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

• Market Cap: kr169.30B
• Dividend Yield: 2.11%
• Average Volume (3M): 93.39K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.07
• Revenue Growth: 13.97%
• EPS Growth: -56.08%
• Country: SE
• Employees: 15
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 17.10
• Shares Outstanding: 236,775,150
• 10 Day Avg. Volume: 125,305
• 30 Day Avg. Volume: 93,386
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: kr431.00 ▲(9.00% Upside)

Industrivarden AB Class A scores highly due to its strong financial performance, characterized by robust profitability, low leverage, and excellent cash flow management. The technical analysis indicates a stable upward trend, while the valuation metrics suggest the stock is reasonably priced with an attractive dividend yield. Addressing operational inefficiencies could further enhance the stock's performance.

Industrivarden AB Class A Business Overview & Revenue Model

Company Description

AB Industrivärden is a publicly owned investment manager. The firm invests in the public equity markets of Nordic region. It employs fundamental analysis, with a focus on factors like long term return potential, proven business model, balance between risk and return, and attractive valuation to create its portfolio. AB Industrivärden was founded in 1944 and is based in Stockholm, Sweden.

How the Company Makes Money

Industrivärden generates revenue primarily through capital appreciation of its investment portfolio and dividend income from its holdings in various companies. The company earns money by holding and managing significant stakes in leading firms, allowing it to benefit from their growth and profitability. Key revenue streams include dividends received from its investments, which are reinvested or distributed to shareholders, as well as realized gains from selling investments at a profit. Additionally, Industrivärden benefits from strategic partnerships and collaborations with companies in its portfolio, leveraging its influence to enhance operational efficiencies and drive shareholder value.

Industrivarden AB Class A Financial Statement Overview

Summary

Industrivarden AB Class A demonstrates strong financial health with high profitability and revenue growth. The balance sheet is robust with low leverage and strong equity utilization. Cash flow performance is exceptional, with significant growth and efficient cash conversion. However, operational inefficiencies need addressing.

Income Statement

Industrivarden AB Class A shows strong profitability with a high gross profit margin of 79.8% and a net profit margin of 79.5% in the TTM period. Revenue growth is positive at 4.2%, indicating a healthy upward trend. However, the negative EBIT margin suggests some operational inefficiencies or high non-operating expenses. Overall, the income statement reflects robust revenue generation and profitability, but operational challenges need addressing.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.038, indicating prudent financial leverage. The return on equity is solid at 8.0%, reflecting effective use of shareholder funds. The equity ratio stands at a healthy level, underscoring financial stability. Overall, the balance sheet is strong, with low leverage and efficient equity utilization.

Cash Flow

Cash flow analysis reveals a significant free cash flow growth rate of 93.7% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is robust at 3.73, indicating efficient cash conversion from earnings. The free cash flow to net income ratio of 1.0 suggests all net income is effectively converted into free cash flow. Overall, the cash flow statement reflects excellent cash management and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.49B	12.92B	27.27B	-13.96B	26.69B	8.50B
Gross Profit	13.16B	12.72B	27.54B	-13.96B	26.69B	8.50B
EBITDA	13.24B	12.86B	27.15B	-13.88B	26.73B	8.54B
Net Income	13.11B	12.65B	26.84B	-13.97B	26.59B	8.44B
Balance Sheet
Total Assets	172.00B	167.44B	158.53B	134.76B	150.75B	129.11B
Cash, Cash Equivalents and Short-Term Investments	2.60B	843.00M	869.00M	795.00M	697.00M	0.00
Total Debt	6.28B	7.79B	8.20B	8.18B	7.22B	7.78B
Total Liabilities	6.78B	8.27B	8.65B	8.58B	7.67B	8.13B
Stockholders Equity	165.22B	159.18B	149.88B	126.18B	143.08B	120.98B
Cash Flow
Free Cash Flow	9.25B	8.29B	6.06B	-13.97B	6.99B	491.00M
Operating Cash Flow	9.25B	8.29B	6.06B	-13.97B	6.99B	491.00M
Investing Cash Flow	-4.86B	-4.57B	-2.85B	-3.18B	-2.26B	-4.11B
Financing Cash Flow	-4.56B	-3.75B	-3.13B	-1.96B	-4.03B	3.56B

Industrivarden AB Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 395.40
• 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 395.4 is above the 20-day moving average (MA) of 382.72, above the 50-day MA of 376.41, and above the 200-day MA of 364.11, indicating a bullish trend. The MACD of 5.27 indicates Negative momentum. The RSI at 69.11 is Neutral, neither overbought nor oversold. The STOCH value of 91.07 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
INDU.A	81 Outperform	kr169.30B	12.38	8.24%	2.11%	13.97%	-56.08%
CRED.A	76 Outperform	kr10.56B	8.05	12.47%	2.04%	4.72%	-38.28%
LUND.B	70 Outperform	kr126.73B	17.50	6.37%	0.90%	11.43%	-0.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RATO.B	62 Neutral	kr12.86B	44.50	6.59%	3.53%	-22.65%	-14.05%
BURE	60 Neutral	€20.38B	―	-13.33%	0.99%	22.27%	-145.59%
KINV.B	59 Neutral	kr23.56B	194.42	0.33%	―	-97.64%	―