Fabege AB (FABG) AI Stock Analysis

• Market Cap: kr25.20B
• Dividend Yield: 2.39%
• Average Volume (3M): 687.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -3.46%
• EPS Growth: N/A
• Country: SE
• Employees: 228
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 1.19
• Shares Outstanding: 330,783,140
• 10 Day Avg. Volume: 662,166
• 30 Day Avg. Volume: 687,302
• PEG Ratio: -1.18
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 6.91
• P/FCF Ratio: 14.98
• 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: kr81.13
• Price Target Upside: -0.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.56
• Revenue Forecast (FY): kr3.60B

• Rating: 63 Neutral
• Price Target: kr90.00 ▲(9.96% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven mainly by steady cash generation (including strong 2025 free-cash-flow growth) and supportive technical trend signals. These positives are tempered by persistent net losses and negative returns on equity, plus only modest operating cash flow coverage of debt and a negative P/E that reflects weak recent profitability.

Positive Factors

Strong gross margin (~69%)

A sustained gross margin near 69% indicates durable pricing power and cost control in property operations and development. High gross profitability supports reinvestment in assets and cushions operating variances, aiding long-term cash generation and portfolio value retention.

Consistent positive cash generation

Positive operating cash flow and a 65% rebound in free cash flow in 2025 show strong cash conversion and liquidity creation from core real estate activities. Reliable FCF supports debt servicing, development funding, and strategic investment without depending solely on equity issuance.

Focused Stockholm commercial property franchise

Concentration on Stockholm office and mixed‑use markets provides a structural competitive advantage through local market expertise, relationships with municipalities, and targeted urban development projects. This focus enables better asset rotation and tenant alignment over multi-year cycles.

Negative Factors

Persistent net losses and negative ROE

Three years of negative net income and an ROE below zero highlight weak bottom‑line returns despite revenue and margin strength. Prolonged losses reduce retained earnings, limit dividend capacity, and constrain equity returns, undermining shareholder value creation over time.

Rising leverage (debt ≈ equity)

Debt roughly equal to equity represents moderate-to-elevated leverage for a property company. Higher leverage increases refinancing and interest rate sensitivity, reducing financial flexibility for new developments and making the firm more exposed to adverse market or funding conditions.

Weak OCF coverage of debt (~0.19)

Operating cash flow covering only ~19% of debt signals limited internal ability to service obligations from operations alone. This reliance on capital markets or asset sales to meet liabilities elevates refinancing risk and can force defensive asset dispositions during downturns.

Fabege AB Business Overview & Revenue Model

Company Description

Fabege AB (publ), a property company, focuses primarily on the development, investment, and management of commercial premises in Sweden. Its property portfolio comprises office, retail, industrial/warehouse, residential, hotel, and garage properties. The company also engages in the acquisition and sale of properties. It owns 94 properties. The company was formerly known as Wihlborgs Fastigheter AB and changed its name to Fabege AB (publ) in December 2005. Fabege AB (publ) was founded in 1924 and is headquartered in Solna, Sweden.

How the Company Makes Money

Fabege AB generates revenue primarily through leasing commercial properties to businesses, which constitutes its main revenue stream. The company leases office spaces, retail units, and other commercial facilities, resulting in stable rental income. In addition to leasing, Fabege earns income from property development projects, where it creates new buildings or refurbishes existing ones to increase their market value. The company may also realize profits from the sale of properties in its portfolio, particularly when market conditions are favorable. Strategic partnerships with local governments and other stakeholders in urban development projects further enhance its business opportunities, contributing to its overall earnings through collaborative projects and investments in infrastructure that attract tenants to its properties.

Fabege AB Financial Statement Overview

Summary

Revenue growth is modest (+5.2% in 2025) and gross margin is strong (~69%), while cash generation is consistently positive with a sharp 2025 FCF rebound (+65%). Offsetting this, net income has been negative in 2023–2025 with volatile earnings quality and negative ROE, and operating cash flow covers only a modest share of debt (~0.19), leaving some financing sensitivity.

Income Statement

Revenue has grown modestly in the latest year (+5.2% in 2025), and gross profitability remains strong (~69% gross margin). However, earnings quality is volatile: net income has been negative in 2023–2025 (with an extreme loss in 2023), and net margins remain below zero in the last two years, suggesting meaningful swings in profitability despite solid top-line resilience.

Balance Sheet

The balance sheet is asset-heavy as expected for real estate, with leverage moderate-to-elevated: debt is roughly in line with equity (debt-to-equity ~1.00 in 2025, up from ~0.86 in 2023). Equity remains sizable, but returns to shareholders are currently negative (ROE below 0 in 2023–2025), indicating that the capital base is not generating positive bottom-line results recently.

