Generic Sweden AB (GENI) AI Stock Analysis

• Market Cap: kr438.21M
• Dividend Yield: 3.48%
• Average Volume (3M): 20.09K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.45
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SE
• Employees: 22
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.65
• Shares Outstanding: 12,292,020
• 10 Day Avg. Volume: 18,353
• 30 Day Avg. Volume: 20,086
• PEG Ratio: 1.31
• Price to Book (P/B): 8.56
• Price to Sales (P/S): 3.10
• P/FCF Ratio: 14.63
• 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): 3.22
• Revenue Forecast (FY): kr206.10M

• Rating: 75 Outperform
• Price Target: kr47.00 ▲(1.18% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial performance (profitable growth, strong cash generation, and a debt-free balance sheet). Valuation is supportive with a moderate P/E and solid dividend yield. Offsetting these positives, technicals are weak with the price below major moving averages and bearish momentum signals.

Positive Factors

Debt-free balance sheet

A debt-free capital structure materially lowers financial risk and preserves optionality: the company can fund growth, R&D, dividends or opportunistic M&A without refinancing pressure. This structural strength supports resilience through cycles and long-term strategic flexibility.

Strong free cash generation

Robust and improving free cash flow that closely tracks earnings enhances self-funding capacity for investment and shareholder returns. Sustainable cash conversion reduces reliance on external capital and provides a durable buffer versus revenue volatility, strengthening long-term financial health.

Consistent profitable revenue growth

Multi-year revenue expansion with a sharp 2025 re-acceleration combined with double-digit margins indicates a scalable, profitable business model. Sustained top-line growth and healthy operating profitability support reinvestment, margin maintenance, and longer-term value creation.

Negative Factors

Declining gross margin

A structural erosion of gross margin over several years suggests rising delivery costs or pricing pressure that could compress operating leverage. If this trend continues, sustaining current operating margins and cash generation will require cost actions or price increases, pressuring long-term profitability.

Historic cash-conversion variability

Intermittent working-capital and free-cash-flow swings indicate cash conversion risk despite 2025 strength. Such volatility complicates multi-period planning, may force short-term financing in weaker years, and reduces predictability of funding for capex, dividends, or growth investments.

Small employee base / scale risk

A very small workforce increases execution and key-person risk, limiting capacity to scale operations, diversify product development, or support larger customer deployments. Growth or geographic expansion could require rapid hiring, straining processes and temporarily diluting operational effectiveness.

Generic Sweden AB Business Overview & Revenue Model

Company Description

Generic Sweden AB, a technology company, provides messaging services for all applications. It also offers a platform for digital communication services. The company was incorporated in 1993 and is headquareted in Stockholm, Sweden.

How the Company Makes Money

Generic Sweden AB Financial Statement Overview

Summary

Strong multi-year revenue growth with a sharp re-acceleration in 2025, sustained double-digit profitability, robust free cash flow that closely tracks earnings, and a debt-free balance sheet. Key risks are declining gross margin over time and some historical variability in cash conversion.

Income Statement

Revenue has compounded strongly from 2020–2025 (183.7M in 2025 vs. 81.1M in 2020), with a notable re-acceleration in 2025 revenue growth (78.5%). Profitability is consistently high for the period, with 2025 net margin at ~16.9% and EBITDA margin at ~21.5%. The main weakness is margin compression at the gross level over time (gross margin ~29.6% in 2020 vs. ~21.0% in 2025), which could signal higher delivery costs or pricing pressure despite still-healthy operating profitability.

Balance Sheet

The balance sheet is conservatively positioned with zero debt reported across all periods and a 0.0 debt-to-equity ratio, which meaningfully reduces financial risk. Equity and total assets have expanded steadily (equity rising to 66.6M in 2025 from 22.0M in 2020), supporting growth and balance sheet resilience. A key watch item is that returns on equity were exceptionally high in 2020–2024 (roughly ~49%–60% where provided), but 2025 return data is not provided, limiting visibility into whether that level of efficiency is being sustained.

Cash Flow

Cash generation is strong and improving: 2025 operating cash flow is 39.7M and free cash flow is 39.0M, both well above prior years. Cash flow quality is solid, with free cash flow close to reported earnings in 2025 (free cash flow at ~98% of net income), indicating earnings are translating well into cash. The main weakness is variability in cash conversion earlier in the series (operating cash flow below net income in 2021–2024 based on the provided coverage ratios) and a sharp swing in free cash flow growth rates (including a decline in 2022), suggesting periodic working-capital or investment-driven volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	183.71M	176.45M	142.59M	127.73M	114.23M
Gross Profit	38.58M	44.72M	38.27M	35.54M	31.93M
EBITDA	39.58M	35.52M	30.16M	26.75M	24.16M
Net Income	31.04M	27.25M	23.31M	20.45M	18.13M
Balance Sheet
Total Assets	105.14M	88.97M	77.42M	68.04M	59.42M
Cash, Cash Equivalents and Short-Term Investments	58.24M	40.62M	37.20M	32.60M	31.07M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	38.55M	33.75M	31.01M	29.57M	29.11M
Stockholders Equity	66.59M	55.22M	46.41M	38.47M	30.31M
Cash Flow
Free Cash Flow	38.98M	21.85M	19.97M	13.82M	18.44M
Operating Cash Flow	39.73M	24.06M	21.84M	16.85M	19.89M
Investing Cash Flow	-2.44M	9.79M	-13.87M	-3.03M	-1.45M
Financing Cash Flow	-19.67M	-18.44M	-15.37M	-12.29M	-9.83M

Generic Sweden AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GENI	75 Outperform	kr438.21M	14.12	―	3.48%	―	―
UPSALE	68 Neutral	kr390.65M	17.40	―	4.69%	―	―
CDMIL	62 Neutral	kr211.14M	-5,000.00	―	3.25%	-18.05%	-71.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%