Fagerhult AB (FAG) AI Stock Analysis

• Market Cap: kr6.68B
• Dividend Yield: 3.46%
• Average Volume (3M): 57.01K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.72
• Revenue Growth: -6.23%
• EPS Growth: -37.00%
• Country: SE
• Employees: 3,886
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.49
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: kr39.00 ▼(-3.70% Downside)

Overall score reflects pressured profitability and weakening free cash flow (largest driver), compounded by bearish technical momentum (price below major moving averages with negative MACD). Valuation is only modestly supportive due to the dividend yield, while the P/E remains high relative to the softened fundamentals.

Positive Factors

Diversified sales channels & partnerships

Fagerhult's diversified revenue model—direct sales, distributors, and integrated project services plus ties to construction and architectural firms—creates durable demand visibility. Large-scale project linkages help secure multi-year contracts and provide recurring installation/maintenance revenue streams.

Resilient product-level margins

A stable gross margin near 39–40% indicates underlying product and cost competitiveness in LED fixtures and systems. This resilience suggests pricing power or manufacturing efficiency at the SKU level, supporting long-term margin sustainability even if operating costs fluctuate.

Manageable leverage and equity cushion

Leverage around 0.62 with sizable equity gives Fagerhult financial flexibility to fund R&D, capex or bolt-on deals without immediate distress. This balance-sheet headroom improves resilience to cyclical downturns in construction and lighting project timing over the coming months.

Negative Factors

Eroding operating and net margins

Declining EBIT and net margins point to structural profitability pressure from higher overhead, mix shifts, or pricing constraints. Persistently lower operating profitability reduces cash available for reinvestment, dividends, and weakens competitive reinvestment capacity over the medium term.

Weakened cash conversion

A ~36% drop in free cash flow and FCF only ~50% of net income indicates deteriorating cash quality, likely from working-capital or higher investment needs. Lower cash conversion constrains deleveraging, capex funding, and strategic investments over the next several quarters.

Soft top-line and earnings momentum

Negative revenue and sharply lower EPS signal weakening demand or margin shocks. Combined with a cooled TTM ROE (~3.6%), slower top-line and earnings growth undermines long-term return generation and limits reinvestment capacity, posing a structural headwind for recovery.

Fagerhult AB Business Overview & Revenue Model

Company Description

AB 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 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

Financials indicate stable revenue but weaker profitability and cash conversion. Income statement shows margins down versus 2023–2024 (net margin ~3.3%, EBIT margin ~7.1%) despite steady gross margin (~39–40%). Balance sheet leverage is manageable (debt-to-equity ~0.62) but returns have cooled (TTM ROE ~3.6%). Cash flow is the key drag: free cash flow is positive but down ~36% and is only about half of net income.

Income Statement

TTM (Trailing-Twelve-Months) results show stable revenue but weaker profitability versus prior years: revenue is up ~1.4% while net margin is ~3.3% and EBIT margin ~7.1%, down from 2023–2024 levels. Gross margin has held fairly steady (~39–40%), suggesting cost discipline at the product level, but the step-down in operating and net profitability points to higher overhead/other costs or mix/price pressure. Overall, the business remains profitable but is clearly off its recent peak earnings power.

Balance Sheet

Leverage looks manageable for an industrial name: debt-to-equity is ~0.62 in TTM (Trailing-Twelve-Months), a bit higher than 2023–2024, and equity remains sizable versus the asset base. Returns have cooled materially (TTM return on equity ~3.6% vs mid-to-high single digits in 2021–2024), indicating reduced efficiency in turning capital into profits. Balance sheet strength is acceptable, but the recent uptick in leverage combined with lower returns reduces cushion if profitability stays soft.

Cash Flow

Cash generation has weakened in TTM (Trailing-Twelve-Months): operating cash flow is ~752m and free cash flow ~383m, with free cash flow down ~36% versus the prior period provided. Free cash flow is only about half of net income, and operating cash flow coverage is lower than in 2023–2024, pointing to less favorable working-capital movement and/or higher cash investment needs. The company is still generating positive free cash flow, but quality and momentum have deteriorated.

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: 40.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 40.5 is above the 20-day moving average (MA) of 38.45, above the 50-day MA of 39.68, and below the 200-day MA of 41.06, indicating a bearish trend. The MACD of -0.63 indicates Negative momentum. The RSI at 44.17 is Neutral, neither overbought nor oversold. The STOCH value of 58.02 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	kr1.55B	4.67	68.49%	―	191.86%	220.33%
AQ	68 Neutral	kr18.57B	27.86	15.15%	0.83%	2.60%	3.05%
INWI	66 Neutral	kr9.74B	17.99	9.78%	3.37%	3.41%	-1.70%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
COOR	63 Neutral	kr5.21B	34.32	10.13%	3.29%	-0.69%	-14.04%
FAG	50 Neutral	kr6.68B	26.16	3.57%	3.46%	-6.23%	-37.00%
GARO	46 Neutral	kr794.00M	-56.71	-2.59%	―	-9.58%	76.19%