Careium AB (CARE) AI Stock Analysis

• Market Cap: kr503.55M
• Dividend Yield: N/A
• Average Volume (3M): 14.72K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.50
• Revenue Growth: 1.30%
• EPS Growth: -2.54%
• Country: SE
• Employees: 548
• Sector: Healthcare
• Sector Strength: 45
• Industry: Security & Protection Services
• EPS (TTM): 0.54
• Shares Outstanding: 24,326,214
• 10 Day Avg. Volume: 10,828
• 30 Day Avg. Volume: 14,717
• PEG Ratio: -0.37
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 11.29
• 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): 2.33
• Revenue Forecast (FY): kr938.00M

• Rating: 56 Neutral
• Price Target: kr22.00 ▼(-10.57% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weak technical conditions (price below key moving averages with negative MACD and very low RSI/Stoch). Financial performance is moderately positive due to the post-2022 turnaround and improved leverage, but softer 2025 margins and uneven free-cash-flow conversion cap the upside. Valuation is reasonable at ~15x earnings, providing some support.

Positive Factors

Profitability recovery

Careium’s shift from loss in 2021–2022 to positive EBIT and net income through 2023–2025, with gross margin near 44% in 2025, indicates structural operational improvements. Sustained profitability enhances reinvestment capacity, reduces funding pressure and supports long-term product development and service scale.

Lower leverage

Material reduction in leverage provides the company durable financial flexibility. A lower debt/equity ratio means less interest burden and greater capacity for capex, M&A or cyclical buffers, improving resilience to revenue swings and supporting multi-year strategic investments in digital health solutions.

Long-term revenue momentum

An extended revenue expansion trend (multi-year acceleration) suggests structural demand for Careium’s remote-monitoring and digital-care services. Durable top-line momentum supports scale economies, increased recurring subscriptions and stronger bargaining power with municipalities and providers over a multi-quarter horizon.

Negative Factors

Margin erosion

The decline in net margin signals rising cost pressure or weaker pricing power, which can materially reduce free cash flow and return on invested capital. Persistently lower margins would constrain the company’s ability to self-fund growth, limit buffer for cyclical downturns and reduce durability of earnings.

Weak FCF conversion

Free cash flow materially below accounting profit and historically volatile implies working-capital swings and capex timing that weaken cash reliability. Unpredictable FCF reduces capacity to invest, pay down debt or return capital, making long-term planning and investment execution riskier.

Recent revenue softness

A year-over-year revenue decline and negative recent growth rate raise concerns about market saturation, pricing pressure or competitive displacement. If demand softness persists, scale benefits and margin recovery become harder, undermining durable cash generation and strategic execution over the coming quarters.

Careium AB Business Overview & Revenue Model

Company Description

Careium AB (Publ) provides technology-enabled care services in Sweden, Norway, the United Kingdom, the Netherlands, and the rest of Europe. It offers social alarms and mobile social alarms; smoke, heat, flood, carbon monoxide, and extreme temperature detectors; accessories, including cameras; fall detectors; pill dispensers; epilepsy, magic stick bed, and chair sensors; mat, voice, chair, and bed alarms; blow and ping-pong switches; ceiling mounted pull cords; and secure communication services with alarm response. The company also provides mBox 9200, a control unit, radio transmitter, radio range extender, and door alarm; Motion 9200, a battery operated motion sensor; Enzo bogus caller button; and PikoButton, which is used to control switch for users with disabilities or special needs, as well as i-care online, a web-based service that gives an overview of alarm tools. Careium AB (Publ) was founded in 1974 and is headquartered in Malmö, Sweden.

How the Company Makes Money

Careium AB generates revenue through several key streams, including the sale and subscription of its digital health solutions and monitoring services. The company typically charges healthcare providers, municipalities, and private care organizations for access to its platforms and services, which can include one-time fees for hardware and ongoing subscription fees for software and support. Additionally, Careium may engage in partnerships with healthcare institutions and technology firms, enhancing its service offerings and expanding its market reach. These collaborations can lead to joint ventures, shared revenue opportunities, and increased visibility in the growing digital health market, thereby contributing to its overall earnings.

