Balco Group AB (BALCO) AI Stock Analysis

• Market Cap: kr382.16M
• Dividend Yield: N/A
• Average Volume (3M): 25.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -0.80%
• EPS Growth: -442.39%
• Country: SE
• Employees: 562
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Construction
• EPS (TTM): -0.23
• Shares Outstanding: 23,021,648
• 10 Day Avg. Volume: 15,400
• 30 Day Avg. Volume: 25,553
• PEG Ratio: -8.22
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 12.24
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: kr16.00 ▼(-1.23% Downside)

Balco Group AB's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue, profitability, and cash flows. Technical analysis indicates a bearish trend, further weighing on the stock's outlook. The negative P/E ratio and lack of dividend yield contribute to a poor valuation score, reinforcing the challenges faced by the company.

Positive Factors

Integrated end-to-end business model

Owning design, manufacture and installation creates a durable competitive edge: control of the full value chain improves coordination, quality and customer lock-in for housing cooperatives and contractors, supporting stable project margins and repeat pipeline over time.

Stable equity ratio provides capital buffer

A stable equity ratio implies the company still has a reasonable capital base to absorb cyclical swings in construction activity. That stability supports access to credit and underwriting of multi-stage projects, reducing insolvency risk during downturns and enabling project continuity.

Positive free cash flow to net income ratio

Even amid losses, a positive free cash flow-to-net-income ratio signals the operations can still generate cash relative to accounting losses. This provides a durable cushion for working capital and selective investment without immediate reliance on equity raises, aiding short-to-medium term survival.

Negative Factors

Rising leverage (debt/equity 0.66)

Higher leverage materially increases fixed financing costs and reduces strategic flexibility. For a project-driven contractor, elevated debt raises refinancing and covenant risk during slow tender cycles, limiting ability to bid on larger projects or invest in capacity maintenance.

Negative operating and free cash flows

Sustained negative operating and free cash flows erode liquidity and force reliance on external financing or asset sales. For a company with project-based revenue, persistent cash burn undermines ability to fund guarantees, margins and growth investments, threatening long-term competitiveness.

Material margin deterioration

A sharp drop in gross margin is a structural concern: it suggests higher input or installation costs, pricing pressure, or mix shifts toward lower-value projects. Reduced gross margins squeeze EBIT and free cash generation, impairing reinvestment capacity and shareholder returns over multiple quarters.

Balco Group AB Business Overview & Revenue Model

Company Description

Balco Group AB (BALCO) is a Swedish company specializing in the manufacturing and supply of balcony solutions, primarily serving the residential construction sector. The company operates in the building and construction industry, focusing on enhancing living spaces through innovative balcony systems, glass railings, and other related products. Balco's offerings cater to both new construction projects and renovation initiatives, positioning the company as a key player in improving urban living environments.

How the Company Makes Money

Balco Group AB generates revenue through the sale of its balcony solutions and related products to construction companies, property developers, and housing cooperatives. The primary revenue streams include direct sales of balcony systems, glass railings, and installation services. The company benefits from long-term contracts with developers and municipalities, which provide a stable income base. Additionally, Balco may engage in partnerships with construction firms, enhancing its market reach and enabling bundled service offerings that can drive sales volume. Factors contributing to its earnings include the demand for urban residential construction, the trend towards enhancing outdoor living spaces, and the company's reputation for quality and innovation in its product offerings.

Balco Group AB Financial Statement Overview

Summary

Balco Group AB is facing significant financial challenges, with declining revenue and profitability, increased leverage, and negative cash flows. The construction industry may be experiencing headwinds, impacting the company's financial performance. While the equity ratio remains stable, the overall financial health of the company is under pressure, requiring strategic measures to improve profitability and cash flow.

Income Statement

Balco Group AB has shown a declining trend in revenue growth, with a negative growth rate of -3.97% in the TTM period. The gross profit margin has decreased from 26.44% in 2021 to 12.58% in the TTM period, indicating pressure on profitability. The net profit margin has turned negative in the TTM period, reflecting a challenging operating environment. The EBIT and EBITDA margins have also declined, showing reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.66 in the TTM period, indicating higher leverage compared to previous years. Return on equity has turned negative, reflecting the impact of net losses. However, the equity ratio remains stable, suggesting a reasonable level of equity financing relative to total assets.

Cash Flow

Balco Group AB's cash flow situation has deteriorated, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.42B	1.21B	1.33B	1.12B	1.20B
Gross Profit	160.30M	247.90M	245.35M	287.61M	296.21M	289.43M
EBITDA	29.20M	89.42M	118.41M	145.45M	153.79M	152.81M
Net Income	-37.00M	1.10M	45.90M	76.15M	90.24M	77.64M
Balance Sheet
Total Assets	1.69B	1.63B	1.27B	1.30B	1.25B	1.22B
Cash, Cash Equivalents and Short-Term Investments	48.10M	103.10M	2.81M	51.87M	117.50M	214.13M
Total Debt	538.10M	425.80M	244.42M	156.70M	214.50M	259.35M
Total Liabilities	947.00M	831.70M	519.25M	565.57M	553.58M	624.69M
Stockholders Equity	740.10M	796.80M	746.14M	729.79M	692.00M	598.63M
Cash Flow
Free Cash Flow	-69.50M	72.20M	-39.40M	128.88M	45.70M	96.93M
Operating Cash Flow	-50.10M	85.30M	-26.13M	153.02M	62.52M	111.74M
Investing Cash Flow	-56.20M	-95.70M	-52.90M	-52.59M	-102.11M	-14.27M
Financing Cash Flow	116.10M	113.10M	29.62M	-167.68M	-57.49M	-1.39M

