.35M	33.89	2.22%	―	―	―
SCST		kr6.11B	22.56		1.33%	―	―

Axfood AB Corporate Events

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.