Careium AB Financial Statement Overview

Summary

Financials show a meaningful turnaround since 2021–2022, with positive EBIT/net income in 2023–2025 and improved gross margin (~44% in 2025). Balance sheet leverage is manageable and improved (debt/equity ~0.31 in 2025). Offsetting this, 2025 profitability weakened versus 2024 (net margin ~4.2% vs ~6.7%) and free cash flow conversion has been inconsistent (FCF ~36% of net income in 2025), reducing confidence in earnings/cash-flow durability.

Income Statement

Revenue growth has been solid overall (roughly ~10% in 2020 accelerating to ~23% in 2025), showing good demand momentum. Profitability improved meaningfully after the 2022 loss year, with positive EBIT and net income in 2023–2025, and gross margin trending up to ~44% in 2025. Offsetting this, the profit profile has weakened recently: 2025 revenue dipped vs. 2024, and net margin fell to ~4.2% in 2025 from ~6.7% in 2024, pointing to cost pressure and less stable earnings power.

Balance Sheet

Leverage looks manageable and has improved versus 2021–2022: debt relative to equity declined from ~0.57 (2022) to ~0.31 (2025), with equity broadly stable and assets expanding over time. This provides a reasonable cushion for the business. The main concern is that profitability (and therefore the ability to compound equity) has been inconsistent over the cycle, including negative returns in 2022 and lower earnings in 2025 versus 2024.

Cash Flow

Cash generation has strengthened since the negative operating and free cash flow in 2021–2022, with operating cash flow and free cash flow positive in 2023–2025 and 2025 showing a step-up in operating cash flow. However, cash conversion is mixed: free cash flow is meaningfully below net income in recent years (about ~36% in 2025), and free cash flow volatility has been high (sharp declines in 2021–2022, then recovery), suggesting working-capital/capex swings and less predictable cash earnings quality.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	854.10M	870.70M	824.60M	725.10M	587.50M
Gross Profit	375.10M	373.70M	340.50M	273.70M	240.30M
EBITDA	120.60M	150.60M	137.90M	67.90M	65.10M
Net Income	35.80M	58.40M	37.90M	-8.60M	4.70M
Balance Sheet
Total Assets	1.09B	1.05B	961.40M	992.10M	1.05B
Cash, Cash Equivalents and Short-Term Investments	54.90M	31.90M	31.50M	39.90M	142.50M
Total Debt	209.70M	196.80M	225.30M	322.70M	292.30M
Total Liabilities	407.40M	371.40M	361.90M	425.50M	500.20M
Stockholders Equity	681.50M	678.20M	599.50M	566.60M	551.50M
Cash Flow
Free Cash Flow	51.30M	36.90M	61.90M	-87.10M	-70.90M
Operating Cash Flow	143.40M	92.90M	111.90M	-21.10M	-19.80M
Investing Cash Flow	-102.20M	-56.00M	-50.00M	-68.70M	-163.70M
Financing Cash Flow	-13.70M	-39.60M	-69.70M	-15.10M	291.00M

Careium AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.60
• 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:CARE, the sentiment is Negative. The current price of 24.6 is above the 20-day moving average (MA) of 21.32, above the 50-day MA of 22.81, and below the 200-day MA of 25.89, indicating a bearish trend. The MACD of -0.79 indicates Negative momentum. The RSI at 42.67 is Neutral, neither overbought nor oversold. The STOCH value of 73.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:CARE.

Careium AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIRE	76 Outperform	kr1.14B	24.05	―	2.85%	-3.93%	-7.54%
CNCJO.B	68 Neutral	kr521.72M	10.36	4.07%	17.16%	-1.76%	59.61%
CARE	56 Neutral	kr503.55M	15.49	―	―	1.30%	-2.54%
LEVEL	56 Neutral	kr132.42M	-31.98	-1.58%	―	2.70%	85.94%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IRIS	48 Neutral	kr47.06M	-0.07	-44.40%	―	-41.32%	34.95%
TSEC	41 Neutral	kr104.84M	-9.82	―	―	9.39%	-378.80%