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

• Market Cap: kr161.18B
• Dividend Yield: 2.21%
• Average Volume (3M): 91.28K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.09
• Revenue Growth: -49.11%
• EPS Growth: -87.67%
• Country: SE
• Employees: 15
• Sector: Industrials
• Sector Strength: 94
• Industry: Asset Management
• EPS (TTM): 4.27
• Shares Outstanding: 237,048,630
• 10 Day Avg. Volume: 73,329
• 30 Day Avg. Volume: 91,282
• PEG Ratio: -0.58
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.88
• 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: kr326.00
• Price Target Upside: -12.65% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• 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 Business Overview & Revenue Model

Company Description

Industrivarden 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 Money

Industrivarden 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

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

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.72B	27.27B	-13.96B	26.69B	8.50B
Gross Profit	12.72B	27.54B	-13.96B	26.69B	8.50B
EBITDA	0.00	27.15B	-13.88B	26.73B	8.54B
Net Income	12.65B	26.84B	-13.97B	26.59B	8.44B
Balance Sheet
Total Assets	167.44B	158.53B	134.76B	150.75B	129.11B
Cash, Cash Equivalents and Short-Term Investments	843.00M	869.00M	795.00M	697.00M	0.00
Total Debt	0.00	8.20B	8.18B	7.22B	7.78B
Total Liabilities	8.27B	8.65B	8.58B	7.67B	8.13B
Stockholders Equity	159.18B	149.88B	126.18B	143.08B	120.98B
Cash Flow
Free Cash Flow	8.29B	6.06B	-13.97B	6.99B	491.00M
Operating Cash Flow	8.29B	6.06B	-13.97B	6.99B	491.00M
Investing Cash Flow	-4.57B	-2.85B	-3.18B	-2.26B	-4.11B
Financing Cash Flow	-3.75B	-3.13B	-1.96B	-4.03B	3.56B

Industrivarden AB Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 373.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INDU.A, the sentiment is Positive. The current price of 373.2 is above the 20-day moving average (MA) of 359.04, above the 50-day MA of 352.33, and above the 200-day MA of 357.20, indicating a bullish trend. The MACD of 5.74 indicates Negative momentum. The RSI at 68.82 is Neutral, neither overbought nor oversold. The STOCH value of 94.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:INDU.A.

Industrivarden AB Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVE.B	72 Outperform	kr890.92B	38.14	2.79%	1.70%	3.97%	-87.10%
INVE.A	69 Neutral	kr890.92B	38.10	2.79%	1.70%	3.97%	-87.10%
LUND.B	66 Neutral	kr122.02B	23.80	4.47%	0.93%	18.94%	-40.44%
Sector *	65 Neutral	$11.14B	15.76	5.26%	2.01%	3.16%	-25.01%
BURE	64 Neutral	kr22.20B	191.37	0.27%	0.92%	13.61%	-97.82%
KINV.A	56 Neutral	kr25.67B	―		―	-95.90%	27.54%
INDU.A	54 Neutral	kr161.18B	12.29	8.17%	2.21%	-49.11%	-87.67%