BTS Group AB (BTS.B) AI Stock Analysis

• Market Cap: kr2.48B
• Dividend Yield: 4.22%
• Average Volume (3M): 36.03K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.53
• Revenue Growth: 0.59%
• EPS Growth: -60.74%
• Country: SE
• Employees: 1,172
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 2.82
• Shares Outstanding: 18,543,018
• 10 Day Avg. Volume: 91,333
• 30 Day Avg. Volume: 36,029
• PEG Ratio: -0.33
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 18.44
• 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): 11.67
• Revenue Forecast (FY): kr2.71B

• Rating: 67 Neutral
• Price Target: kr151.00 ▲(4.14% Upside)
• Action: Reiterated Date: 02/23/26
• Date: Action: Reiterated 02/23/26

The score is driven primarily by solid but recently weakening financial performance (notably the 2025 earnings and free-cash-flow drop). Offsetting this, valuation is attractive (moderate P/E and high yield) and the latest earnings call outlines a credible 2026 turnaround supported by cost savings and AI bookings, while technicals remain mixed with a weak longer-term trend despite near-term improvement.

Positive Factors

AI product traction

Material AI bookings and broad Wonderway deployment create a higher-margin, scalable product stream that can shift revenue mix away from project-based consulting. Integrated AI offerings (Teams/Slack/Salesforce) support recurring, platform-based sales and improve long-term margin sustainability and growth optionality.

Regional revenue diversification

Two of three business units growing reduces dependency on any single geography. Double-digit growth expectations in Europe and Other Markets provide a durable revenue base that can offset North America cyclicality, improving resilience and supporting steadier multi-region cash generation over the medium term.

Moderate leverage and equity growth

Balance sheet shows moderate leverage and expanding equity, improved from 2020 levels, providing financial flexibility. Strong ROE in 2023–2024 supports capital efficiency, allowing BTS to fund AI investments, absorb temporary cash-flow shocks, and pursue selective buybacks or M&A without jeopardizing solvency.

Negative Factors

2025 profitability deterioration

A full-year EBITDA drop of 25% signals meaningful operational and demand weaknesses that impair sustainable cash flow and reinvestment capacity. Restoring margins will require consistent execution of cost-savings and product commercialization; failure to deliver risks prolonged earnings volatility and weaker investment returns.

North America underperformance

Concentrated weakness in North America creates persistent execution risk: it materially dragged group results in 2025 and must turnaround to restore group margins. Recovery hinges on bookings converting to sustainable revenue and improved operations; continued NA weakness would limit global recovery prospects.

Declining license revenue

A shrinking license mix reduces recurring, high-margin revenue and increases reliance on time-based consulting. One-off non-renewals highlight client concentration and contract fragility; management expects widespread license recovery only by mid-2026, implying near-term pressure on margin stability and predictable cash flows.

BTS Group AB Business Overview & Revenue Model

Company Description

BTS Group AB (publ) operates as a professional services firm. It operates through BTS North America, BTS Europe, BTS Other Markets, and APG segments. The company offers a range of services that meet needs within strategy execution, leadership development programs, assessment, developing business acumen, transforming sales organizations, coaching, digital solutions, and events and services, as well as talent acquisition and succession. It also provides human-centric consulting services. The company was founded in 1986 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

BTS Group AB generates revenue through multiple key streams, primarily by providing consulting and training services to corporations. The company charges clients for its consulting projects, which often involve strategy development and implementation support. Additionally, BTS earns income from the sale of its proprietary learning tools, such as business simulations and digital learning modules, which are used in corporate training programs. Significant partnerships with large multinational companies further bolster BTS's revenue, as these collaborations often result in large-scale training contracts. Furthermore, BTS may benefit from the recurring nature of its contracts, as clients often engage in ongoing training and development initiatives. The effectiveness and innovation of BTS's solutions also contribute to its reputation, enabling the company to attract new clients and retain existing ones, thereby driving sustainable revenue growth.

BTS Group AB Financial Statement Overview

Summary

Multi-year growth and improved profitability through 2024 with moderate leverage, but 2025 shows a clear deterioration (revenue down, net income sharply lower) and a meaningful free-cash-flow step-down, increasing near-term earnings/cash-flow uncertainty.

