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Enea AB (SE:ENEA)
:ENEA
Sweden Market
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Enea AB (ENEA) AI Stock Analysis

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SE:ENEA

Enea AB

(ENEA)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
kr75.00
▲(9.81% Upside)
Enea AB's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. While technical indicators show bearish trends, the company's valuation remains reasonable. Continued focus on revenue expansion and operational efficiency will be crucial for future growth.
Positive Factors
R&D Investment
Significant R&D investment demonstrates Enea's commitment to innovation and maintaining a competitive edge in the software industry.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, allowing Enea to invest in growth opportunities and manage debt effectively.
Strategic Partnerships
Partnerships with major providers like TextNow expand Enea's market reach and reinforce its position in cybersecurity solutions.
Negative Factors
Revenue Growth
Limited revenue growth suggests challenges in expanding market share and scaling operations, potentially impacting long-term profitability.
Structural Portfolio Decline
Declining segments within Enea's portfolio could hinder overall growth, necessitating strategic adjustments to maintain competitiveness.
Volatility in Deal Closures
Inconsistent deal closures create revenue unpredictability, complicating financial planning and potentially affecting investor confidence.

Enea AB (ENEA) vs. iShares MSCI Sweden ETF (EWD)

Enea AB Business Overview & Revenue Model

Company DescriptionEnea AB (publ) provides software products for telecommunication, cybersecurity, medical device, and aerospace industries worldwide. It offers 5G data management products, such as Enea Stratum Network Data Layer, Enea Unified Data Manager, Enea Digital Identity, and Enea Equipment Identity Register; and access management and policy control services, including Enea Access Manager, Enea Policy Manager, and Enea ENUM. The company also provides traffic management services comprising Enea Video Optimization, Enea DPI and Content Filtering, Enea Integra NFV Platform, Encrypted Video Management, Enea TCP Acceleration, Enea Traffic Classifier, and Enea IP Traffic Filtering; and Enea Edge, a virtualization and management platform designed for deployment on any white-box uCPE, and optimized for common uCPE networking and edge use cases, such as SD-WAN, security, IoT, and 5G. In addition, the company offers Qosmos ixEngine, a deep packet inspection software; Qosmos Probe, a network sensor for granular visibility into network activity; Aptilo SMP Venue Wi-Fi Manager; and Zero-touch Wi-Fi IoT and Cellular IoT Connectivity services. Further, it provides Enea OSE, a real-time operating system for multi-processor systems; Enea Linux, a carrier-grade Linux for networking and real-time applications; and Enea OSEck, an operating system for high-performance and memory constrained applications. Additionally, it offers Enea Netbricks, a collection of highly portable networking protocols; Enea Element High Availability, an application development framework that simplifies the design and implementation of applications; and Enea Polyhedra, a SQL database, as well as software development and training services. Enea AB (publ) was founded in 1968 and is headquartered in Kista, Sweden.
How the Company Makes MoneyEnea generates revenue through several key streams, including software licensing, support, and services. The company's primary revenue model is based on the sale of its software products, which are often licensed on a subscription or perpetual basis. Additionally, Enea provides maintenance and support services to its clients, ensuring ongoing revenue from existing customers. The company also engages in consulting services and custom development projects, which contribute to its earnings. Key partnerships with telecommunications providers and technology companies enhance Enea's market reach and enable it to leverage collaborative opportunities for innovation and growth.

