Bjorn Borg AB (BORG) AI Stock Analysis

• Market Cap: kr1.62B
• Dividend Yield: 4.95%
• Average Volume (3M): 12.04K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.54
• Revenue Growth: 9.20%
• EPS Growth: 11.72%
• Country: SE
• Employees: 168
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.61
• Shares Outstanding: 25,148,384
• 10 Day Avg. Volume: 9,490
• 30 Day Avg. Volume: 12,039
• PEG Ratio: 0.64
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 35.01
• 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): 3.79
• Revenue Forecast (FY): kr1.11B

• Rating: 70 Outperform
• Price Target: kr74.00 ▲(19.74% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is led by solid financial performance with strong growth and profitability, partially offset by weaker 2025 cash conversion and higher leverage. Valuation is supportive due to the reasonable P/E and strong dividend yield, while technical signals are mixed with only modest positive price positioning but negative MACD.

Positive Factors

Revenue Acceleration

Sustained revenue acceleration indicates stronger brand demand and expanding market penetration across channels. Over 2-6 months this supports higher scale, broader retail and DTC traction, and provides a platform to invest in product, marketing, and international expansion while absorbing fixed costs.

Rising Net Income

Material net income growth reflects the company's ability to convert sales into earnings, supporting durable cash generation. Higher profitability bolsters internal funding for growth initiatives, dividend capacity and licensing partnerships, strengthening financial resilience over coming quarters.

Capital Cushion / Balance Sheet

A sizable equity base relative to debt provides a healthy capital buffer to withstand demand shocks and fund strategic initiatives. This balance sheet strength supports longer-term investments in brand, inventory and omnichannel capabilities while preserving credit flexibility.

Negative Factors

Rising Debt

The sharp increase in debt over recent years raises financial risk if top-line momentum slows. Higher leverage can constrain strategic options, increase interest expense sensitivity, and pressure the company’s ability to sustain investment or dividends during tougher retail cycles.

Weaker Cash Conversion

Declining free and operating cash flow despite rising earnings signals worsening cash conversion. This reduces flexibility to fund growth, repay debt or support distributions, and elevates vulnerability to working capital swings or margin compression over the medium term.

Limited Operating Leverage

Revenue growth without commensurate operating profit expansion implies limited operating leverage and potential margin compression. If structural cost bases or channel mix continue to impede incremental margins, long-term return on sales could be constrained despite higher sales volumes.

Bjorn Borg AB Business Overview & Revenue Model

Company Description

Björn Borg AB (publ), together with its subsidiaries, engages in the design, development, production, wholesale, and retail of underwear, sports apparel, footwear, bags, eyewear, and fragrances under the Björn Borg brand. The company operates through Wholesale, Consumer Direct, Distributors, and License segments. It offers underwear for men, women, and kids, as well as pajamas and socks through independent retailers, fashion and sports chains, department stores, Björn Borg stores, and e-commerce sites; and clothing collections for women and men through sports retailers, sports chains, department stores, Björn Borg stores, and e-commerce sites. The company also provides leisure and sports shoes for men and women through independent shoe retailers, shoe and sports chains, department stores, e-tailers, and Björn Borg stores, as well as through www.bjornborg.com; sports bags, backpacks, and suitcases, as well as wallets, gloves, and belts through bag retailers, sports shops, retail chains, department stores, shop-in-shops, Björn Borg stores, and e-commerce sites; and backpacks, gym bags, and duffle bags, as well as wallets, gloves, and belts through luggage and sporting goods shops, retail chains, department stores, shop-in-shops, Björn Borg stores, and e-commerce sites. Further, it offers spectacle frames and sunglasses through the licensee's distribution organizations, fashion stores, department stores, and Björn Borg stores. The company sells its products in Sweden, the Netherlands, Finland, Germany, Belgium, Norway, Denmark, England, Switzerland, the United States, Slovenia, France, and Canada. As of December 31, 2020, it operated 32 Björn Borg stores, including 29 group owned stores. The company was founded in 1984 and is headquartered in Solna, Sweden.

