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

• Market Cap: kr192.37B
• Dividend Yield: 2.02%
• Average Volume (3M): 267.93K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.10
• Revenue Growth: 13.97%
• EPS Growth: -56.08%
• Country: SE
• Employees: 15
• Sector: General
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 17.10
• Shares Outstanding: 217,877,610
• 10 Day Avg. Volume: 281,497
• 30 Day Avg. Volume: 267,928
• PEG Ratio: -0.23
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 11.67
• P/FCF Ratio: 18.19
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: kr499.00 ▲(21.35% Upside)

Industrivarden AB Class C shows strong financial performance with robust profitability and cash flow generation, supported by a solid balance sheet. The technical indicators suggest a stable upward trend, while the valuation metrics indicate the stock is reasonably priced with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Conservative leverage

Very low leverage provides durable financial flexibility: reduces interest burden, improves resilience in market downturns, and preserves capacity to support portfolio companies or fund buybacks/dividends without needing external financing, strengthening long-term stability.

Strong cash generation

High free cash flow growth and excellent cash conversion ratio indicate the firm reliably turns earnings into spendable cash. This underpins sustainable dividends, opportunistic investments, and active ownership over time, enhancing the company's ability to create long-term shareholder value.

Active ownership and stakes

Significant equity stakes and active governance create a structural competitive advantage: management can influence portfolio strategy and drive operational improvements, producing durable value uplift potential across cycles through engagement rather than passive market exposure.

Negative Factors

Negative EBIT margin

A negative EBIT margin signals structural operating inefficiency outside investment income or recurring operating costs that exceed core operating returns. Over time this can constrain reinvestment capacity and necessitate reliance on capital gains to meet cash flow needs.

Earnings volatility (EPS decline)

A steep decline in EPS highlights volatility in reported earnings, likely from mark-to-market investment swings or one-off items. Persistent earnings variability can hinder predictable distributions and complicate long-term planning and credibility with income-focused investors.

Revenue dependent on portfolio performance

Business model dependence on dividends and capital gains makes revenue inherently cyclical and tied to external firms' performance and markets. This structural exposure can produce periods of weak cash flow and constrain steady long-term revenue growth.

Industrivarden AB Class C 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

Industrivarden AB generates revenue primarily through capital appreciation and dividend income from its investments in publicly traded companies. The company holds significant stakes in well-established companies, which provide steady dividend payouts, contributing to its overall cash flow. Additionally, Industrivarden engages in active management of its portfolio, often influencing the strategic direction of its investee companies to enhance profitability and shareholder value. Partnerships with these companies, along with its governance role, further bolster its earnings potential by aligning interests and driving operational improvements.

Industrivarden AB Class C Financial Statement Overview

Summary

Industrivarden AB Class C demonstrates strong profitability and cash flow generation, with efficient cost management and a solid balance sheet. However, operational challenges are evident in the negative EBIT margin. The company is well-positioned financially, with low leverage and strong equity ratios, supporting its growth trajectory.

Income Statement

Industrivarden AB Class C shows a strong gross profit margin of 79.8% TTM, indicating efficient cost management. The net profit margin is also robust at 79.5% TTM. However, the EBIT margin is negative, reflecting operational challenges. Revenue growth is positive at 4.2% TTM, suggesting a recovery from previous declines.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.038 TTM, indicating conservative leverage. Return on equity is healthy at 8.0% TTM, showing effective use of equity capital. The equity ratio is strong, reflecting a solid financial position.

Cash Flow

Free cash flow growth is impressive at 93.7% TTM, highlighting strong cash generation. The operating cash flow to net income ratio is 3.73, indicating good cash conversion. The free cash flow to net income ratio is 1.0, showing that all net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.30B	12.92B	27.20B	-13.88B	26.73B	8.54B
Gross Profit	13.16B	12.73B	27.00B	-13.96B	26.69B	8.50B
EBITDA	13.16B	12.72B	26.99B	-13.98B	26.68B	8.49B
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	5.24B	6.99B	491.00M
Operating Cash Flow	9.25B	8.29B	6.06B	5.24B	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 C Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 411.20
• 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.C, the sentiment is Positive. The current price of 411.2 is below the 20-day moving average (MA) of 431.21, below the 50-day MA of 412.57, and above the 200-day MA of 375.78, indicating a bullish trend. The MACD of 8.50 indicates Negative momentum. The RSI at 70.14 is Negative, neither overbought nor oversold. The STOCH value of 86.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:INDU.C.

Industrivarden AB Class C Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDU.A	81 Outperform	kr192.37B	13.93	8.24%	2.00%	13.97%	-56.08%
INVE.B	79 Outperform	kr1.05T	6.67	8.06%	1.60%	79.31%	-65.65%
INDU.C	74 Outperform	kr192.37B	13.96	8.24%	2.02%	13.97%	-56.08%
LUND.B	65 Neutral	kr131.44B	17.31	6.47%	0.92%	7.90%	-18.95%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KINV.A	47 Neutral	kr20.22B	172.66	―	―	-97.64%	―
KINV.B	46 Neutral	kr20.22B	163.06	0.33%	―	-97.64%	―