Income Statement

Revenue expanded strongly from 2020–2024 (despite a dip in 2020), but 2025 annual revenue declined (-3.1%), signaling softer near-term momentum. Profitability improved materially versus 2020, with 2024 showing solid operating and bottom-line performance (about 10.6% operating margin and ~13.8% net margin). However, earnings appear volatile: 2025 annual net income fell sharply versus 2024, and 2025 margin data is not provided to confirm whether the drop is margin-driven or other items. Overall: solid long-term scale-up and generally healthy profitability, but recent growth and earnings consistency are weaker.

Balance Sheet

Leverage looks moderate for a consulting business: debt-to-equity was ~0.27–0.35 from 2021–2024 (improved significantly from 2020’s ~0.55). Equity has grown meaningfully over time, supporting balance-sheet resilience, although 2025 equity is lower than 2024. Total debt has risen versus earlier years (notably since 2021), so the balance sheet is sound but not getting steadily less leveraged. Returns on equity were strong in 2023–2024 (~16% to ~23%), supporting the quality of the capital base.

Cash Flow

Cash generation is positive, but uneven. Free cash flow was strong in 2024 (matching operating cash flow) and improved in 2023, yet 2025 annual free cash flow declined meaningfully (-26.5%). Cash conversion has been inconsistent: in 2023–2024, free cash flow matched reported net income (good), but operating cash flow relative to net income is shown as low in those years (suggesting variability in working capital/timing). Overall: good cash generation profile, but volatility and the 2025 step-down temper the score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.70B	2.80B	2.68B	2.53B	1.92B
Gross Profit	213.96M	1.24B	1.18B	1.13B	885.16M
EBITDA	357.17M	439.04M	421.92M	423.04M	410.04M
Net Income	132.51M	386.96M	214.81M	198.41M	214.70M
Balance Sheet
Total Assets	3.17B	3.36B	2.96B	2.76B	2.49B
Cash, Cash Equivalents and Short-Term Investments	625.94M	703.33M	532.32M	577.06M	594.43M
Total Debt	579.80M	589.24M	449.51M	367.77M	265.77M
Total Liabilities	1.73B	1.70B	1.66B	1.54B	1.51B
Stockholders Equity	1.45B	1.66B	1.30B	1.21B	983.25M
Cash Flow
Free Cash Flow	154.45M	385.95M	165.65M	138.82M	292.70M
Operating Cash Flow	212.80M	385.95M	165.65M	199.01M	312.05M
Investing Cash Flow	-186.61M	-188.47M	-105.37M	-75.91M	-181.89M
Financing Cash Flow	-19.55M	-51.31M	-84.41M	-208.28M	-160.64M

BTS Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 145.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BTS.B, the sentiment is Positive. The current price of 145 is above the 20-day moving average (MA) of 119.80, above the 50-day MA of 132.61, and below the 200-day MA of 174.41, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 71.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:BTS.B.

BTS Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTS.B	67 Neutral	kr2.48B	18.52	10.07%	4.22%	0.59%	-60.74%
COOR	64 Neutral	kr5.58B	25.56	10.13%	3.29%	-0.69%	-14.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
REJL.B	56 Neutral	kr3.62B	18.01	10.98%	2.68%	7.23%	1.27%
BRILL	52 Neutral	kr61.52M	-9.37	-15.25%	―	-0.97%	41.20%
VESTUM	51 Neutral	kr3.48B	-26.34	-0.85%	―	-27.41%	49.11%
SES	47 Neutral	kr120.10M	-0.31	-20.69%	―	-79.18%	-257.25%

BTS Group AB Corporate Events

BTS Group Flags 2025 Slump but Banks on AI and Turnaround for 2026 Recovery

BTS Group AB reported a weak 2025, with full-year net sales slipping to MSEK 2,703 and EBITA down 25%, as currency headwinds, restructuring tied to AI-driven rationalisation, and lower sales in North America weighed on margins and earnings. Profit after tax fell sharply despite a one-off boost from favourable U.S. tax changes, prompting the board to cut the dividend, though management signalled that the fourth quarter likely marked a turning point, with expectations of a return to earnings growth in early 2026 and improved results for the year.

Regionally, Europe and Other markets delivered both revenue and profit growth, while North America remained the main drag but is said to be in the midst of a turnaround backed by cost measures and restructuring. BTS is also leaning heavily into AI, reporting surging bookings for AI-based technologies and adoption services and planning further AI-driven cost reductions in 2026, positioning the group for improved competitiveness and operational efficiency despite recent financial setbacks.

The most recent analyst rating on ($SE:BTS.B) stock is a Hold with a SEK140.00 price target. To see the full list of analyst forecasts on BTS Group AB stock, see the SE:BTS.B Stock Forecast page.