Fagerhult AB (FAG) AI Stock Analysis

• Market Cap: €6.98B
• Dividend Yield: 3.54%
• Average Volume (3M): 102.29K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.79
• Revenue Growth: -9.25%
• EPS Growth: -56.03%
• Country: SE
• Employees: 3,886
• Sector: Industrials
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.28
• Shares Outstanding: 177,192,840
• 10 Day Avg. Volume: 97,597
• 30 Day Avg. Volume: 102,289
• 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: €48.17
• Price Target Upside: 21.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: kr39.00 ▼(-1.89% Downside)

Fagerhult AB's overall stock score is driven primarily by its financial performance and technical indicators. While the company maintains a stable balance sheet, profitability and revenue challenges weigh on the score. The technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation despite a decent dividend yield. Improvements in profitability and reversing revenue declines could enhance the stock's attractiveness.

Fagerhult AB Business Overview & Revenue Model

Company Description

Fagerhult AB is a Sweden-based company that specializes in the development, manufacturing, and marketing of professional lighting solutions. The company operates primarily in the lighting sector, serving a variety of industries including retail, office, education, healthcare, and outdoor environments. Fagerhult's core products include energy-efficient lighting systems, LED lights, and control systems designed to enhance both aesthetics and functionality in diverse settings.

How the Company Makes Money

Fagerhult AB generates revenue through the sale of its lighting products and solutions to a broad range of customers across different sectors. The company's key revenue streams include direct sales of lighting fixtures and systems to end-users and businesses, as well as through partnerships with architects, designers, and construction companies. Fagerhult also earns from providing after-sales services, including maintenance and upgrades of existing lighting installations. Additionally, the company benefits from its strategic acquisitions of complementary businesses to expand its market reach and product offerings. Technological innovation and a focus on energy efficiency are significant factors contributing to its earnings, as they align with growing market demands for sustainable and cost-effective lighting solutions.

Fagerhult AB Financial Statement Overview

Summary

Fagerhult AB shows a stable gross profit margin but faces challenges with declining net profit margin and revenue. The balance sheet is solid with manageable leverage, but profitability has decreased. Cash flow is healthy but shows declining growth rates, indicating potential cash management issues.

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	7.75B	8.31B	8.56B	8.27B	7.09B	6.82B
Gross Profit	3.04B	3.25B	3.35B	3.12B	2.62B	2.40B
EBITDA	849.50M	1.17B	1.37B	1.28B	1.12B	791.80M
Net Income	225.90M	354.30M	543.50M	576.30M	465.50M	565.70M
Balance Sheet
Total Assets	12.80B	13.71B	13.01B	13.33B	12.65B	12.26B
Cash, Cash Equivalents and Short-Term Investments	1.20B	1.88B	1.27B	1.29B	1.74B	1.62B
Total Debt	3.58B	3.97B	3.53B	4.09B	4.17B	4.25B
Total Liabilities	5.73B	6.25B	5.82B	6.45B	6.43B	6.46B
Stockholders Equity	7.07B	7.46B	7.18B	6.88B	6.22B	5.76B
Cash Flow
Free Cash Flow	596.50M	750.90M	963.80M	216.80M	646.00M	954.30M
Operating Cash Flow	758.00M	963.90M	1.21B	402.70M	802.50M	1.14B
Investing Cash Flow	-232.70M	-259.70M	-225.90M	-192.50M	-266.80M	-292.80M
Financing Cash Flow	-444.00M	-142.70M	-991.00M	-743.30M	-470.10M	-268.90M

Fagerhult AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.75
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 39.75 is above the 20-day moving average (MA) of 39.43, below the 50-day MA of 41.58, and below the 200-day MA of 46.96, indicating a neutral trend. The MACD of -0.85 indicates Negative momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 82.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€17.96B	24.71	9.98%	1.82%	-0.39%	34.10%
AQ	73 Outperform	€17.90B	27.25	15.38%	0.82%	-1.58%	-1.95%
INT	68 Neutral	kr4.64B	32.97	44.69%	―	74.04%	43.99%
TROAX	66 Neutral	kr7.96B	29.39	14.35%	2.81%	-1.17%	-26.46%
ITAB	63 Neutral	€4.45B	25.37	4.60%	3.16%	46.85%	-60.03%
Sector *	60 Neutral	kr41.58B	12.28	-0.38%	2.20%	1.33%	-2.77%
FAG	57 Neutral	€6.98B	30.91	3.14%	3.54%	-9.25%	-56.03%