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Electrolux AB (SE:ELUX.B)
:ELUX.B
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Electrolux AB
(OTC:ELUX.B)
Rating:57Neutral
Price Target:
kr75.00
▲(5.66%Upside)
Electrolux AB (ELUX.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
$19.26B
Dividend YieldN/A
Average Volume (3M)2.13M
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth3.66%
EPS Growth97.90%
CountrySE
Employees41,000
SectorConsumer Cyclical
Sector Strength61
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.16
Shares Outstanding274,885,600
10 Day Avg. Volume1,729,731
30 Day Avg. Volume2,125,850
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)2.35
Price to Sales (P/S)0.00
P/FCF Ratio-4.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$81.15Price Target Upside14.32% Upside
Rating ConsensusHold
Number of Analyst Covering6
Electrolux AB Business Overview & Revenue Model
Company DescriptionAB Electrolux (publ), together with its subsidiaries, manufactures and sells household appliances in Europe, North America, Latin America, the Asia/Pacific, the Middle East, and Africa. The company offers various appliances, such as refrigerators, freezers, cookers, dryers, washing machines, dishwashers, room air-conditioners, microwave ovens, floor-care products, vacuum cleaners, water heaters, heat pumps, and other small domestic appliances, as well as consumables and accessories. It also provides hobs, ovens, and hoods; and tumble dryers. The company offers its products under the Electrolux, AEG, and Frigidaire brands through retailers, buying groups, and independent stores. AB Electrolux (publ) was founded in 1901 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneyElectrolux AB generates revenue primarily through the sale of household and professional appliances. The company's key revenue streams include the sales of kitchen appliances, laundry products, and home comfort equipment. Electrolux operates through various brands, catering to different market segments and consumer preferences, which allows for a diversified income. Additionally, the company benefits from after-sales services, spare parts, and accessories, contributing to its earnings. Strategic partnerships, innovations in product design, and a focus on sustainability also play significant roles in enhancing Electrolux's market position and financial performance.
Electrolux AB Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -3.59%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong organic growth and cost-saving achievements with challenges posed by cash flow issues, market uncertainty in North America, and competitive pressures in Latin America. While there were significant highlights such as strong performance in North America and sustainability leadership, the uncertainties and pressures noted bring a balanced view.Q1-2025 Updates
Positive Updates
Strong Organic Growth
Electrolux reported a solid organic growth of 7.9%, mainly driven by North America and Latin America, leading to an operating margin of 1.4% and a year-over-year improvement of SEK 1.2 billion.
Positive Performance in North America
North America experienced a 12.2% growth in organic sales, fueled by new product launches in the premium segment, with a focus on laundry, refrigeration, and cooking.
Significant Cost Reduction Achievements
The company reported SEK 1.4 billion in cost savings for the first quarter, contributing to improved operating margins across all regions.
Sustainability Leadership
Electrolux was recognized by the Financial Times as a leader in sustainability, ranking 32 out of 500 companies. The company has ambitious targets for reducing emissions by 2030.
Negative Updates
Cash Flow Challenges
Cash flow after investments was negative SEK 3.1 billion in the quarter, impacted by high seasonal outflows in operating working capital.
Market Uncertainty in North America
Increased economic uncertainty and consumer confidence deterioration in North America, with expectations of additional tariff impacts leading to a revised market outlook from neutral to neutral to negative.
Competitive Pressure in Latin America
Slowing growth rates in Brazil and increased competitive pressure in the low-end segment from Chinese competitors.
Subdued Market in Europe
European market demand was largely unchanged and predominantly replacement-driven, with high promotional activity and pressure on prices.