Enea AB Earnings Call Summary

Earnings Call Date:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 30, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted steady constant currency growth and significant improvements in earnings per share. However, challenges included a reported revenue decline due to currency fluctuations and volatility in deal closures. The consistent investment in R&D and regional growth in key areas like the Middle East and North America suggest a positive outlook, although structural declines in parts of the portfolio remain a concern.
Q3-2025 Updates
Positive Updates
Constant Currency Growth
Enea reported a 3% growth in constant currency for Q3 year-over-year, despite a 1.8% decrease in reported currency.
Strong Earnings Per Share Improvement
Earnings per share increased to SEK 1.77 in Q3 from SEK 0.18 in the same quarter last year.
Investment in R&D
Enea invested 25% of its turnover back into R&D, emphasizing its commitment to staying competitive and ahead in the market.
Security and Network Solutions Developments
Enea reported positive trends in traffic management and security solutions, acquiring new customers in the Security area and renewing partnerships.
Regional Growth
Business in the Middle East and North America developed well, with two new deals announced with Tier 1 operators.
Negative Updates
Reported Revenue Decline
Net sales in reported currency decreased by 1.8% year-over-year, affected by the strengthening of the Swedish krona.
Volatility in Deal Closures
The business showed volatility in deal closures, impacting the consistent reporting of organic growth.
Structural Decline in Part of Portfolio
There is a structural decline in part of Enea's portfolio, which is affecting overall growth despite investments.
Company Guidance
During the Enea Q3 2025 presentation, the company provided detailed financial guidance and outlook for its performance. The third quarter reported net sales of SEK 213 million, representing a 1.8% decrease from the previous year in reported currency, but a 3% growth in constant currency. Enea achieved a 33% margin and a net debt of SEK 212 million, with cash flow increasing to SEK 21 million year-over-year. The earnings per share saw significant improvement, rising to SEK 1.77 from SEK 0.18 in the previous year's third quarter. A substantial 25% of the company's turnover is being reinvested into R&D to maintain competitiveness. The company continues to see growth in its core areas, notably a 9% increase in the Network Solutions segment. Despite currency pressures, Enea is confident in achieving its short-term targets with an expected EBITDA margin between 30% and 35% for the year, maintaining stable cash flow, and continuing growth in Network and Security Solutions.

Enea AB Financial Statement Overview

Summary
Enea AB shows a stable financial position with strong gross profit margins and low leverage. However, challenges in revenue growth and profitability are evident, with declining net profit margins and return on equity. Cash flow generation has weakened, potentially impacting future liquidity.
Income Statement
75
Positive
Enea AB's income statement shows mixed performance. The TTM data indicates a decline in revenue growth by 0.89%, and the net profit margin has decreased to 7.73% from 15.55% in the previous annual report. However, the company maintains a healthy gross profit margin of 76.87% in TTM, indicating strong cost management. The EBIT and EBITDA margins have also decreased, reflecting challenges in operational efficiency.
Balance Sheet
70
Positive
The balance sheet of Enea AB is relatively strong, with a low debt-to-equity ratio of 0.069 in TTM, indicating low leverage and financial stability. The return on equity has decreased to 4.12% in TTM, reflecting lower profitability. The equity ratio remains solid, suggesting a strong capital structure with equity financing.
Cash Flow
80
Positive
Enea AB's cash flow statement shows a decline in free cash flow growth by 15.47% in TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.44, suggesting moderate cash generation from operations. The free cash flow to net income ratio is stable at 1.0, showing efficient cash conversion despite the decline in free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue914.90M920.19M912.68M927.67M975.62M915.09M
Gross Profit668.10M724.44M697.68M713.99M624.96M622.01M
EBITDA156.10M390.24M240.00M295.23M372.83M233.03M
Net Income101.60M143.06M-550.72M108.95M200.26M142.28M
Balance Sheet
Total Assets2.32B2.54B2.58B3.32B3.03B2.33B
Cash, Cash Equivalents and Short-Term Investments92.40M161.52M261.79M231.30M211.37M195.07M
Total Debt316.30M303.47M509.44M587.80M776.46M476.72M
Total Liabilities671.50M693.68M900.98M1.03B1.26B846.56M
Stockholders Equity1.65B1.85B1.68B2.29B1.78B1.49B
Cash Flow
Free Cash Flow144.20M272.31M166.91M28.63M193.18M145.22M
Operating Cash Flow165.00M279.20M263.46M166.84M333.74M274.17M
Investing Cash Flow-95.80M-92.68M-95.22M34.81M-517.78M-221.42M
Financing Cash Flow-246.90M-300.72M-126.01M-205.83M191.54M8.86M

Enea AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price68.30
Price Trends
50DMA
71.86
Negative
100DMA
73.63
Negative
200DMA
74.54
Negative
Market Momentum
MACD
-1.05
Negative
RSI
37.06
Neutral
STOCH
48.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ENEA, the sentiment is Negative. The current price of 68.3 is below the 20-day moving average (MA) of 68.50, below the 50-day MA of 71.86, and below the 200-day MA of 74.54, indicating a bearish trend. The MACD of -1.05 indicates Negative momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 48.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ENEA.

