Beijer Electronics Group AB (EPEN) AI Stock Analysis

• Market Cap: kr3.05B
• Dividend Yield: 1.11%
• Average Volume (3M): 7.39K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.25
• Revenue Growth: -1.85%
• EPS Growth: -16.44%
• Country: SE
• Employees: 814
• Sector: General
• Sector Strength: N/A
• Industry: Communication Equipment
• EPS (TTM): 1.40
• Shares Outstanding: 32,152,256
• 10 Day Avg. Volume: 5,641
• 30 Day Avg. Volume: 7,386
• PEG Ratio: -1.53
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 18.67
• 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): 6.16
• Revenue Forecast (FY): kr2.47B

• Rating: 60 Neutral
• Price Target: kr100.00 ▼(-9.26% Downside)
• Action: Reiterated Date: 01/29/26
• Date: Action: Reiterated 01/29/26

The score is supported by solid underlying financial performance (good revenue growth, strong gross margin, and improving leverage), but is held back by weak technical conditions (price below key moving averages, negative MACD, and low RSI) and only average valuation support (P/E ~22.8 with a ~1.18% yield).

Positive Factors

Strong gross margins

A ~53% gross margin in 2025 indicates durable product-level profitability and likely favorable product mix or pricing power in industrial automation. Sustained high gross margins support long-term reinvestment in R&D, buffer against input-cost volatility, and underpin operating leverage over multiple quarters to years.

Improving balance-sheet leverage

Leverage falling to ~0.47x reflects a strengthening capital structure and greater financial flexibility. Lower indebtedness reduces interest-cost sensitivity, increases room for strategic investment or M&A, and enhances resilience to cyclical downturns, supporting sustainable operations over the medium term.

Positive operating cash flow and FCF

Consistent positive operating cash flow and FCF (~194m in 2025) demonstrate the business converts operations into cash, enabling internal funding of capex, dividends, and debt reduction. This cash-generative profile is a durable strength that supports strategic optionality and financial stability over months to years.

Negative Factors

Moderating returns on equity

ROE easing to ~9% signals reduced capital efficiency versus prior periods. If persistent, lower ROE constrains the company's ability to generate high shareholder returns and may reflect margin pressure, increased equity from issuing capital, or less effective capital deployment, all of which weaken long-term return dynamics.

Weak cash conversion

Free cash flow at roughly 50% of net income points to modest cash conversion, likely from working-capital demands or ongoing investments. Over time this limits distributable cash and the company's ability to accelerate deleveraging, dividends, or buybacks even when accounting profits look healthy.

Earnings normalization from 2023 peak

Lower EBIT and net income versus the 2023 peak suggest a normalization of earnings that may reflect structural demand variability or margin compression in industrial automation. This reduces the profit cushion and implies future growth and profitability could be more cyclical and uneven over the medium term.

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

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Beijer Electronics Group AB Financial Statement Overview

Summary

Fundamentals are solid: meaningful multi-year revenue growth and strong gross margin (~53% in 2025), plus improving leverage (debt-to-equity down to ~0.47x). Offsetting this, profitability/returns have eased from the 2023 peak and free-cash-flow growth and conversion have been only moderate.

Income Statement

Revenue has grown meaningfully over the last several years (2025 up ~18.6% after a modest 2024 dip), indicating solid demand and execution. Profitability is healthy with a strong gross margin (~53% in 2025) and mid-single-digit net margin (~6.6%), but earnings have eased from the 2023 peak (lower EBIT and net income in 2024–2025 vs. 2023). Overall: good growth and solid margins, tempered by recent margin/earnings normalization.

Balance Sheet

Leverage looks manageable and improving over time: debt-to-equity has declined from above 1.0x (2021) to ~0.47x (2025), supported by a rising equity base. Returns on equity remain positive but have moderated (about 9% in 2025 vs. higher levels in 2022–2024), suggesting less efficient profit generation recently. Overall: strengthening capital structure with moderate leverage, but some softening in return profile.

Cash Flow

Cash generation is solid, with operating cash flow and free cash flow positive across recent years (2025 free cash flow ~194m). However, free cash flow declined in 2025 (down ~5.9%), and cash conversion versus earnings is only moderate (free cash flow running at roughly half of net income in 2024–2025), pointing to working-capital or investment demands. Overall: healthy cash flow, but less consistent growth and only average cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.23B	2.26B	2.47B	2.13B	1.62B
Gross Profit	1.19B	1.15B	1.22B	1.01B	766.63M
EBITDA	432.55M	338.79M	401.07M	289.64M	152.51M
Net Income	146.74M	158.01M	200.51M	146.08M	35.76M
Balance Sheet
Total Assets	3.23B	2.76B	2.57B	2.43B	2.14B
Cash, Cash Equivalents and Short-Term Investments	159.56M	178.05M	142.49M	159.86M	146.59M
Total Debt	697.93M	702.88M	729.38M	767.03M	777.76M
Total Liabilities	1.60B	1.42B	1.41B	1.44B	1.41B
Stockholders Equity	1.63B	1.33B	1.16B	989.24M	729.20M
Cash Flow
Free Cash Flow	194.48M	235.29M	160.95M	79.51M	9.03M
Operating Cash Flow	374.55M	459.51M	334.62M	200.94M	84.61M
Investing Cash Flow	-613.68M	-275.62M	-232.20M	-124.61M	-177.95M
Financing Cash Flow	258.43M	-159.86M	-111.39M	-79.13M	113.57M

Beijer Electronics Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 110.20
• 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:EPEN, the sentiment is Negative. The current price of 110.2 is above the 20-day moving average (MA) of 98.25, above the 50-day MA of 102.83, and below the 200-day MA of 114.16, indicating a bearish trend. The MACD of -1.65 indicates Positive momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 15.64 is Positive, 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
IVSO	75 Outperform	kr13.99B	55.69	21.88%	0.87%	5.69%	4.82%
TAGM.B	71 Outperform	kr363.26M	11.43	8.82%	―	14.89%	―
EPEN	60 Neutral	kr3.05B	24.74	9.68%	1.11%	-1.85%	-16.44%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
HTRO	50 Neutral	kr6.09B	-338.28	3.38%	―	0.01%	-71.63%
MAVEN	47 Neutral	kr236.28M	-18.80	-5.81%	―	-9.79%	-144.24%
GAPW.B	43 Neutral	kr406.98M	-8.02	-52.89%	―	53.78%	19.38%