BioGaia AB (BIOG.B) AI Stock Analysis

• Market Cap: kr11.44B
• Dividend Yield: 1.95%
• Average Volume (3M): 124.05K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 0.48
• Revenue Growth: 7.88%
• EPS Growth: -6.35%
• Country: SE
• Employees: 224
• Sector: General
• Sector Strength: N/A
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 98,497,170
• 10 Day Avg. Volume: 90,103
• 30 Day Avg. Volume: 124,054
• PEG Ratio: -7.77
• Price to Book (P/B): 6.56
• Price to Sales (P/S): 7.95
• P/FCF Ratio: 31.50
• 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: 80 Outperform
• Price Target: kr130.00 ▲(23.11% Upside)

Strong financial performance (high margins, strong cash generation, and virtually no debt) is the primary driver of the score. Technicals support the uptrend but are tempered by overbought signals. Valuation is a meaningful headwind due to a high P/E and only modest dividend yield.

Positive Factors

High Profitability

Sustained high gross and operating margins indicate durable product differentiation and pricing power in probiotics. These margins support strong internal funding for R&D, marketing and global distribution, sustaining competitive position and long-term profitability.

Conservative Balance Sheet

Effectively zero debt provides material financial flexibility, lowering insolvency risk and enabling strategic investment, M&A or shareholder returns without refinancing pressure. This balance-sheet strength enhances resilience through industry cycles and funds long-term growth initiatives.

Strong Cash Generation

High-quality cash conversion—OCF well above net income and FCF near parity—supports sustainable funding of operations, steady capex and distributions. Reliable cash generation underpins capital allocation flexibility and reduces reliance on external financing over the medium term.

Negative Factors

Margin Moderation

Recent step-down in margins and lower net income versus prior years signals profitability erosion that can persist if driven by structural cost increases, pricing pressure, or competitive dynamics. That trend would reduce cash flow and limit reinvestment or returns if not reversed.

Volatile Cash Growth

Although overall cash conversion is strong, meaningful year-to-year volatility complicates planning for capex, R&D and distributions. Persistent variability can indicate sensitivity to seasonality, product mix or one-offs, raising execution risk for multi-year investments and guidance reliability.

Earnings Pressure

Negative EPS growth reflects near-term earnings headwinds and reduces the company's compounding capacity. If EPS declines persist, they can undermine return on equity, constrain strategic initiatives, and increase sensitivity to competitive or regulatory shifts over the medium term.

BioGaia AB Business Overview & Revenue Model

Company Description

BioGaia AB (publ) develops, markets, and sells probiotic products with documented health benefits worldwide. It operates through three segments: Pediatrics, Adult Health, and Other. The Pediatrics segment offers drops, oral rehydration solutions, and gut health tablets, as well as cultures that are used as an ingredient in infant formula. The Adult Health segment provides gut health tablets and oral health lozenges products, as well as cultures, which are used as an ingredient in a licensee's dairy product. The Other segment provides packaging solutions. The company offers its products in the areas of infantile colic and digestive health in children; antibiotic-associated and acute diarrhoea; gingivitis; periodontal disease; general health; Helicobacter pylori–the gastric ulcer bacterium; and low bone density. It offers its products under the BioGaia brand name. BioGaia AB (publ) was founded in 1990 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

BioGaia generates revenue through the sale of its probiotic products, which include dietary supplements and medical foods. The company has established a diverse revenue model that includes direct sales to consumers, partnerships with healthcare providers, and collaborations with major pharmaceutical and food companies for product development and distribution. Key revenue streams come from both prescription and over-the-counter probiotic products, with significant contributions from international markets. Additionally, BioGaia benefits from licensing agreements and royalties from its probiotic strains, which are utilized by partner companies in their own product lines, further enhancing its earnings potential.

BioGaia AB Financial Statement Overview

Summary

BioGaia AB is in a strong financial position with robust profitability, excellent equity structure, and healthy cash flow management. While the company exhibits revenue growth and strong profit margins, minor operational efficiency challenges and cash flow variability should be monitored.

Income Statement

BioGaia AB has demonstrated strong financial performance with consistent revenue growth and healthy profit margins. The gross profit margin remained robust at 72.46% for 2024, reflecting efficient cost management. Net profit margin was similarly strong at 24.70%, indicating effective control over operating expenses. Revenue growth rate from 2023 to 2024 was 9.76%, showcasing positive upward trajectory. However, a slight decline in EBIT margin from 34.18% to 29.76% suggests potential challenges in operational efficiency.

Balance Sheet

The balance sheet of BioGaia AB is solid with a remarkable equity ratio of 84.77% for 2024, indicating financial stability and low reliance on debt. The debt-to-equity ratio is effectively zero, showcasing a strong capital structure with no debt burden. However, slight declines in stockholders' equity over the years may warrant attention.

