Bredband2 i Skandinavien AB (BRE2) AI Stock Analysis

• Market Cap: kr3.09B
• Dividend Yield: 4.67%
• Average Volume (3M): 748.69K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.13
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: kr3.50 ▲(8.36% 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

Recurring subscription revenue

A subscription-based broadband model generates durable, predictable recurring revenue and high customer lifetime value. This steadiness supports forward cash flow visibility, lowers acquisition payback risk, and enables cross-sell of telecom add-ons and higher-value business contracts over time.

High return on equity

A ROE above 20% reflects efficient use of shareholder capital and consistent profit generation. Sustained ROE supports reinvestment, dividend capacity and competitive positioning, indicating management's ability to extract value from assets over the medium term.

Moderate leverage and stable capital mix

Moderate leverage and a near-40% equity ratio provide financial flexibility and lower solvency risk. This capital structure helps absorb demand or price shocks, maintain investment capacity for service improvement, and supports sustainable dividend and debt management policies.

Negative Factors

Declining free cash flow

A falling FCF trend reduces the company's capacity to fund capex, pay dividends, deleverage or pursue M&A without external financing. If the decline persists, it could constrain strategic investment and weaken resilience to industry or competitive shifts over the next several quarters.

Modest net margins and margin erosion

Low net margins limit the buffer against rising costs and reduce retained earnings for reinvestment. Observed declines in operating margins suggest structural pressure on efficiency or pricing, which can impede long-term profit growth and cash generation if not reversed.

Dependence on third-party network infrastructure

Heavy reliance on wholesale networks limits control over costs, capacity and service differentiation. Supplier pricing moves or limited access can compress margins and constrain service innovation, creating an ongoing structural risk to competitive positioning and long-term profitability.

Bredband2 i Skandinavien AB Business Overview & Revenue Model

Company Description

Bredband2 i Skandinavien AB (publ) provides data communication and security solutions to individuals and companies in Sweden. The company offers mobile broadband, router, telephony, antivirus, TV, and Internet services, as well as exchange solutions; and operates data centers. It provides fiber connection to approximately 435,500 broadband customers. The company was incorporated in 1989 and is headquartered in Stockholm, Sweden.

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 stable revenue growth and strong profitability metrics. The balance sheet reflects a stable financial position with moderate leverage and strong return on equity. Cash flow generation is generally strong, although recent declines in free cash flow growth may warrant attention.

Income Statement

Bredband2 i Skandinavien AB shows a stable revenue growth trend with a TTM growth rate of 2.27%. The gross profit margin is healthy at 32.31%, although it has slightly decreased from the previous year. The net profit margin is modest at 6.13%, indicating efficient cost management. However, the EBIT and EBITDA margins have seen a slight decline, suggesting potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.46, reflecting a moderate level of leverage, which has improved from previous years. Return on equity is strong at 20.27%, indicating effective use of equity to generate profits. The equity ratio stands at 39.73%, showing a stable capital structure with a good proportion of assets financed by equity.

Cash Flow

Operating cash flow remains robust, but the free cash flow has decreased by 7.53% in the TTM period, indicating potential challenges in cash generation. The operating cash flow to net income ratio is 0.45, suggesting a solid conversion of income to cash. The free cash flow to net income ratio is high at 0.88, reflecting strong cash flow relative to net income.

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: 3.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.23 is below the 20-day moving average (MA) of 3.23, above the 50-day MA of 3.06, and above the 200-day MA of 2.79, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 68.71 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, 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
TALK	75 Outperform	kr112.92M	7.02	115.17%	―	0.44%	80.01%
TEL2.B	66 Neutral	kr113.02B	24.18	20.60%	4.15%	0.51%	14.15%
BRE2	66 Neutral	kr3.09B	28.07	―	4.67%	9.72%	4.26%
TELIA	62 Neutral	kr155.42B	31.02	10.93%	5.14%	-5.76%	-10.05%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
TRANS	55 Neutral	kr277.03M	-2,804.35	0.35%	―	10.36%	-100.68%
SINCH	53 Neutral	kr22.61B	-63.41	-1.23%	―	-1.62%	94.01%