Cheffelo AB (CHEF) AI Stock Analysis

• Market Cap: kr1.37B
• Dividend Yield: 4.05%
• Average Volume (3M): 56.74K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.39
• Revenue Growth: 12.49%
• EPS Growth: 116.06%
• Country: SE
• Employees: 267
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): -0.40
• Shares Outstanding: 13,020,424
• 10 Day Avg. Volume: 64,614
• 30 Day Avg. Volume: 56,744
• PEG Ratio: 0.14
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 4.31
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: kr106.00 ▲(25.59% Upside)

The score is primarily supported by strong cash flow performance and improving profitability alongside low leverage, tempered by margin pressure (declining gross margin). Technicals are bullish but appear overextended (high RSI/Stoch), and valuation is moderate rather than compelling despite a supportive dividend yield.

Positive Factors

Strong free cash flow conversion

Sustained, high FCF growth and near-par conversion to net income indicate durable cash generation that funds product R&D, supports subscription service rollouts, finances capex and dividends, and reduces reliance on external financing over a 2–6 month horizon and beyond.

Low leverage and improving ROE

A low debt burden and rising ROE provide structural financial flexibility to invest in growth initiatives, pursue partnerships or M&A, and absorb industry shocks. This capital structure supports long-term strategy without heavy interest or refinancing risk.

Operational margin improvement

Improving operating profitability suggests management is extracting efficiencies across products and services. Persistent margin gains indicate scalable unit economics in appliances plus recurring software subscriptions, enhancing durable profit generation if maintained.

Negative Factors

Sharp gross margin decline

A marked drop in gross margin signals structural cost or pricing pressures that can erode long-term profitability on core products. If not addressed via pricing power, sourcing or product mix shifts, this trend will constrain sustainable margins and reinvestment capacity.

Decrease in stockholders' equity over time

A sustained decline in shareholders' equity reduces the capital buffer against downturns and may limit borrowing capacity for strategic investments. Over months this can increase financial vulnerability and constrain options for organic or inorganic growth.

Modest absolute net margin and revenue growth

While improving, low single-digit net margins and modest top-line growth limit internal funding for expansion and reduce resilience to competitive pressure. Structural improvement is needed to support larger-scale product investment and defend market position over time.

Cheffelo AB Business Overview & Revenue Model

Company Description

Cheffelo AB (publ) engages in the supply and delivery of meal kits to the customer's front door in Sweden, Norway, and Denmark. It operates under the Linas Matkasse, Godtlevert, Adams Matkasse, and RetNemt brand names. The company was formerly known as LMK Group AB (publ) and changed its name to Cheffelo AB (publ) in October 2023. The company was founded in 2008 and is headquartered in Sundbyberg, Sweden.

How the Company Makes Money

Cheffelo AB generates revenue through multiple channels, primarily by selling its smart kitchen appliances and subscription-based software services. The company offers a range of products at various price points, targeting both consumers and professional kitchens. A significant revenue stream comes from subscription fees for its recipe management and cooking guidance app, which provides users with personalized meal plans, grocery lists, and instructional videos. Additionally, Cheffelo has established partnerships with food brands and culinary schools, allowing it to expand its customer base and enhance its service offerings. These collaborations often involve co-branded products and promotional campaigns, further driving sales and brand visibility.

Cheffelo AB Financial Statement Overview

Summary

Solid overall fundamentals driven by strong cash generation (free cash flow growth 48.17% TTM; high FCF-to-net income at 0.88) and improving profitability (net margin 4.10% TTM; better EBIT/EBITDA margins). Offsetting risks include a sharp gross margin decline (43.20% in 2024 to 33.38% TTM) and a noted decrease in stockholders’ equity over time.

Income Statement

Cheffelo AB's income statement shows a positive trajectory with a TTM revenue growth rate of 4.54% and improving net profit margins at 4.10%. The gross profit margin has decreased from 43.20% in 2024 to 33.38% in TTM, indicating potential cost pressures. However, EBIT and EBITDA margins have improved, suggesting better operational efficiency. Overall, the company demonstrates strong revenue growth and profitability, though the declining gross margin warrants attention.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.23 in TTM, indicating low leverage. Return on equity has improved to 10.51%, showcasing enhanced profitability. The equity ratio remains healthy, suggesting a solid capital structure. However, the decrease in stockholders' equity over time could be a concern if it continues. Overall, the balance sheet is strong, with low leverage and improving returns.

Cash Flow

Cheffelo AB's cash flow statement is robust, with a significant free cash flow growth rate of 48.17% in TTM. The operating cash flow to net income ratio is stable at 0.53, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is high at 0.88, reflecting strong cash conversion. Overall, the company demonstrates excellent cash flow management and growth, supporting its financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	1.06B	999.72M	1.08B	1.39B	1.22B
Gross Profit	382.54M	457.10M	433.19M	-33.70M	38.67M	93.95M
EBITDA	117.39M	93.20M	82.42M	-97.50M	93.93M	134.52M
Net Income	52.36M	32.42M	19.30M	-154.56M	17.36M	65.03M
Balance Sheet
Total Assets	748.83M	746.12M	760.92M	776.07M	960.86M	838.60M
Cash, Cash Equivalents and Short-Term Investments	134.01M	114.21M	91.92M	56.00M	160.73M	80.42M
Total Debt	94.07M	110.80M	132.75M	152.20M	117.28M	255.02M
Total Liabilities	325.82M	304.01M	322.37M	328.48M	352.81M	558.37M
Stockholders Equity	423.01M	442.11M	438.55M	447.59M	608.04M	274.93M
Cash Flow
Free Cash Flow	104.26M	74.10M	70.77M	-62.42M	28.25M	112.30M
Operating Cash Flow	113.73M	85.10M	82.20M	-40.48M	58.19M	122.23M
Investing Cash Flow	-12.97M	-10.99M	-11.44M	-24.33M	-88.09M	-9.94M
Financing Cash Flow	-62.38M	-49.97M	-29.35M	-43.57M	102.56M	-35.52M

Cheffelo AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:CHEF, the sentiment is Positive. The current price of 84.4 is below the 20-day moving average (MA) of 94.52, below the 50-day MA of 87.02, and above the 200-day MA of 64.99, indicating a bullish trend. The MACD of 6.48 indicates Negative momentum. The RSI at 77.80 is Negative, neither overbought nor oversold. The STOCH value of 82.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:CHEF.

Cheffelo AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHEF	70 Outperform	kr1.37B	25.44	―	4.05%	12.49%	116.06%
SNX	67 Neutral	kr680.08M	31.60	―	0.51%	22.02%	127.51%
NNH	64 Neutral	kr102.22M	12.84	―	―	5.91%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%