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Fagerhult AB (SE:FAG)
:FAG

Fagerhult AB (FAG) AI Stock Analysis

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SE

Fagerhult AB

(Frankfurt:FAG)

Rating:58Neutral
Price Target:
kr44.00
▼(-0.90%Downside)
The overall stock score of 58 reflects a combination of mixed financial performance, neutral technical indicators, and potentially overvalued stock based on valuation metrics. The most significant factor is the financial performance, which highlights stability but also pressures on profitability and revenue growth. Technical analysis suggests caution with a bearish longer-term trend. Valuation indicates a high P/E ratio, signaling limited upside potential unless earnings improve.

Fagerhult AB (FAG) vs. iShares MSCI Sweden ETF (EWD)

Fagerhult AB Business Overview & Revenue Model

Company DescriptionAB Fagerhult (publ.), together with its subsidiaries, provides professional lighting solutions worldwide. It offers indoor and outdoor lighting products that are used in offices, education, healthcare, retail, hospitality and residential, culture, urban spaces, street and pathways, critical infrastructure, and industry and distribution applications under the ateljé Lyktan, iGuzzini, LED Linear, WE-EF, FAGERHULT, LTS, Arlight, Eagle Lighting, Whitecroft, Designplan Lighting, i-Valo, and Veko brand names. The company was formerly known as Fagerhults Elektriska and changed its name to AB Fagerhult (publ.) in 1974. AB Fagerhult (publ.) was founded in 1945 and is headquartered in Habo, Sweden.
How the Company Makes MoneyFagerhult AB generates revenue primarily through the sale of its lighting products and solutions. The company offers a comprehensive range of lighting systems tailored for different environments such as offices, schools, hospitals, retail spaces, and outdoor areas. Revenue streams include direct sales to businesses and public sector clients, as well as through a network of distributors and partners globally. Fagerhult's emphasis on energy-efficient and sustainable lighting solutions also positions it favorably in markets transitioning to more eco-friendly practices. Strategic partnerships with architects, designers, and construction companies further enhance its market reach and contribute to its earnings by integrating its products into large-scale projects.

Fagerhult AB Financial Statement Overview

Summary
Fagerhult AB displays a mixed financial performance. The income statement reveals stable gross margins but declining net margins and revenue growth, indicating potential cost pressures or market challenges. The balance sheet is robust with strong equity and manageable leverage, though profitability has decreased. Cash flow remains strong, but declining growth rates may need attention. Overall, the company is in a stable financial position but must focus on improving profitability and reversing revenue declines.
Income Statement
65
Positive
Fagerhult AB shows a relatively stable income statement with a gross profit margin of 39.2% for TTM, which is healthy for the industrial goods sector. However, there is a notable decline in net profit margin to 3.6% from 6.4% the previous year, indicating increased costs or pricing pressures. The revenue has slightly declined by 2.8% in TTM compared to the previous annual report, which signals potential challenges in maintaining growth momentum. EBIT and EBITDA margins are at 7.1% and 13.0% respectively, showing reasonable operational efficiency but room for improvement.
Balance Sheet
70
Positive
The balance sheet of Fagerhult AB demonstrates strong equity with a debt-to-equity ratio of 53.7% in TTM, showcasing manageable leverage. The equity ratio is 54.8%, reflecting a solid financial foundation. Return on equity has decreased to 4.0% in TTM from 7.1% the previous year, which might concern investors looking for higher returns. Overall, the company maintains a stable balance sheet with good equity support but needs to enhance profitability.
Cash Flow
60
Neutral
Fagerhult AB's cash flow statement indicates a decline in operating cash flow to net income ratio to 3.0 from 3.3 previously, showing effective cash generation relative to earnings. The free cash flow to net income ratio is robust at 2.8, though there is a decrease in free cash flow growth rate, suggesting some cash management challenges. While the company generates healthy cash flow, the recent decline in growth rates could be a red flag if the trend continues.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.07B8.31B8.56B8.27B7.09B6.82B
Gross Profit
3.17B3.25B3.35B3.12B2.62B2.40B
EBIT
570.30M670.50M901.20M833.30M706.40M332.50M
EBITDA
1.05B1.17B1.37B1.28B1.12B791.80M
Net Income Common Stockholders
288.30M354.30M543.50M576.30M465.50M565.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.72B1.88B1.27B1.29B1.74B1.62B
Total Assets
13.14B13.71B13.01B13.33B12.65B12.26B
Total Debt
3.87B3.97B3.53B4.09B4.17B4.25B
Net Debt
2.15B2.09B2.25B2.80B2.43B2.63B
Total Liabilities
5.93B6.25B5.82B6.45B6.43B6.46B
Stockholders Equity
7.20B7.46B7.18B6.88B6.22B5.76B
Cash FlowFree Cash Flow
815.00M750.90M963.80M216.80M646.00M954.30M
Operating Cash Flow
876.10M963.90M1.21B402.70M802.50M1.14B
Investing Cash Flow
-252.50M-259.70M-225.90M-192.50M-266.80M-292.80M
Financing Cash Flow
-163.50M-142.70M-991.00M-743.30M-470.10M-268.90M

Fagerhult AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price44.40
Price Trends
50DMA
41.32
Positive
100DMA
44.51
Negative
200DMA
51.18
Negative
Market Momentum
MACD
0.44
Negative
RSI
61.39
Neutral
STOCH
82.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:FAG, the sentiment is Positive. The current price of 44.4 is above the 20-day moving average (MA) of 42.80, above the 50-day MA of 41.32, and below the 200-day MA of 51.18, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 61.39 is Neutral, neither overbought nor oversold. The STOCH value of 82.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:FAG.

Fagerhult 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
66
Neutral
$4.49B12.345.40%248.65%4.13%-12.33%
SEFAG
58
Neutral
kr7.94B27.543.84%3.03%-5.29%-44.98%
€567.32M23.246.63%3.00%
€870.65M28.7616.33%2.26%
€1.53B25.9015.07%0.85%
DE2GP
€1.41B23.169.04%2.00%
DE7RW
€236.05M19.8244.69%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:FAG
Fagerhult AB
44.40
-21.95
-33.08%
DE:29I0
ITAB Shop Concept AB
2.18
-0.24
-9.92%
DE:5TOA
Troax Group AB Class A
14.36
-6.78
-32.07%
DE:7AQ0
AQ Group AB
16.04
3.92
32.34%
DE:2GP
Alimak Group AB
12.90
2.68
26.22%
DE:7RW
Intellego Technologies AB
8.00
5.64
238.98%
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.