Investor AB (INVE.A) AI Stock Analysis

• Market Cap: kr912.83B
• Dividend Yield: 1.66%
• Average Volume (3M): 155.94K
• Price to Earnings (P/E): 39.1
• Beta (1Y): 1.01
• Revenue Growth: 3.97%
• EPS Growth: -87.10%
• Country: SE
• Employees: 19,060
• Sector: Financial
• Sector Strength: 69
• Industry: Asset Management
• EPS (TTM): 14.78
• Shares Outstanding: 1,246,763,400
• 10 Day Avg. Volume: 132,076
• 30 Day Avg. Volume: 155,938
• 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: kr313.00
• Price Target Upside: 6.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: kr313.00 ▲(6.50% Upside)

Investor AB's overall stock score is driven by its strong financial performance, characterized by excellent profitability and growth metrics. However, the technical analysis indicates mixed signals with a slight bearish trend, and the valuation suggests the stock is relatively expensive. The absence of earnings call and corporate events data limits additional insights.

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 its investments in publicly traded and privately held companies, earning returns through capital appreciation and dividends. The company’s revenue model is largely based on the performance of its investment portfolio, which contributes to its net asset value. Key revenue streams include dividend income from its holdings, realized gains from the sale of investments, and management fees from the funds it manages. Additionally, Investor AB maintains strategic partnerships with various companies and funds, leveraging these relationships to enhance its investment opportunities and financial performance. The company's long-term investment strategy and active management approach enable it to capitalize on market trends and drive sustainable growth, contributing significantly to its overall earnings.

Investor AB Financial Statement Overview

Summary

Investor AB demonstrates strong financial health with impressive profitability and growth metrics. The company has effectively managed its leverage, maintaining a low debt-to-equity ratio. While cash flow generation is solid, there is room for improvement in operational cash flow management. The overall financial position is robust, but attention to cash flow efficiency and sustaining high ROE levels will be crucial for future stability.

Income Statement

Investor AB shows strong profitability with a high gross profit margin of 87.36% and a net profit margin of 28.68% in the TTM period. The revenue growth rate of 110.72% indicates a significant recovery and expansion from previous periods. However, the company experienced a revenue decline in 2024, which suggests some volatility. Overall, the income statement reflects robust financial performance with excellent margins.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.13, indicating conservative leverage. The equity ratio is strong, and the return on equity (ROE) is positive at 2.82% in the TTM period, though it has decreased from previous years. The company maintains a healthy equity base, but the declining ROE suggests potential challenges in generating returns from equity.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 41.76% in the TTM period, indicating improved cash generation. The free cash flow to net income ratio of 0.81 suggests efficient conversion of income to cash. However, the operating cash flow to net income ratio is low, highlighting potential issues in cash flow management. Overall, cash flow performance is stable but could benefit from improved operational cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.47B	168.91B	185.31B	-27.30B	265.34B	88.46B
Gross Profit	71.07B	168.91B	153.71B	-60.81B	241.01B	64.59B
EBITDA	28.92B	124.27B	135.83B	-71.11B	232.71B	53.25B
Net Income	23.36B	113.34B	127.05B	-74.76B	228.06B	52.79B
Balance Sheet
Total Assets	985.32B	952.09B	838.45B	724.37B	795.54B	571.05B
Cash, Cash Equivalents and Short-Term Investments	37.47B	17.62B	31.46B	13.16B	18.33B	19.67B
Total Debt	110.18B	98.94B	89.14B	91.16B	87.11B	86.00B
Total Liabilities	145.01B	132.34B	121.02B	118.71B	112.04B	108.27B
Stockholders Equity	839.99B	819.36B	716.77B	604.87B	682.61B	461.84B
Cash Flow
Free Cash Flow	19.68B	19.16B	17.25B	-79.13B	10.46B	8.19B
Operating Cash Flow	24.28B	23.58B	20.97B	-74.76B	14.26B	10.97B
Investing Cash Flow	-2.67B	-11.06B	399.00M	-7.46B	-2.77B	-17.74B
Financing Cash Flow	691.00M	-14.57B	-15.43B	-15.10B	-13.17B	7.40B

Investor AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 293.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 293.9 is above the 20-day moving average (MA) of 289.59, above the 50-day MA of 285.88, and above the 200-day MA of 292.72, indicating a bullish trend. The MACD of 2.27 indicates Negative momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 77.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:INVE.A.

Investor AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.56B	11.61	10.34%	3.76%	9.69%	0.41%
INVE.A	68 Neutral	kr912.83B	39.06	2.79%	1.66%	3.97%	-87.10%
0H13	―	kr163.44B	12.40	8.17%	―	―	―
0RH1	―	kr24.17B	―	-6.65%	―	―	―
0GWB	―	kr121.17B	23.40	4.47%	―	―	―
BLZ	―	€1.87B	342.90	-13.33%	―	―	―
EQT	77 Outperform	kr406.03B	42.82		1.16%	14.62%	―

Investor AB Corporate Events

Investor AB Reports Q2 2025 Financials and Strategic Moves

In the second quarter of 2025, Investor AB reported an adjusted net asset value of SEK 960.6 billion, reflecting a 3% increase with dividends added back. Despite a total shareholder return of -5%, the company made strategic acquisitions, including shares in Ericsson and EQT AB, and divested shares in SEB. Patricia Industries, a subsidiary, saw a -6% total return due to negative currency impacts, but achieved sales growth in major subsidiaries. Notably, Patricia Industries completed a significant acquisition of Nova Biomedical, enhancing its market position.

Investor AB Announces Q2 2025 Webcast and Mölnlycke Presentation

Investor AB has announced a webcast for the presentation of its Q2 2025 interim report, scheduled for July 17, 2025. The event will feature presentations from Investor’s President and CEO, Christian Cederholm, and CFO, Jenny Ashman Haquinius, followed by a presentation from the CEO of Mölnlycke, a subsidiary of Patricia Industries. This webcast is an opportunity for stakeholders to gain insights into the company’s financial performance and strategic direction.

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.