Granges AB (GRNG) AI Stock Analysis

• Market Cap: kr14.78B
• Dividend Yield: 2.32%
• Average Volume (3M): 191.87K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.07
• Revenue Growth: 22.58%
• EPS Growth: 0.31%
• Country: SE
• Employees: 3,425
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 2.30
• Shares Outstanding: 106,339,580
• 10 Day Avg. Volume: 111,250
• 30 Day Avg. Volume: 191,873
• PEG Ratio: 43.77
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -16.75
• 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: kr150.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: kr153.00 ▲(10.87% Upside)

Granges AB's stock score is driven by strong technical indicators and a stable valuation, despite challenges in cash flow management. The company's solid revenue growth and operational efficiency are positive, but liquidity issues need attention to sustain growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Granges' aluminum solutions, supporting long-term business expansion and market presence.

Market Position

Strong partnerships in key industries enhance Granges' competitive advantage, ensuring stable revenue streams and reinforcing its market leadership.

Operational Efficiency

Stable margins reflect effective cost management and operational efficiency, crucial for maintaining profitability and competitive edge.

Negative Factors

Cash Flow Management

Negative free cash flow indicates potential liquidity issues, which could impact Granges' ability to invest in growth opportunities and manage debt.

Profitability Pressure

Modest profit margins suggest challenges in converting sales into profits, which could affect Granges' long-term financial health.

Liquidity Issues

Liquidity challenges may limit Granges' operational flexibility and ability to respond to market changes, impacting its financial stability.

Granges AB Business Overview & Revenue Model

Company Description

Gränges AB (publ) develops, produces, and distributes rolled aluminum products for thermal management systems, specialty packaging, and niche applications in Europe, Asia, and the Americas. The company offers clad tubes and fins, unclad fins, and clad plates. It serves various markets, including automotive; heating, ventilation, and air conditioning; specialty packaging; battery; and transformers, heat exchangers, and wind turbines. The company was founded in 1896 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Granges AB generates revenue primarily through the sale of its aluminum products, which include rolled and extruded aluminum solutions tailored for specific industrial applications. The company operates on a B2B model, supplying its products to major clients in the automotive and aerospace industries. Key revenue streams include direct sales of aluminum sheets, foils, and extrusions, as well as ongoing contracts for surface treatment services. Significant partnerships with major automotive manufacturers and aerospace companies bolster Granges' market position and contribute to stable revenue growth. Additionally, the company focuses on innovation and value-added services, which enhance product offerings and create higher-margin revenue opportunities.

Granges AB Financial Statement Overview

Summary

Granges AB shows stable financial performance with consistent revenue growth and profitability. However, challenges in cash flow management, such as negative free cash flow growth and low cash flow ratios, are concerning. The balance sheet is strong with balanced leverage and a solid equity base.

Income Statement

Granges AB shows a solid revenue growth rate of 3.28% TTM, indicating a positive trajectory. The gross profit margin is healthy at 31.31%, although it has slightly decreased from the previous year. The net profit margin is stable at 3.79%, but there is room for improvement. EBIT and EBITDA margins are moderate, reflecting consistent operational efficiency.

Balance Sheet

The debt-to-equity ratio of 0.54 TTM suggests a balanced leverage position, which is a positive sign for financial stability. Return on equity is at 10.14%, indicating effective use of equity to generate profits. The equity ratio stands at 46.76%, showing a strong equity base relative to total assets.

Cash Flow

The free cash flow growth rate is negative at -25.22% TTM, which is concerning. Operating cash flow to net income ratio is low at 0.08, indicating potential cash flow challenges. The free cash flow to net income ratio is negative, highlighting issues in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.32B	23.50B	22.52B	24.49B	18.13B	11.01B
Gross Profit	6.59B	8.02B	7.28B	6.72B	5.34B	4.03B
EBITDA	2.46B	2.38B	2.39B	1.88B	1.47B	1.11B
Net Income	946.00M	1.01B	1.01B	700.00M	595.00M	363.00M
Balance Sheet
Total Assets	20.50B	21.40B	16.69B	17.53B	15.77B	13.65B
Cash, Cash Equivalents and Short-Term Investments	679.00M	850.00M	461.00M	879.00M	809.00M	1.47B
Total Debt	4.78B	5.48B	3.46B	5.01B	4.06B	4.51B
Total Liabilities	10.32B	10.56B	7.88B	9.32B	8.84B	7.68B
Stockholders Equity	9.63B	10.24B	8.81B	8.20B	6.93B	5.97B
Cash Flow
Free Cash Flow	-605.00M	-836.00M	2.06B	109.00M	152.00M	857.00M
Operating Cash Flow	342.00M	489.00M	3.29B	1.10B	988.00M	1.41B
Investing Cash Flow	-1.70B	-2.08B	-1.45B	-993.00M	-926.00M	-1.74B
Financing Cash Flow	988.00M	1.91B	-2.25B	-86.00M	-793.00M	1.15B

Granges AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 138.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:GRNG, the sentiment is Positive. The current price of 138 is above the 20-day moving average (MA) of 136.85, above the 50-day MA of 128.06, and above the 200-day MA of 126.21, indicating a bullish trend. The MACD of 2.12 indicates Positive momentum. The RSI at 58.02 is Neutral, neither overbought nor oversold. The STOCH value of 81.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:GRNG.

Granges AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPOL.B	74 Outperform	kr29.69B	15.17	13.67%	4.87%	-4.11%	-17.57%
BOL	72 Outperform	kr116.79B	14.16	11.99%	―	8.30%	-8.62%
GRNG	71 Outperform	kr14.78B	15.61	9.93%	2.32%	22.58%	0.31%
SSAB.B	65 Neutral	kr57.66B	11.58	7.29%	3.97%	-8.04%	-37.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SCA.B	61 Neutral	kr85.80B	24.24	3.38%	2.45%	6.10%	-3.62%
STE.R	49 Neutral	kr87.08B	―	―	3.48%	3.43%	78.62%