Ferronordic AB (FNM) AI Stock Analysis

• Market Cap: kr712.09M
• Dividend Yield: N/A
• Average Volume (3M): 18.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 24.10%
• EPS Growth: -48.15%
• Country: SE
• Employees: 794
• Sector: Industrials
• Sector Strength: 70
• Industry: Industrial - Distribution
• EPS (TTM): -3.51
• Shares Outstanding: 14,532,434
• 10 Day Avg. Volume: 4,713
• 30 Day Avg. Volume: 18,939
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: kr45.00
• Price Target Upside: -4.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: kr45.00 ▼(-4.36% Downside)

Ferronordic AB's overall stock score is primarily influenced by its financial performance and technical analysis. The company's financial health is challenged by declining revenue and profitability, but strong cash flow generation offers some resilience. Technical indicators suggest mixed market sentiment with no clear trend. Valuation concerns are significant due to a negative P/E ratio and lack of dividend yield.

Ferronordic AB Business Overview & Revenue Model

Company Description

Ferronordic AB (publ), together with its subsidiaries, sells, rents, and services construction equipment, trucks, and other machines in Russia, Kazakhstan, and Germany. The company also sells, repairs, and maintains machines, trucks, engines, spare parts, and attachments; and offers aftermarket sales services, as well as technical support, contracting, and other services. In addition, it provides consultancy services, such as machine operator training. The company's brand portfolio includes Volvo Construction Equipment, Terex Trucks, Dressta, Rottne, Mecalac, Ferronordic, Volvo, and Renault Trucks. It serves the mining, road construction, general construction, forestry, quarries and aggregates, and oil and gas industries. Ferronordic AB (publ) was founded in 2010 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Ferronordic AB generates revenue through several key streams. The primary source is the sale of new and used construction equipment and trucks, where it acts as an official distributor for globally recognized brands like Volvo and Renault. In addition to direct sales, Ferronordic earns income from after-sales services, which include maintenance, repairs, and the provision of spare parts, ensuring ongoing customer relationships and recurring revenue. The company also diversifies its income through equipment rental services, catering to clients who need temporary access to machinery without long-term investment. Furthermore, Ferronordic's logistics and contracting services offer additional revenue opportunities by providing tailored solutions for construction and transportation projects. Strategic partnerships with major equipment manufacturers and a strong presence in emerging markets significantly contribute to the company's financial performance.

Ferronordic AB Financial Statement Overview

Summary

Ferronordic AB is experiencing financial difficulties, with negative net income, declining profit margins, and a high debt-to-equity ratio of 1.50. Despite some revenue stability, operational efficiency is a concern, and the company is struggling to generate profits from its equity base.

Income Statement

The income statement shows significant challenges in recent periods. The TTM gross profit margin is 17.23%, indicating some profitability, but the net profit margin is negative at -6.52%, reflecting substantial losses. Despite a moderate revenue growth rate of 0.72% from the previous year, the EBIT and EBITDA margins have declined sharply to 0.06% and 5.15% respectively, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a debt-to-equity ratio of 1.50. The equity ratio stands at 30.22%, indicating that a significant portion of the company's assets is financed by debt. However, the return on equity is negative at -22.59%, highlighting the company's struggles to generate profits from its equity base.

