Beijer Electronics Group AB (EPEN) AI Stock Analysis

• Market Cap: kr3.85B
• Dividend Yield: 1.13%
• Average Volume (3M): 7.39K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.31
• Revenue Growth: -1.85%
• EPS Growth: -16.44%
• Country: SE
• Employees: 814
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 1.30
• Shares Outstanding: 32,152,256
• 10 Day Avg. Volume: 5,641
• 30 Day Avg. Volume: 7,386
• PEG Ratio: -0.83
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 11.97
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: kr121.00 ▲(9.40% Upside)

The overall stock score is driven primarily by stable financial performance, though challenges in profitability and cash flow growth are noted. Technical analysis indicates a bearish trend, and valuation metrics suggest moderate valuation. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strong Gross Profit Margin

A stable gross profit margin indicates efficient cost management, which is crucial for maintaining profitability and competitive pricing in the long term.

Balanced Debt-to-Equity Ratio

A balanced debt-to-equity ratio suggests a sound capital structure, providing financial stability and flexibility for future investments and growth.

Strong Equity Base

A strong equity base relative to total assets enhances financial resilience, supporting long-term growth and the ability to withstand economic fluctuations.

Negative Factors

Declining Net Profit Margin

A declining net profit margin reflects reduced profitability, which could impact the company's ability to reinvest in growth and maintain competitive advantages.

Decreased Return on Equity

A decrease in return on equity indicates lower efficiency in generating profits from shareholders' equity, potentially affecting investor confidence and future capital raising.

Decline in Free Cash Flow Growth

A decline in free cash flow growth can limit the company's ability to fund operations, invest in new projects, and return capital to shareholders, impacting long-term sustainability.

Beijer Electronics Group AB Business Overview & Revenue Model

Company Description

Ependion AB, together with its subsidiaries, provides digital solutions for secure control, management, visualization, and data communication. It operates through Beijer Electronics and Westermo segments. The Beijer Electronics segment engages in development, manufacturing, and sale of hardware and software solutions to machine builders for digitized control, connection, and presentation, as well as data collection and analysis; and develops, manufactures, and sells solutions for wireless and wired data communications, and other applications, as well as monitoring and security in public buses. Westermo segment develops, manufactures, and sells robust network products for reliable data communication for trains and subways markets. In addition, it offers digital solutions for control and surveillance systems; and industrial data communication solutions for robust and secure data communication, and infrastructure, such as transportations, energy, water supply markets. The company sells its products through system integrators, original equipment manufacturers, brand label customers, and distributors. It also operates in Sweden, rest of Nordics, Germany, the United Kingdom, France, Turkey, rest of Europe, the United States, China, Taiwan, rest of Asia, and internationally. The company was formerly known as Beijer Electronics Group AB (publ) and changed its name to Ependion AB in May 2023. Ependion AB was incorporated in 1926 and is headquartered in Malmö, Sweden.

How the Company Makes Money

Beijer Electronics Group AB generates revenue primarily through the sale of its core products, which include hardware such as human-machine interfaces (HMIs), industrial computers, and communication devices, alongside software solutions for industrial automation. The company operates on a business-to-business (B2B) model, where it sells directly to manufacturers, system integrators, and end-users in sectors like manufacturing, transportation, and energy. Key revenue streams are derived from product sales, software licensing, and service agreements. Additionally, significant partnerships with major players in the automation industry enhance its market reach and contribute to its earnings, as these collaborations often lead to integrated solutions that are more appealing to customers seeking comprehensive automation systems.

Beijer Electronics Group AB Financial Statement Overview

Summary

Beijer Electronics Group AB demonstrates a solid financial position with strengths in cash flow management and stable gross margins. However, recent declines in revenue growth and net profit margins highlight areas for improvement. The balance sheet shows improved leverage but requires attention to enhance profitability metrics.

Income Statement

The company's income statement shows a mixed performance. The gross profit margin has been relatively stable, indicating efficient cost management. However, the net profit margin has decreased in the TTM period compared to the previous year, suggesting challenges in converting revenue into profit. Revenue growth has been negative recently, which is a concern, but historical growth rates were strong. EBIT and EBITDA margins have slightly declined, indicating some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has improved over time, indicating better leverage management, but remains a point of caution. Return on equity has decreased, reflecting lower profitability on shareholders' investments. The equity ratio is stable, suggesting a balanced capital structure, but the company should focus on improving its return metrics.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy, showing good cash conversion from earnings. The free cash flow to net income ratio is also solid, suggesting effective cash management. Overall, cash flow metrics are a strength for the company.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.23B	2.26B	2.47B	2.13B	1.62B	1.44B
Gross Profit	1.18B	1.15B	1.22B	1.01B	766.63M	713.35M
EBITDA	295.44M	338.79M	401.07M	289.64M	152.51M	103.97M
Net Income	138.06M	158.01M	200.51M	146.08M	35.76M	-5.65M
Balance Sheet
Total Assets	3.07B	2.76B	2.57B	2.43B	2.14B	1.88B
Cash, Cash Equivalents and Short-Term Investments	174.84M	178.05M	142.49M	159.86M	146.59M	120.72M
Total Debt	757.08M	702.88M	729.38M	767.03M	777.76M	625.14M
Total Liabilities	1.46B	1.42B	1.41B	1.44B	1.41B	1.24B
Stockholders Equity	1.62B	1.33B	1.16B	989.24M	729.20M	637.19M
Cash Flow
Free Cash Flow	206.59M	235.29M	160.95M	79.51M	9.03M	112.36M
Operating Cash Flow	402.33M	459.51M	334.62M	200.94M	84.61M	194.29M
Investing Cash Flow	-593.83M	-275.62M	-232.20M	-124.61M	-177.95M	-81.93M
Financing Cash Flow	218.00M	-159.86M	-111.39M	-79.13M	113.57M	-101.29M

Beijer Electronics Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 110.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EPEN, the sentiment is Negative. The current price of 110.6 is below the 20-day moving average (MA) of 113.04, below the 50-day MA of 117.08, and below the 200-day MA of 119.05, indicating a bearish trend. The MACD of -1.83 indicates Positive momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 25.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:EPEN.

Beijer Electronics Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAGM.B	68 Neutral	€238.02M	11.24	8.23%	―	14.89%	―
HTRO	67 Neutral	€4.01B	31.13	3.38%	―	0.01%	-71.63%
EPEN	62 Neutral	kr3.85B	26.47	9.68%	1.13%	-1.85%	-16.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IVSO	57 Neutral	€13.76B	64.91	21.88%	0.85%	5.69%	4.82%
MAVEN	55 Neutral	€298.98M	―	-5.81%	―	-9.79%	-144.24%
GAPW.B	46 Neutral	€573.71M	―	-52.89%	―	53.78%	19.38%