Cash Flow

BioGaia AB has shown stable cash flow management with a free cash flow of SEK 359.07 million for 2024. The operating cash flow to net income ratio of 1.06 reflects good cash generation relative to earnings. However, a decrease in free cash flow growth rate from previous years suggests potential operational cash constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.42B	1.30B	1.10B	785.11M	747.08M
Gross Profit	1.06B	1.03B	950.19M	801.93M	582.95M	546.92M
EBITDA	445.74M	539.44M	494.92M	476.89M	276.86M	248.84M
Net Income	315.91M	351.39M	365.35M	373.77M	196.27M	179.73M
Balance Sheet
Total Assets	1.49B	2.03B	2.33B	2.21B	2.13B	1.91B
Cash, Cash Equivalents and Short-Term Investments	728.10M	1.22B	1.54B	1.49B	1.48B	1.47B
Total Debt	0.00	7.10M	8.80M	20.09M	10.40M	8.90M
Total Liabilities	269.03M	310.07M	302.85M	241.55M	250.69M	167.04M
Stockholders Equity	1.22B	1.72B	2.03B	1.97B	1.88B	1.75B
Cash Flow
Free Cash Flow	321.96M	359.06M	377.25M	301.03M	215.50M	205.18M
Operating Cash Flow	326.29M	373.22M	425.96M	318.94M	221.88M	221.26M
Investing Cash Flow	-4.24M	-14.07M	-50.94M	-18.14M	-126.97M	-16.07M
Financing Cash Flow	-705.79M	-689.72M	-308.42M	-313.59M	-81.85M	1.05B

BioGaia AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BIOG.B, the sentiment is Positive. The current price of 105.6 is below the 20-day moving average (MA) of 105.67, above the 50-day MA of 102.45, and above the 200-day MA of 101.92, indicating a bullish trend. The MACD of 3.11 indicates Negative momentum. The RSI at 69.47 is Neutral, neither overbought nor oversold. The STOCH value of 78.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:BIOG.B.

BioGaia AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIOG.B	80 Outperform	kr11.44B	35.83	22.26%	1.95%	7.88%	-6.35%
SECARE	64 Neutral	kr5.73B	90.53	0.88%	0.66%	6.65%	1.41%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
NANEXA	48 Neutral	kr536.33M	-13.02	-48.65%	―	-60.33%	58.04%
ORX	47 Neutral	kr1.06B	-5.32	―	―	-8.79%	-91.09%
ALZCUR	43 Neutral	kr220.06M	-4.73	-90.66%	―	―	15.74%
ENZY	38 Underperform	kr492.75M	-9.10	―	―	19.17%	24.53%

BioGaia AB Corporate Events

BioGaia and University of Gothenburg Unveil Gut Bacteria’s Role in Serotonin Production

BioGaia AB, in collaboration with the University of Gothenburg, has discovered that specific gut bacteria can produce serotonin, a key neurotransmitter. This finding not only enhances understanding of the microbiota-gut-brain axis but also opens potential for developing innovative probiotic products targeting gut and mental health, particularly for conditions like irritable bowel syndrome.

The most recent analyst rating on ($SE:BIOG.B) stock is a Buy with a SEK116.00 price target. To see the full list of analyst forecasts on BioGaia AB stock, see the SE:BIOG.B Stock Forecast page.

BioGaia AB Reports Q3 2025 Growth and Strategic Initiatives

BioGaia AB reported a 7% increase in net sales for the third quarter of 2025, driven by growth in both its Pediatrics and Adult Health segments. The company launched BioGaia New Sciences AB to focus on microbiome research, established its own distribution in Germany and Austria, and introduced a new product, Prodentis® Fresh Breath. Despite a decrease in adjusted operating profit and profit after tax, the company saw a significant rise in operating profit and earnings per share, indicating strong operational performance. Key leadership changes and strategic initiatives, including a new chairman and a study publication, highlight BioGaia’s commitment to strengthening its market position and expanding its research capabilities.

The most recent analyst rating on ($SE:BIOG.B) stock is a Buy with a SEK115.00 price target. To see the full list of analyst forecasts on BioGaia AB stock, see the SE:BIOG.B Stock Forecast page.

BioGaia Unveils New Probiotic Strain with Enhanced Benefits

BioGaia AB has announced the publication of its new patented strain, L. reuteri BG-R46®, in the journal Beneficial Microbes. Developed in collaboration with the Swedish University of Agricultural Sciences, this strain exhibits enhanced bile tolerance and adenosine production, supporting gut health and anti-inflammatory properties. This advancement underscores BioGaia’s commitment to pioneering microbiome science and maintaining its leadership in the probiotic industry.

The most recent analyst rating on ($SE:BIOG.B) stock is a Buy with a SEK115.00 price target. To see the full list of analyst forecasts on BioGaia AB stock, see the SE:BIOG.B Stock Forecast page.