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Electrolux AB (SE:ELUX.B)
:ELUX.B
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Electrolux AB (ELUX.B) AI Stock Analysis

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SE:ELUX.B

Electrolux AB

(OTC:ELUX.B)

Rating:50Neutral
Price Target:
kr58.00
▼(-6.66%Downside)
Electrolux AB's overall stock score reflects a challenging financial position with some positive signs of operational efficiency through cost management. Technical analysis indicates a bearish outlook, while a high P/E ratio suggests the stock is overvalued. Despite improvements highlighted in the earnings call, ongoing issues in Europe and high leverage remain significant concerns.

Electrolux AB (ELUX.B) vs. iShares MSCI Sweden ETF (EWD)

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:Jul 18, 2025
(Q2-2025)
|
% Change Since: -13.57%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with significant achievements in North America and Latin America, along with advancements in cost efficiencies and sustainability. However, these are counterbalanced by challenges in the European market, currency headwinds, and cash flow issues. The company's strategic initiatives show promise, but market uncertainties and competitive pressures pose ongoing risks.
Q2-2025 Updates
Positive Updates
Improved Operating Margin
The company improved its operating margin from 1.2% to 2.5%, with a positive operating margin in North America.
Positive Organic Growth
Electrolux reported an organic growth of 1.8%, mainly driven by North America and Latin America.
Successful Product Launches
Notable product launches include a new induction hob in Europe and a pizza oven in North America, with positive market receptions.
Cost Efficiency Achievements
The company achieved cost efficiencies of SEK 0.6 billion in Q2, totaling SEK 2 billion for the first half of the year.
Sustainability Recognition
Electrolux received significant sustainability recognitions, including awards from the Financial Times and Newsweek.
Negative Updates
Depressed European Market
The European market experienced a slight organic sales decrease and remains very depressed, with volumes 11% lower than in 2019.
Currency Headwinds
The company faced currency headwinds in Brazil and Argentina, impacting revenue negatively.
High Promotional Pressure in Europe
The European market is predominantly replacement-driven with high promotional intensity, leading to negative price developments.
Cash Flow Challenges
Electrolux reported a negative operating cash flow after investments of SEK 741 million, impacted by a SEK 500 million fine and tariff-related cash flow timing issues.
Market Uncertainty
Increased economic uncertainty in Europe and North America could delay a recovery of discretionary purchases in key segments.
Company Guidance
In the call, Electrolux reported a significant improvement in their operating margin, which increased from 1.2% to 2.5%, with a positive margin in North America. They achieved an organic growth of 1.8%, driven mainly by North America and Latin America, although there was a slight decline in Europe, Asia Pacific, Middle East, and Africa. The company increased prices in North America and Latin America to offset tariff and currency headwinds, respectively. They also noted a SEK 0.6 billion year-over-year cost reduction in the second quarter, contributing to their goal of SEK 3.5 billion to SEK 4 billion in cost efficiency by year-end. Electrolux's liquidity stands strong at SEK 28 billion, and they have refinanced most of their 2025 maturities. They maintained a neutral market outlook for Europe and a neutral to negative outlook for North America, while expecting neutral demand in Latin America.

Electrolux AB Financial Statement Overview

Summary
Electrolux AB is navigating a challenging financial landscape with modest revenue growth and pressure on profitability. Despite negative net income and high leverage, strong gross margins and positive operating cash flow indicate operational efficiency. The company faces challenges in reducing debt and improving equity ratios.
Income Statement
55
Neutral
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.
Balance Sheet
45
Neutral
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.
Cash Flow
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue136.15B134.45B134.88B125.63B115.96B
Gross Profit20.30B17.14B17.70B23.98B22.27B
EBITDA7.67B3.22B5.29B11.31B10.42B
Net Income-1.39B-5.23B-1.32B4.68B3.99B
Balance Sheet
Total Assets125.39B120.05B127.10B107.61B99.60B
Cash, Cash Equivalents and Short-Term Investments16.34B15.50B17.73B11.09B20.37B
Total Debt43.63B40.87B41.38B18.82B18.07B
Total Liabilities115.67B108.78B110.65B89.00B80.89B
Stockholders Equity9.72B11.27B16.44B18.60B18.70B
Cash Flow
Free Cash Flow-451.00M-1.70B-9.66B1.02B6.59B
Operating Cash Flow4.20B4.00B-2.27B7.06B11.93B
Investing Cash Flow-4.28B-4.36B-6.96B-6.82B-5.12B
Financing Cash Flow1.27B-1.55B15.60B-9.79B2.02B

Electrolux AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price62.14
Price Trends
50DMA
65.76
Negative
100DMA
71.57
Negative
200DMA
82.64
Negative
Market Momentum
MACD
-1.42
Positive
RSI
42.92
Neutral
STOCH
26.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ELUX.B, the sentiment is Negative. The current price of 62.14 is below the 20-day moving average (MA) of 68.61, below the 50-day MA of 65.76, and below the 200-day MA of 82.64, indicating a bearish trend. The MACD of -1.42 indicates Positive momentum. The RSI at 42.92 is Neutral, neither overbought nor oversold. The STOCH value of 26.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ELUX.B.

Electrolux AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$17.27B9.93-8.46%3.20%1.63%-26.06%
56
Neutral
kr16.45B
2.52%-14.48%-311.20%
50
Neutral
$17.40B124.581.52%0.86%
kr20.51B23.2941.51%1.30%
€963.88M16.9113.75%5.07%
€1.09B22.4513.24%1.78%
€1.45B18.2412.85%2.93%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ELUX.B
Electrolux AB
62.14
-33.20
-34.82%
GB:0GQE
Clas Ohlson AB
334.00
167.68
100.82%
SE:DOM
Dometic Group AB
50.80
-19.92
-28.17%
DE:BHJC
Bilia AB Class A
10.41
-0.35
-3.25%
DE:3AJ
SkiStar AB Class B
13.74
0.57
4.33%
DE:NWG0
New Wave Group AB Class B
10.86
1.46
15.53%

Electrolux AB Corporate Events

Electrolux AB Reports Improved Q2 2025 Performance Amid Market Challenges
Jul 18, 2025

Electrolux AB reported a slight organic sales growth of 1.8% in Q2 2025, driven by positive performance in North and Latin America, despite a decline in other regions. The company’s operating income improved significantly due to positive contributions from North America and strategic divestments, although operating cash flow was negatively impacted by increased working capital and a French antitrust fine. The company remains focused on its strategic priorities, including cost efficiency and consumer-centric innovations, amid challenging market conditions.

The most recent analyst rating on ($SE:ELUX.B) stock is a Buy with a SEK125.00 price target. To see the full list of analyst forecasts on Electrolux AB stock, see the SE:ELUX.B Stock Forecast page.

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.Date of analysis: Jul 22, 2025