How the Company Makes Money

Björn Borg AB primarily makes money by monetizing the Björn Borg brand through (1) product sales and (2) brand licensing. Product-sales revenue is generated by selling Björn Borg-branded goods—particularly underwear, but also apparel and accessories—via wholesale distribution (selling to retailers and other business customers) and direct-to-consumer channels (e-commerce and, where applicable, brand-owned retail). In wholesale, earnings depend on volumes shipped and negotiated pricing/margins with retail partners; in direct-to-consumer, the company captures the retail margin but also bears customer acquisition, fulfillment, and operating costs. In addition, the company earns licensing income by granting third parties the right to produce and/or sell certain Björn Borg-branded products in defined categories or territories, typically in exchange for royalties and/or license fees tied to the licensee’s sales. Key factors influencing earnings include brand strength and consumer demand, the product mix (e.g., underwear versus other categories), channel mix (wholesale versus direct-to-consumer), and the performance of distribution and licensing partners.

Bjorn Borg AB Financial Statement Overview

Summary

Strong revenue acceleration and rising net income support a solid financial profile, but operating profit has not scaled with the top-line surge, free cash flow and operating cash flow weakened in 2025, and debt increased notably versus prior years—raising margin, cash-conversion, and leverage risk.

Income Statement

Revenue growth has accelerated meaningfully (up ~34% in 2025 vs. ~13% in 2024), while operating profit has remained steady around ~102m, indicating scale-driven growth but with margin pressure. Profitability is solid with net income rising to ~92m in 2025 from ~73m in 2024, though prior-year margins show volatility (strong in 2021, sharply weaker in 2020, then recovered). Overall, the business is growing well, but the latest growth appears to be coming with less incremental operating leverage.

Balance Sheet

The balance sheet is generally sound with equity of ~367m against total debt of ~108m in 2025, implying moderate leverage and a reasonable capital cushion. However, debt has increased notably versus 2024 (~59m) and 2023 (~43m), which raises financial risk if profitability were to soften. Assets have grown modestly alongside equity, suggesting stable balance sheet expansion, but the recent leverage uptick is a key watch item.

Cash Flow

Cash generation remains positive, with free cash flow of ~45m in 2025, but it declined sharply versus 2024 (~62m) and 2023 (~110m). The drop in operating cash flow (to ~55m in 2025 from ~76m in 2024) alongside higher earnings points to weaker cash conversion in the most recent year. While the company still produces cash, the trend shows increasing variability and reduced flexibility versus prior years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	989.70M	872.26M	835.17M	796.10M
Gross Profit	352.48M	520.65M	294.81M	424.51M	444.43M
EBITDA	131.53M	133.98M	136.83M	109.45M	147.38M
Net Income	92.06M	72.67M	75.97M	50.87M	86.03M
Balance Sheet
Total Assets	719.23M	708.87M	631.52M	653.39M	680.67M
Cash, Cash Equivalents and Short-Term Investments	13.54M	8.77M	26.65M	16.03M	96.74M
Total Debt	107.76M	58.94M	42.85M	81.65M	135.95M
Total Liabilities	358.21M	356.39M	280.71M	328.58M	346.45M
Stockholders Equity	366.84M	359.36M	357.12M	331.41M	340.08M
Cash Flow
Free Cash Flow	45.11M	61.99M	110.14M	52.18M	103.42M
Operating Cash Flow	55.27M	76.04M	121.28M	60.50M	113.93M
Investing Cash Flow	-12.40M	-14.05M	-11.14M	-8.32M	-10.51M
Financing Cash Flow	-47.29M	-77.86M	-101.55M	-135.94M	-80.12M

Bjorn Borg AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BORG, the sentiment is Neutral. The current price of 61.8 is below the 20-day moving average (MA) of 65.23, below the 50-day MA of 62.22, and above the 200-day MA of 60.33, indicating a neutral trend. The MACD of 0.91 indicates Positive momentum. The RSI at 50.39 is Neutral, neither overbought nor oversold. The STOCH value of 42.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:BORG.

Bjorn Borg AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVRC	78 Outperform	kr7.26B	12.87	25.41%	2.02%	6.44%	0.49%
BORG	70 Outperform	kr1.62B	17.16	23.44%	4.95%	9.20%	11.72%
BOOZT	68 Neutral	kr5.49B	23.64	―	―	1.54%	72.94%
NELLY	64 Neutral	kr1.60B	13.97	51.02%	―	12.45%	118.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOI.B	54 Neutral	kr5.93B	-24.11	2.04%	6.24%	-2.98%	-30.48%
SHOT	53 Neutral	kr17.35B	33.57	21.87%	5.28%	1.45%	34.85%