Castellum AB (CAST) AI Stock Analysis

• Market Cap: kr49.57B
• Dividend Yield: 1.78%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.44
• Revenue Growth: -2.45%
• EPS Growth: N/A
• Country: SE
• Employees: 535
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 2.28
• Shares Outstanding: 492,601,440
• 10 Day Avg. Volume: 1,152,183
• 30 Day Avg. Volume: 1,308,227
• PEG Ratio: -0.21
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 6.10
• P/FCF Ratio: 14.14
• 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: kr126.00
• Price Target Upside: 20.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: kr113.00 ▲(8.29% Upside)

The overall stock score of 60 reflects Castellum AB's strong profitability and stable financial position, countered by declining revenue growth and moderate cash flow performance. Technical analysis indicates a bearish trend, and valuation metrics suggest fair pricing but limited income potential. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Stable Financial Position

A stable financial position with a reasonable debt-to-equity ratio ensures financial flexibility and reduces risk, supporting long-term operations.

Strong Profit Margins

High profit margins indicate efficient cost management, which can sustain profitability even during periods of revenue pressure.

Positive Free Cash Flow Growth

Positive free cash flow growth enhances the company's ability to reinvest in its business, pay dividends, or reduce debt, supporting long-term stability.

Negative Factors

Declining Revenue Growth

A declining revenue growth trend can limit future profitability and market competitiveness, posing a risk to long-term business expansion.

Low Return on Equity

Low ROE suggests inefficiencies in generating returns from shareholders' investments, potentially impacting investor confidence and future capital raising.

Moderate Cash Flow Performance

Moderate cash flow performance indicates challenges in converting income into cash, which may affect liquidity and the ability to fund operations or growth.

Castellum AB Business Overview & Revenue Model

Company Description

Castellum AB (CAST) is a leading real estate company based in Sweden, primarily engaged in property management and development. It focuses on the commercial real estate sector, particularly office spaces, logistics facilities, and retail properties. Castellum operates across major urban centers in Sweden, ensuring a diverse portfolio that caters to various business needs while emphasizing sustainability and innovation in its developments.

How the Company Makes Money

Castellum AB generates revenue primarily through the leasing of its commercial properties to a wide range of tenants, including businesses in various sectors. The company has a strong focus on long-term leases, which provide stable and predictable rental income. In addition to rental income, Castellum also earns money through property sales and development projects, where it creates value by enhancing or repurposing existing properties. Significant partnerships with local governments and businesses help to secure favorable development opportunities and can lead to financial incentives. Moreover, Castellum's commitment to sustainability often attracts tenants willing to pay a premium for green-certified buildings, further enhancing its revenue potential.

Castellum AB Financial Statement Overview

Summary

Castellum AB demonstrates strong profitability with healthy margins and a stable balance sheet. However, the company faces challenges with declining revenue growth and moderate cash flow performance. The low ROE and revenue contraction highlight areas for improvement.

Income Statement

Castellum AB's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 21.7%, which is concerning. However, the company maintains strong gross and EBIT margins at 67.95% and 58.05% respectively, indicating efficient cost management. The net profit margin is healthy at 27.44%, although it has decreased from the previous year. Overall, while profitability remains strong, the negative revenue growth trend poses a risk.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.76, which is reasonable for the industry. The return on equity is modest at 3.39%, suggesting limited profitability from shareholders' investments. The equity ratio stands at 43.55%, indicating a solid capital structure. While leverage is under control, the low ROE highlights potential inefficiencies in generating returns.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 5.66% in the TTM period, which is a positive sign. The operating cash flow to net income ratio is 0.28, suggesting that cash generation from operations is lower relative to net income. The free cash flow to net income ratio is strong at 0.99, indicating effective cash conversion. Despite the positive free cash flow growth, the low operating cash flow coverage ratio could be a concern for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.64B	9.73B	9.81B	8.99B	6.35B	6.00B
Gross Profit	6.52B	6.67B	6.57B	5.76B	4.32B	4.32B
EBITDA	5.58B	6.49B	-12.27B	1.30B	12.48B	8.13B
Net Income	3.04B	2.36B	-11.59B	1.75B	11.83B	5.62B
Balance Sheet
Total Assets	157.24B	157.86B	159.34B	179.73B	177.63B	109.92B
Cash, Cash Equivalents and Short-Term Investments	137.00M	2.40B	2.09B	858.00M	1.20B	161.00M
Total Debt	69.06B	60.10B	63.11B	78.44B	72.57B	46.61B
Total Liabilities	88.74B	78.69B	82.16B	100.75B	94.00B	61.67B
Stockholders Equity	68.50B	79.17B	77.18B	78.98B	82.94B	48.24B
Cash Flow
Free Cash Flow	4.37B	4.20B	4.72B	5.13B	-14.63B	2.94B
Operating Cash Flow	4.41B	4.30B	4.81B	4.30B	2.60B	2.94B
Investing Cash Flow	-4.45B	46.00M	800.00M	-2.53B	-13.97B	-6.51B
Financing Cash Flow	-1.63B	-4.07B	-4.38B	-2.16B	12.40B	3.55B

