GARO AB (GARO) AI Stock Analysis

• Market Cap: kr620.00M
• Dividend Yield: N/A
• Average Volume (3M): 18.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -9.58%
• EPS Growth: 76.19%
• Country: SE
• Employees: 406
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.09
• Shares Outstanding: 50,000,000
• 10 Day Avg. Volume: 19,747
• 30 Day Avg. Volume: 18,345
• PEG Ratio: 0.69
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 16.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.97
• Revenue Forecast (FY): kr1.13B

• Rating: 47 Neutral
• Price Target: kr12.50 ▼(-29.30% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held back primarily by deteriorating profitability (two consecutive loss-making years and declining revenue) and bearish technical positioning (price below key moving averages with negative MACD). Balance-sheet resilience and improved 2025 cash generation provide partial support but are not yet strong enough to outweigh the earnings and trend weakness.

Positive Factors

Balance-sheet resilience

Moderate leverage with sizable equity provides a structural cushion against losses and operational shocks. This balance-sheet resilience supports access to credit and funds working capital or capex over the next 2–6 months, reducing risk of forced deleveraging while profitability recovers.

Improved cash generation

Return to positive operating and free cash flow in 2025 indicates improved cash conversion versus prior year. Durable cash generation reduces reliance on external financing, supports reinvestment and working capital needs, and if maintained can fund operations during margin normalization.

Diversified product mix

A product set spanning installation components and EV charging exposes the business to multiple structural end-markets (construction/renovation and electrification). This diversification provides multiple revenue levers and helps smooth demand cycles across channels over the medium term.

Negative Factors

Deteriorating profitability

Two consecutive loss-making years and negative operating profitability erode earnings power and internal funding capacity. Sustained losses can deplete equity, limit reinvestment, and force cost cuts or asset sales, making recovery of prior margins more challenging over the next several quarters.

Declining revenues

A multi-year revenue decline undermines scale economics and makes fixed-cost absorption harder, pressuring margins. If top-line contraction persists it constrains ability to restore profitability and fund growth initiatives tied to EV adoption or projects over the medium term.

Cash-flow volatility & rising leverage

Volatile cash flows combined with a rising leverage trend reduce financial flexibility and raise refinancing risk. Intermittent negative FCF years increase dependence on external funding; if volatility persists, it can force tighter liquidity management or constrain strategic investments.

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

Financials are mixed but tilted negative: revenue declined in 2024 and fell further in 2025, with losses in both years and weak/negative EBIT. Offsetting this, the balance sheet remains reasonably resilient with moderate leverage, and operating cash flow/free cash flow turned positive in 2025 after being negative in 2024, though cash flows have been volatile.

Income Statement

Profitability deteriorated meaningfully versus the 2020–2022 period. Revenue declined in 2024 and fell further in 2025, and the company moved from healthy profit margins earlier in the cycle to losses in 2024 and 2025. EBITDA remained positive in 2025, but negative/very weak operating profitability (EBIT) and negative net income point to pressure from costs, pricing, or mix. The key positive is that the business has previously demonstrated strong margins (2020–2022), suggesting earnings power exists if operations normalize, but the current trajectory is clearly negative.

Balance Sheet

Leverage is moderate and generally manageable: debt is roughly about half of equity in 2023–2025, higher than the very conservative levels seen in 2020–2022. Equity remains sizable relative to total assets, which provides balance-sheet resilience despite recent losses. The main weakness is the rising leverage trend from earlier years and the fact that profitability has turned negative, which can reduce the margin of safety if the downturn persists.

Cash Flow

Cash generation improved in the most recent year: operating cash flow and free cash flow were positive in 2025 after negative operating cash flow and free cash flow in 2024. However, cash-flow performance has been volatile over the period (including several years of negative free cash flow), indicating swings in working capital and/or investment needs. A further watch item is that cash flow has not consistently tracked earnings quality through the cycle, so durability of the 2025 improvement remains a key question.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	1.15B	1.37B	1.39B	1.30B
Gross Profit	-10.10M	481.50M	60.60M	668.50M	650.20M
EBITDA	43.70M	500.00K	99.60M	180.80M	236.70M
Net Income	-17.50M	-60.10M	31.30M	120.50M	166.70M
Balance Sheet
Total Assets	1.00B	1.11B	1.20B	1.15B	936.90M
Cash, Cash Equivalents and Short-Term Investments	17.00M	16.50M	50.00M	29.50M	81.60M
Total Debt	256.80M	298.10M	272.10M	173.20M	72.20M
Total Liabilities	475.60M	556.60M	589.10M	539.40M	385.40M
Stockholders Equity	529.40M	555.50M	609.50M	614.10M	551.50M
Cash Flow
Free Cash Flow	53.50M	-55.40M	-82.60M	-30.90M	76.40M
Operating Cash Flow	57.90M	-35.80M	25.60M	89.20M	121.70M
Investing Cash Flow	-11.60M	-17.10M	-51.00M	-119.10M	-44.30M
Financing Cash Flow	-44.90M	18.10M	45.00M	-22.40M	-65.40M

