Bufab AB (BUFAB) AI Stock Analysis

• Market Cap: €19.45B
• Dividend Yield: 1.03%
• Average Volume (3M): 162.76K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 1.04
• Revenue Growth: -1.37%
• EPS Growth: 14.78%
• Country: SE
• Employees: 1,755
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.90
• Shares Outstanding: 190,552,660
• 10 Day Avg. Volume: 224,728
• 30 Day Avg. Volume: 162,764
• PEG Ratio: -1.52
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 3.25
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: kr102.00 ▲(0.12% Upside)

Bufab AB's overall stock score reflects strong financial performance with robust revenue growth and profitability. However, technical analysis and valuation present challenges, with bearish momentum and a high P/E ratio indicating potential overvaluation. Cash flow concerns further temper the outlook.

Positive Factors

Business Model Strength

Bufab's decentralized model allows for local market adaptation and efficient logistics, enhancing its ability to serve diverse global customers effectively.

Competitive Advantages

Strategic partnerships strengthen Bufab's supply chain, ensuring reliable product availability and competitive pricing, which are key competitive advantages.

Margin Sustainability

Consistent margins indicate Bufab's ability to manage costs and maintain profitability, supporting long-term financial stability.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests potential difficulties in market expansion or customer retention, which could impact future profitability.

Increasing Debt Levels

Rising debt levels may strain Bufab's financial flexibility, affecting its ability to invest in growth opportunities or weather economic downturns.

Declining Cash Flow Growth

A decline in cash flow growth can limit Bufab's ability to fund operations and invest in strategic initiatives, potentially hindering long-term growth.

Bufab AB Business Overview & Revenue Model

Company Description

Bufab AB (publ) operates as a trading company that provides solutions for sourcing, quality control, and logistics for C-parts in Sweden and internationally. It offers metal or plastic fasteners comprising screws, bolts, nuts, rivets, pins, washers, etc.; and other small metal, rubber, and plastic parts, including cables, springs, and electronic fasteners. The company also provides stainless steel bolts under the BUMAX brand name; and special products, such as access hardware, cold formed parts, die cast parts, electrical products, machined parts, magnets, plastic parts, rubber parts, stamping and pressing parts, tools and equipment, and turned parts. In addition, it offers assembled parts, add on products, and special packaging and kitting solutions. Further, the company provides supply chain services. It serves customers in a range of manufacturing industries, including the technology, electronics/telecommunications, consumer goods, transportation and construction, furniture, and automotive sectors, as well as the offshore and refining industry. The company was formerly known as Bufab Holding AB (publ) and changed its name to Bufab AB (publ) in June 2015. Bufab AB (publ) was founded in 1977 and is headquartered in Värnamo, Sweden.

How the Company Makes Money

Bufab generates revenue primarily through the sale of fasteners and related products to a diverse clientele across multiple sectors. The company's revenue model is built on direct sales to customers, as well as through strategic partnerships with manufacturers and suppliers. Key revenue streams include the sale of standard fasteners, customized solutions, and value-added services such as inventory management and logistics support. Additionally, Bufab benefits from long-term contracts with major industrial players, which provide stable income and foster ongoing business relationships. The company's focus on quality, efficiency, and customer service further enhances its competitive advantage, driving repeat business and customer loyalty.

Bufab AB Financial Statement Overview

Summary

Bufab AB demonstrates solid profitability and efficient operations, with strong margins and return on equity. However, recent revenue and cash flow challenges highlight potential risks. The company maintains a balanced capital structure, but increasing debt levels and declining cash flow growth need careful management to sustain financial health.

