Granges AB (GRNG) AI Stock Analysis

• Market Cap: kr15.91B
• Dividend Yield: 2.29%
• Average Volume (3M): 191.87K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.06
• Revenue Growth: 22.58%
• EPS Growth: 0.31%
• Country: SE
• Employees: 3,425
• Sector: General
• Sector Strength: N/A
• Industry: Aluminum
• EPS (TTM): 2.30
• Shares Outstanding: 106,462,150
• 10 Day Avg. Volume: 111,250
• 30 Day Avg. Volume: 191,873
• PEG Ratio: 145.50
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 50.48
• 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: kr180.00
• Price Target Upside: 21.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: kr157.00 ▲(5.65% Upside)

The score is mainly held back by weak and volatile cash generation (negative/low free cash flow and low cash conversion in 2024–2025) and 2025 gross margin pressure. Offsetting this are a relatively sound balance sheet for a cyclical metals business and generally constructive technical trends with neutral momentum; valuation is mid-range with a moderate dividend yield.

Positive Factors

Market position & client base

Serving automotive and aerospace creates durable, high-spec B2B demand and sticky customer relationships. Concentration in sectors with structural lightweighting trends supports long-term volume visibility, recurring contracts and opportunities to upsell value-added surface treatments and engineering services.

Sustained revenue expansion

Consistent material revenue expansion signals improving market penetration and demand capture. A multi-year top-line trajectory supports scale benefits, reinvestment capacity and ability to fund R&D and capex, strengthening the firm's competitive position over a 2–6 month horizon and beyond.

Relatively solid balance sheet

Manageable leverage and reasonable ROE provide resilience in a cyclical metals industry, supporting access to capital and cushioning margin swings. A sizable equity base increases financial flexibility for capex or strategic investments without immediate need for aggressive external funding.

Negative Factors

Weak and volatile cash generation

Volatile free cash flow and low operating cash conversion reduce financial flexibility for dividends, buybacks, or rapid deleveraging. Over the medium term this constrains the company's ability to absorb shocks, fund growth organically, or respond tactically to cyclical downturns without raising external capital.

2025 gross margin pressure

A sharp gross margin hit in 2025 suggests structural pressure from costs, pricing or mix that can persist beyond a quarter. Sustained margin erosion would compress operating profitability, reduce reinvestment capacity, and make earnings less predictable in the cyclical aluminum market.

Rising debt vs 2023

Increased leverage amid cyclical end markets raises downside risk if profitability weakens. Higher debt limits strategic optionality, increases interest expense sensitivity to rate moves, and could slow de-risking in a prolonged downturn, pressuring credit metrics and capital allocation choices.

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

Income statement is fair (63) with generally constructive revenue growth but notable 2025 gross margin deterioration. Balance sheet is relatively solid (70) with manageable leverage and reasonable ROE, though debt rose vs 2023. Cash flow is the key weakness (40) due to volatile/weak free cash flow and low operating cash conversion in 2024–2025, reducing financial flexibility.

Income Statement

Revenue has expanded materially over the period (from 2020 to 2025), with positive growth in 2025 after a modest 2023 dip, indicating a generally constructive top-line trajectory. Profitability is steady but not high: net margins are consistently in the low-single digits and improved versus 2022, while operating profitability has been fairly stable. A key weakness is the sharp deterioration in gross margin in 2025 versus prior years, which signals meaningful pressure from pricing, costs, or mix and makes the earnings profile less predictable.

Balance Sheet

Leverage looks manageable for an industrial metals business: debt relative to equity is around ~0.5 in 2025, improved from higher levels earlier in the cycle, and equity remains sizable versus the asset base. Returns on equity are consistently around ~9%–11% in recent years, suggesting the company is generating reasonable profitability on shareholder capital. The main drawback is that debt has risen versus 2023 and the balance sheet is still meaningfully levered, which can matter in a cyclical aluminum environment if margins compress.

Cash Flow

Cash generation is the weak spot. Free cash flow swung from strongly positive in 2023 to negative in 2024 and only modestly positive in 2025, indicating volatility and likely heavier investment or working-capital drag. Cash from operations is low relative to reported earnings in 2024–2025, and free cash flow covers only a small portion of net income in 2025, which reduces flexibility for buybacks, dividends, or rapid deleveraging if conditions soften.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.36B	23.50B	22.52B	24.49B	18.13B
Gross Profit	1.61B	8.02B	7.28B	6.72B	5.34B
EBITDA	2.47B	2.38B	2.39B	1.88B	1.47B
Net Income	1.01B	1.01B	1.01B	700.00M	595.00M
Balance Sheet
Total Assets	20.63B	21.40B	16.69B	17.53B	15.77B
Cash, Cash Equivalents and Short-Term Investments	547.00M	850.00M	461.00M	879.00M	809.00M
Total Debt	4.89B	5.48B	3.46B	5.01B	4.06B
Total Liabilities	10.38B	10.56B	7.88B	9.32B	8.84B
Stockholders Equity	9.71B	10.24B	8.81B	8.20B	6.93B
Cash Flow
Free Cash Flow	307.00M	-836.00M	2.06B	109.00M	152.00M
Operating Cash Flow	1.08B	489.00M	3.29B	1.10B	988.00M
Investing Cash Flow	-772.00M	-2.08B	-1.45B	-993.00M	-926.00M
Financing Cash Flow	-488.00M	1.91B	-2.25B	-86.00M	-793.00M

Granges AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 148.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:GRNG, the sentiment is Neutral. The current price of 148.6 is below the 20-day moving average (MA) of 151.14, above the 50-day MA of 142.91, and above the 200-day MA of 129.77, indicating a neutral trend. The MACD of 2.44 indicates Positive momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 54.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:GRNG.

Granges AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOL	67 Neutral	kr178.10B	21.59	11.99%	―	8.30%	-8.62%
SSAB.B	65 Neutral	kr73.50B	14.97	7.29%	3.80%	-8.04%	-37.18%
HPOL.B	62 Neutral	kr25.04B	12.89	13.67%	4.87%	-4.11%	-17.57%
GRNG	60 Neutral	kr15.91B	15.64	9.93%	2.29%	22.58%	0.31%
SCA.B	59 Neutral	kr78.34B	24.45	3.38%	2.49%	6.10%	-3.62%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
STE.R	51 Neutral	kr81.51B	-463.10	―	3.46%	3.43%	78.62%