Cash Flow

Cash flow analysis shows a mixed picture. While the operating cash flow to net income ratio is strong at -1.32, indicating efficient cash generation relative to reported losses, the free cash flow to net income ratio is -0.29. The free cash flow growth rate is negative, contrasting with positive operating cash flows, suggesting challenges in managing capital expenditures and investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.72B	2.86B	1.97B	6.21B	4.53B
Gross Profit	853.00M	377.00M	250.00M	1.11B	691.18M
EBITDA	470.00M	4.00M	351.00M	-53.00M	512.14M
Net Income	-89.00M	-107.00M	197.00M	339.00M	222.00M
Balance Sheet
Total Assets	4.94B	4.71B	3.22B	3.97B	2.63B
Cash, Cash Equivalents and Short-Term Investments	363.00M	426.00M	1.69B	768.00M	603.50M
Total Debt	2.34B	1.78B	731.00M	966.00M	583.45M
Total Liabilities	3.44B	3.08B	1.34B	2.87B	1.82B
Stockholders Equity	1.50B	1.62B	1.87B	1.10B	806.40M
Cash Flow
Free Cash Flow	275.00M	-176.00M	-137.00M	209.00M	631.17M
Operating Cash Flow	340.00M	-27.00M	215.00M	457.00M	692.54M
Investing Cash Flow	33.00M	-1.22B	521.00M	-370.00M	-46.73M
Financing Cash Flow	-462.00M	-21.00M	168.00M	64.00M	-577.81M

Ferronordic AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:FNM, the sentiment is Positive. The current price of 47.05 is above the 20-day moving average (MA) of 46.27, above the 50-day MA of 46.60, and below the 200-day MA of 52.41, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 28.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:FNM.

Ferronordic AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.73B	15.32	7.37%	2.01%	2.86%	-14.57%
FNM	49 Neutral	kr712.09M	―		―	24.10%	-48.15%
AZZ2	―	€8.02B	45.64	27.61%	―	―	―
OEA1	―	€1.63B	30.08	26.55%	―	―	―
1MH	―	€484.61M	23.42	6.28%	―	―	―
29B0	―	€1.64B	28.95	15.89%	―	―	―
TEQ	65 Neutral	kr2.56B	21.90		―	9.55%	-3.47%

Ferronordic AB Corporate Events

Ferronordic to Release Q2 2025 Interim Report and Host Investor Presentation

Ferronordic AB announced that it will release its interim report for the second quarter of 2025 on August 14, 2025. The company will host an investor presentation on the same day, featuring comments from CEO Henrik Carlborg and CFO Erik Danemar. This event, accessible via teleconference or webcast, will provide insights into the company’s financial performance and strategic direction, potentially impacting investor perceptions and market positioning.

Ferronordic AGM 2025: Key Resolutions and Strategic Focus

At Ferronordic’s 2025 AGM, key resolutions included the decision not to pay dividends and the adoption of the company’s financial statements. The meeting saw the re-election of board members and the appointment of Lars Corneliusson as the Board chairman. KPMG AB was re-elected as the auditor, and guidelines for executive remuneration were approved. These decisions reflect Ferronordic’s strategic focus on strengthening its governance and financial management, potentially impacting its market positioning and stakeholder relations.

Ferronordic Appoints Henrik Carlborg as New CEO

Ferronordic has appointed Henrik Carlborg as the new CEO and President following the AGM’s decision to make Lars Corneliusson the executive Chairman of the Board. Carlborg, who has been with the company since 2013 and played a crucial role in its US expansion, is expected to ensure a smooth leadership transition. The company aims to enhance profitability in Germany, continue its US expansion, and further develop its business model under Carlborg’s leadership. This leadership change is anticipated to strengthen Ferronordic’s management continuity and create value for shareholders.

Ferronordic Reports Q1 2025 Revenue Growth Amid Market Challenges

Ferronordic reported a 3% increase in revenue for Q1 2025, reaching SEK 1,206 million, despite facing market uncertainties and a challenging environment in Germany and the US. The company’s operating profit decreased to SEK 13 million, and the overall result was negatively impacted by currency fluctuations. In the US, sales increased by 9% but were offset by intensified price competition and a 5% market decline in construction equipment. In Germany, despite a 28% decrease in the truck market, Ferronordic increased its market share, though sales fell by 9%. In Kazakhstan, sales rose to SEK 42 million with a positive operating profit. The company remains optimistic about long-term opportunities in its markets, supported by strategic cost-saving measures and a focus on service demand.