Balco Group AB (BALCO) AI Stock Analysis

• Market Cap: €527.20M
• Dividend Yield: N/A
• Average Volume (3M): 15.35K
• Price to Earnings (P/E): 216.5
• Beta (1Y): 0.33
• Revenue Growth: 9.76%
• EPS Growth: -289.12%
• Country: SE
• Employees: 562
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Construction
• EPS (TTM): 0.00
• Shares Outstanding: 23,021,648
• 10 Day Avg. Volume: 13,222
• 30 Day Avg. Volume: 15,346
• 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: €24.46
• Price Target Upside: 6.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: kr24.50 ▲(6.99% Upside)

Balco Group AB's overall stock score is primarily impacted by its financial performance, which shows significant challenges in profitability and cash flow. Technical analysis indicates a bearish trend, while valuation metrics highlight concerns with negative earnings and no dividend yield. These factors collectively suggest a cautious outlook for the stock.

Balco Group AB Business Overview & Revenue Model

Company Description

Balco Group AB (BALCO) is a prominent provider of balcony solutions primarily catering to the residential and commercial sectors. The company specializes in the design, production, and installation of glazed balcony systems, offering a range of products that enhance the aesthetic appeal and functionality of buildings. Balco's operations are primarily concentrated in Northern and Central Europe, where it serves both new construction projects and renovation markets. The company's innovative solutions are tailored to meet client-specific needs, ensuring compliance with regional building standards and regulations.

How the Company Makes Money

Balco Group AB generates revenue through the sale and installation of its balcony solutions, with its primary revenue streams being the design and installation services for glazed balcony systems. These systems are marketed to residential property owners, housing associations, and commercial real estate developers. The company benefits from long-term contracts and partnerships with construction firms and property developers, which ensure a steady flow of projects. Additionally, Balco's focus on renovation projects in aging markets provides a consistent demand for its offerings. By delivering high-quality, energy-efficient balcony systems, Balco is able to command premium pricing, which contributes significantly to its earnings.

Balco Group AB Financial Statement Overview

Summary

Balco Group AB faces financial challenges, particularly in profitability and cash flow. The income statement shows declining revenue and margins, while the balance sheet indicates increasing leverage and negative returns. Cash flow issues are pronounced, with negative free cash flow growth. The company needs to address operational inefficiencies and improve cash generation to stabilize its financial position.

Income Statement

Balco Group AB's income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative revenue growth rate of -3.05% and a net profit margin of -2.37%, reflecting operational challenges. The gross profit margin has decreased to 12.58% in TTM from 17.48% in 2024, indicating pressure on cost management. The EBIT and EBITDA margins have also declined, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.66 in TTM, up from 0.53 in 2024. The equity ratio remains stable, indicating a balanced capital structure. However, the return on equity has turned negative in TTM, highlighting profitability issues. Overall, the balance sheet shows stability but with increasing leverage and declining returns.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows in TTM. The free cash flow growth rate is -660.27%, indicating severe cash flow issues. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income to cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.42B	1.21B	1.33B	1.12B	1.20B
Gross Profit	171.70M	247.90M	245.35M	287.61M	296.21M	289.43M
EBITDA	25.90M	89.42M	118.41M	145.45M	155.75M	152.81M
Net Income	-32.30M	1.10M	45.90M	76.15M	90.24M	77.64M
Balance Sheet
Total Assets	1.65B	1.63B	1.27B	1.30B	1.25B	1.22B
Cash, Cash Equivalents and Short-Term Investments	13.80M	103.10M	2.81M	51.87M	117.50M	214.13M
Total Debt	493.10M	425.80M	244.42M	156.70M	214.50M	259.35M
Total Liabilities	899.60M	831.70M	519.25M	565.57M	553.58M	624.69M
Stockholders Equity	748.70M	796.80M	746.14M	729.79M	692.00M	598.63M
Cash Flow
Free Cash Flow	-81.80M	72.20M	-39.40M	128.88M	45.70M	96.93M
Operating Cash Flow	-60.60M	85.30M	-26.13M	153.02M	62.52M	111.74M
Investing Cash Flow	-57.80M	-95.70M	-52.90M	-52.59M	-102.11M	-14.27M
Financing Cash Flow	52.50M	113.10M	29.62M	-167.68M	-57.49M	-1.39M

Balco Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BALCO, the sentiment is Negative. The current price of 22.9 is below the 20-day moving average (MA) of 23.68, below the 50-day MA of 24.54, and below the 200-day MA of 30.47, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 33.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:BALCO.