GARO AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 17.68 is above the 20-day moving average (MA) of 14.89, above the 50-day MA of 15.76, and below the 200-day MA of 17.97, indicating a bearish trend. The MACD of -0.92 indicates Positive momentum. The RSI at 23.82 is Positive, neither overbought nor oversold. The STOCH value of 8.52 is Positive, 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NORB.B	50 Neutral	kr724.06M	28.32	1.98%	―	4.24%	29.69%
EOLU.B	49 Neutral	kr887.29M	-3.09	18.63%	5.62%	―	―
ELTEL	48 Neutral	kr1.41B	58.96	0.72%	―	-6.38%	―
FERRO	48 Neutral	kr316.13M	-7.33	―	―	-57.89%	91.07%
GARO	47 Neutral	kr620.00M	-48.91	-2.59%	―	-9.58%	76.19%
PCELL	47 Neutral	kr1.21B	-58.70	-1.63%	―	36.59%	91.88%

GARO AB Corporate Events

GARO AB Tightens Control as 2025 Profitability Slips and E-Mobility Struggles

GARO AB reported weaker 2025 results, with full-year net sales down 9% to SEK 1,043.5 million and EBIT at SEK -8.1 million, though operating EBIT improved versus the prior year and cash flow from operating activities strengthened. The fourth quarter showed an 8% decline in net sales and a negative operating margin, prompting the Board to propose no dividend as the company prioritizes financial stability and debt reduction.

The Electrification segment showed stability while the E-mobility business continued to face challenges, leading management to initiate actions to address performance in that area. GARO also secured key infrastructure contracts, including deliveries to the Stockholm Bypass and a new prison in Mariestad, and overhauled its leadership with a new President and CEO, an interim CEO, and a new Business Development Director, signaling a strategic reset amid market headwinds.

The most recent analyst rating on (SE:GARO) stock is a Sell with a SEK15.50 price target. To see the full list of analyst forecasts on GARO AB stock, see the SE:GARO Stock Forecast page.

GARO to Present Full-Year 2025 Report and Host Investor Call

GARO AB will publish its full-year 2025 report on February 19 at 08:30 CET, a key disclosure for investors tracking the company’s performance in electrical distribution and e-mobility solutions. The company will follow the release with a conference call and audio webcast later that morning, led by CFO Helena Claesson, underscoring its commitment to transparency and active communication with the capital market.

The most recent analyst rating on (SE:GARO) stock is a Sell with a SEK15.50 price target. To see the full list of analyst forecasts on GARO AB stock, see the SE:GARO Stock Forecast page.

GARO refreshes nomination committee leadership ahead of 2026 AGM

Following Rickard Blomqvist’s departure from GARO AB’s nomination committee, Volador AB has appointed Lars Kongstad to join representatives from Lars Svensson’s estate, Svolder AB, and the board chair, with Niklas Bogefors now leading the committee as it prepares shareholder proposals ahead of the May 13, 2026 AGM deadline of March 25, ensuring continuity in governance preparations.

The most recent analyst rating on (SE:GARO) stock is a Sell with a SEK15.50 price target. To see the full list of analyst forecasts on GARO AB stock, see the SE:GARO Stock Forecast page.

GARO Names COO Joe Ree Interim CEO Ahead of Leadership Transition

GARO AB has appointed Chief Operating Officer Joe Ree as Interim President and CEO, effective 15 January, to lead the company until incoming CEO Tobias Byfeldt takes over. Ree, who has previously served as CEO of GARO Ireland and held several senior roles within the group, is credited with strengthening the company’s market position and driving growth in Ireland, and his appointment is intended to ensure operational continuity and maintain strategic focus following the departure of former CEO Jonas Klarén, who is leaving to lead Assemblin EL.

The most recent analyst rating on (SE:GARO) stock is a Sell with a SEK15.50 price target. To see the full list of analyst forecasts on GARO AB stock, see the SE:GARO Stock Forecast page.

GARO AB Appoints Tobias Byfeldt as New CEO to Drive Growth

GARO AB has appointed Tobias Byfeldt as its new President and CEO. Byfeldt, with a strong background in engineering and leadership roles in international companies, is expected to drive GARO’s growth and enhance its position in the electrification transition. His appointment is seen as a strategic move to build a winning corporate culture and achieve profitable growth.

The most recent analyst rating on (SE:GARO) stock is a Hold with a SEK16.00 price target. To see the full list of analyst forecasts on GARO AB stock, see the SE:GARO Stock Forecast page.