Fagerhult AB (FAG) AI Stock Analysis

• Market Cap: €7.68B
• Dividend Yield: 3.37%
• Average Volume (3M): 57.01K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.85
• Revenue Growth: -6.23%
• EPS Growth: -37.00%
• Country: SE
• Employees: 3,886
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.50
• Shares Outstanding: 177,192,840
• 10 Day Avg. Volume: 32,735
• 30 Day Avg. Volume: 57,012
• PEG Ratio: -0.77
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 12.70
• 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: €52.05
• Price Target Upside: 26.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: kr42.00 ▲(2.19% Upside)

Fagerhult AB's overall stock score is primarily influenced by its stable but challenged financial performance and bearish technical indicators. The high P/E ratio suggests potential overvaluation, while the dividend yield offers some appeal. The lack of earnings call data and corporate events limits additional insights. The company needs to address profitability and revenue growth to improve its stock outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with manageable leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Cash Generation Ability

Robust cash generation supports ongoing operations and strategic initiatives, enabling the company to fund investments and return capital to shareholders.

Operational Efficiency

Maintaining reasonable operational efficiency allows the company to optimize costs and improve profitability, enhancing long-term competitiveness.

Negative Factors

Declining Revenue Growth

Declining revenue growth indicates potential market challenges or competitive pressures, which could impact future earnings and market position.

Decreasing Profitability

Decreasing profitability suggests rising costs or pricing pressures, which may hinder the company's ability to generate sustainable earnings over time.

Declining Cash Flow Growth

A decline in cash flow growth can signal potential cash management challenges, affecting the company's ability to finance operations and growth initiatives.

Fagerhult AB Business Overview & Revenue Model

Company Description

Fagerhult AB (FAG) is a leading provider of innovative lighting solutions based in Sweden. The company operates in the lighting sector, focusing on designing, manufacturing, and distributing professional lighting systems for various applications, including commercial, industrial, and outdoor environments. Fagerhult's core products include energy-efficient LED lighting fixtures, control systems, and lighting design services, catering to a diverse clientele that includes architects, designers, and contractors worldwide.

How the Company Makes Money

Fagerhult AB generates revenue primarily through the sale of lighting products and systems. The company's revenue model is built on multiple key streams: direct sales to end customers, partnerships with distributors and retailers, and integrated lighting solutions that include installation and maintenance services. Fagerhult also benefits from significant partnerships with construction firms and architectural firms, which help secure large-scale projects. The increasing demand for energy-efficient and sustainable lighting solutions further contributes to its earnings, as the company focuses on innovation and meeting evolving market needs.

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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.85B	8.31B	8.56B	8.27B	7.09B	6.82B
Gross Profit	3.10B	3.25B	3.35B	3.12B	2.62B	2.40B
EBITDA	997.60M	1.17B	1.36B	1.26B	1.11B	791.80M
Net Income	257.50M	354.30M	543.50M	576.30M	465.50M	565.70M
Balance Sheet
Total Assets	13.99B	13.71B	13.01B	13.33B	12.65B	12.26B
Cash, Cash Equivalents and Short-Term Investments	1.17B	1.88B	1.27B	1.29B	1.74B	1.62B
Total Debt	4.39B	3.97B	3.53B	4.09B	4.17B	4.25B
Total Liabilities	6.90B	6.25B	5.82B	6.45B	6.43B	6.46B
Stockholders Equity	7.09B	7.46B	7.18B	6.88B	6.22B	5.76B
Cash Flow
Free Cash Flow	382.80M	750.90M	963.80M	216.80M	646.00M	954.30M
Operating Cash Flow	751.80M	963.90M	1.21B	402.70M	802.50M	1.14B
Investing Cash Flow	-1.13B	-259.70M	-225.90M	-192.50M	-266.80M	-292.80M
Financing Cash Flow	348.30M	-142.70M	-991.00M	-743.30M	-470.10M	-268.90M

Fagerhult AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.10
• 50DMA: Negative
• 100DMA: Positive
• 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:FAG, the sentiment is Negative. The current price of 41.1 is below the 20-day moving average (MA) of 41.76, below the 50-day MA of 41.89, and below the 200-day MA of 41.63, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 55.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:FAG.

Fagerhult AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INT	69 Neutral	€2.79B	18.53	68.49%	―	191.86%	220.33%
AQ	68 Neutral	€17.21B	25.90	15.15%	0.87%	2.60%	3.05%
INWI	64 Neutral	€8.21B	15.45	9.78%	3.83%	3.41%	-1.70%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
COOR	63 Neutral	€4.21B	28.98	10.13%	3.33%	-0.69%	-14.04%
FAG	56 Neutral	€7.68B	29.86	3.57%	3.37%	-6.23%	-37.00%
GARO	46 Neutral	€840.00M	-16.34	-2.59%	―	-9.58%	76.19%