Bong AB (BONG) AI Stock Analysis

• Market Cap: kr151.22M
• Dividend Yield: N/A
• Average Volume (3M): 102.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -6.28%
• EPS Growth: -6.63%
• Country: SE
• Employees: 973
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Packaging & Containers
• EPS (TTM): <0.01
• Shares Outstanding: 211,205,060
• 10 Day Avg. Volume: 41,979
• 30 Day Avg. Volume: 102,122
• PEG Ratio: -0.28
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.95
• 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

• Rating: 56 Neutral
• Price Target: kr0.50 ▼(-30.56%Downside)

The overall stock score of 56.2 reflects financial challenges with declining profitability and revenues as the most significant factor. Technical analysis shows limited momentum, and valuation concerns arise due to a negative P/E ratio. Despite strong cash management, the stock needs improvement in profitability and market sentiment to enhance its score.

Bong AB Business Overview & Revenue Model

Company Description

Bong AB (publ) manufactures and sells specialty packaging and envelope products. It provides solutions for distribution and packaging of information, advertising materials, and lightweight goods. The company offers envelopes, carrier bags for the retail trade, and packaging products for e-commerce. It also provides light packaging products; and solutions for distribution and packaging of information, advertising materials, and lightweight goods. The company has operations in Germany, Poland, Belgium, Romania, Switzerland, France, Italy, Spain, Sweden, Norway, Denmark, Finland, the United Kingdom, and Tunisia. Bong AB (publ) was founded in 1737 and is headquartered in Kristianstad, Sweden.

How the Company Makes Money

Bong AB primarily generates revenue through the sale of its envelope and packaging products. Its key revenue streams include direct sales to businesses across Europe in the e-commerce, logistics, and direct mail sectors. The company also earns income from customized packaging solutions which cater to specific client needs, adding value and differentiation in the marketplace. BONG may engage in strategic partnerships with retailers and other businesses to enhance its market reach and product offerings, contributing to its financial performance. Sustainability initiatives and innovations in packaging design also play a role in attracting and retaining clients, thus supporting revenue growth.

Bong AB Financial Statement Overview

Summary

Bong AB is experiencing financial pressure with declining revenues and profitability. Despite stable debt levels and strong cash management, negative ROE and reduced free cash flow signal potential liquidity challenges. Addressing profitability issues is crucial for improving financial health.

Income Statement

Bong AB's income statement shows some challenges with declining revenues and net income over recent years. The gross profit margin for 2024 is approximately 16.24%, indicating a squeeze on profitability compared to previous years. Additionally, the net profit margin has decreased significantly, showing a negative value due to a net loss, indicating challenges in managing costs relative to revenues. While EBIT and EBITDA margins remain positive, they have also shown a declining trend, reflecting operational efficiency concerns.

Balance Sheet

The balance sheet of Bong AB highlights a stable equity base with total equity of SEK 573.6 million, providing an equity ratio of around 36.56%. The debt-to-equity ratio remains moderate at approximately 0.69, suggesting a balanced approach to leveraging. However, the declining return on equity (ROE), which is negative due to net losses, indicates a lack of return on shareholder investments.

Cash Flow

Bong AB's cash flow statement shows a decrease in free cash flow from SEK 53.6 million in 2023 to SEK 24.5 million in 2024, indicating reduced cash generation capacity. The operating cash flow to net income ratio is positive, suggesting that operating activities are generating cash, although net income is negative. The free cash flow to net income ratio reflects a similar trend of positive cash flow against net losses, highlighting strong cash management despite profitability challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.91B	2.09B	2.16B	1.80B	1.84B
	Gross Profit
310.90M	327.50M	384.78M	305.65M	314.92M
	EBIT
43.40M	43.56M	98.29M	28.88M	-16.74M
	EBITDA
119.10M	135.00M	162.35M	108.40M	92.75M
	Net Income Common Stockholders
-12.00M	-4.72M	44.12M	2.82M	-65.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
102.70M	129.40M	144.63M	135.19M	110.04M
	Total Assets
1.57B	1.57B	1.69B	1.44B	1.39B
	Total Debt
397.40M	380.08M	276.66M	361.03M	345.94M
	Net Debt
294.70M	251.66M	132.03M	225.84M	235.90M
	Total Liabilities
994.80M	1.02B	1.11B	1.00B	981.64M
	Stockholders Equity
573.60M	554.97M	574.75M	442.01M	412.27M
Cash Flow		Free Cash Flow
24.50M	53.56M	59.69M	45.15M	11.19M
	Operating Cash Flow
70.60M	82.89M	111.28M	66.70M	34.20M
	Investing Cash Flow
-32.30M	-19.67M	-38.87M	-7.01M	-3.29M
	Financing Cash Flow
-67.50M	-80.49M	-72.88M	-37.41M	-15.27M

Bong AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.72
• 50DMA: Positive
• 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:BONG, the sentiment is Positive. The current price of 0.72 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.70, and below the 200-day MA of 0.78, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 37.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:BONG.

Bong AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
BONG	56 Neutral	kr151.22M	―	-2.25%	―	-6.28%	-6.63%
USWE	51 Neutral	€70.65M	―	-22.28%	―	10.93%	67.49%
ACROUD	44 Neutral	€172.37M	―	-77.60%	―	-2.26%	82.09%
DSNO	42 Neutral	kr122.24M	―	-10.19%	―	-10.94%	93.14%

Bong AB Corporate Events

Bong AB’s Annual General Meeting Decisions and Future Plans

Bong AB held its annual general meeting on May 14, 2025, in Stockholm, where several key resolutions were passed. The meeting approved the annual accounts, decided against paying dividends, and re-elected board members with Per Åhlgren as chairperson. Additionally, the board was authorized to issue shares, warrants, and convertibles, potentially impacting the company’s capital structure and market strategy.

Bong AB Reports Decline in Q1 2025 Financial Performance

Bong AB’s interim report for Q1 2025 indicates a decline in financial performance, with net sales dropping to SEK 488 million from SEK 508 million in the same period last year. Operating profit before depreciation decreased to SEK 32 million, and cash flow from operating activities fell significantly to SEK 22 million. These results reflect challenges in maintaining profitability and cash flow, which may impact the company’s operations and market positioning.