Granges AB (GRNG) AI Stock Analysis

• Market Cap: kr14.60B
• Dividend Yield: 2.24%
• Average Volume (3M): 143.31K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.01
• Revenue Growth: 18.20%
• EPS Growth: -0.10%
• Country: SE
• Employees: 3,425
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Aluminum
• EPS (TTM): 2.62
• Shares Outstanding: 106,308,620
• 10 Day Avg. Volume: 168,144
• 30 Day Avg. Volume: 143,311
• PEG Ratio: 11.38
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.83
• 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: 9.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: kr152.00 ▲(10.71%Upside)

Granges AB holds a robust financial position with solid revenue growth and profitability, though free cash flow metrics require improvement. Technical analysis suggests positive momentum, yet caution is advised due to overbought conditions. The stock's valuation is reasonable, supporting a moderately favorable outlook.

Granges AB Business Overview & Revenue Model

Company Description

Gränges AB (GRNG) is a global leader in the development, production, and sale of rolled aluminum products for the heat exchanger industry. The company operates in key markets across Europe, Asia, and the Americas, focusing on providing high-performance materials primarily for automotive and HVAC applications. Gränges is recognized for its advanced technology, sustainability efforts, and innovative solutions that enhance the efficiency and performance of its customers' products.

How the Company Makes Money

Gränges AB generates revenue primarily through the sale of rolled aluminum products. The company's key revenue streams include supplying aluminum solutions for heat exchangers used in the automotive and HVAC industries. Gränges benefits from long-term contracts with major automotive manufacturers and suppliers, ensuring a steady demand for its products. Additionally, the company's focus on sustainability and innovation allows it to command premium pricing for advanced materials that meet stringent environmental and performance standards. Strategic expansions and acquisitions also contribute to its earnings by enhancing production capacity and market reach.

Granges AB Financial Statement Overview

Summary

Granges AB demonstrates strong revenue growth and profitability with a robust income statement and a stable balance sheet. However, challenges in cash flow, particularly the negative free cash flow, highlight areas for improvement. The overall financial health is solid, but enhancing cash flow metrics is essential for sustained growth.

Income Statement

Granges AB shows a strong income statement with consistent revenue growth and healthy margins. The TTM (Trailing-Twelve-Months) gross profit margin is 32.65%, and the net profit margin is 4.05%. Revenue growth from the previous year is robust at 7.70%. Both EBIT and EBITDA margins are solid at 6.23% and 9.98%, respectively, indicating operational efficiency.

Balance Sheet

The balance sheet is stable, with a debt-to-equity ratio of 0.54, showing moderate leverage. Return on Equity (ROE) is 10.39%, reflecting effective use of equity. The equity ratio is 46.38%, indicating a strong equity base relative to total assets. Overall, the company maintains a healthy financial position with manageable debt levels.

Cash Flow

Cash flow analysis reveals some challenges, with a negative free cash flow of -801 million in the TTM period. However, the operating cash flow to net income ratio is 0.56, showing decent conversion of income to cash. The company needs to improve its free cash flow generation to ensure sustainable growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.50B	22.52B	24.49B	18.13B	11.01B
Gross Profit	8.02B	7.28B	6.72B	5.34B	4.03B
EBITDA	2.38B	2.39B	1.88B	1.47B	1.14B
Net Income	1.01B	1.01B	700.00M	595.00M	363.00M
Balance Sheet
Total Assets	21.40B	16.69B	17.53B	15.77B	13.65B
Cash, Cash Equivalents and Short-Term Investments	850.00M	461.00M	879.00M	809.00M	1.47B
Total Debt	5.43B	3.46B	5.01B	4.06B	4.51B
Total Liabilities	10.56B	7.88B	9.32B	8.84B	7.68B
Stockholders Equity	10.24B	8.81B	8.20B	6.93B	5.97B
Cash Flow
Free Cash Flow	-836.00M	2.06B	109.00M	152.00M	857.00M
Operating Cash Flow	489.00M	3.29B	1.10B	988.00M	1.41B
Investing Cash Flow	-2.08B	-1.45B	-993.00M	-926.00M	-1.74B
Financing Cash Flow	1.91B	-2.25B	-86.00M	-793.00M	1.15B

Granges AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 137.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 137.3 is above the 20-day moving average (MA) of 128.59, above the 50-day MA of 125.20, and above the 200-day MA of 125.58, indicating a bullish trend. The MACD of 3.35 indicates Negative momentum. The RSI at 70.11 is Negative, neither overbought nor oversold. The STOCH value of 84.96 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
BOL	74 Outperform	kr89.25B	10.76	12.34%	2.53%	12.29%	3.23%
GRNG	71 Outperform	kr14.60B	14.74	10.50%	2.24%	18.20%	-0.10%
SCA.B	69 Neutral	kr86.46B	22.89	3.64%	2.31%	12.89%	15.29%
SSAB.A	66 Neutral	kr57.10B	12.79	6.67%	4.44%	-10.87%	-55.90%
SSAB.B	64 Neutral	kr57.10B	12.60	6.67%	4.49%	-10.87%	-55.90%
Sector *	58 Neutral	kr29.94B	-3.96	-5.02%	2.86%	5.58%	-66.69%
STE.A	51 Neutral	kr84.45B	―		0.24%	4.81%	―