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

• Market Cap: kr788.44M
• Dividend Yield: 3.89%
• Average Volume (3M): 1.72K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.16
• Revenue Growth: -4.42%
• EPS Growth: -6.27%
• Country: SE
• Employees: 429
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Information Technology Services
• EPS (TTM): 1.10
• Shares Outstanding: 7,167,602
• 10 Day Avg. Volume: 2,186
• 30 Day Avg. Volume: 1,719
• PEG Ratio: -1.76
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 9.95
• 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: 60 Neutral
• Price Target: kr111.00 ▲(5.21% Upside)

C.A.G Group AB's overall stock score reflects a mix of stable financial performance and attractive valuation, offset by bearish technical indicators. The company's strong balance sheet and reasonable P/E ratio are positive, but the negative revenue and cash flow trends, along with bearish market momentum, present challenges.

Positive Factors

Financial Stability

A low debt-to-equity ratio indicates financial stability, providing C.A.G Group AB with the flexibility to invest in growth opportunities and weather economic downturns.

Cash Generation

Strong cash generation enhances the company's ability to fund operations, invest in new projects, and return value to shareholders, supporting long-term growth.

Profitability Margins

Stable profitability margins suggest that C.A.G Group AB can maintain its pricing power and cost control, which are crucial for sustaining long-term profitability.

Negative Factors

Declining Revenue

A declining revenue trend poses a risk to future profitability, indicating potential challenges in market demand or competitive positioning that need addressing.

Revenue Growth Challenges

Sustained revenue decline could impact the company's ability to invest in innovation and growth initiatives, potentially affecting its competitive edge.

Earnings Growth

Negative EPS growth reflects difficulties in scaling operations or managing costs, which could hinder long-term earnings potential and shareholder returns.

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

Company Description

C.A.G Group AB (CAG) is a Swedish company that specializes in IT and technology services, focusing primarily on digital transformation, software development, and IT consulting. Operating within the broader technology and telecommunications sectors, CAG offers a range of core products and services including custom software solutions, system integration, and managed IT services aimed at enhancing business efficiency for its clients across various industries.

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

C.A.G Group AB demonstrates a stable financial position with strong equity and cash flow metrics. The company maintains moderate profitability margins and low leverage, providing a buffer against market fluctuations. However, the declining revenue trend poses a risk to future profitability, necessitating attention to revenue growth for sustained success.

Income Statement

The company shows a declining revenue trend with a negative revenue growth rate of -1.43% in the TTM period, indicating potential challenges in sales. However, the gross profit margin remains stable at 16.62%, and the net profit margin is 5.45%, reflecting moderate profitability. The EBIT and EBITDA margins are 7.72% and 10.63%, respectively, showing operational efficiency but with room for improvement.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.15, indicating low leverage and financial stability. The return on equity is 15.11%, showcasing effective use of equity to generate profits. The equity ratio stands at 59.72%, highlighting a solid capital structure.

Cash Flow

The cash flow statement shows a positive free cash flow growth rate of 3.87%, indicating improved cash generation. The operating cash flow to net income ratio is 0.44, suggesting efficient cash conversion. The free cash flow to net income ratio is high at 95.59%, reflecting strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	851.08M	872.06M	889.63M	796.66M	649.29M	531.69M
Gross Profit	144.84M	168.40M	178.07M	302.76M	257.23M	214.37M
EBITDA	90.59M	100.01M	105.16M	94.33M	71.24M	62.17M
Net Income	48.27M	48.59M	53.44M	48.25M	30.28M	27.96M
Balance Sheet
Total Assets	515.94M	546.34M	587.67M	585.26M	452.51M	386.72M
Cash, Cash Equivalents and Short-Term Investments	83.85M	108.43M	105.44M	128.77M	81.35M	115.59M
Total Debt	34.57M	58.92M	96.98M	112.61M	57.94M	43.84M
Total Liabilities	193.03M	227.07M	288.75M	313.29M	218.32M	181.01M
Stockholders Equity	322.91M	319.27M	298.92M	271.98M	234.19M	205.71M
Cash Flow
Free Cash Flow	65.88M	78.48M	62.17M	87.75M	50.98M	57.83M
Operating Cash Flow	68.60M	82.21M	66.37M	90.47M	51.94M	61.43M
Investing Cash Flow	-2.71M	-3.73M	-16.77M	-54.36M	-75.07M	-21.30M
Financing Cash Flow	-72.50M	-75.49M	-72.93M	12.31M	-12.10M	-47.74M

C.A.G Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.50
• 50DMA: Negative
• 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 Negative. The current price of 105.5 is below the 20-day moving average (MA) of 106.85, below the 50-day MA of 111.04, and below the 200-day MA of 110.24, indicating a bearish trend. The MACD of -1.67 indicates Negative momentum. The RSI at 37.09 is Neutral, neither overbought nor oversold. The STOCH value of 73.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	68 Neutral	€2.10B	28.59	15.90%	1.13%	10.92%	-2.56%
SOF.B	66 Neutral	€1.19B	15.79	27.44%	6.14%	4.00%	-12.08%
PACT	63 Neutral	kr2.89B	18.43	14.35%	2.20%	-4.36%	-31.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CAG	60 Neutral	kr788.44M	16.33	―	3.89%	-4.42%	-6.27%
KNOW	56 Neutral	€3.20B	32.71	2.38%	2.09%	-9.85%	-38.24%
B3	55 Neutral	€358.09M	132.64	1.19%	―	13.21%	-97.19%