B3 Consulting Group AB (B3) AI Stock Analysis

• Market Cap: kr326.20M
• Dividend Yield: N/A
• Average Volume (3M): 12.00K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.32
• Revenue Growth: 13.21%
• EPS Growth: -97.19%
• Country: SE
• Employees: 988
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.66
• Shares Outstanding: 9,111,648
• 10 Day Avg. Volume: 12,401
• 30 Day Avg. Volume: 12,003
• PEG Ratio: -0.40
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 10.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.38
• Revenue Forecast (FY): kr1.24B

• Rating: 43 Neutral
• Price Target: kr37.00 ▼(-14.94% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held down primarily by the sharp decline in 2025 profitability alongside higher leverage, plus weak technical trends. A very high P/E further pressures the rating, partially offset by improved operating and free cash flow in 2025.

Positive Factors

Improved Cash Generation

The company restored positive operating and free cash flow in 2025, providing durable internal funding for working capital, capex and strategic initiatives. Sustained cash generation reduces reliance on external financing and supports reinvestment and dividend flexibility over the medium term.

Diversified Revenue Model

B3's mix of consulting fees, fixed-price projects and recurring service agreements creates multiple revenue streams and reduces single-client exposure. This diversification supports steadier cash inflows and higher client-retention potential, underpinning revenue durability across cycles.

Historical Revenue Growth and Margin Track Record

Prior years show solid top-line expansion and materially stronger margins, indicating underlying demand and the firm's ability to generate attractive profitability when mix and costs are controlled. This historical track record signals potential to regain healthier margins over time.

Negative Factors

Sharp 2025 Profitability Decline

Margins compressed sharply in 2025, driving earnings to very low levels. Sustained low profitability limits free cash flow upside, weakens retention of earnings for reinvestment, and raises risk that temporary pricing or cost issues become structural without corrective action.

Rising Leverage

Leverage increased materially, reducing balance-sheet flexibility and amplifying earnings volatility risk. Higher gearing raises interest burden and constrains capital allocation choices, making the company more sensitive to margin shocks and less able to fund strategic initiatives organically.

Weak Cash Conversion vs. EBIT

Although cash flows improved, low operating-cash-to-EBIT conversion implies cash is sensitive to working-capital swings and timing. This instability can cause quarter-to-quarter liquidity stress and makes sustainable free-cash generation less predictable without better working-capital management.

B3 Consulting Group AB Business Overview & Revenue Model

Company Description

B3 Consulting Group AB (publ) provides IT and management consultancy services in Sweden. The company was formerly known as B3IT Management AB (publ) and changed its name to B3 Consulting Group AB (publ) in May 2018. B3 Consulting Group AB (publ) was founded in 2003 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

B3 Consulting Group AB generates revenue through a diversified model that includes consulting fees, project-based contracts, and ongoing service agreements. The company primarily earns money by billing clients for consulting hours and project deliverables, often structured as fixed-price contracts or hourly rates. Key revenue streams include management consulting services, technology integration projects, and custom software development. B3 also leverages partnerships with technology firms and digital platforms to enhance its service offerings, which can create additional revenue opportunities through joint ventures or collaborative projects. Furthermore, the company's established reputation and expertise in digital transformation enable it to attract a steady stream of clients seeking to modernize their operations, contributing to its overall financial growth.

B3 Consulting Group AB Financial Statement Overview

Summary

Overall financials are mixed: 2025 profitability deteriorated sharply with very low margins (gross/EBIT ~3.6%, net ~0.9%) and lower net income, while leverage increased materially (debt-to-equity ~1.54). Offsetting this, cash flow improved meaningfully in 2025 with positive operating cash flow and free cash flow after a weak 2024.

Income Statement

Profitability has deteriorated materially: 2025 revenue declined (-1.723) and margins compressed sharply (gross margin ~3.6%, EBIT margin ~3.6%, net margin ~0.9%) versus much healthier levels in 2022–2024. While the business historically delivered solid margins (e.g., 2022 net margin ~9.0%), the step-down in 2025 earnings (net income down to 10.9M) raises questions around cost pressure, pricing, or mix, and makes the current earnings profile meaningfully less resilient.

Balance Sheet

Leverage has increased and balance-sheet flexibility looks more constrained: debt-to-equity moved up to ~1.54 in 2025 from ~0.51 in 2022, with equity also trending down versus 2024. The company is not asset-light enough (total assets ~835.8M in 2025) to ignore the higher gearing, and the rising leverage coincides with weaker profitability, which elevates risk even though prior years showed strong returns on equity.

Cash Flow

Cash generation rebounded in 2025 with positive operating cash flow (37.9M) and free cash flow (36.9M), a strong improvement from negative cash flow in 2024. Free cash flow is broadly in line with net income in 2025 (~0.97x), supporting earnings quality; however, cash conversion versus EBIT remains modest (operating cash flow is ~15% of EBIT in 2025), suggesting working-capital or timing effects can meaningfully swing cash results.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.21B	1.13B	1.14B	1.15B	921.89M
Gross Profit	44.00M	286.00M	180.60M	358.18M	146.28M
EBITDA	78.60M	137.60M	113.40M	158.34M	88.06M
Net Income	10.90M	83.30M	60.50M	103.30M	45.29M
Balance Sheet
Total Assets	835.80M	885.30M	632.60M	622.98M	559.72M
Cash, Cash Equivalents and Short-Term Investments	63.50M	77.70M	48.90M	83.39M	54.24M
Total Debt	328.50M	303.00M	171.00M	100.03M	104.52M
Total Liabilities	576.00M	623.10M	452.40M	395.03M	365.11M
Stockholders Equity	212.70M	232.50M	156.70M	194.95M	174.32M
Cash Flow
Free Cash Flow	36.90M	-11.70M	62.90M	150.93M	75.50M
Operating Cash Flow	37.90M	-7.20M	67.80M	151.71M	77.66M
Investing Cash Flow	-70.30M	-18.50M	-2.10M	-4.47M	-7.36M
Financing Cash Flow	19.20M	61.70M	-100.20M	-118.09M	-62.45M

B3 Consulting Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:B3, the sentiment is Negative. The current price of 43.5 is above the 20-day moving average (MA) of 38.74, above the 50-day MA of 40.82, and below the 200-day MA of 49.33, indicating a bearish trend. The MACD of -1.30 indicates Positive momentum. The RSI at 34.31 is Neutral, neither overbought nor oversold. The STOCH value of 17.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:B3.

B3 Consulting Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXS	65 Neutral	kr1.57B	18.30	15.90%	1.13%	10.92%	-2.56%
CAG	63 Neutral	kr749.01M	15.67	―	3.83%	-4.42%	-6.27%
PACT	62 Neutral	kr2.63B	21.21	14.35%	2.13%	-4.36%	-31.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOF.B	59 Neutral	kr1.10B	16.45	27.44%	6.29%	4.00%	-12.08%
KNOW	58 Neutral	kr3.04B	-10.52	2.38%	2.03%	-9.85%	-38.24%
B3	43 Neutral	kr326.20M	29.95	1.19%	―	13.21%	-97.19%