Bredband2 i Skandinavien AB (BRE2) AI Stock Analysis

• Market Cap: kr2.79B
• Dividend Yield: 5.13%
• Average Volume (3M): 748.69K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.06
• Revenue Growth: 9.72%
• EPS Growth: 4.26%
• Country: SE
• Employees: 240
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 0.04
• Shares Outstanding: 957,095,150
• 10 Day Avg. Volume: 373,031
• 30 Day Avg. Volume: 748,690
• PEG Ratio: 0.73
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 8.58
• 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): 0.14
• Revenue Forecast (FY): kr1.89B

• Rating: 66 Neutral
• Price Target: kr3.00 ▲(2.74% Upside)

Bredband2 i Skandinavien AB's overall stock score is driven by its solid financial performance, characterized by stable revenue growth and strong profitability. Technical analysis indicates mixed signals, with some short-term weakness but longer-term support. The valuation is moderate, with an attractive dividend yield. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for Bredband2's services, reflecting its strong market position and effective customer acquisition strategies.

Cash Flow Generation

Strong cash flow generation supports Bredband2's ability to invest in growth opportunities and manage debt, enhancing long-term financial stability.

Profitability

A stable net profit margin suggests effective cost management and pricing strategies, contributing to the company's sustainable profitability.

Negative Factors

Debt Levels

High debt levels can limit financial flexibility and increase risk, potentially impacting Bredband2's ability to invest in future growth.

Margin Decline

Declining margins may indicate rising costs or pricing pressures, which could affect profitability if not addressed through improved operational efficiencies.

Operational Efficiency

Moderate operational efficiency suggests there is room for improvement in converting earnings into cash, which is crucial for funding operations and growth.

Bredband2 i Skandinavien AB Business Overview & Revenue Model

Company Description

Bredband2 i Skandinavien AB (BRE2) is a telecommunications provider based in Sweden, specializing in delivering high-speed broadband internet services to residential and business customers. The company operates primarily within the Scandinavian market and focuses on offering reliable connectivity solutions, including fiber-optic internet, mobile services, and various digital communication products. Bredband2 aims to enhance digital accessibility and improve user experiences through innovative technology and customer-centric service offerings.

How the Company Makes Money

Bredband2 generates revenue primarily through subscription fees for its broadband internet services, which include various packages tailored to meet different customer needs. The company also earns money from ancillary services such as mobile communications and digital products like cloud storage and security solutions. A significant portion of its income comes from long-term contracts with customers, providing stable cash flow. Partnerships with local municipalities and infrastructure providers allow Bredband2 to expand its service reach and enhance its offerings, contributing to overall revenue growth. Additionally, marketing promotions and bundling services can attract new customers and increase average revenue per user.

Bredband2 i Skandinavien AB Financial Statement Overview

Summary

Bredband2 i Skandinavien AB demonstrates solid financial health with consistent revenue growth and profitability. The balance sheet shows improved leverage, though debt levels remain a concern. Cash flow generation is strong, supporting the company's operational and strategic initiatives. Continued focus on cost management and debt reduction could enhance financial stability.

Income Statement

The company shows a steady revenue growth rate of 2.27% TTM, with a consistent increase in gross profit margin to 30.52% TTM. Net profit margin is stable at 6.17% TTM, indicating profitability. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting potential cost management issues.

Balance Sheet

The debt-to-equity ratio has improved slightly to 0.50 TTM, indicating better leverage management. Return on equity is strong at 20.18% TTM, reflecting efficient use of equity. The equity ratio is stable, suggesting a balanced capital structure. However, the overall debt level remains a concern.

Cash Flow

Free cash flow growth is robust at 2.82% TTM, and the free cash flow to net income ratio is healthy at 87.37% TTM, indicating strong cash generation relative to earnings. The operating cash flow to net income ratio is moderate, suggesting room for improvement in operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.85B	1.73B	1.58B	1.53B	1.51B	787.87M
Gross Profit	483.32M	571.48M	398.15M	535.82M	533.49M	258.59M
EBITDA	285.92M	286.65M	263.48M	241.57M	219.94M	115.60M
Net Income	109.94M	109.29M	85.31M	74.19M	81.18M	37.88M
Balance Sheet
Total Assets	1.25B	1.35B	1.29B	1.31B	1.33B	1.15B
Cash, Cash Equivalents and Short-Term Investments	81.87M	128.63M	160.62M	116.89M	125.51M	119.29M
Total Debt	249.39M	283.75M	280.00M	314.11M	328.77M	150.54M
Total Liabilities	754.39M	793.26M	756.47M	778.29M	798.12M	639.13M
Stockholders Equity	497.40M	560.64M	537.49M	530.99M	533.86M	491.57M
Cash Flow
Free Cash Flow	226.17M	218.59M	228.61M	203.66M	201.42M	95.54M
Operating Cash Flow	260.13M	256.21M	256.68M	257.54M	224.59M	115.71M
Investing Cash Flow	-33.99M	-114.55M	-27.95M	-53.87M	-20.02M	-115.09M
Financing Cash Flow	-258.97M	-173.64M	-185.01M	-212.28M	-191.76M	-34.88M

Bredband2 i Skandinavien AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.92
• 50DMA: Positive
• 100DMA: Negative
• 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:BRE2, the sentiment is Positive. The current price of 2.92 is above the 20-day moving average (MA) of 2.91, above the 50-day MA of 2.91, and above the 200-day MA of 2.62, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 52.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:BRE2.

Bredband2 i Skandinavien AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEL2.B	73 Outperform	kr104.34B	24.03	20.60%	4.31%	0.51%	14.15%
TALK	69 Neutral	€106.03M	6.59	115.17%	―	0.44%	80.01%
TELIA	66 Neutral	$144.42B	34.65	10.93%	5.32%	-5.76%	-10.05%
BRE2	66 Neutral	kr2.79B	25.37	―	5.13%	9.72%	4.26%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SINCH	51 Neutral	$28.74B	-4.46	-1.23%	―	-1.62%	94.01%
TRANS	48 Neutral	€327.29M	―	0.35%	―	10.36%	-100.68%