GARO AB (GARO) AI Stock Analysis

• Market Cap: kr850.00M
• Dividend Yield: N/A
• Average Volume (3M): 18.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -9.58%
• EPS Growth: 76.19%
• Country: SE
• Employees: 406
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 50,000,000
• 10 Day Avg. Volume: 19,747
• 30 Day Avg. Volume: 18,345
• PEG Ratio: 0.07
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 1.00
• P/FCF Ratio: -20.85
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: kr16.00 ▼(-5.88% Downside)

GARO AB's overall stock score is primarily impacted by weak financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Market Position

GARO's focus on EV charging infrastructure positions it well in a growing market driven by the global shift towards sustainable transportation.

Recurring Revenue

Recurring revenue from service contracts enhances financial stability and predictability, supporting long-term business sustainability.

Strategic Partnerships

Strategic partnerships enhance market reach and product offerings, potentially driving growth and competitive advantage over time.

Negative Factors

Revenue Decline

Declining revenues indicate potential market share loss and operational challenges, which could impact long-term growth and profitability.

Negative Profitability

Negative profitability metrics suggest inefficiencies and operational challenges, requiring strategic improvements to achieve financial stability.

Cash Flow Challenges

Cash flow issues highlight liquidity concerns, potentially limiting the company's ability to invest in growth and manage financial obligations.

GARO AB Business Overview & Revenue Model

Company Description

Garo Aktiebolag (publ), together with its subsidiaries, develops, manufactures, and markets electrical installation products and systems in Sweden, Norway, Finland, Poland, Ireland, and the United Kingdom. Its installation products include plugs and sockets, switches, lightning cabinets, switchboard systems GPK, switchboard GCS, cable cabinets, junction boxes, aluminum enclosures, meter boards, IT and meter cabinets, consumer units, DIN rail components, multiple socket outlets, and KNX products. The company also offers temporary power products, such as plugs and sockets, workplace light fixtures and fittings, distribution boards, main and final distribution assemblies, temporary electric chargers, multiple socket outlets, and fan heaters; wallboxes, charging stations, cable cabinets, camping posts, and electric vehicle accessories; and camping, marina, and engine heater power outlets, as well as customized products. Garo Aktiebolag (publ) was founded in 1939 and is headquartered in Gnosjö, Sweden.

How the Company Makes Money

GARO generates revenue primarily through the sale of its core products, which include electric vehicle charging stations, electrical distribution systems, and related accessories. The company's revenue model is built on both direct sales to end customers and partnerships with various stakeholders in the construction and energy sectors. Key revenue streams include the sale of charging infrastructure for electric vehicles, which has seen significant growth due to the increasing demand for sustainable transport solutions. Additionally, GARO benefits from ongoing maintenance and service contracts, providing recurring revenue. The company also engages in strategic partnerships with other industry players to expand its market reach and enhance its product offerings, which contributes to its overall profitability.

GARO AB Financial Statement Overview

Summary

GARO AB's financial performance is challenged by declining revenue and profitability, with a negative net profit margin and EBIT margin. The balance sheet is stable but shows negative ROE, and cash flow improvements are noted despite operational inefficiencies.

Income Statement

GARO AB's income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative net profit margin of -4.74% and a negative EBIT margin, reflecting operational challenges. Revenue growth has been negative, indicating a contraction in sales. The gross profit margin has also decreased over time, suggesting increased cost pressures or pricing challenges.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.53, indicating a balanced approach to leveraging. However, the return on equity is negative in the TTM period, highlighting profitability issues. The equity ratio remains stable, suggesting a solid asset base, but the declining ROE is a concern for shareholders.

Cash Flow

Cash flow analysis shows improvement in free cash flow growth in the TTM period, but the operating cash flow to net income ratio is low, indicating potential cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.15B	1.37B	1.39B	1.30B	1.04B
Gross Profit	493.20M	481.50M	60.60M	668.50M	650.20M	517.60M
EBITDA	53.90M	500.00K	99.60M	180.80M	236.70M	150.20M
Net Income	-14.00M	-60.10M	31.30M	120.50M	166.70M	95.40M
Balance Sheet
Total Assets	1.05B	1.11B	1.20B	1.15B	936.90M	743.30M
Cash, Cash Equivalents and Short-Term Investments	11.40M	16.50M	50.00M	29.50M	81.60M	69.40M
Total Debt	281.30M	298.10M	272.10M	173.20M	72.20M	80.70M
Total Liabilities	508.70M	556.60M	589.10M	539.40M	385.40M	313.00M
Stockholders Equity	539.00M	555.50M	609.50M	614.10M	551.50M	430.30M
Cash Flow
Free Cash Flow	47.60M	-55.40M	-82.60M	-30.90M	76.40M	47.30M
Operating Cash Flow	58.30M	-35.80M	25.60M	89.20M	121.70M	86.90M
Investing Cash Flow	-8.20M	-17.10M	-51.00M	-119.10M	-44.30M	-45.30M
Financing Cash Flow	-52.80M	18.10M	45.00M	-22.40M	-65.40M	-12.70M

GARO AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.00
• 50DMA: Positive
• 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:GARO, the sentiment is Positive. The current price of 17 is above the 20-day moving average (MA) of 15.53, above the 50-day MA of 16.36, and below the 200-day MA of 18.86, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 63.11 is Neutral, neither overbought nor oversold. The STOCH value of 67.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:GARO.

GARO AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NORB.B	64 Neutral	kr764.13M	32.11	1.98%	―	4.24%	29.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ELTEL	56 Neutral	kr1.45B	107.07	0.72%	―	-6.38%	―
PCELL	52 Neutral	kr1.79B	-288.08	-1.63%	―	36.59%	91.88%
FERRO	48 Neutral	kr212.02M	-3.47	―	―	-57.89%	91.07%
GARO	46 Neutral	kr850.00M	-60.71	-2.59%	―	-9.58%	76.19%

GARO AB Corporate Events

GARO AB Reports Improved Cash Flow Amid Sales Decline and Strategic Partnerships

GARO AB reported a decline in net sales for the first nine months of 2025, with a 10% decrease compared to the previous year. Despite the decline, the company showed improved cash flow and operating EBIT, indicating a path towards recovery. Significant events included the planned departure of CEO Jonas Klarén, repayment of part of the overdraft facility, and new partnerships with Hyundai and Kia, highlighting the quality of GARO’s chargers. These developments suggest a strategic focus on strengthening financial control and expanding market presence.

GARO AB Appoints New Business Development Director to Strengthen Market Position

GARO AB has appointed Roger Törnberg as the new Business Development Director, a strategic move aimed at long-term growth and enhancing customer relationships. With over 30 years of experience in the industry, Roger is expected to strengthen GARO’s collaboration with wholesalers and installers, reinforcing its market position in Sweden and supporting its growth journey.

GARO AB to Release Q3 2025 Interim Report and Host Conference Call

GARO AB announced it will release its third-quarter 2025 interim report on November 14, followed by a conference call hosted by its CEO and CFO. This announcement is part of GARO’s ongoing commitment to transparency and stakeholder engagement, potentially impacting investor confidence and market positioning.

GARO AB CEO Jonas Klarén to Step Down in January 2026

GARO AB announced that its President and CEO, Jonas Klarén, will leave his position at the end of January 2026 to become CEO of Assemblin El. Klarén has been instrumental in driving a market-oriented approach to support growth and profitability at GARO. The company will start recruiting a new CEO immediately, aiming to appoint a successor by the first quarter of 2026.