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Electrolux Professional AB (SE:EPRO.B)
:EPRO.B

Electrolux Professional AB (EPRO.B) AI Stock Analysis

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Electrolux Professional AB

(OTC:EPRO.B)

Rating:70Outperform
Price Target:
kr69.00
▲(11.29%Upside)
Electrolux Professional AB's strong financial performance is the most significant factor, contributing positively to its overall score. Technical analysis suggests some short-term weakness, and valuation metrics indicate the stock might be slightly overvalued. The absence of new earnings call insights or corporate events means these components do not impact the score.

Electrolux Professional AB (EPRO.B) vs. iShares MSCI Sweden ETF (EWD)

Electrolux Professional AB Business Overview & Revenue Model

Company DescriptionElectrolux Professional AB (publ) provides food service, beverage, and laundry solutions to restaurants, hotels, healthcare, educational, and other service facilities. The company operates in two segments, Food & Beverage and Laundry. It offers slicers and food processors, vegetable washers, spin dryers, planetary mixers, vacuum packers and sealers, multi-purpose peeling machines, fryers, boiling and braising pans, grills and griddles, ventilation equipment, modular cooking ranges, fry tops, combi and convection ovens, refrigerated cabinets and counters, saladettes, cold rooms, blast chillers and freezers, portable mixers, turbo liquidizers, meat mincers, dough kneaders and sheeters, salamanders, wine cellars, ice makers and flakers, and trolleys, as well as stainless steel fabrication solutions. The company also provides commercial dishwashers and accessories, waste management systems, and handling systems; cabinets, cupboards, worktables, and shelves; and coffee grinders and brewers, espresso coffee machines, coffee urns, hot and cold beverage dispensers, cold juice dispensers, beer dispensing systems, frozen granita and ice cream dispensers, soft serves, and soft ice cream dispensers. In addition, it offers front and side load washers, efficient dosing systems, barrier washers, wash and dry systems, tumble dryers, drying cabinets, semi-professional washers and dryers, ironers, industrial ironers, and finishing machines. The company operates in Europe, the Asia-Pacific, the Middle East, Africa, and the Americas. The company was incorporated in 1898 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneyElectrolux Professional AB generates revenue primarily through the sale of its professional food service, beverage, and laundry equipment. The company's key revenue streams include direct sales to end-users, such as hotels, restaurants, and healthcare facilities, as well as sales through distributors and retail partners. Additionally, Electrolux Professional offers maintenance and repair services, extended warranties, and spare parts, which provide recurring revenue. Strategic partnerships with industry leaders and a strong global distribution network further contribute to the company's earnings by expanding its market reach and customer base.

Electrolux Professional AB Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q3-2024)
|
% Change Since: 12.14%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive quarter with significant improvements in profitability and financial KPIs, strong performance in Europe and the Americas, and promising developments in product innovation. However, challenges remain due to currency impacts and regional sales declines, particularly in the Middle East and U.S. markets.
Q3-2024 Updates
Positive Updates
Improved Profitability and Financial KPIs
Q3 saw improvements in profitability with growth in both organic sales and EBITA margin. Strong cash flow generation of more than 100% cash conversion was achieved, along with improvements in order intake.
Positive Sales Growth in Europe and Americas
Sales grew organically in Europe and the Americas. Europe’s performance was driven by strong results in the Mediterranean region.
Laundry Segment Performance
The Laundry segment showed strong sales growth, with an organic growth rate of over 5% and an EBITA margin exceeding 20%.
Improved EBITA Margin
EBITA margin improved from 10.5% last year to 11.5% this year, with a 12% increase in absolute value.
Strong Cash Flow and Balance Sheet
The company delivered cash flow over SEK 440 million and improved operating working capital to 16.8%, maintaining a strong financial position post-acquisitions.
Innovative Product Launch
The launch of a new digital dishwasher with features aimed at sustainability and aftermarket business, such as automatic detergent reordering.
Negative Updates
Currency Impact
Negative currency impacts affected the quarter, particularly in Laundry, due to the strengthening of the Thai baht and weakening U.S. dollar.
Decline in Asia-Pac, Middle East and Africa Sales
Sales declined in the Asia-Pac, Middle East, and Africa regions, with notable challenges in the Middle East market.
Challenges in U.S. and Middle East Markets
U.S. market performance was soft, although showing signs of recovery, and the Middle East remained a challenging market.
Company Guidance
During the Electrolux Professional Group's Q3 2024 earnings call, executives highlighted several key financial metrics indicating improved performance. The company achieved an EBITA margin of 11.5%, up from 10.5% the previous year, marking a 12% increase in absolute value. Organic sales growth was noted in both the European and American markets, though declines were observed in Asia-Pacific, the Middle East, and Africa. Despite a negative currency impact, particularly affecting the laundry segment, the company maintained a strong cash flow, with more than 100% cash conversion. The financial net was SEK 29 million lower than the previous year, despite an additional SEK 1 billion in borrowing for acquisitions. The tax rate for the quarter was approximately 22%, with an EPS of SEK 0.66, up 18% from the same period last year. The company also improved its operating working capital on sales to 16.8% and maintained a strong financial position with a net debt-to-EBITDA ratio of 1.7x. These results underscored a positive quarter, reflecting the company's strategic focus on margin expansion and operational efficiency.

