Hoist Finance AB (HOFI) AI Stock Analysis

• Market Cap: kr12.39B
• Dividend Yield: 1.78%
• Average Volume (3M): 97.12K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.72
• Revenue Growth: 19.81%
• EPS Growth: 5.77%
• Country: SE
• Employees: 1,031
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 3.84
• Shares Outstanding: 87,422,610
• 10 Day Avg. Volume: 108,539
• 30 Day Avg. Volume: 97,117
• PEG Ratio: 0.57
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 0.00
• 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: kr165.00
• Price Target Upside: 16.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 13.65
• Revenue Forecast (FY): kr4.77B

• Rating: 62 Neutral
• Price Target: kr161.00 ▲(13.62% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is driven primarily by solid earnings momentum and profitability, but is held back by elevated financial risk from rising leverage and a steep drop in operating/free cash flow. Technicals are strong but look overbought, while valuation is moderately supportive.

Positive Factors

Revenue Growth

Sustained and accelerating revenue growth over several years indicates scalable portfolio acquisitions and improving collections efficiency. That trend supports ongoing cash generation potential and market share gains in credit management over the next several quarters.

Improving ROE

Rising ROE signals stronger earnings power relative to shareholder capital and suggests management is generating higher returns from investments and retained earnings. Improved ROE supports capital allocation credibility and resilience across economic cycles.

Diversified Business Model

A dual model—buying NPL portfolios and providing third-party servicing—creates complementary revenue streams. Fee income cushions portfolio cash-flow volatility and local operations across markets provide durable collection capability and competitive servicing scale.

Negative Factors

Cash-Flow Deterioration

A large drop in operating cash flow and zero free cash flow materially reduces internal funding for portfolio purchases and capital needs. This weakens financial flexibility, increases reliance on external financing, and raises execution risk for growth plans in the medium term.

Rising Leverage

Meaningfully higher leverage makes the firm more sensitive to rising funding costs or tighter credit markets. Elevated debt levels constrain balance sheet optionality, amplify refinancing risk, and can force more conservative portfolio acquisition strategies under stress.

Earnings Volatility

A track record of volatile earnings and recent margin compression signals that collection outcomes and portfolio returns can swing significantly. This reduces predictability of profits and cash flows, complicating capital planning and investor confidence over coming quarters.

Hoist Finance AB Business Overview & Revenue Model

Company Description

Hoist Finance AB (publ), a credit market company, engages in the loan acquisition and management operations in Europe. It operates through three segments: Unsecured, Secured, and Performing. The company purchases performing and non-performing loans from its partners, international banks, and financial institutions. It also provides current account and fixed-term deposits. The company was formerly known as Hoist International AB (publ) and changed its name to Hoist Finance AB (publ) in January 2015. Hoist Finance AB (publ) was founded in 1994 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Hoist Finance generates revenue primarily through the purchase and collection of non-performing loans (NPLs) from various financial institutions. By acquiring these distressed assets at a discount, Hoist Finance can profit from the recovery of these debts over time. The company employs a combination of in-house collection strategies and partnerships with local agencies to optimize debt recovery. Hoist Finance’s revenue streams are significantly influenced by its ability to efficiently manage these portfolios and achieve higher recovery rates than the purchase price. Additionally, strategic partnerships with banks and financial institutions play a crucial role in maintaining a steady pipeline of NPL acquisitions, contributing to the company's earnings.

Hoist Finance AB Financial Statement Overview

Summary

Income statement strength (78) shows strong accelerating revenue growth and healthy margins, but this is tempered by a more aggressive balance sheet (60) with rising leverage and a sharp deterioration in cash generation (45) including zero free cash flow in 2025, increasing financial risk.

Income Statement

Revenue growth is strong and accelerating across the period (up ~59% in 2025 vs ~33% in 2024 and ~23% in 2023), pointing to solid business momentum. Profitability is also healthy with 2025 net margin around 17% and EBIT margin around 25%, and net income has remained consistently high in 2024–2025. Offsetting this, profitability has softened versus 2022–2024 as gross margin stepped down materially in 2025, and the business shows a history of volatility (losses in 2021 and very low profitability in 2020), which reduces the stability profile.

Balance Sheet

Returns on equity are attractive and improving (about 16% in 2025 vs ~15% in 2024 and ~11% in 2023), indicating good earnings power relative to shareholder capital. However, leverage has increased meaningfully: debt-to-equity rose to ~1.75 in 2025 from ~1.05 in 2024, driven by a sharp jump in total debt while equity declined. With assets rising alongside higher leverage, the balance sheet looks more aggressive than the prior year, increasing sensitivity to funding costs and credit conditions.

