Hufvudstaden AB (HUFV.A) AI Stock Analysis

• Market Cap: kr24.38B
• Dividend Yield: 2.27%
• Average Volume (3M): 320.06K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.27
• Revenue Growth: 1.72%
• EPS Growth: N/A
• Country: SE
• Employees: 248
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 1.41
• Shares Outstanding: 203,401,430
• 10 Day Avg. Volume: 158,823
• 30 Day Avg. Volume: 320,057
• PEG Ratio: 0.22
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 7.54
• P/FCF Ratio: 18.78
• 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: kr136.00
• Price Target Upside: 10.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5.61
• Revenue Forecast (FY): kr2.49B

• Rating: 70 Outperform
• Price Target: kr139.00 ▲(13.19% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by improving financial performance in 2025 (strong revenue growth, solid profitability, positive free cash flow) and a constructive technical setup with price above major moving averages. These positives are tempered by elevated valuation (P/E ~30.3), rising leverage, and historically volatile earnings.

Positive Factors

Revenue and profitability rebound

A sharp 2025 revenue acceleration and a ~25% net margin indicate the business regained top-line momentum and operating leverage. Durable higher revenues and margins improve cash generation, support reinvestment in assets, and increase resilience to cyclical downturns over the coming 2–6 months.

Large equity base and moderate leverage

A substantial equity cushion versus debt provides capital stability and loss-absorption in property cycles. Moderate leverage around 0.44 preserves borrowing capacity for selective development or refinancing and reduces short-term solvency risk, supporting strategic flexibility over the medium term.

Steady cash generation and FCF alignment

Consistent operating cash flow and free cash flow that track reported earnings signal earnings quality and strong cash conversion. Reliable FCF underpins dividend funding, maintenance capex and selective development, and reduces dependence on external financing in typical conditions.

Negative Factors

Rising leverage trend

An upward drift in leverage reduces financial headroom and increases interest and refinancing sensitivity. If rates rise or rental growth slows, higher leverage raises default and covenant risk, constraining capital allocation and increasing long-term funding costs relative to peers.

Historical earnings volatility

Pronounced multi-year swings in net income weaken predictability of cash flows and dividends. Volatility complicates long-term planning, increases perceived risk for lenders and investors, and can limit the company's ability to commit to large developments or payout policies during uncertain cycles.

Modest OCF coverage vs. debt

Operating cash flow is modest relative to total debt, leaving a thin cushion for debt service and less flexibility for opportunistic investments. In a downturn or with higher interest costs, weaker coverage increases refinancing and liquidity risk and may force asset sales or slower growth.

Hufvudstaden AB Business Overview & Revenue Model

Company Description

Hufvudstaden AB (HUFV.A) is a leading real estate company based in Sweden, primarily focused on the development, management, and leasing of commercial properties. The company operates in key sectors, including office spaces, retail properties, and residential developments, predominantly in metropolitan areas such as Stockholm and Gothenburg. Hufvudstaden is known for its high-quality property portfolio, which includes iconic buildings and prime locations, catering to a diverse range of tenants and customers.

How the Company Makes Money

Hufvudstaden generates revenue primarily through rental income from its extensive portfolio of commercial properties, which includes office buildings and retail spaces. The company leases these properties to various tenants, including businesses and retailers, providing a stable and recurring revenue stream. Additionally, Hufvudstaden may benefit from property value appreciation and development projects that can lead to increased rental rates and asset values over time. The company's strategic focus on prime locations enhances its appeal to tenants, leading to lower vacancy rates and higher rental yields. Moreover, Hufvudstaden may engage in partnerships with other real estate developers and investors, contributing to collaborative projects that can further boost its income through shared revenues or joint ventures.

Hufvudstaden AB Financial Statement Overview

Summary

Strong 2025 rebound: revenue accelerated sharply (~69% YoY) and profitability is solid (net margin ~25%). Balance sheet is supported by a large equity base (2025 equity ~27.9B vs. debt ~12.4B), though leverage is drifting higher (debt-to-equity ~0.44). Cash flow improved with steady positive operating cash flow (~1.32B) and free cash flow tracking earnings well, but operating cash flow coverage versus debt (~0.32–0.47) and historical earnings volatility remain key risks.

Income Statement

Revenue has trended upward across the period, with a sharp acceleration in 2025 (annual revenue up ~69%). Profitability in 2025 is strong (net margin ~25%), rebounding meaningfully from the 2023 loss (negative net margin). However, earnings have been volatile over time (large losses in 2020 and 2023, and an unusually high profit year in 2021), which reduces confidence in the durability of reported profits despite the recent improvement.

Balance Sheet

The balance sheet appears solid for a real estate business, supported by a large equity base (2025 equity ~27.9B vs. debt ~12.4B). Leverage remains moderate with debt-to-equity rising to ~0.44 in 2025 from ~0.31–0.37 in prior years, indicating some incremental balance-sheet risk. Overall asset base is stable-to-growing, but the upward drift in leverage is the key watch item.

