C.A.G Group AB (CAG) AI Stock Analysis

• Market Cap: kr763.35M
• Dividend Yield: 3.83%
• Average Volume (3M): 1.72K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.18
• Revenue Growth: -4.42%
• EPS Growth: -6.27%
• Country: SE
• Employees: 429
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Information Technology Services
• EPS (TTM): 2.00
• Shares Outstanding: 7,167,602
• 10 Day Avg. Volume: 2,186
• 30 Day Avg. Volume: 1,719
• PEG Ratio: -9.75
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 8.92
• 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): 8.22
• Revenue Forecast (FY): kr879.00M

• Rating: 63 Neutral
• Price Target: kr111.00 ▲(3.74% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

Overall score is driven primarily by solid financial health (strong balance sheet and reliable cash generation) offset by a concerning revenue downturn. Technical signals are mildly weak (below key moving averages and negative MACD), while valuation is supportive due to a moderate P/E and a ~3.94% dividend yield.

Positive Factors

Balance Sheet Strength

The company's low and declining debt alongside a growing equity base and healthy ROE provide durable financial flexibility. Lower leverage reduces refinancing and solvency risk, supports sustained dividend or buyback capacity, and allows targeted investment in talent or strategic initiatives during cyclical slowdowns.

Cash Generation

Consistent positive operating and free cash flow, with a notable uptick in 2025, indicates reliable internal funding. Strong cash conversion supports ongoing dividends, debt reduction and selective reinvestment in skills or tools, providing resilience against revenue cyclicality common in consulting.

Diversified IT Services Model

A diversified services mix spanning cloud, data, cybersecurity and application work, plus T&M, fixed-price and managed-service revenue mechanics, aligns with persistent digitalization demand. This breadth supports cross-selling, recurring managed revenues and reduces reliance on any single product or client sector.

Negative Factors

Sharp Revenue Contraction

A very sharp top-line contraction into 2025 materially weakens operating leverage and may reflect contract losses or demand weakness. Prolonged revenue decline pressures utilization, pricing power and the ability to retain senior consultants, limiting reinvestment and long-term growth recovery.

Weak Growth Metrics

Negative revenue and EPS growth indicate deteriorating core momentum. For a consulting firm, slowing growth undermines scale economics and margin sustainability, makes utilization harder to maintain, and complicates longer-term hiring and investment plans critical to winning larger mandates.

Limited Asset/Expansion Traction

Stagnant asset growth suggests the company is in a slower expansion phase and may be underinvesting in capacity or capabilities. For an IT services provider, constrained asset or capability build-out can cap the ability to scale teams, pursue larger multi-year contracts and restore top-line momentum.

C.A.G Group AB Business Overview & Revenue Model

Company Description

CAG Group AB (publ) engages in the IT-management, system development, operations, and training businesses in Sweden. The company offers IT-management services, such as process and requirements analysis, order and purchase support, change management, and project management; and system development services, including integration, front and back-end development, test and measurement systems development, and testing and test management. It also provides operations and support services to operation critical applications, as well as financial systems management, hosting, and cloud services; and training services with a range of certifications, courses, seminars, workshops, and lectures in English and Swedish languages. The company is based in Stockholm, Sweden.

How the Company Makes Money

CAG generates revenue through multiple streams including project-based consulting services, recurring revenue from managed IT services, and sales of proprietary software solutions. The company typically charges clients on a time-and-material basis for consulting projects, while managed services often involve subscription fees for ongoing support and system maintenance. Additionally, CAG may secure revenue through strategic partnerships with technology providers, allowing them to offer integrated solutions that enhance their service offerings and expand their market reach. These partnerships can also lead to co-development projects, further diversifying their income sources.

C.A.G Group AB Financial Statement Overview

Summary

Strong balance sheet (low/moderating leverage, healthy ROE) and consistently positive operating/free cash flow support the score, but it is held back by weakening growth and a sharp revenue contraction noted for 2025.

Income Statement

Profitability has been fairly consistent over 2020–2024, with net profit generally in the mid-single digits and operating profitability stable. However, growth has clearly weakened: revenue moved from strong expansion in 2021–2022 to a decline in 2024, and 2025 shows a very sharp revenue contraction (annual report). Earnings held up better than sales, but the top-line trajectory and volatility weigh on the score.

Balance Sheet

The balance sheet looks solid and improving. Debt is modest relative to equity and has trended down meaningfully from 2022–2023 levels, while equity has continued to build. Returns on equity have been healthy in recent years (2022–2024), suggesting the company is generating good profit relative to shareholder capital. Main watch-out is that total assets have not grown much recently, pointing to a slower expansion phase.

Cash Flow

Cash generation is a strength: operating cash flow and free cash flow have been consistently positive across the period, and free cash flow has generally tracked close to reported earnings (2020–2024). 2025 free cash flow is notably higher versus the prior year (annual report). The key weakness is variability in year-to-year free cash flow growth (including declines in 2021 and 2023), indicating some lumpiness in cash conversion and/or investment timing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	844.97M	872.06M	889.63M	796.66M	649.29M
Gross Profit	63.60M	168.40M	178.07M	302.76M	257.23M
EBITDA	93.26M	100.01M	105.16M	94.33M	71.24M
Net Income	47.79M	48.59M	53.44M	48.25M	30.28M
Balance Sheet
Total Assets	536.63M	546.34M	587.67M	585.26M	452.51M
Cash, Cash Equivalents and Short-Term Investments	122.55M	108.43M	105.44M	128.77M	81.35M
Total Debt	46.60M	58.92M	96.98M	112.61M	57.94M
Total Liabilities	199.81M	227.07M	288.75M	313.29M	218.32M
Stockholders Equity	336.82M	319.27M	298.92M	271.98M	234.19M
Cash Flow
Free Cash Flow	84.75M	78.48M	62.17M	87.75M	50.98M
Operating Cash Flow	87.20M	82.21M	66.37M	90.47M	51.94M
Investing Cash Flow	-3.04M	-3.73M	-16.77M	-54.36M	-75.07M
Financing Cash Flow	-70.04M	-75.49M	-72.93M	12.31M	-12.10M

C.A.G Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.00
• 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:CAG, the sentiment is Positive. The current price of 107 is above the 20-day moving average (MA) of 103.75, above the 50-day MA of 105.71, and below the 200-day MA of 110.28, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.00 is Neutral, neither overbought nor oversold. The STOCH value of 78.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:CAG.

C.A.G Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXS	65 Neutral	kr1.61B	18.77	15.90%	1.13%	10.92%	-2.56%
CAG	63 Neutral	kr763.35M	15.97	―	3.83%	-4.42%	-6.27%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PACT	62 Neutral	kr2.78B	22.41	14.35%	2.13%	-4.36%	-31.55%
SOF.B	59 Neutral	kr1.13B	16.97	27.44%	6.29%	4.00%	-12.08%
KNOW	58 Neutral	kr3.09B	-10.79	2.38%	2.03%	-9.85%	-38.24%
B3	43 Neutral	kr320.73M	29.70	1.19%	―	13.21%	-97.19%