Electrolux Professional AB Financial Statement Overview

Summary
Electrolux Professional AB showcases strong revenue growth and profitability with a consistent growth trajectory. The balance sheet is stable, with moderate leverage and a strong equity position. Cash flow generation remains solid despite a slight decrease in free cash flow, indicating overall financial health and potential for continued growth.
Income Statement
85
Very Positive
Electrolux Professional AB demonstrates strong profitability metrics with a Gross Profit Margin of 34.7% and a Net Profit Margin of 6.6% in the TTM period. The company has shown a consistent Revenue Growth Rate of 5.3% from the previous year, indicating a positive growth trajectory. The EBIT Margin and EBITDA Margin are also healthy at 10.1% and 16.6% respectively, pointing towards efficient operational management.
Balance Sheet
78
Positive
The balance sheet of Electrolux Professional AB reflects a stable financial position with a Debt-to-Equity Ratio of 0.58, which indicates moderate leverage. The Return on Equity (ROE) is strong at 15.2%, suggesting effective use of equity to generate profits. The Equity Ratio stands at 40.5%, highlighting a solid equity base relative to total assets.
Cash Flow
80
Positive
The company's cash flow is robust, with a Free Cash Flow Growth Rate of -7.0% due to a slight decrease from the previous period, but overall Free Cash Flow remains strong at SEK 1,014 million. The Operating Cash Flow to Net Income Ratio is 1.61, and the Free Cash Flow to Net Income Ratio is 1.22, indicating excellent cash generation relative to profit.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
12.60B12.58B11.85B11.04B7.86B7.26B
Gross Profit
4.37B4.32B4.00B3.62B2.65B2.37B
EBIT
1.27B1.23B1.15B955.00M592.00M387.00M
EBITDA
2.10B1.79B1.58B1.46B892.00M674.00M
Net Income Common Stockholders
831.00M803.00M775.00M686.00M487.00M278.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
764.00M794.00M959.00M1.10B836.00M797.00M
Total Assets
13.48B14.07B11.35B12.29B10.61B7.31B
Total Debt
3.15B3.25B2.23B3.13B2.59B1.22B
Net Debt
2.38B2.46B1.27B2.24B1.75B423.00M
Total Liabilities
8.02B8.38B6.64B8.02B7.08B4.51B
Stockholders Equity
5.46B5.70B4.71B4.27B3.52B2.80B
Cash FlowFree Cash Flow
1.01B1.09B993.00M336.00M942.00M456.00M
Operating Cash Flow
1.34B1.41B1.18B475.00M1.10B729.00M
Investing Cash Flow
-574.00M-1.45B-188.00M-152.00M-2.23B-246.00M
Financing Cash Flow
-873.00M-120.00M-892.00M-285.00M1.17B-294.00M

Electrolux Professional AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price62.00
Price Trends
50DMA
59.91
Positive
100DMA
65.43
Negative
200DMA
66.42
Negative
Market Momentum
MACD
0.15
Positive
RSI
46.70
Neutral
STOCH
20.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EPRO.B, the sentiment is Negative. The current price of 62 is below the 20-day moving average (MA) of 63.89, above the 50-day MA of 59.91, and below the 200-day MA of 66.42, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 20.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:EPRO.B.

Electrolux Professional AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$17.32B21.4415.31%13.00%5.59%10.07%
66
Neutral
$4.44B12.085.34%5.82%4.17%-11.81%
kr14.63B43.794.65%2.76%
$2.42B45.2116.98%0.12%
€1.61B26.4411.86%1.38%
€1.50B27.6515.34%1.21%
kr18.25B16.86
40.51%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:EPRO.B
Electrolux Professional AB
62.00
-12.60
-16.89%
GB:0MWK
Lindab International AB
195.38
-36.95
-15.90%
MMNNF
Munters Group AB
14.16
-8.62
-37.84%
DE:52SA
Systemair AB
7.61
0.54
7.64%
DE:29B0
Bufab AB
7.67
0.90
13.29%
SE:BRAV
Bravida Holding AB
89.25
9.98
12.59%

Electrolux Professional AB Corporate Events

Electrolux Professional Group Launches Green Finance Framework
Jun 11, 2025

Electrolux Professional Group has launched a green finance framework to integrate climate change mitigation into its financial strategies. This framework, validated by Sustainalytics, aligns with Green Bond Principles and supports the company’s sustainability agenda by financing eco-efficient projects and renewable energy initiatives.

The most recent analyst rating on ($SE:EPRO.B) stock is a Buy with a SEK80.00 price target. To see the full list of analyst forecasts on Electrolux Professional AB stock, see the SE:EPRO.B Stock Forecast page.

Electrolux Professional AB Annual General Meeting Outcomes
May 7, 2025

Electrolux Professional AB held its Annual General Meeting on May 7, 2025, where key resolutions were adopted, including a dividend of SEK 0.85 per share and the re-election of several board members, with Shannon Garcia joining as a new member. The meeting also approved a performance-based long-term share program for 2025 and authorized the issuance of new shares to facilitate acquisitions, reflecting the company’s strategic focus on growth and shareholder value.

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.