Income Statement

Bufab AB's income statement shows a stable gross profit margin around 30% and a consistent net profit margin above 7% in TTM. However, the revenue growth rate has turned negative in the recent period, indicating potential challenges in maintaining sales momentum. The EBIT and EBITDA margins are healthy, reflecting efficient operations despite the revenue dip.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio under 1, indicating manageable leverage. Return on equity is strong at over 15%, showcasing effective use of equity capital. The equity ratio is stable, suggesting a balanced capital structure. However, the slight increase in debt levels warrants monitoring.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a negative trend in recent periods. The operating cash flow to net income ratio is over 0.5, indicating decent cash conversion, but the drop in free cash flow growth is concerning. The free cash flow to net income ratio remains robust, suggesting good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.00B	8.04B	8.68B	8.43B	5.88B	4.76B
Gross Profit	2.48B	2.39B	2.49B	2.39B	1.64B	1.25B
EBITDA	1.24B	1.18B	1.26B	1.19B	848.00M	634.00M
Net Income	587.00M	551.00M	574.00M	609.00M	470.00M	299.00M
Balance Sheet
Total Assets	8.75B	9.19B	8.60B	9.44B	6.57B	4.99B
Cash, Cash Equivalents and Short-Term Investments	220.00M	211.00M	218.00M	322.00M	293.00M	292.00M
Total Debt	3.15B	3.53B	3.58B	4.05B	2.25B	1.80B
Total Liabilities	4.81B	5.29B	5.18B	6.40B	4.20B	3.06B
Stockholders Equity	3.95B	3.90B	3.42B	3.04B	2.38B	1.93B
Cash Flow
Free Cash Flow	741.00M	1.02B	1.36B	-113.00M	138.00M	504.00M
Operating Cash Flow	826.00M	1.10B	1.45B	-47.00M	172.00M	570.00M
Investing Cash Flow	-481.00M	-494.00M	-734.00M	-1.08B	-335.00M	-89.00M
Financing Cash Flow	-318.00M	-623.00M	-813.00M	1.15B	158.00M	-396.00M

Bufab AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 101.88
• 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:BUFAB, the sentiment is Positive. The current price of 101.88 is above the 20-day moving average (MA) of 101.61, above the 50-day MA of 99.82, and above the 200-day MA of 91.06, indicating a bullish trend. The MACD of 1.15 indicates Positive momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 36.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:BUFAB.

Bufab AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OEM.B	70 Neutral	kr19.52B	32.69	25.27%	1.22%	3.19%	4.60%
AQ	68 Neutral	kr17.59B	26.77	15.15%	0.83%	2.60%	3.05%
ALIG	65 Neutral	kr15.36B	21.81	9.59%	2.09%	-1.74%	26.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BUFAB	62 Neutral	€19.45B	32.89	15.33%	1.03%	-1.37%	14.78%
BERG.B	48 Neutral	kr8.44B	-116.82	-3.67%	1.27%	4.65%	-136.09%

Bufab AB Corporate Events

Bufab Achieves EcoVadis Platinum Rating for Sustainability Excellence

Bufab has been awarded the EcoVadis Platinum Rating, placing it among the top 1% of over 150,000 companies assessed globally for sustainability. This achievement underscores Bufab’s commitment to integrating sustainability into its operations, enhancing its reputation as a leader in the C-part industry and meeting the increasing demands of customers, investors, and regulators for sustainable solutions.

Bufab Acquires German Sourcing Specialist Novia Group

Bufab AB has announced the acquisition of novia Group, a German company specializing in global sourcing solutions, with annual net sales of EUR 50 million in 2024. This acquisition, valued at EUR 60 million, is expected to enhance Bufab’s capabilities in customer integration and assembly services, aligning with its strategy for profitable growth and market expansion. The acquisition will be financed through existing credit facilities and is anticipated to positively impact Bufab’s operating margin and results, despite incurring transaction costs of SEK 10 million in the fourth quarter of 2025.

Bufab AB Appoints Nomination Committee for 2026 AGM

Bufab AB has appointed its Nomination Committee in line with the procedure established by its Annual General Meeting. The committee, consisting of representatives from major shareholders and the Chairman of the Board, is tasked with preparing proposals for the 2026 Annual General Meeting regarding the election of board members, the Chairman, and auditors, as well as determining their fees. This development is crucial for Bufab’s governance and strategic planning, impacting its leadership and operational focus for the coming year.

Bufab Secures Framework Agreement with Babcock International

Bufab has entered into a framework agreement with Babcock International Group to supply fasteners and associated C-parts, enhancing Babcock’s supply chain and operational efficiency. This collaboration, which includes Bufab’s digital solutions to optimize procurement and production, underscores a mutual commitment to innovation and long-term value creation, marking a significant milestone for Bufab’s business and partnership with Babcock.

Bufab Appoints Marcus Söderberg as New CFO

Bufab has announced the appointment of Marcus Söderberg as its new Chief Financial Officer (CFO), effective by March 2026. Söderberg, who previously worked at Bufab and recently served as CFO at Herenco group, brings extensive financial expertise and industry experience. His return is expected to significantly contribute to Bufab’s strategic ambitions and growth. Until Söderberg assumes his role, Helena Häger will act as interim CFO.