Bufab AB (BUFAB) AI Stock Analysis

• Market Cap: kr19.95B
• Dividend Yield: 1.03%
• Average Volume (3M): 162.76K
• Price to Earnings (P/E): 31.7
• Beta (1Y): 0.99
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: kr102.00 ▲(0.08% 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 exhibits strong revenue growth and profitability, supported by efficient operational management. The balance sheet reflects a stable financial position with manageable leverage. However, cash flow challenges, particularly in free cash flow generation, may pose liquidity risks.

Income Statement

Bufab AB shows strong revenue growth with a TTM increase of 46.4%, indicating robust demand and market expansion. The gross profit margin of 30.45% and net profit margin of 7.42% reflect solid profitability, although slightly lower than previous years. The EBIT and EBITDA margins are healthy at 11.94% and 15.47%, respectively, showcasing efficient operational management. However, the slight decline in revenue from 2023 to 2024 suggests potential market challenges.

Balance Sheet

The company's debt-to-equity ratio of 0.89 indicates a balanced capital structure, with manageable leverage. Return on equity at 15.46% demonstrates effective use of equity to generate profits. The equity ratio of 45.08% suggests a stable financial position, though the decrease in total assets and stockholders' equity over the years may warrant attention.

Cash Flow

Bufab AB's cash flow performance is mixed, with a negative free cash flow growth rate of -3.52% in the TTM, indicating challenges in converting revenue into cash. The operating cash flow to net income ratio of 0.52 and free cash flow to net income ratio of 0.90 suggest moderate cash generation efficiency. The decline in free cash flow from 2023 to 2024 highlights potential liquidity concerns.

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	―	9.19B	8.60B	9.44B	6.57B	4.99B
Cash, Cash Equivalents and Short-Term Investments	―	211.00M	218.00M	322.00M	293.00M	292.00M
Total Debt	―	3.53B	3.58B	4.05B	2.25B	1.80B
Total Liabilities	―	5.29B	5.18B	6.40B	4.20B	3.06B
Stockholders Equity	―	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: 101.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 101.92 is above the 20-day moving average (MA) of 100.28, above the 50-day MA of 100.35, and above the 200-day MA of 93.70, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 68.82 is Neutral, neither overbought nor oversold. The STOCH value of 92.30 is Negative, 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	kr18.66B	30.81	25.27%	1.22%	3.19%	4.60%
AQ	68 Neutral	kr18.57B	27.94	15.15%	0.83%	2.60%	3.05%
ALIG	65 Neutral	kr15.23B	21.62	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	kr19.95B	31.74	15.33%	1.03%	-1.37%	14.78%
BERG.B	48 Neutral	kr7.77B	-113.27	-3.67%	1.25%	4.65%	-136.09%