Balco Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BALCO	47 Neutral	€527.20M	216.55	-4.20%	―	9.76%	-289.12%
KMBIF	―	$368.37M	41.62	4.76%	―	―	―
5IW	―	€980.04M	19.23	10.69%	―	―	―
0GE	―	€494.00M	19.79	22.85%	―	―	―
BYY	―	€309.78M	21.57	6.68%	―	―	―
1FS0	―	€225.14M	22.90	10.51%	―	―	―

Balco Group AB Corporate Events

Balco Group Reports Record Order Intake Amid Profitability Challenges

Balco Group AB reported a record high order intake in the second quarter of 2025, driven by increased activity in the Swedish and Norwegian markets and a significant order from the French shipyard Chantiers de l’Atlantique. Despite the high order intake, the company’s profitability was impacted by project start-up delays and structural adjustments, leading to a cautious outlook for the remainder of the year. The company is optimistic about continued growth in renovation projects but anticipates a slower recovery in the new build segment.

Balco Group to Release Q2 2025 Report with Webcast Conference

Balco Group AB has announced that its interim report for the second quarter of 2025 will be released on July 14, 2025, followed by a webcast conference call featuring CEO Camilla Ekdahl and CFO Michael Grindborn. The event will provide stakeholders with insights into the company’s performance and allow for interactive participation through questions. This announcement underscores Balco Group’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations.

Balco AS Secures NOK 40 Million Project in Drammen

Balco AS has secured a significant project in Drammen, valued at approximately NOK 40 million, for a housing cooperative. This project includes the installation of new glazed balconies and integrated air source heat pumps, enhancing living comfort and energy efficiency. The project is set to commence in autumn 2025, with the balconies being manufactured at Balco’s Växjö factory. This development underscores Balco’s strong market position and commitment to delivering comprehensive solutions that improve residential living standards.

Balco Group Secures Major Maritime Order in France

Balco Group has secured its first order in the French maritime industry, marking a significant return to this sector with a project valued at approximately SEK 80 million for Chantiers de l’Atlantique. This move broadens Balco’s product offering and strengthens its position in the maritime segment, as the cruise industry recovers post-COVID-19. The company aims to supply balcony systems to 2-3 cruise ships annually, highlighting its capacity to handle large, complex projects beyond the residential sector.

Balco Group Strengthens Danish Market Presence with Altan.dk Partnership

Balco Group has entered a strategic partnership with Altan.dk, a prominent Danish supplier of balcony solutions, to take over a significant portion of Altan.dk’s steel balcony production at its Polish factory. This collaboration aims to strengthen Balco’s presence in Denmark and create synergies by combining production capacity with Altan.dk’s local market position, benefiting both parties through shared experience, market knowledge, and technical expertise.

Balco AS Achieves Record Order Intake in May

Balco AS, a subsidiary of Balco Group, achieved a record-breaking order intake of NOK 140 million in May, marking one of its strongest quarters. This milestone underscores Balco’s leading position in Norway, where there is a growing demand for energy-efficient and sustainable balcony solutions. The company’s comprehensive offerings, including glazed balcony systems with integrated heat pumps and solar panels, align with the market’s shift towards energy savings and long-term investments, further solidifying its industry standing.

Balco Group Strengthens Communication Strategy with New Appointment

Balco Group has appointed Jesper Magnusson as the new Head of Communications, who will also continue in his role as HR Director. This strategic move aims to enhance the company’s internal and external communication, reinforcing Balco’s position as both an employer and a market player. The change is expected to streamline dialogue and strengthen messaging, although it does not impact Investor Relations, which remains under the CFO’s purview.

Balco Group Announces CFO Departure

Balco Group announced that its CFO, Michael Grindborn, will leave the company by mid-November 2025 to pursue new challenges. The company has initiated the recruitment process for a successor, highlighting a significant leadership transition that could impact its strategic operations and market positioning.

Balco Group’s AGM 2025: Strategic Decisions and Incentive Program

At its 2025 Annual General Meeting, Balco Group AB resolved to carry forward funds without paying a dividend and re-elected its Board members and auditor. The company introduced a new incentive program for senior executives, involving the issuance of up to 230,000 warrants, potentially increasing the share capital by SEK 1,380,054.17. The meeting also authorized the Board to issue new shares and manage the acquisition and transfer of own shares until the next meeting. These decisions are aimed at strengthening Balco’s financial flexibility and aligning management incentives with shareholder interests.