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Industrivarden AB Class A (SE:INDU.A)
:INDU.A

Industrivarden AB Class A (INDU.A) AI Stock Analysis

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Industrivarden AB Class A

(LSE:INDU.A)

Rating:54Neutral
Price Target:
Industrivarden AB Class A earns a moderate score primarily due to its strong balance sheet and positive cash flow generation. However, persistent EBIT losses and revenue volatility weigh down the income statement. Technical indicators are bearish, reflecting weak market momentum. The high P/E ratio suggests overvaluation, adding further risk. Despite a solid financial foundation, the company faces challenges in profitability and growth, resulting in a cautious outlook.

Industrivarden AB Class A (INDU.A) vs. iShares MSCI Sweden ETF (EWD)

Industrivarden AB Class A Business Overview & Revenue Model

Company DescriptionIndustrivarden AB Class A (INDU.A) is a Sweden-based investment company that operates as a long-term asset manager, primarily investing in Nordic companies with strong market positions and sustainable growth prospects. The company is involved in a variety of sectors including industrial, financial, and consumer goods. Industrivarden focuses on active ownership and value creation through its significant equity stakes in a diversified portfolio of leading publicly traded companies.
How the Company Makes MoneyIndustrivarden AB generates revenue primarily through dividends and capital gains from its equity investments in a portfolio of Nordic companies. The company's key revenue streams are the dividends it receives from its holdings and the appreciation of its investments over time. Industrivarden's investment strategy involves taking significant positions in its portfolio companies, influencing their strategic direction, and actively engaging in governance to enhance shareholder value. The company leverages its expertise and network to support the growth and profitability of its investments, which in turn contributes to its earnings. Partnerships with its portfolio companies and a focus on sectors with strong growth potential are significant factors contributing to Industrivarden's revenue model.

Industrivarden AB Class A Financial Statement Overview

Summary
Industrivarden AB Class A displays a mixed financial performance. The income statement reveals revenue volatility and persistent EBIT losses, partially offset by net profitability. The balance sheet is strong with high equity and no debt, minimizing financial risk. Cash flow generation is positive, but there is potential for improvement in translating income into cash. Overall, the company demonstrates financial stability but faces challenges in revenue growth and profitability maintenance.
Income Statement
55
Neutral
The company's revenue has shown fluctuation, with a recent decline in TTM compared to the previous year. The gross profit margin remains strong at 100%, but EBIT and EBITDA margins are negative due to significant EBIT losses. The net profit margin for TTM is 31.05%, reflecting profitability despite revenue volatility.
Balance Sheet
78
Positive
The balance sheet is robust with no debt, leading to a favorable debt-to-equity ratio of 0. The equity ratio is high at 94.98%, indicating strong equity financing. ROE for TTM is 2.33%, showing moderate returns on equity. The company has maintained a solid equity base and low leverage, reducing financial risk.
Cash Flow
65
Positive
Free cash flow is positive and has grown from the previous period, indicating effective cash management. The operating cash flow to net income ratio is healthy at 1.28, supporting the company's ability to generate cash relative to its net income. However, the free cash flow to net income ratio is below 1, suggesting room for improvement in cash generation relative to earnings.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
12.53B12.72B27.27B-13.96B26.69B8.50B
Gross Profit
12.53B12.72B27.54B-13.96B26.69B8.50B
EBIT
-16.78B-25.71B27.14B-13.90B26.68B8.49B
EBITDA
-635.75M0.0027.15B-13.88B26.73B8.54B
Net Income Common Stockholders
3.89B12.65B26.84B-13.97B26.59B8.44B
Balance SheetCash, Cash Equivalents and Short-Term Investments
0.00843.00M869.00M795.00M697.00M0.00
Total Assets
129.11B167.44B158.53B134.76B150.75B129.11B
Total Debt
7.78B0.008.20B8.18B7.22B7.78B
Net Debt
7.78B-843.00M7.33B7.39B6.53B7.78B
Total Liabilities
8.13B8.27B8.65B8.58B7.67B8.13B
Stockholders Equity
120.98B159.18B149.88B126.18B143.08B120.98B
Cash FlowFree Cash Flow
4.77B8.29B6.06B-13.97B6.99B491.00M
Operating Cash Flow
4.96B8.29B6.06B-13.97B6.99B491.00M
Investing Cash Flow
-4.65B-4.57B-2.85B-3.18B-2.26B-4.11B
Financing Cash Flow
-3.24B-3.75B-3.13B-1.96B-4.03B3.56B

Industrivarden AB Class A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price341.00
Price Trends
50DMA
340.56
Positive
100DMA
361.74
Negative
200DMA
357.54
Negative
Market Momentum
MACD
0.53
Positive
RSI
45.61
Neutral
STOCH
62.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INDU.A, the sentiment is Negative. The current price of 341 is below the 20-day moving average (MA) of 351.40, above the 50-day MA of 340.56, and below the 200-day MA of 357.54, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:INDU.A.

Industrivarden AB Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
kr854.42B19.465.42%1.80%-3.74%-73.16%
69
Neutral
kr120.83B23.574.47%0.98%18.94%-40.44%
68
Neutral
kr854.42B19.505.42%1.79%-3.74%-73.16%
66
Neutral
$4.51B12.225.40%3.63%4.14%-12.01%
56
Neutral
€20.06B172.200.27%1.02%13.61%-97.82%
56
Neutral
€22.01B
-95.90%27.54%
54
Neutral
kr151.08B38.842.33%2.42%-49.11%-87.67%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:INDU.A
Industrivarden AB Class A
341.00
-5.34
-1.54%
SE:INVE.A
Investor AB
275.50
-2.48
-0.89%
SE:LUND.B
L E Lundbergfoeretagen AB
466.60
-46.04
-8.98%
SE:INVE.B
Investor AB
274.90
-3.86
-1.38%
SE:BURE
Bure Equity AB
269.40
-88.26
-24.68%
SE:KINV.A
Kinnevik AB Class A
86.60
-10.80
-11.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.