Dedicare AB (DEDI) AI Stock Analysis

• Market Cap: kr379.64M
• Dividend Yield: 5.95%
• Average Volume (3M): 20.96K
• Price to Earnings (P/E): 11.4
• Beta (1Y): <0.01
• Revenue Growth: -17.43%
• EPS Growth: -39.61%
• Country: SE
• Employees: 904
• Sector: Healthcare
• Sector Strength: 45
• Industry: Staffing & Employment Services
• EPS (TTM): 0.78
• Shares Outstanding: 7,550,735
• 10 Day Avg. Volume: 24,037
• 30 Day Avg. Volume: 20,963
• PEG Ratio: -0.41
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 6.33
• 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): 11.99
• Revenue Forecast (FY): kr2.24B

• Rating: 56 Neutral
• Price Target: kr43.00 ▲(0.82% Upside)
• Action: Downgraded Date: 02/08/26
• Date: Action: Downgraded 02/08/26

The score is held back primarily by weakening financial performance (revenue declines and steep margin compression in 2024–2025) and bearish technicals (price below key moving averages with negative MACD). Offsetting factors include a solid balance sheet/cash conversion and relatively attractive valuation with a high dividend yield.

Positive Factors

Balance Sheet Strength

Manageable leverage with debt-to-equity ~0.29 and a stable equity base supports financial resilience. This gives Dedicare flexibility to fund working capital and payroll in a labour-intensive staffing model, and cushions the business during cyclical demand downturns.

Cash Conversion

Free cash flow tracking closely to net income indicates earnings are translating into real liquidity. For a staffing firm that must pay wages ahead of client receipts, consistent FCF supports operations, dividend funding and reduces reliance on external short-term financing.

Structural Demand in Healthcare Staffing

Dedicare operates in healthcare and life-science staffing where structural shortages and aging populations drive steady demand for nurses, physicians and specialists. The mix of temporary recurring placements and recruitment fees supports durable revenue streams over the medium term.

Negative Factors

Revenue Weakness

Two consecutive years of declining revenue reduce scale and bargaining leverage with clients and candidates. Lower volumes pressure fixed operating costs and recruiting investment, making it harder to restore margins and reinvest in growth initiatives without structural demand improvement.

Severe Gross Margin Compression

A collapse in gross margin is a structural red flag: it implies either sustained price pressure, adverse contract mix, or materially higher pay/costs. This directly erodes profitability and cash generation, undermines return on capital, and may require strategic pricing or cost restructuring to restore earnings power.

Higher Debt with Low Cash Coverage

Debt increased materially in 2025 while operating cash flow coverage versus debt is low. If margins remain compressed, servicing higher debt could restrain flexibility for recruitment investment and working capital, raising refinancing and liquidity risk over the medium term.

Dedicare AB Business Overview & Revenue Model

Company Description

Dedicare AB (publ) operates as a staffing company in the healthcare industry primarily in Sweden, Norway, Finland, and Denmark. The company hires and recruits doctors, nurses, social workers, and managers, as well as other staff in health and social work. It provides individual temporary staffing, as well as department, unit, or operations team staffing services. The company was founded in 1996 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Dedicare AB generates revenue through its staffing services, which include temporary and permanent placement of healthcare professionals. The company charges its clients a fee based on the hourly rates of the personnel provided, along with additional charges for recruitment and administrative services. Key revenue streams include contracts with hospitals, nursing homes, and private care providers, where they supply staff on an as-needed basis. Dedicare may also engage in partnerships with healthcare institutions to secure long-term contracts, thereby ensuring a steady flow of income. Factors contributing to its earnings include the increasing demand for healthcare services, regulatory changes affecting staffing requirements, and the company's reputation for delivering high-quality professionals in a competitive market.

Dedicare AB Financial Statement Overview

Summary

Financial profile is mixed: balance sheet leverage is manageable (debt-to-equity ~0.29) and cash conversion is solid (FCF ~1.0x net income in 2025), but operating performance has deteriorated with contracting revenue in 2024–2025 and sharp margin compression, including an unusually low gross margin in 2025 that materially reduced earnings power.

Income Statement

Revenue has weakened recently, with declines in 2024 (-0.1%) and a sharper drop in 2025 (-6.3%) after strong growth in 2021–2023. Profitability has also compressed meaningfully versus the 2022–2023 peak: net margin fell from ~5.6–5.7% (2022–2023) to ~2.3% in 2025, and EBITDA margin declined from ~8.7% (2022–2023) to ~4.4% in 2025. A key red flag is the large step-down in gross margin to ~2.1% in 2025 (vs. ~25.9% in 2024), indicating either mix/price pressure or cost headwinds that materially reduced earnings power.

Balance Sheet

Leverage looks manageable with debt-to-equity around 0.29 in 2025, and equity remains relatively stable over time (roughly 262–310M from 2022–2025). Total debt increased in 2025 versus 2024 (to 85.7M from 38.1M), but remains moderate relative to the equity base. Returns on equity have cooled from very strong levels in 2022–2023 to ~11% in 2025, reflecting the earnings slowdown rather than balance sheet strain.

Cash Flow

Cash generation remains a relative strength: free cash flow has stayed close to net income across years (about 1.0x in 2025), suggesting earnings are translating well into cash. However, free cash flow has been volatile (down in 2024, up modestly in 2025), and operating cash flow relative to the company’s debt load is not particularly high (coverage around ~0.25–0.39 across the period), which could matter if profitability stays under pressure while debt remains elevated versus 2024.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.45B	1.72B	1.97B	1.77B	1.25B
Gross Profit	30.80M	444.92M	351.50M	529.42M	337.40M
EBITDA	64.10M	89.34M	171.42M	154.37M	102.31M
Net Income	33.10M	47.07M	110.40M	101.30M	65.56M
Balance Sheet
Total Assets	596.20M	628.76M	727.32M	742.68M	497.86M
Cash, Cash Equivalents and Short-Term Investments	116.00M	138.58M	187.15M	142.80M	132.43M
Total Debt	85.70M	38.05M	87.96M	116.01M	33.55M
Total Liabilities	305.10M	329.46M	417.39M	480.13M	319.37M
Stockholders Equity	291.10M	299.30M	309.93M	262.56M	178.49M
Cash Flow
Free Cash Flow	64.20M	78.03M	140.85M	99.97M	67.30M
Operating Cash Flow	64.40M	81.28M	145.40M	105.34M	69.59M
Investing Cash Flow	-27.00M	-39.47M	-9.67M	-68.61M	-2.29M
Financing Cash Flow	-48.80M	-88.19M	-81.83M	-30.07M	-36.74M

Dedicare AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:DEDI, the sentiment is Negative. The current price of 42.65 is above the 20-day moving average (MA) of 40.64, above the 50-day MA of 41.87, and below the 200-day MA of 44.32, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 35.08 is Neutral, neither overbought nor oversold. The STOCH value of 52.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:DEDI.

Dedicare AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEDI	56 Neutral	kr379.64M	11.42	―	5.95%	-17.43%	-39.61%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HEGR	46 Neutral	kr22.89M	-1.61	-8.40%	―	-11.42%	-116.51%
WISE	43 Neutral	kr118.25M	-8.40	-29.57%	―	-20.88%	14.14%
PION.B	40 Underperform	kr240.40M	-804.84	-18.85%	―	-17.32%	36.05%