Cash Flow

Cash generation is steady and improved in 2025, with operating cash flow ~1.32B and free cash flow matching operating cash flow. Free cash flow growth was very strong in 2025, while earlier years showed smaller and sometimes negative growth. A key strength is that free cash flow closely tracks reported earnings (roughly one-to-one in most years), but operating cash flow is modest relative to the company’s debt load (coverage roughly ~0.32–0.47), which limits financial flexibility if conditions tighten.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.29B	3.18B	2.96B	2.75B	2.64B
Gross Profit	1.64B	1.55B	1.47B	1.35B	1.34B
EBITDA	1.58B	1.56B	1.47B	1.11B	3.89B
Net Income	836.60M	364.60M	-1.93B	722.00M	2.96B
Balance Sheet
Total Assets	50.19B	48.87B	48.44B	51.24B	51.10B
Cash, Cash Equivalents and Short-Term Investments	0.00	472.60M	382.40M	453.00M	1.18B
Total Debt	12.38B	10.54B	10.13B	9.71B	9.92B
Total Liabilities	22.33B	20.27B	19.66B	19.97B	20.03B
Stockholders Equity	27.86B	28.61B	28.79B	31.26B	31.07B
Cash Flow
Free Cash Flow	1.32B	1.22B	1.32B	972.70M	978.80M
Operating Cash Flow	1.32B	1.24B	1.39B	1.02B	994.30M
Investing Cash Flow	-1.18B	-991.10M	-1.30B	-1.02B	-628.30M
Financing Cash Flow	-42.10M	-154.00M	-154.90M	-735.50M	32.40M

Hufvudstaden AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.80
• 50DMA: Negative
• 100DMA: Negative
• 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:HUFV.A, the sentiment is Negative. The current price of 122.8 is below the 20-day moving average (MA) of 126.72, below the 50-day MA of 124.75, and below the 200-day MA of 124.38, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 40.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:HUFV.A.

Hufvudstaden AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUFV.A	70 Outperform	kr24.38B	29.65	3.94%	2.27%	1.72%	―
WIHL	67 Neutral	kr27.30B	12.64	9.74%	3.60%	5.18%	349.60%
WALL.B	66 Neutral	kr28.12B	10.43	6.07%	1.25%	-5.96%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BALD.B	62 Neutral	kr73.28B	10.65	10.31%	―	7.72%	―
CAST	60 Neutral	kr52.85B	-114.82	1.27%	1.77%	-2.45%	―
ATRLJ.B	58 Neutral	kr20.52B	25.45	3.82%	2.20%	-1.77%	1579.70%

Hufvudstaden AB Corporate Events

Hufvudstaden Publishes 2025 Annual Report and Sets English Release Date

Hufvudstaden AB has published its 2025 annual report in Swedish on the company’s website, with tables and figures to be made available in both Swedish and English online. A full English version of the report will be released on the site by Thursday 26, and printed copies will be distributed to shareholders and other stakeholders on request.

The release underlines the company’s ongoing transparency and compliance with Swedish securities regulations by ensuring timely public access to its annual financial and operational information. Investors and analysts now have a clear timetable for when they can review the full English report, which is central for assessing Hufvudstaden’s performance and outlook in the Nordic commercial property market.

The most recent analyst rating on ($SE:HUFV.A) stock is a Hold with a SEK136.00 price target. To see the full list of analyst forecasts on Hufvudstaden AB stock, see the SE:HUFV.A Stock Forecast page.

Hufvudstaden Lifts Profit and Portfolio Value on Strong Office and Retail Demand

Hufvudstaden reported a resilient 2025, increasing rent revenue from property management by 6% to SEK 2,453 million and lifting group gross profit by 5% to SEK 1,635 million despite a weak macroeconomic environment. The property portfolio’s fair value rose to SEK 48.1 billion while the equity ratio remained strong at 56%, underlining the company’s solid balance sheet.

Profitability benefited from strategic changes at NK, which are now contributing positively to results, and from robust demand for modern, centrally located offices in Stockholm and Gothenburg. High occupancy in key development projects such as Kvarteret Johanna and Kåkenhusen 40, along with a major new retail letting to New Yorker in Femman, signal improving leasing momentum and support the Board’s proposal to raise the dividend and the company’s share buyback programme.

The most recent analyst rating on ($SE:HUFV.A) stock is a Hold with a SEK135.00 price target. To see the full list of analyst forecasts on Hufvudstaden AB stock, see the SE:HUFV.A Stock Forecast page.

Hufvudstaden Reports Minor Share Conversion and Voting Rights Adjustment

Hufvudstaden AB has reported a minor change in its share capital structure following the conversion of 10 series C shares into series A shares in December 2025, in line with a conversion right introduced at the 2001 Annual General Meeting. As a result, the total number of votes in the company has decreased slightly to 990,451,829, while the total number of registered shares remains 211,271,933, of which 203,401,429 are series A shares and 7,870,504 are series C shares, with Hufvudstaden holding 16,965,000 of its own series A shares. The adjustment, disclosed under Swedish financial market regulations, reflects ongoing shareholder use of the conversion mechanism but does not materially alter the company’s ownership structure or voting power distribution.

The most recent analyst rating on ($SE:HUFV.A) stock is a Hold with a SEK133.00 price target. To see the full list of analyst forecasts on Hufvudstaden AB stock, see the SE:HUFV.A Stock Forecast page.

Hufvudstaden Completes Significant Share Buyback

Hufvudstaden AB has completed a share buyback program, acquiring 8,000,000 Class A shares between August 26 and November 11, 2025, at an average price of SEK 127.22 per share, totaling SEK 1,018 million. This buyback increases the company’s holdings to 16,965,000 Class A shares, representing 8.0% of all issued shares and 1.7% of the total votes, potentially impacting shareholder value and market perception.

The most recent analyst rating on ($SE:HUFV.A) stock is a Hold with a SEK132.00 price target. To see the full list of analyst forecasts on Hufvudstaden AB stock, see the SE:HUFV.A Stock Forecast page.