Investor AB (INVE.A) AI Stock Analysis

• Market Cap: kr875.01B
• Dividend Yield: 2.62%
• Average Volume (3M): 268.18K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.99
• Revenue Growth: -3.74%
• EPS Growth: -73.16%
• Country: SE
• Employees: 19,060
• Sector: Financial
• Sector Strength: 79
• Industry: Asset Management
• EPS (TTM): 14.13
• Shares Outstanding: 1,246,763,400
• 10 Day Avg. Volume: 254,057
• 30 Day Avg. Volume: 268,175
• PEG Ratio: 0.06
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.50
• 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: 68 Neutral
• Price Target: ―

Investor AB's overall score of 68 reflects a strong valuation due to its low P/E ratio and solid dividend yield, making it attractive from a price perspective. However, technical analysis indicates a bearish trend, and financial performance shows operational challenges, balancing out the positive valuation.

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
	EBIT
31.06B	114.39B	133.35B	-71.19B	228.42B	53.25B
	EBITDA
77.00B	124.27B	135.83B	-71.11B	232.71B	53.25B
	Net Income Common Stockholders
43.27B	113.34B	127.05B	-74.76B	228.06B	52.79B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.02B	33.55B	31.46B	13.16B	18.33B	19.67B
	Total Assets
946.19B	952.09B	838.45B	724.37B	795.54B	571.05B
	Total Debt
0.00	0.00	89.14B	91.16B	87.11B	86.00B
	Net Debt
-39.02B	-17.22B	70.35B	77.99B	68.78B	66.33B
	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: Negative
• Last Price: 284.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INVE.A, the sentiment is Negative. The current price of 284.7 is below the 20-day moving average (MA) of 287.10, above the 50-day MA of 282.58, and below the 200-day MA of 296.26, indicating a neutral trend. The MACD of -0.44 indicates Positive momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 72.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	68 Neutral	kr875.01B	20.25	5.42%	2.62%	-3.74%	-73.16%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
0H13		kr152.32B	39.08	2.33%	2.34%	―	―
0MHU		kr152.32B	39.07	2.33%	2.35%	―	―
0GWB		kr121.97B	23.75	4.47%	0.94%	―	―
IV62		€2.10B	―		―	―	―
BLZ		€1.95B	360.93	0.27%	0.89%	―	―