Enea AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
kr1.45B13.190.86%73.68%
68
Neutral
kr1.46B72.781.78%-8.38%-38.17%
62
Neutral
kr2.28B32.7816.31%0.83%-1.48%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
47
Neutral
€1.20B23.901.00%-21.66%
46
Neutral
€831.38M-16.36-26.80%2.08%-168.70%
44
Neutral
kr2.69B10.25%-698.93%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ENEA
Enea AB
65.50
-40.90
-38.44%
SE:IAR.B
IAR Systems Group AB
180.00
35.93
24.94%
SE:CINT
Cint Group AB
3.24
-7.80
-70.63%
SE:BIM
BIMobject AB
4.95
0.47
10.49%
SE:SEYE
Smart Eye AB
69.95
7.75
12.46%
SE:FPIP
FormPipe Software AB
28.10
3.68
15.07%

Enea AB Corporate Events

Enea AB Executes Share Buyback to Enhance Shareholder Value
Dec 1, 2025

Enea AB has repurchased 11,607 of its own shares between November 24 and 28, 2025, as part of a share buyback program aimed at optimizing its capital structure and enhancing shareholder value. This buyback is part of a larger SEK 50 million program announced in July 2025, adhering to EU regulations, and is expected to influence the company’s financial strategy and market positioning.

Asiacell Enhances Network with Enea’s Traffic Management Solution
Nov 26, 2025

Asiacell, Iraq’s leading mobile operator, has implemented Enea’s Data Traffic Management solution to enhance subscriber experience and optimize network efficiency. This deployment aims to address the rapid growth in mobile data traffic by improving video content delivery and providing real-time analytics for network optimization, thereby strengthening Asiacell’s market position and service quality.

Enea AB Enhances Shareholder Value through Strategic Share Buyback
Nov 24, 2025

Enea AB has repurchased 12,352 of its own shares as part of a buyback program aimed at optimizing its capital structure to enhance shareholder value. This initiative is part of a broader SEK 50 million share buyback program, adhering to EU regulations, and is expected to impact the company’s financial strategy positively.

Enea AB Executes Share Buyback to Enhance Shareholder Value
Nov 17, 2025

Enea AB has repurchased 12,242 of its own shares between November 10-14, 2025, as part of a share buyback program authorized by the Annual General Meeting 2025. This initiative aims to adjust the company’s capital structure to its needs, enhancing shareholder value. The buyback is part of a larger SEK 50 million program running until the day before the Annual General Meeting 2026, adhering to EU regulations. The repurchases were conducted on Nasdaq Stockholm, and following these transactions, Enea holds 1,374,036 ordinary shares.

TextNow Partners with Enea to Enhance SMS Security
Nov 13, 2025

TextNow, a major provider of free mobile phone services in the U.S., has partnered with Enea to combat the rising threat of SMS spam and scams. By integrating Enea’s Adaptive Messaging Firewall and Threat Intelligence Services, TextNow aims to enhance its user safety measures, addressing the significant increase in fraudulent text complaints and setting a strong industry example for user security.

Enea AB Executes Share Buyback to Enhance Shareholder Value
Nov 10, 2025

Enea AB has repurchased 12,500 of its own shares as part of a SEK 50 million buyback program, authorized by the 2025 Annual General Meeting. This initiative aims to optimize the company’s capital structure and enhance shareholder value, with plans to withdraw the repurchased shares at future meetings.

Enea AB Unveils Strategic Plan for Growth and Market Expansion
Nov 4, 2025

Enea AB has updated its strategy to capitalize on increasing customer demand by focusing on product evolution, market acceleration, and vertical expansion. The company aims for over 10% CAGR and an adjusted EBITDA of over 35% in the next three years, targeting growth in Latin America, Asia Pacific, and North America. Enea’s strategic focus on optimization, monetization, and security aims to enhance customer value and strengthen its market position, particularly in response to geopolitical developments and increased cybersecurity needs.

Enea AB Executes Share Buyback to Enhance Shareholder Value
Nov 3, 2025

Enea AB has repurchased 12,235 of its own shares as part of a buyback program authorized by the Annual General Meeting 2025. This initiative, aimed at optimizing the company’s capital structure and enhancing shareholder value, is part of a larger SEK 50 million buyback program running until the 2026 Annual General Meeting. The repurchases were executed on Nasdaq Stockholm, and following these transactions, Enea holds 1,349,294 of its own shares.

Enea AB Executes Share Buyback to Enhance Shareholder Value
Oct 27, 2025

Enea AB has repurchased 14,280 of its own shares as part of a buyback program aimed at optimizing its capital structure and increasing shareholder value. This initiative is part of a larger SEK 50 million buyback program, conducted in compliance with EU regulations, and reflects Enea’s strategic focus on enhancing financial flexibility.