Balco Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 16.2 is below the 20-day moving average (MA) of 16.68, below the 50-day MA of 17.10, and below the 200-day MA of 22.47, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 32.32 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
RVRC	78 Outperform	kr7.22B	23.90	23.71%	2.02%	6.44%	0.49%
FMM.B	73 Outperform	kr2.72B	25.49	10.51%	3.07%	2.08%	-7.27%
KAMBI	65 Neutral	kr3.10B	35.61	4.76%	―	-5.16%	-48.79%
BMAX	65 Neutral	kr3.31B	17.10	7.24%	1.40%	4.04%	433.33%
INWI	64 Neutral	kr8.92B	17.09	9.78%	3.37%	3.41%	-1.70%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BALCO	47 Neutral	kr382.16M	-10.33	-4.80%	―	-0.80%	-442.39%

Balco Group AB Corporate Events

Balco Subsidiary RK Teknik Wins SEK 80 Million in Public Housing Balcony Orders

RK Teknik, a subsidiary of Balco Group, has won three major public housing projects in Luleå, Stockholm and Gothenburg with a combined order value of about SEK 80 million, covering the delivery and installation of glazed and open balconies, as well as eco-concrete patios, side walls and roofs in some cases. The contracts, some of which are divided into phases extending into 2026 and will use glazing systems from Balco’s Finnish unit Riikku Rakenteet Oy, reinforce Balco Group’s strategic push into the public housing segment, underpinning more stable production, strengthening RK Teknik’s position in this high-volume, long-term growth market, and supporting its focus on sustainable balcony solutions that enhance resident quality of life and long-term value for public housing companies.

The most recent analyst rating on (SE:BALCO) stock is a Hold with a SEK16.00 price target. To see the full list of analyst forecasts on Balco Group AB stock, see the SE:BALCO Stock Forecast page.

Balco Group Sets Date for Fourth-Quarter 2025 Results and Webcast

Balco Group AB will publish its interim report for the fourth quarter of 2025 on 6 February 2026 at 13:00 CET and will follow up with a webcast conference call at 14:00 CET the same day, led by CEO and President Camilla Ekdahl and interim CFO Carin Bengtsson. Investors and other stakeholders will be able to access the presentation materials in advance via the company’s website, participate in the live webcast with the option to ask questions, or view a recorded version later, underscoring Balco’s ongoing efforts to maintain transparent communication with the capital market around its financial performance.

The most recent analyst rating on (SE:BALCO) stock is a Hold with a SEK18.50 price target. To see the full list of analyst forecasts on Balco Group AB stock, see the SE:BALCO Stock Forecast page.

Balco Lands Historic SEK 200 Million Order with Meyer Werft

Balco Group AB has secured its largest order to date with a SEK 200 million agreement to supply over 2,000 balcony solutions for three cruise ships being built by the German shipyard Meyer Werft. This milestone highlights the company’s technical expertise and strengthens its position in the maritime segment, aligning with its strategy to broaden its offerings and collaborate with major European shipyards. The order reinforces Balco’s commitment to the maritime sector and signals growth opportunities within this market.

The most recent analyst rating on (SE:BALCO) stock is a Hold with a SEK16.50 price target. To see the full list of analyst forecasts on Balco Group AB stock, see the SE:BALCO Stock Forecast page.

Balco Group Appoints Nomination Committee for 2026 AGM

Balco Group has announced the appointment of its Nomination Committee for the 2026 Annual General Meeting, which includes representatives from major stakeholders such as Family Hamrin, Skandrenting AB, and Swedbank Robur Fonder. The committee will prepare proposals for the AGM, including board member elections and remuneration, impacting the company’s governance and strategic direction.

The most recent analyst rating on (SE:BALCO) stock is a Hold with a SEK16.50 price target. To see the full list of analyst forecasts on Balco Group AB stock, see the SE:BALCO Stock Forecast page.

Balco Group Appoints New Managing Director for Riikku Rakenteet Oy

Balco Group has appointed Jani Backlund as the new Managing Director of Riikku Rakenteet Oy, effective February 1, 2026. Jani brings over 20 years of experience, notably from Ruukki Construction, and is expected to drive profitable growth and development at Riikku Rakenteet. The company aims to strengthen its position and improve profitability, particularly in the renovation segment, which has not met expectations since the acquisition.

The most recent analyst rating on (SE:BALCO) stock is a Hold with a SEK19.00 price target. To see the full list of analyst forecasts on Balco Group AB stock, see the SE:BALCO Stock Forecast page.