Company Guidance
During the Q1 2025 call, Electrolux Group reported a solid organic growth of 7.9%, leading to an operating margin of 1.4%, with a year-over-year improvement of SEK 1.2 billion. The company highlighted significant improvements in every business area, particularly in North America (12.2% organic growth) and Latin America (16.3% organic growth), despite challenges such as the devaluation of the Brazilian real. Electrolux achieved SEK 1.4 billion in cost savings and remains on track to deliver SEK 3.5 to 4 billion in cost reductions for the year, driven by its cost excellence program. The company also faced external factors like currency headwinds and labor inflation but managed to maintain a positive mix across regions. Looking forward, Electrolux plans to offset tariff impacts in North America with strategic price increases while continuing to invest in innovation and marketing to drive growth. The company reiterated its commitment to sustainability, aiming for a significant reduction in scope 1, 2, and 3 emissions by 2030. Despite the challenges, Electrolux remains focused on improving its North American operations and maintaining a solid investment-grade rating with a net debt-to-EBITDA ratio stable at 3.4 times.Electrolux AB Financial Statement Overview
Summary
Electrolux AB shows signs of gradual recovery with modest revenue growth and strong gross profit margins. However, profitability is under pressure with a negative net profit margin and high leverage, indicating the need for debt reduction and improved equity ratios.Income Statement
Electrolux AB's income statement reflects a challenging financial period. The TTM (Trailing-Twelve-Months) data shows a slight revenue growth of 1.10%. However, profitability remains under pressure with a negative net profit margin of -0.09% and an improving yet still modest EBIT margin of 1.54%. The gross profit margin is fairly strong at 15.64%, indicating cost management efficiency despite the net losses reported in recent years. The company is on a recovery path with EBITDA margin improving to 6.12% from previous periods.55
Neutral
Balance Sheet
The balance sheet of Electrolux AB shows some concerns regarding financial stability. The debt-to-equity ratio is high at 5.17, indicating significant leverage which may pose risks under adverse conditions. The equity ratio stands at 7.19%, reflecting a relatively low proportion of equity financing. Return on equity is negative, aligning with the net losses. These metrics suggest a need for careful financial management to enhance equity and reduce debt reliance.45
Neutral
Cash Flow
Electrolux AB demonstrates resilience in cash flow management, despite net losses. The operating cash flow to net income ratio is favorable at -27.77, indicating strong cash generation relative to net income losses. Free cash flow remains negative, but the free cash flow to net income ratio shows improvement over prior years. While free cash flow growth is negative, high operating cash flow is a positive sign for liquidity.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 137.65B | 136.15B | 134.45B | 134.88B | 125.63B | 115.96B |
| Gross Profit | 21.52B | 20.30B | 17.14B | 17.70B | 23.98B | 22.27B |
| EBITDA | 8.42B | 7.67B | 3.22B | 5.29B | 11.31B | 10.42B |
| Net Income | -123.00M | -1.39B | -5.23B | -1.32B | 4.68B | 3.99B |
Balance Sheet | ||||||
| Total Assets | 127.10B | 125.39B | 120.05B | 127.10B | 107.61B | 99.60B |
| Cash, Cash Equivalents and Short-Term Investments | 17.73B | 16.34B | 15.50B | 17.73B | 11.09B | 20.37B |
| Total Debt | 41.38B | 43.63B | 40.87B | 41.38B | 18.82B | 18.07B |
| Total Liabilities | 110.65B | 115.67B | 108.78B | 110.65B | 89.00B | 80.89B |
| Stockholders Equity | 16.44B | 9.72B | 11.27B | 16.44B | 18.60B | 18.70B |
Cash Flow | ||||||
| Free Cash Flow | -773.00M | -451.00M | -1.70B | -9.66B | 1.02B | 6.59B |
| Operating Cash Flow | 3.42B | 4.20B | 4.00B | -2.27B | 7.06B | 11.93B |
| Investing Cash Flow | -3.83B | -4.28B | -4.36B | -6.96B | -6.82B | -5.12B |
| Financing Cash Flow | -468.00M | 1.27B | -1.55B | 15.60B | -9.79B | 2.02B |
Electrolux AB Technical Analysis
Positive
70.98
Price Trends
64.94
Positive
75.50
Negative
84.86
Negative
Market Momentum
1.82
Negative
60.44
Neutral
74.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ELUX.B, the sentiment is Positive. The current price of 70.98 is above the 20-day moving average (MA) of 66.92, above the 50-day MA of 64.94, and below the 200-day MA of 84.86, indicating a neutral trend. The MACD of 1.82 indicates Negative momentum. The RSI at 60.44 is Neutral, neither overbought nor oversold. The STOCH value of 74.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ELUX.B.
Electrolux AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $16.67B | 10.98 | -6.97% | 2.95% | 1.72% | -24.21% | |
57 Neutral | $19.26B | ― | -1.31% | ― | 3.66% | 97.90% | |
| kr20.34B | 23.08 | 41.51% | 1.32% | ― | ― | ||
49 Neutral | kr13.46B | ― | 3.08% | -11.44% | -288.58% | ||
| €1.06B | 18.22 | 12.79% | 4.28% | ― | ― | ||
| €1.08B | 21.85 | 13.24% | 1.81% | ― | ― | ||
| €1.55B | 19.08 | 12.85% | 2.71% | ― | ― |
* Consumer Cyclical Sector Average
Performance Comparison
SE:ELUX.B
Electrolux AB
70.98
-15.84
-18.24%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.