Ferroamp AB (FERRO) AI Stock Analysis

• Market Cap: kr381.95M
• Dividend Yield: N/A
• Average Volume (3M): 163.48K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: -57.89%
• EPS Growth: 91.07%
• Country: SE
• Employees: 81
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.10
• Shares Outstanding: 107,895,690
• 10 Day Avg. Volume: 104,855
• 30 Day Avg. Volume: 163,482
• PEG Ratio: -0.02
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -0.90
• 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: 52 Neutral
• Price Target: kr3.50 ▲(78.57% Upside)

The score is held down primarily by weak financial performance—ongoing losses, shrinking revenue, and heavy cash burn—despite a low-leverage balance sheet. Technical momentum is a meaningful positive (price above key moving averages with positive MACD), but valuation is constrained by negative earnings and lack of dividend yield.

Positive Factors

Conservative balance sheet

Low debt-to-equity (~0.08) gives the company durable financial flexibility to withstand operating losses and fund operations or strategic initiatives without immediate refinancing pressure, reducing short-term solvency risk and supporting multi‑quarter execution.

Improving gross margin

A shift to ~29% gross margin indicates structural improvements in pricing, product mix, or production economics. Sustained positive gross margin makes future operating leverage possible as revenue stabilizes, enhancing long‑term path to profitability if revenue rebounds.

Favorable structural market exposure

Core products target durable secular trends—electrification, distributed energy resources, and EV charging—creating a large addressable market and long‑term demand tailwinds that support multi‑quarter growth potential for hardware, software, and service revenue streams.

Negative Factors

Deep negative cash flow

Sustained, large negative operating and free cash flow materially increase funding risk and can force dilutive equity raises or costly debt, constraining the firm's ability to invest in product development, channel scaling, or commercial expansion over the coming quarters.

Persistent operating losses

Deep negative operating and net margins signal the business is not yet generating scalable profits; prolonged losses erode equity returns and limit reinvestment capacity, making sustained operational improvements and long‑term viability dependent on revenue recovery or cost restructuring.

Revenue contraction

Falling trailing‑twelve‑month revenue undermines economies of scale and raises questions about product-market fit or channel execution. Continued shrinkage impedes fixed‑cost absorption, slows progress toward profitability, and increases sensitivity to funding and competitive pressures.

Ferroamp AB Business Overview & Revenue Model

Company Description

Ferroamp Elektronik AB (publ) provides energy and power optimization solutions for homes, apartment buildings, and commercial estates in Sweden. The company offers EnergyHub system; solar string optimizers; energy storage solutions; Energy Cloud, a portal that allow to monitor and remotely control production, consumption, and storage; and accessories, such as distribution boxes, current transformers, and fireman switches. It also provides technologies and systems, including Phase balancing technology; and Powershare. The company was incorporated in 2010 and is based in Spånga, Sweden.

How the Company Makes Money

Ferroamp generates revenue primarily through the sale of its EnergyHub systems and related components, which include inverters, battery storage systems, and software solutions for energy management. The company’s revenue model is based on direct sales to consumers and businesses, as well as partnerships with energy companies and installers who integrate Ferroamp’s technology into their offerings. Additionally, Ferroamp benefits from recurring revenue through service agreements and software subscriptions that support ongoing energy management and monitoring. The company also engages in collaborations with various stakeholders in the renewable energy sector, enhancing their market reach and creating additional revenue opportunities.

Ferroamp AB Financial Statement Overview

Summary

Financial statements point to below-average quality: revenue is down TTM (-9.6%), operating and net margins are deeply negative, and cash flow is very weak with substantial negative operating cash flow and free cash flow. The key offset is a relatively conservative balance sheet (low debt-to-equity ~0.08) and improved gross margin versus 2024, but losses and cash burn remain the dominant risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-9.6%) and profitability remains weak, with a negative net margin (-54%) and negative operating margin (-48%). The main positive is a return to a positive gross margin in TTM (~29%) versus a deeply negative gross margin in 2024, suggesting improved pricing/production economics. However, the company is still loss-making across operating profit, EBITDA, and net income, and the sharp revenue contraction versus 2023 indicates an unstable demand trajectory.

Balance Sheet

Leverage looks conservative in TTM with low debt relative to equity (debt-to-equity ~0.08), which provides balance-sheet flexibility versus many peers. That said, returns to shareholders are meaningfully negative (TTM return on equity about -21%), reflecting ongoing losses that can erode the equity base over time. Overall, the capital structure is a strength, but profitability is not yet sufficient to make the balance sheet a clear advantage.

Cash Flow

Cash generation is the weakest area: TTM operating cash flow and free cash flow are both deeply negative (about -99m and -117m, respectively), and free cash flow worsened year over year (down ~35%). While net losses are also large (free cash flow is negative alongside negative net income), the absolute cash burn level is substantial, increasing funding risk if conditions do not improve or if external financing becomes less available.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.79M	125.89M	355.25M	205.11M	110.22M	76.77M
Gross Profit	22.13M	-43.35M	122.63M	81.23M	45.92M	25.56M
EBITDA	-30.61M	-192.77M	-84.96M	-45.22M	-40.18M	-32.29M
Net Income	-41.08M	-243.67M	-107.03M	-54.42M	-41.53M	-33.64M
Balance Sheet
Total Assets	276.16M	297.09M	366.49M	236.95M	188.91M	144.78M
Cash, Cash Equivalents and Short-Term Investments	21.33M	36.54M	49.06M	54.96M	97.97M	95.22M
Total Debt	17.09M	52.28M	5.10M	175.00K	2.44M	775.00K
Total Liabilities	63.35M	122.09M	114.91M	75.03M	36.85M	29.64M
Stockholders Equity	212.81M	175.00M	251.58M	161.92M	152.06M	115.14M
Cash Flow
Free Cash Flow	-116.83M	-178.86M	-299.36M	-104.94M	-69.23M	-37.15M
Operating Cash Flow	-98.58M	-139.46M	-234.64M	-61.66M	-42.06M	-25.79M
Investing Cash Flow	-18.87M	-38.22M	-64.72M	-43.28M	-28.26M	-11.40M
Financing Cash Flow	73.51M	165.16M	293.43M	61.92M	73.07M	116.00M

Ferroamp AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:FERRO, the sentiment is Positive. The current price of 1.96 is below the 20-day moving average (MA) of 2.92, below the 50-day MA of 2.32, and above the 200-day MA of 1.73, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 42.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:FERRO.

Ferroamp AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FERRO	52 Neutral	kr381.95M	-6.18	―	―	-57.89%	91.07%
PCELL	50 Neutral	kr1.52B	-241.90	-1.63%	―	36.59%	91.88%
GARO	46 Neutral	kr805.00M	-56.50	-2.59%	―	-9.58%	76.19%
SERT	45 Neutral	kr144.45M	-5.85	-44.96%	―	5.57%	-47.82%
AXIC.A	44 Neutral	kr106.70M	-5.94	-30.10%	―	114.57%	53.86%