Fagerhult AB (FAG) AI Stock Analysis

• Market Cap: kr7.94B
• Dividend Yield: 3.03%
• Average Volume (3M): 134.22K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.89
• Revenue Growth: -5.29%
• EPS Growth: -44.98%
• Country: SE
• Employees: 3,886
• Sector: Industrials
• Sector Strength: 90
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.64
• Shares Outstanding: 177,192,840
• 10 Day Avg. Volume: 236,037
• 30 Day Avg. Volume: 134,216
• 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: kr53.08
• Price Target Upside: 19.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• 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 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
	EBIT
570.30M	670.50M	901.20M	833.30M	706.40M	332.50M
	EBITDA
1.05B	1.17B	1.37B	1.28B	1.12B	791.80M
	Net Income Common Stockholders
288.30M	354.30M	543.50M	576.30M	465.50M	565.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.72B	1.88B	1.27B	1.29B	1.74B	1.62B
	Total Assets
13.14B	13.71B	13.01B	13.33B	12.65B	12.26B
	Total Debt
3.87B	3.97B	3.53B	4.09B	4.17B	4.25B
	Net Debt
2.15B	2.09B	2.25B	2.80B	2.43B	2.63B
	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: 44.40
• 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 44.4 is above the 20-day moving average (MA) of 42.97, above the 50-day MA of 41.38, and below the 200-day MA of 51.10, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 82.07 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	77 Outperform	€15.45B	22.54	9.04%	2.00%	0.13%	29.88%
ITAB	76 Outperform	€6.22B	22.43	6.63%	3.16%	26.05%	-30.44%
AQ	76 Outperform	€16.84B	26.03	15.07%	0.85%	-3.59%	-1.67%
INT	74 Outperform	€2.65B	19.79	44.69%	―	74.04%	43.99%
TROAX	67 Neutral	kr9.40B	27.49	16.33%	2.23%	2.59%	-11.50%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
FAG	58 Neutral	kr7.94B	27.54	3.84%	3.03%	-5.29%	-44.98%