Investor AB (INVE.A) AI Stock Analysis

• Market Cap: kr862.79B
• Dividend Yield: 2.66%
• Average Volume (3M): 217.54K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.01
• Revenue Growth: -3.74%
• EPS Growth: -73.16%
• Country: SE
• Employees: 19,060
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): -10.35
• Shares Outstanding: 1,246,763,400
• 10 Day Avg. Volume: 206,574
• 30 Day Avg. Volume: 217,541
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.13
• 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

• Rating: 72 Outperform
• Price Target: kr314.00 ▲(10.41%Upside)

Investor AB's strong valuation metrics and robust balance sheet are significant positives, contributing to a high score. However, operational challenges and mixed technical indicators slightly offset these strengths, leading to an overall moderate score.

Investor AB Business Overview & Revenue Model

Company Description

Investor AB (publ) is a venture capital firm specializing in mature, middle market, buyouts and growth capital investments. It is operating through four business areas including core, private equity, operating, and financial investments. For core investments, the firm invests in health care, financial services, IT and fintech sectors and considers investments in listed companies in leading minority positions. The firm seeks to invest globally and acquire a board seat. For its operating investments, the firm seeks to focus on medium-sized to large companies headquartered in Northern Europe. It acquires controlling interest or minority position with significant influence in its portfolio companies within operating investments. The firm considers majority or minority investments in both listed and unlisted companies. Within private equity, the firm makes venture capital and buyout investments. For venture capital, it seeks investments through its subsidiary, Investor Growth Capital, which is focused on investments in the information technology, technology, engineering, financial services, and healthcare sectors in Europe, the United States, and Asia. It seeks to invest in companies ranging from startups to companies that are about to enter an expansion stage and its investment commitment range between SEK 20 million ($2.94 million) and SEK 200 million ($29.43 million). In its venture capital investments, it acquires minority stakes in its portfolio companies and the ownership horizon varies from three to seven years. For buyouts, the firm makes fund investments through its subsidiary, EQT that makes buyout investments in medium-sized mature companies in Northern Europe and Greater China. The firm seeks to exit its private equity investments between three years and seven years. The firm seeks to take board membership in its portfolio companies. For financial investments, it acquires minority ownership in financial holdings for shorter horizon. Investor AB (publ) was founded in 1916 and is based in Stockholm, Sweden with additional offices in Amsterdam, Netherlands; Beijing, China; Menlo Park, California; Hong Kong, China; New York, New York; and Tokyo, Japan.

How the Company Makes Money

Investor AB generates revenue primarily through dividends and capital gains from its investments in a range of publicly traded and private companies. As an active investor, the company often takes significant ownership stakes in its portfolio companies, allowing it to influence their strategic direction and operational efficiency. The firm's revenue model also includes income from investment management services, leveraging its expertise and reputation to attract institutional and high-net-worth clients. Additionally, Investor AB benefits from its partnerships with other financial institutions and investment firms, which can enhance deal flow and investment opportunities. The company's performance is further supported by its disciplined investment strategy, focusing on sectors with strong growth potential and businesses with sustainable competitive advantages.

Investor AB Financial Statement Overview

Summary

Investor AB demonstrates a mixed financial performance with strong equity stability and profitability but faces operational challenges as seen in EBIT margins and operating cash flows. The company's financial health is bolstered by a strong balance sheet and effective cash management despite revenue volatility.

Income Statement

Investor AB's income statement shows significant revenue fluctuations, with a decline in total revenue from 2023 to 2024. Despite a strong net income in 2024, EBIT and EBITDA margins are concerning due to negative EBIT. However, the net profit margin remains strong, indicating profitability despite operational challenges.

Balance Sheet

The balance sheet is robust with a high equity ratio, showcasing financial stability and low leverage as total debt is zero in 2024. This reflects a strong position in managing liabilities and leveraging equity. Return on equity is healthy, underscoring effective use of shareholder funds.

