GARO AB (GARO) AI Stock Analysis

• Market Cap: €840.00M
• Dividend Yield: N/A
• Average Volume (3M): 18.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -10.68%
• EPS Growth: -95.44%
• Country: SE
• Employees: 406
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.17
• 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: 42 Neutral
• Price Target: kr16.00 ▼(-4.08% Downside)

GARO AB's overall stock score reflects significant financial and technical challenges. The company's declining financial performance, negative profitability, and weak market momentum are major concerns. The negative P/E ratio further highlights valuation issues. These factors collectively suggest a high-risk investment profile.

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 faces financial difficulties with declining revenues, negative profitability, and cash flow challenges. The balance sheet shows moderate leverage, but negative return on equity and cash flow issues pose significant risks. The company needs to address these challenges to stabilize its financial position and improve performance.

Income Statement

GARO AB's income statement shows a concerning trend with declining revenues and negative profitability metrics in the TTM period. The gross profit margin has decreased from previous years, and both EBIT and net profit margins are negative, indicating operational challenges. The revenue growth rate is negative, reflecting a contraction in sales. These factors suggest financial instability and a need for strategic improvements.

Balance Sheet

The balance sheet of GARO AB indicates moderate leverage with a debt-to-equity ratio of 0.55 in the TTM period. However, the return on equity is negative, highlighting inefficiencies in generating returns for shareholders. The equity ratio remains stable, suggesting a reasonable level of equity financing relative to total assets. Overall, the balance sheet reflects a mixed picture with potential risks due to declining profitability.

Cash Flow

GARO AB's cash flow statement reveals significant challenges, with negative free cash flow growth and a low operating cash flow to net income ratio in the TTM period. The free cash flow to net income ratio is negative, indicating cash flow issues. These metrics highlight liquidity concerns and the need for improved cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	1.15B	1.37B	1.39B	1.30B	1.04B
Gross Profit	461.50M	481.50M	60.60M	668.50M	650.20M	517.60M
EBITDA	7.90M	500.00K	99.60M	180.80M	236.70M	150.20M
Net Income	-51.40M	-60.10M	31.30M	120.50M	166.70M	95.40M
Balance Sheet
Total Assets	1.06B	1.11B	1.20B	1.15B	936.90M	743.30M
Cash, Cash Equivalents and Short-Term Investments	11.20M	16.50M	50.00M	29.50M	81.60M	69.40M
Total Debt	287.50M	298.10M	272.10M	173.20M	72.20M	80.70M
Total Liabilities	516.40M	556.60M	589.10M	539.40M	385.40M	313.00M
Stockholders Equity	544.20M	555.50M	609.50M	614.10M	551.50M	430.30M
Cash Flow
Free Cash Flow	13.30M	-55.40M	-82.60M	-30.90M	76.40M	47.30M
Operating Cash Flow	27.20M	-35.80M	25.60M	89.20M	121.70M	86.90M
Investing Cash Flow	-11.40M	-17.10M	-51.00M	-119.10M	-44.30M	-45.30M
Financing Cash Flow	-24.80M	18.10M	45.00M	-22.40M	-65.40M	-12.70M

GARO AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.68
• 50DMA: Negative
• 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 Negative. The current price of 16.68 is below the 20-day moving average (MA) of 16.82, below the 50-day MA of 18.14, and below the 200-day MA of 19.78, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NORB.B	62 Neutral	€746.95M	58.81	1.98%	―	4.24%	29.69%
PCELL	61 Neutral	$2.49B	-400.56	-1.63%	―	36.59%	91.88%
ELTEL	50 Neutral	€1.33B	98.49	0.72%	―	-6.38%	―
GARO	42 Neutral	€840.00M	-16.34	-8.93%	―	-10.68%	-95.44%
FERRO	41 Neutral	kr187.74M	-3.07	―	―	-57.89%	91.07%

GARO AB Corporate Events

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.

The most recent analyst rating on (SE:GARO) stock is a Hold with a SEK19.50 price target. To see the full list of analyst forecasts on GARO AB stock, see the SE:GARO Stock Forecast page.

GARO AB Management Acquires Warrants to Align Interests

GARO AB announced that its Group Management has acquired a total of 225,000 warrants as part of the company’s warrant program 2025/2028. This acquisition, involving key executives like the COO, CTO, and CFO, reflects a strategic move to align management interests with company performance, potentially impacting stakeholder confidence and company operations positively.

The most recent analyst rating on (SE:GARO) stock is a Hold with a SEK20.00 price target. To see the full list of analyst forecasts on GARO AB stock, see the SE:GARO Stock Forecast page.

GARO AB Strengthens Management Amid Declining Sales and Strategic Moves

GARO AB’s interim report for the first half of 2025 shows a decline in net sales by 11% compared to the previous year, with a slight improvement in operating EBIT and cash flow. The company has strengthened its group management to accelerate operational activities, improved financial control by ending separate bank covenants, and signed a strategic framework agreement for a charging infrastructure project in Sweden. Additionally, there was a leadership change in the E-mobility business area, with the CEO taking direct responsibility to stabilize and set a clearer direction.

The most recent analyst rating on (SE:GARO) stock is a Hold with a SEK20.00 price target. To see the full list of analyst forecasts on GARO AB stock, see the SE:GARO Stock Forecast page.

GARO AB to Release Q2 2025 Interim Report and Host Conference Call

GARO AB announced it will release its interim report for the second quarter of 2025 on August 22, followed by a conference call hosted by the company’s President & CEO and CFO. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction for the first half of the year.

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 Leadership Changes and Organizational Restructuring

GARO AB announced an organizational change following the departure of Niklas Rönnäng, Head of GARO E-mobility. CEO Jonas Klarén will temporarily oversee the E-mobility sector, while Daniel Emilsson takes on the role of Country Director Sweden to enhance sales integration and market orientation. This restructuring aims to streamline operations and capitalize on synergies within E-mobility and power supply, positioning GARO for long-term growth and agility in a challenging market.

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.