Careium AB (CARE) AI Stock Analysis

• Market Cap: kr559.50M
• Dividend Yield: N/A
• Average Volume (3M): 14.72K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.46
• Revenue Growth: 1.30%
• EPS Growth: -2.54%
• Country: SE
• Employees: 548
• Sector: Healthcare
• Sector Strength: 45
• Industry: Security & Protection Services
• EPS (TTM): 0.35
• Shares Outstanding: 24,326,214
• 10 Day Avg. Volume: 10,828
• 30 Day Avg. Volume: 14,717
• PEG Ratio: 0.23
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.85
• P/FCF Ratio: 19.98
• 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: 63 Neutral
• Price Target: kr26.00 ▲(13.04% Upside)

Careium AB's overall stock score is driven by its stable financial performance and reasonable valuation. However, the technical analysis indicates a bearish trend, which tempers the overall outlook. The absence of dividend yield and limited earnings call insights further moderate the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for Careium's products and services, supporting long-term business expansion and market presence.

Cash Flow Improvements

Significant improvement in free cash flow enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Strong Equity Position

A strong equity position provides financial stability and reduces reliance on debt, allowing for sustainable growth and resilience against market fluctuations.

Negative Factors

Declining ROE

A declining ROE suggests inefficiencies in asset utilization, which could hinder profitability and shareholder value if not addressed.

Decreased EBIT Margin

A decrease in EBIT margin indicates potential cost management issues, which could impact profitability if not improved.

Limited Free Cash Flow

Limited free cash flow relative to net income suggests challenges in converting earnings into cash, potentially restricting investment capacity.

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

Careium AB presents a stable financial profile with strong profitability and a solid balance sheet. Despite a recent decline in revenue growth, the company maintains healthy margins and moderate leverage. Cash flow generation is stable, though there is room for improving cash conversion efficiency.

Income Statement

Careium AB's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 3.15%, suggesting a potential slowdown in sales. However, the company maintains a healthy gross profit margin of 43.79% and a net profit margin of 5.30%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also solid at 8.46% and 16.59%, respectively, reflecting operational efficiency. Despite the recent revenue decline, the company has shown resilience in maintaining strong profitability metrics.

Balance Sheet

The balance sheet of Careium AB reflects a stable financial position with a debt-to-equity ratio of 0.31, indicating moderate leverage and a strong equity base. The return on equity (ROE) stands at 6.69%, which, while positive, suggests room for improvement in generating returns for shareholders. The equity ratio is robust, highlighting a solid capital structure with a significant portion of assets financed by equity. Overall, the balance sheet demonstrates financial stability, though there is potential for enhancing shareholder returns.

Cash Flow

Careium AB's cash flow analysis reveals a mixed picture. The free cash flow growth rate is positive at 2.11%, indicating an improvement in cash generation. However, the operating cash flow to net income ratio of 0.57 suggests that cash generation from operations could be stronger. The free cash flow to net income ratio of 0.27 indicates that a portion of earnings is being converted into free cash flow, but there is room for improvement. Overall, the cash flow position is stable, but enhancing cash conversion efficiency would be beneficial.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	852.10M	870.70M	824.60M	725.10M	587.50M	524.10M
Gross Profit	376.00M	373.70M	340.50M	273.70M	240.30M	217.30M
EBITDA	142.00M	150.60M	137.90M	67.90M	65.10M	71.50M
Net Income	42.20M	58.40M	37.90M	-8.60M	4.70M	18.80M
Balance Sheet
Total Assets	1.07B	1.05B	961.40M	992.10M	1.05B	717.30M
Cash, Cash Equivalents and Short-Term Investments	28.10M	31.90M	31.50M	39.90M	142.50M	32.20M
Total Debt	211.50M	196.80M	225.30M	322.70M	292.30M	156.70M
Total Liabilities	393.10M	371.40M	361.90M	425.50M	500.20M	330.80M
Stockholders Equity	677.50M	678.20M	599.50M	566.60M	551.50M	386.50M
Cash Flow
Free Cash Flow	42.70M	36.90M	61.90M	-87.10M	-70.90M	2.70M
Operating Cash Flow	109.20M	92.90M	111.90M	-21.10M	-19.80M	43.80M
Investing Cash Flow	-81.90M	-56.00M	-50.00M	-68.70M	-163.70M	-79.30M
Financing Cash Flow	-24.00M	-39.60M	-69.70M	-15.10M	291.00M	18.60M

Careium AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 23 is below the 20-day moving average (MA) of 25.51, below the 50-day MA of 25.53, and below the 200-day MA of 27.47, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 32.40 is Neutral, neither overbought nor oversold. The STOCH value of 5.13 is Positive, 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	78 Outperform	kr1.16B	25.35	―	2.85%	-3.93%	-7.54%
CARE	63 Neutral	kr559.50M	13.26	―	―	1.30%	-2.54%
CNCJO.B	57 Neutral	€473.76M	19.03	4.07%	17.16%	-1.76%	59.61%
LEVEL	54 Neutral	kr121.49M	-48.98	-1.58%	―	2.70%	85.94%
TSEC	52 Neutral	kr115.32M	-2.12	―	―	9.39%	-378.80%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IRIS	45 Neutral	kr50.71M	-0.08	-44.40%	―	-41.32%	34.95%