Castellum AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.35
• 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:CAST, the sentiment is Negative. The current price of 104.35 is below the 20-day moving average (MA) of 105.09, below the 50-day MA of 107.26, and below the 200-day MA of 110.52, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 60.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:CAST.

Castellum AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WIHL	78 Outperform	kr27.15B	12.17	9.74%	3.64%	5.18%	349.60%
BALD.B	68 Neutral	kr78.54B	8.60	10.31%	―	7.72%	―
PNDX.B	67 Neutral	kr38.41B	18.94	6.23%	2.15%	2.86%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SAGA.A	65 Neutral	kr71.21B	28.11	―	1.78%	8.15%	-14.95%
CAST	60 Neutral	kr49.57B	16.90	4.49%	1.78%	-2.45%	―
FABG	54 Neutral	kr25.75B	90.02	0.76%	2.40%	-3.46%	―

Castellum AB Corporate Events

Castellum AB Seeks Bond Amendments to Support Strategic Shift

Castellum AB has announced a consent solicitation to amend the terms of its outstanding EMTN bonds. The proposed changes aim to align with its ‘Back to Basics’ strategy, focusing on core operations and maintaining an investment-grade rating. This move is expected to enhance operational efficiency and refocus its property portfolio.

Castellum AB Unveils New Profitability Strategy and Capital Distribution Policy

Castellum AB has announced a new strategy aimed at enhancing profitability and capital allocation, with a target of achieving a 10% annual return on equity. The strategy, titled ‘Back to Basics,’ emphasizes a focus on core operations, particularly commercial properties in Sweden, and includes a revised capital distribution policy to distribute at least 25% of property management income to shareholders. The company also aims to maintain an investment-grade rating and continues its commitment to achieving net zero greenhouse gas emissions by 2040.

Castellum AB Announces Major Restructuring to Boost Efficiency

Castellum AB is undergoing a significant restructuring of its executive management and head office to enhance efficiency and profitability. The company will reduce its executive management team from 13 to 10 positions and cut approximately 60 roles at the head office, including 45 employees and 15 consultants. These changes are expected to save around SEK 50 million annually, with full effects realized in 2026. The restructuring also includes the discontinuation of the bonus scheme for all employees starting in 2026, and union negotiations have been initiated.

Castellum Sells United Spaces to Ioffice, Boosting Earnings

Castellum has agreed to sell its subsidiary, United Spaces, which operates coworking spaces in Sweden, to Ioffice. This divestment aligns with Castellum’s strategy to concentrate on its core business as a property owner and is expected to positively impact its annual earnings by approximately SEK 30 million.

Castellum Forms Nomination Committee for 2026 AGM

Castellum has announced the formation of its Nomination Committee for the Annual General Meeting 2026, comprising representatives from its largest shareholders. The committee, representing 36.2% of shares and votes, will propose key appointments and remuneration for the upcoming meeting, impacting the company’s governance and strategic direction.

Castellum AB Reports Q3 2025 Financials Amid Leadership Changes

Castellum AB’s Q3 2025 interim report reveals a slight decrease in rental income and net operating income compared to the previous year, with net income after tax showing a significant increase. The company appointed a new CEO and confirmed its credit rating, indicating a stable outlook despite the challenges in the property market.

Castellum to Present January-September 2025 Interim Report

Castellum AB has announced a live presentation of its interim report for January-September 2025, scheduled for October 23. The presentation will feature insights from CEO Pål Ahlsén and CFO Jens Andersson, providing stakeholders with an opportunity to engage and ask questions via webcast or teleconference.

S&P Confirms Castellum’s BBB Credit Rating

Castellum AB’s credit rating of BBB with a stable outlook has been confirmed by S&P Global Ratings, reinforcing its stable business model and strong financial position. This confirmation is expected to strengthen Castellum’s position in the capital market, potentially leading to lower financing costs over time.