Cash Flow

Cash flow analysis reveals positive free cash flow and a strong free cash flow to net income ratio, indicating efficient cash generation relative to earnings. However, operating cash flow was zero in 2024, which could suggest operational cash generation issues despite the positive net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.32B	168.91B	185.31B	-27.30B	265.34B	88.46B
Gross Profit	11.60B	168.91B	153.71B	-60.81B	241.01B	64.59B
EBITDA	77.00B	124.27B	135.83B	-71.11B	232.71B	53.25B
Net Income	43.27B	113.34B	127.05B	-74.76B	228.06B	52.79B
Balance Sheet
Total Assets	946.19B	952.09B	838.45B	724.37B	795.54B	571.05B
Cash, Cash Equivalents and Short-Term Investments	39.33B	17.62B	31.46B	13.16B	18.33B	19.67B
Total Debt	103.91B	98.94B	89.14B	91.16B	87.11B	86.00B
Total Liabilities	134.68B	132.34B	121.02B	118.71B	112.04B	108.27B
Stockholders Equity	811.18B	819.36B	716.77B	604.87B	682.61B	461.84B
Cash Flow
Free Cash Flow	13.88B	19.16B	17.25B	-79.13B	10.46B	8.19B
Operating Cash Flow	12.64B	23.58B	20.97B	-74.76B	14.26B	10.97B
Investing Cash Flow	-25.51B	-11.06B	399.00M	-7.46B	-2.77B	-17.74B
Financing Cash Flow	702.00M	-14.57B	-15.43B	-15.10B	-13.17B	7.40B

Investor AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 284.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INVE.A, the sentiment is Neutral. The current price of 284.4 is above the 20-day moving average (MA) of 279.62, above the 50-day MA of 282.97, and below the 200-day MA of 294.95, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 83.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:INVE.A.

Investor AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVE.A	72 Outperform	kr862.79B	19.97	5.42%	2.66%	-3.74%	-73.16%
LUND.B	69 Neutral	kr119.59B	23.33	4.47%	0.95%	18.94%	-40.44%
INDU.C	63 Neutral	kr151.86B	39.02	2.33%	22.34%	-49.11%	-87.67%
Sector *	61 Neutral	C$14.67B	6.14	20.17%	5.70%	26.93%	-38.21%
BURE	56 Neutral	kr21.49B	185.23	0.27%	0.95%	13.61%	-97.82%
KINV.A	56 Neutral	kr23.91B	―		―	-95.90%	27.54%
INDU.A	54 Neutral	kr150.62B	38.75	2.33%	2.36%	-49.11%	-87.67%

Investor AB Corporate Events

Investor AB to Repurchase Shares for Strategic Financial Management

Investor AB’s Board has decided to utilize the authorization granted by the Annual General Meeting to repurchase up to 560,000 class B shares on Nasdaq Stockholm. This move aims to secure obligations and hedge costs related to the company’s long-term variable remuneration program and synthetic shares issued as part of Board remuneration, potentially impacting the company’s financial strategies and shareholder value.

Investor AB’s 2025 AGM Resolutions and Strategic Initiatives

Investor AB’s Annual General Meeting in 2025 approved several key resolutions, including the income statement and balance sheet for 2024, a dividend of SEK 5.20 per share, and the re-election of board members with Fred Wallenberg joining as a new member. The meeting also approved long-term variable remuneration programs and authorized the board to manage the company’s own shares, which supports their strategic capital structure and employee incentive plans.

Investor AB to Transfer Shares for Remuneration Program

Investor AB’s Board has decided to utilize its mandate to transfer up to 6,000,000 class B shares to secure obligations and hedge costs related to its long-term variable remuneration program and synthetic shares issued for Board remuneration. This strategic move, authorized by the Annual General Meeting 2025, will take place on Nasdaq Stockholm and is expected to impact the company’s financial strategies and stakeholder interests.