Embellence Group AB (EMBELL) AI Stock Analysis

• Market Cap: €908.59M
• Dividend Yield: 3.22%
• Average Volume (3M): 26.75K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.36
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: kr47.00 ▲(21.45% Upside)

Embellence Group AB's strong financial performance and positive technical indicators are the primary drivers of its high score. The company's solid revenue growth, improved profitability, and effective cash flow management position it well for future growth. The stock's bullish technical indicators further support its positive outlook. The reasonable valuation with a decent dividend yield adds to its attractiveness.

Positive Factors

Profitability Improvement

The improvement in net profit margin indicates enhanced operational efficiency and cost management, contributing to stronger long-term profitability.

Cash Flow Management

Strong cash flow management ensures the company can fund expansions and service debt, supporting sustainable growth and financial resilience.

Revenue Growth

Consistent revenue growth demonstrates the company's ability to expand its market reach and product adoption, supporting long-term business success.

Negative Factors

Revenue Decline Trend

A negative revenue growth trend could indicate challenges in maintaining sales momentum, potentially impacting future financial performance.

Lack of Earnings Call Data

The absence of earnings call data limits transparency and investor insight into management's strategic direction and operational performance.

Industry Competition

The home interior decoration sector is highly competitive, which may pressure margins and require continuous innovation to maintain market position.

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

Embellence Group AB exhibits strong financial health with solid revenue growth, improved profitability margins, and effective cash flow management. The balance sheet reflects reduced leverage and a strong equity position, while cash flows indicate effective cash management strategies. The company appears well-positioned for continued growth and financial stability.

Income Statement

Embellence Group AB demonstrated notable revenue growth of 5.07% in 2024 compared to the previous year, along with an improvement in gross profit margin to 59.90%. The net profit margin also increased to 7.32% from the previous year's 5.31%. The EBIT margin improved to 11.95%, indicating better operational efficiency, and EBITDA margin rose to 16.84%. Overall, the income statement reflects a positive growth trajectory and enhanced profitability.

Balance Sheet

The debt-to-equity ratio decreased to 0.26 in 2024, indicating lower leverage compared to previous years. The return on equity increased to 10.59%, demonstrating effective utilization of equity to generate profits. The equity ratio improved to 64.82%, reflecting a strong equity base relative to total assets. While overall stability appears solid, maintaining a low debt level is crucial for financial resilience.

Cash Flow

Operating cash flow improved significantly to SEK 113 million in 2024, leading to a strong free cash flow position of the same amount. The operating cash flow to net income ratio is 1.98, suggesting robust cash generation relative to earnings. Free cash flow to net income ratio is also healthy at 1.98. The company shows strong cash flow management, crucial for future expansions and debt servicing.

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: Positive
• Last Price: 38.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EMBELL, the sentiment is Positive. The current price of 38.7 is below the 20-day moving average (MA) of 38.92, below the 50-day MA of 38.79, and above the 200-day MA of 36.29, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 66.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	79 Outperform	€908.59M	13.45	12.72%	3.22%	0.78%	1.33%
BOKUS	70 Outperform	kr1.38B	21.50	―	4.86%	9.46%	59.55%
BORG	69 Neutral	€1.58B	18.68	23.44%	4.78%	9.20%	11.72%
RUG	68 Neutral	€1.58B	26.45	10.85%	1.79%	11.38%	16.09%
BULTEN	62 Neutral	kr1.03B	―	-0.32%	5.53%	-10.68%	-103.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DSNO	41 Neutral	€72.46M	―	-197.48%	―	-10.50%	99.53%