Cash Flow

Cash generation deteriorated sharply in 2025: operating cash flow fell to ~0.46B from ~5.81B in 2024, and free cash flow dropped to zero (a -100% change). Cash flow quality versus reported earnings weakened materially, with operating cash flow covering less than half of net income in 2025 and free cash flow not contributing to earnings conversion. The main positive is that cash flows were very strong in 2022–2024, but the magnitude of the 2025 drop raises concern about volatility and timing effects in cash realization.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.85B	5.09B	3.84B	3.12B	2.54B
Gross Profit	3.77B	3.90B	3.17B	2.56B	1.97B
EBITDA	1.55B	1.40B	942.00M	599.00M	99.00M
Net Income	1.14B	1.01B	663.00M	801.00M	-117.00M
Balance Sheet
Total Assets	63.22B	56.93B	34.02B	32.50B	30.37B
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	-105.00M	0.00
Total Debt	10.81B	7.05B	5.63B	6.55B	6.04B
Total Liabilities	57.02B	50.23B	28.10B	26.75B	25.43B
Stockholders Equity	6.20B	6.71B	5.92B	5.74B	4.94B
Cash Flow
Free Cash Flow	0.00	5.81B	4.40B	3.84B	3.48B
Operating Cash Flow	464.00M	5.81B	4.40B	3.84B	3.48B
Investing Cash Flow	266.00M	-18.08B	-3.62B	-7.13B	-3.00B
Financing Cash Flow	6.88B	20.06B	572.00M	4.33B	-1.45B

Hoist Finance AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 141.70
• 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:HOFI, the sentiment is Positive. The current price of 141.7 is above the 20-day moving average (MA) of 139.94, above the 50-day MA of 125.20, and above the 200-day MA of 103.03, indicating a bullish trend. The MACD of 5.20 indicates Positive momentum. The RSI at 61.96 is Neutral, neither overbought nor oversold. The STOCH value of 51.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:HOFI.

Hoist Finance AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HOFI	62 Neutral	kr12.39B	12.43	15.75%	1.78%	19.81%	5.77%
ALM	61 Neutral	kr874.89M	-2.51	―	―	-13.30%	―
NORION	54 Neutral	kr11.05B	8.19	―	―	0.78%	13.82%

Hoist Finance AB Corporate Events

Hoist Finance to Acquire UK SME Debt Purchaser Azzurro Associates

Hoist Finance has agreed to acquire UK debt purchaser Azzurro Associates, a specialist in SME non-performing loans with a portfolio book value of £200 million, from Elliott Investment Management and Azzurro senior executives. The deal includes Azzurro’s FCA-regulated UK entity and its three operational centres with around 180 staff, strengthening Hoist Finance’s UK presence and capabilities in the SME segment, which the company views as a key growth market.

Management at Hoist Finance said the acquisition will bring additional skills and capacity, creating a more robust platform for further UK expansion, where the group has operated since 2010. Azzurro’s leadership highlighted the benefits of Hoist’s larger scale and long-term approach, signalling continuity for clients such as high street banks while positioning the combined business to capitalise on growing demand for SME debt management, subject to customary conditions and regulatory approvals.

The most recent analyst rating on (SE:HOFI) stock is a Hold with a SEK154.00 price target. To see the full list of analyst forecasts on Hoist Finance AB stock, see the SE:HOFI Stock Forecast page.

Hoist Finance Gains Specialised Debt Restructurer Status, Frees SEK 1.2 Billion in Capital

Hoist Finance has notified the Swedish Financial Supervisory Authority that it meets all criteria to qualify as a Specialised Debt Restructurer under the EU Capital Requirements Regulation, gaining exemption from the EU backstop rules that require capital deductions for insufficient coverage of non-performing exposures. The new status allows Hoist to dissolve SEK 1.2 billion of previously required deductions, freeing capital for growth and shareholder returns, expanding its addressable market in non-performing loans, simplifying its business model and enhancing flexibility and cost efficiency, thereby reinforcing its ambition to be a leading investor and manager of debt portfolios in Europe within the new regulatory framework for specialised NPL buyers.

The most recent analyst rating on (SE:HOFI) stock is a Buy with a SEK142.00 price target. To see the full list of analyst forecasts on Hoist Finance AB stock, see the SE:HOFI Stock Forecast page.

Hoist Finance Schedules Q4 and Full-Year 2025 Results Presentation for 6 February

Hoist Finance has announced that it will publish its fourth-quarter and full-year 2025 results on 6 February 2026, followed by a combined webcast and teleconference presentation later that morning led by CEO Harry Vranjes and CFO Magnus Söderlund. The English-language briefing, accessible via online webcast and teleconference with opportunities for both written and verbal questions, underscores the company’s ongoing engagement with investors and analysts as it reports on performance in its specialised market for non-performing loan portfolios across Europe.

The most recent analyst rating on (SE:HOFI) stock is a Buy with a SEK132.00 price target. To see the full list of analyst forecasts on Hoist Finance AB stock, see the SE:HOFI Stock Forecast page.

Hoist Finance Chair Lars Wollung to Step Down Ahead of 2026 AGM

Hoist Finance’s Chair of the Board, Lars Wollung, has informed the company’s Nomination Committee that he will not stand for re-election at the Annual General Meeting on 7 May 2026, following a request from the Swedish Financial Supervisory Authority for an assessment of his suitability after two sanction decisions related to delayed transaction reporting and a trading ban violation. Despite his departure, both Wollung and the Nomination Committee highlight significant operational and market improvements during his four-year leadership, including a near fourfold increase in market value and a well-functioning management team, and the committee will present proposals for a new chair and board members ahead of the AGM, signalling a planned and orderly transition for stakeholders.

The most recent analyst rating on (SE:HOFI) stock is a Buy with a SEK124.00 price target. To see the full list of analyst forecasts on Hoist Finance AB stock, see the SE:HOFI Stock Forecast page.