Ferroamp AB (FERRO) AI Stock Analysis

• Market Cap: kr292.40M
• Dividend Yield: N/A
• Average Volume (3M): 163.48K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: -57.89%
• EPS Growth: 91.07%
• Country: SE
• Employees: 81
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.04
• Shares Outstanding: 107,895,690
• 10 Day Avg. Volume: 104,855
• 30 Day Avg. Volume: 163,482
• PEG Ratio: 0.08
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.77
• P/FCF Ratio: -3.24
• 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): 0.66
• Revenue Forecast (FY): kr481.78M

• Rating: 48 Neutral
• Price Target: kr2.50 ▲(27.55% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held down primarily by persistent operating losses and recurring negative operating/free cash flow (cash burn), despite a comparatively supportive balance sheet. Technicals are moderately constructive with price above longer-term moving averages and a positive MACD, but valuation remains unattractive/uncertain due to negative earnings and no dividend yield.

Positive Factors

Balance-sheet flexibility

A moderate-to-low leverage profile and sizable equity base give Ferroamp financial flexibility to fund product development, channel expansion, or endure cash burn without immediate distress. That balance-sheet cushion supports multi-quarter execution and strategic investments.

Structural market tailwinds

Ferroamp's product set directly targets electrification and distributed energy trends—solar, batteries, and EV charging—which are durable structural drivers. End-market growth should sustain demand for its hardware/software solutions across buildings over the medium term.

Hardware + software + channel model

A mixed revenue model (hardware sales plus software/subscription and services) sold via channel partners creates potential for recurring revenue, higher lifetime value, and scalable distribution. If software mix grows, margins and cash conversion can structurally improve.

Negative Factors

Persistent cash burn

Consistent negative operating and free cash flow erodes reserves and forces reliance on external financing or equity issuance. Over multiple quarters this constrains investment, risks dilution or higher leverage, and reduces resilience to market or execution setbacks.

Chronic unprofitability

Repeated net losses and weak gross/operating margins indicate the core business has not yet proven it can generate sustainable profits. Until unit economics improve, scaling revenues may not translate to shareholder returns and will keep capital needs elevated.

Volatile revenue trajectory

Large swings in revenue make operational planning and margin improvement difficult. Revenue volatility weakens channel partner confidence, complicates forecasting, and raises execution risk for multi-quarter plans to convert hardware sales into recurring software/service revenue.

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 by selling its energy-management and power electronics solutions to customers (typically via installers, integrators, wholesalers, and other channel partners). Its core revenue streams are (1) sales of hardware (e.g., energy/power controllers and associated electrical infrastructure used to monitor and balance loads, integrate solar PV, batteries, and EV charging, and improve utilization of a building’s electrical capacity), (2) software and digital services tied to monitoring, control, and optimization of the installed systems (where offered under license/subscription or service terms), and (3) related services such as commissioning/support delivered directly or via partners. The company’s earnings are influenced by the pace of electrification and renewable adoption in its markets (notably solar installations, battery deployments, and EV-charging rollouts), its ability to scale channel sales through installation/energy-service ecosystems, and the size of delivered project systems (larger multi-unit residential/commercial deployments typically drive higher hardware volumes). Specific details on the exact mix between hardware sales, software/services, and the identities/terms of significant partnerships are null.

Ferroamp AB Financial Statement Overview

Summary

Weak fundamentals dominate: net income is negative every year, gross/operating profitability remains deeply negative (despite improvement vs. 2024), and operating/free cash flow are consistently negative, indicating ongoing cash burn. The balance sheet is comparatively stronger with moderate-to-low leverage and a sizable equity base, but returns on equity are consistently negative due to losses.

Income Statement

Revenue growth has been volatile: strong expansion in 2021–2023, a sharp contraction in 2024, and a rebound in 2025. However, profitability is the core issue—net income is negative every year, and margins deteriorated meaningfully in 2024 (very large loss) with 2025 still showing deeply negative gross and operating profitability. While the 2025 loss is much smaller than 2024, the business has not demonstrated sustained ability to generate positive gross profit or earnings.

Balance Sheet

Leverage appears moderate-to-low overall, with debt to equity generally restrained (very low in 2020–2023, rising in 2024, then improving again in 2025). Equity remains sizable relative to total assets, which provides balance-sheet flexibility. The main weakness is that returns on equity are consistently negative in the years provided (where available), indicating the capital base has not been earning an adequate return due to ongoing losses.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow are negative in every year shown, indicating the company is consuming cash to run and grow the business. Cash burn intensified in 2023–2024, and while 2025 operating and free cash outflows are smaller than 2024, free cash flow growth remains sharply negative in 2025. A positive factor is that cash flow tends to track reported losses (free cash flow is broadly in line with net income directionally), but the persistent negative cash flow profile remains a key risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	94.72M	125.89M	355.25M	205.11M	110.22M
Gross Profit	-46.96M	-43.35M	122.63M	81.23M	45.92M
EBITDA	-41.73M	-192.77M	-84.96M	-45.22M	-40.18M
Net Income	-22.86M	-243.67M	-107.03M	-54.42M	-41.53M
Balance Sheet
Total Assets	287.27M	297.09M	366.49M	236.95M	188.91M
Cash, Cash Equivalents and Short-Term Investments	16.31M	36.54M	49.06M	54.96M	97.97M
Total Debt	16.14M	52.28M	5.10M	175.00K	2.44M
Total Liabilities	78.55M	122.09M	114.91M	75.03M	36.85M
Stockholders Equity	208.72M	175.00M	251.58M	161.92M	152.06M
Cash Flow
Free Cash Flow	-51.63M	-178.86M	-299.36M	-104.94M	-69.23M
Operating Cash Flow	-51.48M	-139.46M	-234.64M	-61.66M	-42.06M
Investing Cash Flow	-16.78M	-38.22M	-64.72M	-43.28M	-28.26M
Financing Cash Flow	48.03M	165.16M	293.43M	61.92M	73.07M

Ferroamp AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.96
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1.96 is below the 20-day moving average (MA) of 2.91, below the 50-day MA of 3.10, and below the 200-day MA of 1.99, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 26.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	48 Neutral	kr292.40M	-7.33	―	―	-57.89%	91.07%
GARO	47 Neutral	kr543.00M	-48.91	-2.59%	―	-9.58%	76.19%
PCELL	44 Neutral	kr1.07B	-58.70	-7.30%	―	36.59%	91.88%
AXIC.A	44 Neutral	kr107.01M	-6.99	-29.85%	―	114.57%	53.86%
SERT	42 Neutral	kr96.64M	-4.94	-44.96%	―	5.57%	-47.82%