Enea AB Reports Mixed Q3 2025 Results Amid Revenue Fluctuations
Oct 23, 2025

Enea AB’s Q3 2025 interim report shows a slight decline in net sales and adjusted EBITDA, with the network business experiencing a minor decrease in revenue while security business revenue remained stable. The company’s operating systems revenue saw a significant drop, impacting overall profitability, although profit after tax improved significantly compared to the previous year. The report highlights challenges in maintaining growth across its business segments, with implications for stakeholders regarding the company’s ability to sustain its market position amidst fluctuating revenues.

Enea AB Executes Share Buyback to Optimize Capital Structure
Oct 20, 2025

Enea AB has repurchased 12,500 of its own shares as part of a buyback program authorized by the 2025 Annual General Meeting, aimed at optimizing its capital structure and enhancing shareholder value. This buyback is part of a larger SEK 50 million program running until the 2026 Annual General Meeting, aligning with EU regulations, and reflects Enea’s strategic financial management to strengthen its market position.

Enea AB Executes Share Buyback to Enhance Shareholder Value
Oct 13, 2025

Enea AB has repurchased 12,198 of its own shares between October 6–10, 2025, as part of a SEK 50 million share buyback program. This initiative aims to adjust the company’s capital structure to enhance shareholder value, with the repurchased shares intended for withdrawal at future Annual General Meetings.

Enea AB Executes Share Buyback to Enhance Shareholder Value
Oct 6, 2025

Enea AB has repurchased 12,500 of its own shares as part of a buyback program aimed at optimizing its capital structure and enhancing shareholder value. This initiative is part of a larger SEK 50 million share buyback program, conducted in compliance with EU regulations, and is expected to impact the company’s financial strategy and shareholder returns.

Enea Secures USD 1.9 Million Traffic Management Contract in Africa
Oct 2, 2025

Enea has secured a USD 1.9 million contract with a leading African communication service provider to implement its Traffic Management solution, which aims to enhance user experience and manage mobile data traffic effectively. This contract, which includes USD 1.1 million in software licenses recognized in the third quarter of 2025, reinforces Enea’s market position in the region and highlights its technical expertise in telecom solutions.

Enea Invites Stakeholders to Q3 2025 Report Presentation
Oct 2, 2025

Enea has announced an invitation for investors, analysts, and media to join a presentation of its third-quarter report for 2025. The event, which will feature a presentation by the company’s CEO and CFO, will be available via webcast and teleconference, allowing participants to engage with the company through a Q&A session. This presentation is part of Enea’s ongoing efforts to maintain transparency and engagement with its stakeholders.

Enea Secures SEK 39 Million Traffic Management Contract
Oct 1, 2025

Enea has signed a SEK 39 million contract with a leading North American mobile network operator to deliver its traffic management solution, including the 5G Service Engine and Stratum Network Data Layer. This agreement strengthens Enea’s position as a trusted partner in the competitive telecom market, enhancing user experience and optimizing network costs.

Enea AB Executes Share Buyback to Optimize Capital Structure
Sep 29, 2025

Enea AB has repurchased 12,196 of its own shares between September 22-26, 2025, as part of a SEK 50 million share buyback program aimed at optimizing its capital structure and enhancing shareholder value. This strategic move is in line with the company’s broader financial strategy and complies with EU regulations, potentially impacting its market positioning and shareholder interests.

Enea AB Executes Share Buyback to Enhance Shareholder Value
Sep 22, 2025

Enea AB has repurchased 12,500 of its own shares as part of a SEK 50 million share buyback program, authorized by the 2024 Annual General Meeting. This initiative aims to adjust the company’s capital structure to enhance shareholder value, with plans to withdraw the repurchased shares at future meetings. The buyback is conducted under EU regulations, reflecting Enea’s strategic financial management and commitment to shareholder interests.

Enea AB Executes Share Buyback to Enhance Shareholder Value
Sep 15, 2025

Enea AB has repurchased 15,000 of its own shares as part of a buyback program aimed at optimizing its capital structure and enhancing shareholder value. This initiative is part of a larger SEK 50 million share buyback program, adhering to EU regulations, and demonstrates Enea’s commitment to financial strategy and shareholder interests.

Enea AB Executes Share Buyback to Enhance Capital Structure
Sep 8, 2025

Enea AB has repurchased 17,500 of its own shares from September 1-5, 2025, as part of a share buyback program authorized by the 2024 Annual General Meeting. The program, which aims to optimize the company’s capital structure and enhance shareholder value, is set to run until the day before the 2026 Annual General Meeting, with a total budget of up to SEK 50 million. This initiative is aligned with the EU Market Abuse Regulation and is expected to impact the company’s financial strategy and shareholder relations positively.

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: Dec 03, 2025