Embellence Group AB (EMBELL) AI Stock Analysis

• Market Cap: kr814.44M
• Dividend Yield: 3.17%
• Average Volume (3M): 26.75K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.34
• Revenue Growth: 0.78%
• EPS Growth: 1.33%
• Country: SE
• Employees: 228
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.72
• Shares Outstanding: 23,538,721
• 10 Day Avg. Volume: 17,539
• 30 Day Avg. Volume: 26,748
• PEG Ratio: 0.81
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 13.88
• 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): 3.29
• Revenue Forecast (FY): kr806.70M

• Rating: 62 Neutral
• Price Target: kr38.00 ▼(-6.17% Downside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is primarily supported by solid margins and a strengthened balance sheet, with reasonable valuation and dividend yield providing additional support. It is held back by the sharp 2025 revenue decline, weaker cash-flow growth, and bearish technical signals (below key moving averages with negative MACD).

Positive Factors

Strong margins and improving net profit

Sustained gross margins (55–62%) and improved net margin (~9%) indicate durable pricing power and tight cost control in a premium niche. This margin cushion supports cash generation, dividend capacity and reinvestment even if volumes weaken over several quarters.

Conservative leverage and stronger balance sheet

Material reduction in leverage to roughly 0.26–0.28 and a sizable equity base improve financial flexibility. Lower leverage reduces refinancing risk and preserves capacity for targeted investment, buybacks or weathering demand shocks over the medium term.

Diversified sales model and premium brand focus

A multi-channel model (retail wholesale, distributors, project trade) and a premium brand portfolio spread commercial risk across channels and geographies. This structural diversification supports steadier demand and repeat business from professional channels over months to years.

Negative Factors

Sharp 2025 revenue decline

A sharp revenue drop in 2025 signals weakening demand or lost volumes, a structural concern for a scale-dependent manufacturing business. Prolonged top-line contraction threatens fixed-cost absorption, growth initiatives and could force margin tradeoffs over multiple quarters.

Free cash flow growth deterioration

Although FCF remains positive in absolute terms, a sharp negative FCF growth year and inconsistent cash conversion reduce internal funding for capex, collections or marketing. That variability constrains capital allocation flexibility and raises reliance on external funding if weakness persists.

Signs of balance-sheet contraction

A slight equity decline with rising debt and falling assets suggests balance-sheet contraction. Reduced asset base and narrowing equity cushions limit strategic optionality—less headroom for M&A, inventory build or margin-smoothing investments during an extended downturn.

Embellence Group AB Business Overview & Revenue Model

Company Description

Embellence Group AB (publ) acquires, owns, and develops various brands in wallpapers, textiles, rugs, and other interior decoration items. The company offers its products under the Cole & Son, Wall&decò, Perswall, Pappelina, Artscape, and Boråstapeter brand names. It serves customers in Sweden, Norway, Italy, and the United Kingdom. The company was founded in 1905 and is headquartered in Borås, Sweden.

How the Company Makes Money

Embellence Group AB primarily generates revenue through the sale of its branded cosmetic products and private label solutions to retailers and distributors. The company's revenue model includes direct sales to consumers through e-commerce platforms and retail partnerships. Key revenue streams are derived from product sales in various segments, including skincare, haircare, and beauty accessories. EMBELL also benefits from strategic partnerships with retailers and online marketplaces that expand its distribution channels. Additionally, the company may engage in co-branding or collaborations with other beauty brands, enhancing its market reach and revenue potential.

Embellence Group AB Financial Statement Overview

Summary

Profitability and balance-sheet quality are the main positives: gross margin remains strong and net margin improved, while leverage has fallen to conservative levels. Offsetting this is weak operating momentum—revenue turned sharply negative in 2025—and free cash flow growth also declined, adding risk despite still-positive cash generation.

Income Statement

Profitability is solid for the industry, with gross margin consistently strong (about 55%–62%) and operating profitability holding in the low-to-mid teens. Net margin improved versus 2023 and sits near ~9% in 2025, indicating good cost control. The key weakness is growth: revenue has been roughly flat recently and turned sharply negative in 2025, which raises concern about demand/volume pressure even though margins remained resilient.

Balance Sheet

Leverage looks conservative today: debt relative to equity has come down materially from 2022–2023 levels to ~0.26–0.28 in 2024–2025, improving financial flexibility. Equity remains sizable relative to assets, supporting balance-sheet stability. The main watch-out is that equity declined slightly from 2024 to 2025 while debt ticked up, and total assets also fell, suggesting some contraction that could limit optionality if the revenue downturn persists.

Cash Flow

Cash generation is positive, with operating cash flow and free cash flow remaining healthy in absolute terms and free cash flow generally tracking net income (roughly ~0.70–0.88 of net income over time). However, free cash flow growth turned sharply negative in 2025, and cash conversion is not consistently strong year-to-year, indicating higher variability in working capital or investment needs. Overall, cash flow supports the business but is less steady than profitability metrics suggest.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	765.00M	778.00M	740.47M	720.10M	646.88M
Gross Profit	472.00M	466.00M	432.47M	423.24M	359.05M
EBITDA	132.00M	132.26M	119.00M	124.67M	109.57M
Net Income	69.00M	57.00M	39.29M	57.40M	59.31M
Balance Sheet
Total Assets	762.00M	830.00M	801.76M	853.18M	623.46M
Cash, Cash Equivalents and Short-Term Investments	38.00M	40.57M	37.90M	66.23M	57.99M
Total Debt	145.00M	139.00M	242.25M	277.72M	183.03M
Total Liabilities	248.00M	292.00M	386.89M	454.12M	330.09M
Stockholders Equity	513.00M	538.00M	414.88M	399.06M	293.37M
Cash Flow
Free Cash Flow	69.00M	99.94M	48.92M	93.07M	43.56M
Operating Cash Flow	91.00M	113.00M	64.53M	107.94M	62.10M
Investing Cash Flow	-22.00M	-13.55M	-16.19M	-156.41M	-53.23M
Financing Cash Flow	-68.00M	-98.58M	-77.80M	54.21M	-2.31M

Embellence Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EMBELL, the sentiment is Negative. The current price of 40.5 is above the 20-day moving average (MA) of 35.14, above the 50-day MA of 36.98, and above the 200-day MA of 37.21, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 38.38 is Neutral, neither overbought nor oversold. The STOCH value of 18.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:EMBELL.

Embellence Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BORG	70 Outperform	kr1.61B	17.16	23.44%	4.95%	9.20%	11.72%
BOKUS	67 Neutral	kr1.11B	14.48	―	4.49%	9.46%	59.55%
EMBELL	62 Neutral	kr814.44M	13.88	12.72%	3.17%	0.78%	1.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RUG	57 Neutral	kr1.35B	23.88	10.85%	1.87%	11.38%	16.09%
DSNO	49 Neutral	kr80.71M	-0.51	-197.48%	―	-10.50%	99.53%
BULTEN	48 Neutral	kr877.30M	-98.07	-0.32%	5.49%	-10.68%	-103.85%