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

• Market Cap: kr215.75B
• Dividend Yield: 2%
• Average Volume (3M): 93.39K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.11
• Revenue Growth: 13.97%
• EPS Growth: -56.08%
• Country: SE
• Employees: 15
• Sector: General
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 42.64
• Shares Outstanding: 212,644,300
• 10 Day Avg. Volume: 125,305
• 30 Day Avg. Volume: 93,386
• PEG Ratio: 0.03
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 18.82
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 29.46
• Revenue Forecast (FY): kr8.59B

• Rating: 76 Outperform
• Price Target: kr545.00 ▲(32.28% Upside)
• Action: Reiterated Date: 02/09/26
• Date: Action: Reiterated 02/09/26

The score is driven by a conservative, well-capitalized balance sheet and an attractive low P/E valuation. Technicals are supportive due to a strong uptrend, but overbought momentum indicators (high RSI and Stochastics) add near-term risk. The main fundamental offset is earnings and cash-flow volatility, including a sharp 2025 slowdown and weakened free cash flow.

Positive Factors

Conservative balance sheet

Very low leverage and a large equity base materially increase financial resilience, allowing Industrivärden to hold through downturns, continue activist investments and support dividends or strategic capital allocation. This durability supports long-term portfolio value creation and reduces refinancing risk.

Stable dividend and capital-income model

Receiving steady dividends and capturing capital appreciation from sizable public holdings provides recurring cash and diversified return sources. Over time, dividend receipts and realized gains can fund shareholder distributions and stewardship activities without increasing leverage, supporting long-term cash generation.

Active ownership and influential stakes

Active ownership and substantial stakes give Industrivärden the structural ability to influence governance and operations in portfolio companies. That influence can yield sustained operational improvements and value uplift over multiple years, differentiating it from passive peers and supporting durable returns.

Negative Factors

Earnings and cash-flow volatility

Material earnings and cash‑flow volatility reduces predictability of NAV, dividend streams and capital deployment. Sharp swings constrain multi‑year planning for buybacks or interventions, may require larger liquidity buffers, and raise the risk of forced asset sales in weaker market cycles.

Free cash flow collapse in 2025

A sudden collapse in free cash flow materially curtails internal funding for dividends, buybacks and capital support to holdings. If this weakness persists, the company may need to rely on asset disposals or leverage, reducing strategic flexibility and increasing execution risk during recovery periods.

Profitability sensitivity and revenue decline

Large swings including a loss year (2022) and a 28% revenue drop in 2025 indicate earnings are sensitive to market and valuation cycles. This undermines reliable income generation and complicates multi‑year forecasting, which can constrain steady shareholder returns and strategic commitments.

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

Strong balance sheet (Score 88) with very low leverage and a large equity base supports resilience, but profitability is volatile (Income Statement Score 62) with a sharp step-down in 2025 and a loss in 2022. Cash flow quality weakened recently (Cash Flow Score 55) as free cash flow deteriorated sharply in 2025 despite historically solid conversion.

Income Statement

Profitability is highly variable year-to-year: the company produced very strong profits in 2023–2024, followed by a sharp step-down in 2025 (annual revenue down 28.32% and net margin down to ~3.7%). Results also show a loss year in 2022, highlighting earnings sensitivity and limited consistency. Overall, the income statement reflects strong upside in good markets, but weaker predictability and momentum most recently.

Balance Sheet

The balance sheet looks conservative, with low leverage throughout the period (debt-to-equity roughly 0.04–0.06) and a large equity base that has grown over time. Return on equity is generally solid in profitable years (notably 2021, 2023, and 2025), but it can swing materially (negative in 2022), which is a key risk for stability. Net-net, strong capitalization and modest debt support a high score.

Cash Flow

Operating cash flow is consistently positive across the years shown, which supports underlying cash generation. However, free cash flow deteriorated sharply in 2025 (reported as 0 with -100% growth and 0% of net income), contrasting with strong free cash flow conversion in 2020–2024 (free cash flow matching net income). The latest-year drop introduces uncertainty around cash availability and the durability of cash returns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.30B	9.53B	12.92B	27.20B	-13.88B	26.73B
Gross Profit	13.16B	9.53B	12.73B	27.00B	-13.96B	26.69B
EBITDA	13.16B	35.66B	12.72B	26.99B	-13.98B	26.68B
Net Income	13.11B	35.40B	12.65B	26.84B	-13.97B	26.59B
Balance Sheet
Total Assets	172.00B	198.90B	167.44B	158.53B	134.76B	150.75B
Cash, Cash Equivalents and Short-Term Investments	2.60B	1.34B	843.00M	869.00M	795.00M	697.00M
Total Debt	6.28B	7.28B	7.79B	8.20B	8.18B	7.22B
Total Liabilities	6.78B	7.88B	8.27B	8.65B	8.58B	7.67B
Stockholders Equity	165.22B	191.02B	159.18B	149.88B	126.18B	143.08B
Cash Flow
Free Cash Flow	9.25B	0.00	8.29B	6.06B	5.24B	6.99B
Operating Cash Flow	9.25B	9.21B	8.29B	6.06B	5.24B	6.99B
Investing Cash Flow	-4.86B	-4.65B	-4.57B	-2.85B	-3.18B	-2.26B
Financing Cash Flow	-4.56B	-4.06B	-3.75B	-3.13B	-1.96B	-4.03B

Industrivarden AB Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 412.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 412 is below the 20-day moving average (MA) of 484.51, below the 50-day MA of 447.73, and above the 200-day MA of 391.10, indicating a bullish trend. The MACD of 16.62 indicates Negative momentum. The RSI at 83.82 is Negative, neither overbought nor oversold. The STOCH value of 96.25 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	76 Outperform	kr215.75B	6.28	8.24%	2.00%	13.97%	-56.08%
LUND.B	65 Neutral	kr142.60B	12.18	6.47%	0.92%	7.90%	-18.95%
CRED.A	63 Neutral	kr9.20B	7.72	12.47%	2.18%	4.72%	-38.28%
RATO.B	56 Neutral	kr12.09B	-17.48	6.59%	3.70%	-22.65%	-14.05%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
BURE	53 Neutral	kr15.60B	-3.34	-23.18%	1.13%	22.38%	-153.85%
KINV.B	46 Neutral	kr17.21B	-5.12	0.33%	―	-97.64%	―