Embellence Group AB (EMBELL) AI Stock Analysis

• Market Cap: kr835.62M
• Dividend Yield: 3.17%
• Average Volume (3M): 26.75K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.37
• Revenue Growth: 0.78%
• EPS Growth: 1.33%
• Country: SE
• Employees: 228
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.56
• Shares Outstanding: 23,538,721
• 10 Day Avg. Volume: 17,539
• 30 Day Avg. Volume: 26,748
• PEG Ratio: 0.27
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 6.75
• 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: 71 Outperform
• Price Target: kr43.00 ▲(6.17% Upside)

Score is driven primarily by solid financial performance, including strong margins and meaningfully improved leverage, supported by acceptable free cash flow. Valuation is reasonable with a decent dividend yield. Technicals are the main constraint, with largely neutral indicators and slightly negative momentum.

Positive Factors

High Gross and EBIT Margins

Sustained high gross (~61%) and healthy EBIT (~11.7%) margins suggest durable product-level pricing power and cost structure advantages in cosmetics. This margin base supports consistent operating profitability, reinvestment in R&D/brand, and resilience to input-cost shocks over months.

Improved Leverage and Strong Capital Structure

Material deleveraging (D/E ~0.27 vs ~0.70 in 2022) meaningfully lowers refinancing and interest-rate risk, improving financial flexibility. A stronger balance sheet supports strategic investment, M&A optionality, and steadier dividend or buyback policies over the medium term.

Supportive Free Cash Flow Generation

Robust FCF (~78m TTM, ~0.89x net income) indicates earnings translate into cash, supporting sustainable shareholder distributions, debt reduction, and capex without heavy external funding. Persistent FCF capacity enhances long-term capital allocation options.

Negative Factors

Revenue Essentially Flat vs 2024

Flat absolute revenue versus the prior year limits organic growth runway and suggests the business may rely on margin improvement rather than volume expansion. Over months, stagnant top-line constrains scalability, market-share gains, and long-term earnings upside absent new channels or products.

Volatile Operating Cash Flow and Cash Conversion

Significant OCF variability and a modest cash conversion (~0.51) point to working-capital swings that can unpredictably affect liquidity. This volatility reduces confidence in funding cadence for capex, dividends, or debt service and complicates multi-quarter financial planning.

Shrinking Asset Base and Lower ROE vs Peak

A declining asset base plus a material drop in ROE from prior peaks implies reduced reinvestment efficiency or slowing demand. Persistently lower ROE can constrain long-term shareholder returns and signal limits to growth unless operational or strategic initiatives reverse the trend.

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

Strong profitability (gross margin ~61%, EBIT margin ~11.7%) with stable-to-improving net margin (~8.3% TTM). Balance sheet risk has improved materially (debt-to-equity ~0.27 TTM vs ~0.70 in 2022), and ROE is healthy (~12%). Main offsets are flat revenue versus 2024 in absolute terms and somewhat variable cash conversion/operating cash flow.

Income Statement

TTM (Trailing-Twelve-Months) revenue growth is strong (+52%), and profitability is solid with a high gross margin (~61%) and healthy operating profitability (EBIT margin ~11.7%). Net margin is also stable-to-improving versus prior years (~8.3% TTM vs ~7.3% in 2024). The main weakness is that revenue is essentially flat versus 2024 on an absolute basis (TTM ~771m vs 2024 ~778m), and net margins have shown some variability over the cycle (notably lower in 2023), indicating results can be somewhat sensitive to demand or cost conditions.

Balance Sheet

Leverage has improved meaningfully: debt-to-equity has come down to ~0.27 in TTM (Trailing-Twelve-Months) from ~0.53 in 2023 and ~0.70 in 2022, suggesting a stronger capital structure and lower balance-sheet risk. Returns on equity are healthy (~12% TTM), though below the very strong levels seen in 2020–2021 (~20%). Equity remains sizable (~506m TTM), but total assets have drifted down from 2024 (784m TTM vs 830m in 2024), which may reflect a smaller asset base or working-capital swings rather than clear expansion.

Cash Flow

Cash generation is generally supportive: free cash flow is strong (78m TTM) and closely tracks earnings (free cash flow is ~0.89x net income TTM), indicating decent earnings quality. However, operating cash flow has been uneven (113m in 2024 vs 87.7m TTM), and the provided cash conversion indicator remains moderate (about 0.51 TTM), implying working-capital or timing effects can meaningfully swing cash results. Free cash flow growth is volatile across years (down in 2021 and 2023, then improving again), which slightly reduces confidence in consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	771.00M	778.00M	740.47M	720.10M	646.88M	569.86M
Gross Profit	474.00M	466.00M	432.47M	423.24M	359.05M	311.97M
EBITDA	135.00M	132.26M	119.00M	124.67M	109.57M	94.33M
Net Income	64.00M	57.00M	39.29M	57.40M	59.31M	43.13M
Balance Sheet
Total Assets	784.00M	830.00M	801.76M	853.18M	623.46M	513.08M
Cash, Cash Equivalents and Short-Term Investments	37.00M	40.57M	37.90M	66.23M	57.99M	49.01M
Total Debt	136.00M	139.00M	242.25M	277.72M	183.03M	140.70M
Total Liabilities	278.00M	292.00M	386.89M	454.12M	330.09M	301.31M
Stockholders Equity	506.00M	538.00M	414.88M	399.06M	293.37M	211.77M
Cash Flow
Free Cash Flow	78.00M	99.94M	48.92M	93.07M	43.56M	50.08M
Operating Cash Flow	87.72M	113.00M	64.53M	107.94M	62.10M	67.06M
Investing Cash Flow	-14.55M	-13.55M	-16.19M	-156.41M	-53.23M	-17.40M
Financing Cash Flow	-81.58M	-98.58M	-77.80M	54.21M	-2.31M	-33.04M

Embellence Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 37.93, above the 50-day MA of 38.75, and above the 200-day MA of 37.10, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 29.46 is Positive, neither overbought nor oversold. The STOCH value of 3.60 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
EMBELL	71 Outperform	kr835.62M	13.06	12.72%	3.17%	0.78%	1.33%
BOKUS	70 Outperform	kr1.17B	18.24	―	4.49%	9.46%	59.55%
BORG	69 Neutral	kr1.47B	16.99	23.44%	4.95%	9.20%	11.72%
RUG	68 Neutral	kr1.31B	21.72	10.85%	1.87%	11.38%	16.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BULTEN	56 Neutral	kr1.04B	-173.66	-0.32%	5.49%	-10.68%	-103.85%
DSNO	42 Neutral	kr60.88M	-6.74	-197.48%	―	-10.50%	99.53%