GARO AB (GARO) AI Stock Analysis

• Market Cap: €995.00M
• Dividend Yield: N/A
• Average Volume (3M): 14.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -13.11%
• EPS Growth: -2088.46%
• Country: SE
• Employees: 406
• Sector: Industrials
• Sector Strength: 83
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.05
• Shares Outstanding: 50,000,000
• 10 Day Avg. Volume: 14,553
• 30 Day Avg. Volume: 14,787
• 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: €19.99
• Price Target Upside: 0.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: kr20.00 ▲(0.91% Upside)

GARO AB's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue, profitability, and cash flow issues. Technical analysis provides some support with mixed signals, but valuation remains a concern due to negative earnings and lack of dividend yield. Addressing financial challenges is crucial for improving the stock's outlook.

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 AB makes money through the sale of its products and solutions in the electrical installation and e-mobility sectors. The company's revenue model is based on manufacturing and distributing a wide range of electrical products, including electrical distribution boards, junction boxes, and other installation materials under the GARO Electrification segment. In the GARO E-mobility segment, the company generates income by providing electric vehicle charging solutions, including charging stations and associated services. Key revenue streams include sales to electrical wholesalers, installers, and direct sales to businesses and municipalities. GARO's earnings are bolstered by strategic partnerships with automotive manufacturers and energy companies, as well as its focus on innovation and sustainability, which drives demand for its eco-friendly and efficient products.

GARO AB Financial Statement Overview

Summary

GARO AB is facing significant financial challenges, including declining revenue, negative profitability, increased leverage, and weak cash flow performance. These issues indicate operational and financial instability, necessitating urgent attention to improve the company's financial health.

Income Statement

GARO AB has experienced a decline in revenue over the recent periods, with the TTM revenue decreasing compared to the previous year. The gross profit margin has been decreasing as well, indicating rising costs or declining pricing power. The company is currently operating at a net loss, with negative EBIT and EBITDA margins, signaling operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased, reflecting higher leverage and potential financial risk. Stockholders' equity has decreased, showing a weaker equity position. The equity ratio is declining, which could impact long-term stability. However, the company maintains a reasonable level of total assets.

Cash Flow

Cash flow performance is weak, with negative free cash flow indicating potential liquidity issues. The operating cash flow to net income ratio suggests operational inefficiencies. The company has also experienced negative free cash flow growth, which could strain future growth and investment capabilities.

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

GARO AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.82
• 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:GARO, the sentiment is Negative. The current price of 19.82 is below the 20-day moving average (MA) of 20.49, below the 50-day MA of 20.18, and below the 200-day MA of 20.79, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 22.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:GARO.

GARO AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	kr43.36B	13.66	1.95%	2.33%	-0.60%	-20.68%
GARO	46 Neutral	€995.00M	―	-8.75%	―	-13.11%	-2088.46%
PCELF	―	$175.78M	―	-1.36%	―	―	―
E5E	―	€137.45M	―	-1.65%	―	―	―
9LY	―	€59.45M	50.73	1.08%	―	―	―
7EVB	―	€128.67M	5.30	16.88%	―	―	―
FERRO	39 Underperform	kr131.63M	―		―	-57.73%	-7.45%

GARO AB Corporate Events

GARO AB CEO Acquires 500,000 Warrants

CEO Jonas Klarén has acquired 500,000 warrants in GARO AB, as part of the company’s warrant program 2025/2028, which was approved at the Annual General Meeting. This acquisition, valued at SEK 3.64 per warrant, allows Klarén to subscribe for new shares in three years at a set price, potentially impacting GARO’s market positioning and stakeholder interests.

The most recent analyst rating on (SE:GARO) stock is a Hold with a SEK22.00 price target. To see the full list of analyst forecasts on GARO AB stock, see the SE:GARO Stock Forecast page.

GARO AB Announces Key Resolutions from 2025 Annual General Meeting

GARO AB’s Annual General Meeting resulted in several key resolutions, including the re-election and election of board members, with Axel Barnekow Widmark appointed as Chairperson. The meeting also approved unchanged fees for board and committee members, re-elected Ernst & Young AB as auditor, and decided against distributing dividends for 2024. Additionally, authorizations were granted for share issues and repurchases, aimed at facilitating acquisitions and adjusting capital structure, and an incentive program for key employees was adopted.

The most recent analyst rating on (SE:GARO) stock is a Hold with a SEK22.00 price target. To see the full list of analyst forecasts on GARO AB stock, see the SE:GARO Stock Forecast page.