Cash Flow

Cash generation is a relative bright spot: operating cash flow and free cash flow are positive across years, with a sharp rebound in free cash flow growth in 2025 (+65%). Free cash flow is close to reported net income in 2025 (free cash flow to net income ~0.99), signaling decent cash conversion; however, operating cash flow covers only a modest share of debt in 2025 (coverage ~0.19), leaving sensitivity to financing conditions.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.76B	3.67B	3.93B	3.33B	2.95B
Gross Profit	2.49B	2.53B	2.48B	2.16B	2.18B
EBITDA	538.00M	940.00M	-6.38B	1.93B	6.70B
Net Income	-348.00M	-213.00M	-5.52B	2.38B	5.40B
Balance Sheet
Total Assets	83.09B	84.11B	83.22B	92.08B	87.99B
Cash, Cash Equivalents and Short-Term Investments	131.00M	164.00M	183.00M	183.00M	227.00M
Total Debt	37.59B	35.77B	33.93B	34.59B	31.49B
Total Liabilities	45.61B	45.66B	43.98B	46.57B	42.81B
Stockholders Equity	37.48B	38.45B	39.24B	45.51B	45.17B
Cash Flow
Free Cash Flow	1.73B	1.64B	1.57B	5.25B	3.76B
Operating Cash Flow	1.74B	1.64B	1.57B	1.99B	1.52B
Investing Cash Flow	-1.19B	-2.46B	-332.00M	-3.23B	-2.98B
Financing Cash Flow	-589.00M	805.00M	-1.24B	1.20B	1.57B

Fabege AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.85
• 50DMA: Negative
• 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:FABG, the sentiment is Negative. The current price of 81.85 is below the 20-day moving average (MA) of 82.73, below the 50-day MA of 82.13, and above the 200-day MA of 81.20, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 40.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:FABG.

Fabege AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NP3	68 Neutral	kr16.23B	12.51	12.28%	1.75%	14.33%	204.60%
WIHL	67 Neutral	kr28.25B	12.64	9.74%	3.60%	5.18%	349.60%
WALL.B	66 Neutral	kr28.21B	4.99	6.07%	1.25%	-5.96%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FABG	63 Neutral	kr25.20B	-74.62	0.76%	2.39%	-3.46%	―
PLAZ.B	60 Neutral	kr8.89B	12.73	5.26%	2.91%	8.42%	―
NYF	47 Neutral	kr14.65B	28.53	3.19%	1.93%	0.03%	―

Fabege AB Corporate Events

Fabege Posts 2025 Loss on Property Revaluations but Lifts Dividend as Cash Flow Holds

In the fourth quarter and full year 2025, Fabege reported stable rental and operating performance but weaker bottom-line results driven by negative property value changes. Rental income edged up to SEK 3,480m for 2025, with net operating income essentially flat at SEK 2,583m and a steady surplus ratio of 74 per cent, while net lettings turned positive at SEK 36m after being negative in 2024, supported by higher volumes of renegotiated and extended leases despite modest declines in rental values. Residential development contributed SEK 280m in revenue and SEK 55m in gross earnings for the year, marking a clear improvement on 2024. However, significant realised and unrealised downward revaluations of properties totalling SEK -1,736m, together with negative derivative value changes, pushed earnings before tax to a loss of SEK -508m and earnings after tax to SEK -348m. Despite the weaker earnings and slightly lower EPRA NRV per share of SEK 145, Fabege maintained a conservative balance sheet with an unchanged loan-to-value ratio of 43 per cent and an equity/assets ratio of 45 per cent, and the Board proposed raising the dividend to SEK 2.20 per share, signalling confidence in the company’s cash flow and long‑term prospects.

The most recent analyst rating on (SE:FABG) stock is a Hold with a SEK82.00 price target. To see the full list of analyst forecasts on Fabege AB stock, see the SE:FABG Stock Forecast page.

Fabege Sets February 2026 Date for 2025 Year‑End Results Presentation

Fabege has announced that it will publish its year‑end report for 2025 on 5 February 2026 at 07:30 CET and will host an English‑language audiocast and teleconference at 10:00 CET the same day for investors, analysts and other stakeholders. President and CEO Bent Oustad and Vice President and CFO Åsa Bergström will present the interim results for January–October 2025, followed by a Q&A session, with all materials and replay access to be made available on the company’s website, underscoring Fabege’s ongoing commitment to transparency and active engagement with the capital market.

The most recent analyst rating on (SE:FABG) stock is a Hold with a SEK82.00 price target. To see the full list of analyst forecasts on Fabege AB stock, see the SE:FABG Stock Forecast page.

Fabege Board Member Resigns After Taking Role With Competitor

Fabege AB announced a change to its board of directors following the immediate resignation of board member Tomas Eriksson. Eriksson has stepped down after accepting an assignment with a competing business, prompting the company to formally notify the market under EU disclosure rules, though no replacement or further governance changes were disclosed.

The most recent analyst rating on (SE:FABG) stock is a Hold with a SEK82.00 price target. To see the full list of analyst forecasts on Fabege AB stock, see the SE:FABG Stock Forecast page.

Fabege AB: Innovating Sustainable Commercial Spaces in Stockholm

Fabege AB, listed on Nasdaq Stockholm’s Large Cap segment, is dedicated to creating attractive commercial locations in Stockholm. Their approach centers on sustainable development, which they believe enhances value for companies, places, and the city, positioning them as a responsible and innovative partner in the real estate industry.

The most recent analyst rating on (SE:FABG) stock is a Hold with a SEK84.00 price target. To see the full list of analyst forecasts on Fabege AB stock, see the SE:FABG Stock Forecast page.

Fabege AB Announces Introduction of New CEO Bent Oustad

Fabege AB has announced a conference call for investors and stakeholders to introduce its newly appointed CEO, Bent Oustad, on December 18, 2025. This event, which will include participation from CEO Bent Oustad and CFO Åsa Bergström, highlights the company’s commitment to transparency and engagement with its stakeholders.

The most recent analyst rating on (SE:FABG) stock is a Sell with a SEK59.80 price target. To see the full list of analyst forecasts on Fabege AB stock, see the SE:FABG Stock Forecast page.