Balco Group AB (BALCO) AI Stock Analysis

• Market Cap: kr417.84M
• Dividend Yield: N/A
• Average Volume (3M): 25.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• 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: kr18.50 ▲(14.20% Upside)

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

Stable Equity Ratio

A stable equity ratio indicates financial resilience, providing a buffer against market volatility and supporting long-term strategic investments.

Long-term Contracts

Long-term contracts ensure steady revenue streams, enhancing financial predictability and reducing exposure to short-term market fluctuations.

Reputation for Quality

A strong reputation for quality can drive customer loyalty and competitive advantage, supporting sustained market presence and pricing power.

Negative Factors

Declining Revenue

Declining revenue growth suggests challenges in market demand or competitive positioning, potentially impacting long-term profitability and market share.

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, limiting the company's ability to invest in growth opportunities or weather economic downturns.

Increased Leverage

Increased leverage can strain financial resources, raising risk levels and potentially leading to higher interest costs, affecting long-term financial stability.

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: Neutral
• 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 Neutral. The current price of 16.2 is below the 20-day moving average (MA) of 17.02, below the 50-day MA of 19.02, and below the 200-day MA of 24.15, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 52.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:BALCO.

Balco Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMM.B	73 Outperform	kr2.67B	24.48	10.51%	3.07%	2.08%	-7.27%
RVRC	69 Neutral	kr7.07B	24.64	23.71%	2.02%	6.44%	0.49%
KAMBI	65 Neutral	kr3.88B	41.15	4.76%	―	-5.16%	-48.79%
BMAX	65 Neutral	kr3.15B	17.89	7.24%	1.40%	4.04%	433.33%
INWI	64 Neutral	kr9.46B	17.80	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	kr417.84M	-11.29	-4.80%	―	-0.80%	-442.39%

Balco Group AB Corporate Events

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.

Balco Group AB Reports Q3 2025 Financial Results Amid Strategic Expansion Efforts

Balco Group AB’s Q3 2025 report highlights a challenging quarter with decreased net sales and order intake compared to the previous year, but an increase in order backlog. The company is focusing on profitability improvements and strategic market expansion, particularly in Germany, despite current financial setbacks. New leadership appointments aim to strengthen business development and investor relations, while ongoing structural measures target long-term growth and stability.

Balco Group to Release Q3 2025 Interim Report

Balco Group AB has announced the release of its third-quarter interim report for 2025, scheduled for October 27, followed by a webcast conference call featuring key executives. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, reinforcing its market position in the balcony industry.

Balco Group Appoints New CFO to Drive Strategic Growth

Balco Group has appointed Viktor Arvidsson as its new CFO and Head of Investor Relations, effective no later than Q1 2026. Arvidsson’s extensive experience in finance and leadership, particularly in listed and manufacturing companies, positions him to contribute significantly to Balco’s ongoing development and strategic initiatives.