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Investor AB (SE:INVE.A)
:INVE.A

Investor AB (INVE.A) AI Stock Analysis

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Investor AB

(LSE:INVE.A)

Rating:68Neutral
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 (INVE.A) vs. iShares MSCI Sweden ETF (EWD)

Investor AB Business Overview & Revenue Model

Company DescriptionInvestor 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 MoneyInvestor 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
65
Positive
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
80
Positive
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
72
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
38.32B168.91B185.31B-27.30B265.34B88.46B
Gross Profit
11.60B168.91B153.71B-60.81B241.01B64.59B
EBIT
31.06B114.39B133.35B-71.19B228.42B53.25B
EBITDA
77.00B124.27B135.83B-71.11B232.71B53.25B
Net Income Common Stockholders
43.27B113.34B127.05B-74.76B228.06B52.79B
Balance SheetCash, Cash Equivalents and Short-Term Investments
39.02B33.55B31.46B13.16B18.33B19.67B
Total Assets
946.19B952.09B838.45B724.37B795.54B571.05B
Total Debt
0.000.0089.14B91.16B87.11B86.00B
Net Debt
-39.02B-17.22B70.35B77.99B68.78B66.33B
Total Liabilities
134.68B132.34B121.02B118.71B112.04B108.27B
Stockholders Equity
811.18B819.36B716.77B604.87B682.61B461.84B
Cash FlowFree Cash Flow
13.88B19.16B17.25B-79.13B10.46B8.19B
Operating Cash Flow
12.64B23.58B20.97B-74.76B14.26B10.97B
Investing Cash Flow
-25.51B-11.06B399.00M-7.46B-2.77B-17.74B
Financing Cash Flow
702.00M-14.57B-15.43B-15.10B-13.17B7.40B

Investor AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price284.70
Price Trends
50DMA
282.58
Positive
100DMA
295.79
Negative
200DMA
296.26
Negative
Market Momentum
MACD
-0.44
Positive
RSI
49.08
Neutral
STOCH
72.12
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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
kr875.01B20.255.42%2.62%-3.74%-73.16%
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
kr152.32B39.082.33%2.34%
kr152.32B39.072.33%2.35%
kr121.97B23.754.47%0.94%
€2.10B
DEBLZ
€1.95B360.930.27%0.89%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:INVE.A
Investor AB
284.70
-1.44
-0.50%
GB:0H13
Industrivarden AB Class A
351.40
-8.85
-2.46%
GB:0MHU
Industrivarden AB Class C
351.26
-3.86
-1.09%
GB:0GWB
L E Lundbergfoeretagen AB
489.18
-43.76
-8.21%
DE:IV62
Kinnevik AB Class A
8.58
-0.23
-2.61%
DE:BLZ
Bure Equity AB
26.02
-6.47
-19.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.