Fagerhult AB (FAG) AI Stock Analysis

• Market Cap: kr7.78B
• Dividend Yield: 3.16%
• Average Volume (3M): 145.19K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.89
• Revenue Growth: -5.29%
• EPS Growth: -44.98%
• Country: SE
• Employees: 3,886
• Sector: Industrials
• Sector Strength: 85
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.40
• Shares Outstanding: 177,192,840
• 10 Day Avg. Volume: 133,215
• 30 Day Avg. Volume: 145,194
• PEG Ratio: -1.41
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.17
• 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: kr52.46
• Price Target Upside: 18.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: kr45.00 ▲(1.58%Upside)

Fagerhult AB's overall stock score reflects a stable but challenged financial performance, with declining profitability and revenue growth. The technical analysis indicates short-term weakness with potential for recovery. Valuation is a concern due to a high P/E ratio, although the dividend yield offers some appeal. The absence of recent earnings call and corporate events data limits further insights.

Fagerhult AB Business Overview & Revenue Model

Company Description

Fagerhult AB (FAG) is a leading company in the lighting industry, specializing in the design, development, and manufacture of innovative lighting solutions. The company operates across various sectors, including professional indoor and outdoor lighting, with a strong focus on sustainability and energy efficiency. Fagerhult's core products include architectural lighting, office and educational lighting systems, and industrial lighting solutions, catering to a wide range of commercial and public sector needs.

How the Company Makes Money

Fagerhult 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

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	8.07B	8.31B	8.56B	8.27B	7.09B	6.82B
Gross Profit	3.17B	3.25B	3.35B	3.12B	2.62B	2.40B
EBITDA	1.05B	1.17B	1.37B	1.28B	1.12B	791.80M
Net Income	288.30M	354.30M	543.50M	576.30M	465.50M	565.70M
Balance Sheet
Total Assets	13.14B	13.71B	13.01B	13.33B	12.65B	12.26B
Cash, Cash Equivalents and Short-Term Investments	1.72B	1.88B	1.27B	1.29B	1.74B	1.62B
Total Debt	3.87B	3.97B	3.53B	4.09B	4.17B	4.25B
Total Liabilities	5.93B	6.25B	5.82B	6.45B	6.43B	6.46B
Stockholders Equity	7.20B	7.46B	7.18B	6.88B	6.22B	5.76B
Cash Flow
Free Cash Flow	815.00M	750.90M	963.80M	216.80M	646.00M	954.30M
Operating Cash Flow	876.10M	963.90M	1.21B	402.70M	802.50M	1.14B
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 Price: 44.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 44.3 is above the 20-day moving average (MA) of 43.05, above the 50-day MA of 42.48, and below the 200-day MA of 49.42, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 86.30 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALIG	76 Outperform	kr16.16B	23.58	9.04%	2.00%	0.13%	29.88%
ALIG	76 Outperform	kr16.16B	23.58	9.04%	2.00%	0.13%	29.88%
ITAB	76 Outperform	kr6.09B	22.20	6.63%	3.16%	26.05%	-30.44%
AQ	75 Outperform	kr16.69B	25.80	15.07%	8.61%	-3.59%	-1.67%
AQ	75 Outperform	kr16.69B	25.80	15.07%	8.61%	-3.59%	-1.67%
INT	73 Outperform	€3.07B	22.19	44.69%	―	74.04%	43.99%
INT	73 Outperform	€3.07B	22.19	44.69%	―	74.04%	43.99%
TROAX	72 Outperform	kr8.75B	25.60	16.33%	27.67%	2.59%	-11.50%
TROAX	72 Outperform	kr8.75B	25.60	16.33%	27.67%	2.59%	-11.50%
Sector *	64 Neutral	kr59.14B	13.55	1.96%	8.09%	-0.10%	-4.87%
FAG	61 Neutral	kr7.78B	26.99	3.84%	3.16%	-5.29%	-44.98%