Investor AB (INVE.A) AI Stock Analysis

• Market Cap: kr1.04T
• Dividend Yield: 1.61%
• Average Volume (3M): 334.33K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.01
• Revenue Growth: 79.31%
• EPS Growth: -65.65%
• Country: SE
• Employees: 19,060
• Sector: General
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 19.53
• Shares Outstanding: 1,246,763,400
• 10 Day Avg. Volume: 304,825
• 30 Day Avg. Volume: 334,331
• PEG Ratio: -0.73
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 5.19
• P/FCF Ratio: 46.79
• 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: 75 Outperform
• Price Target: kr360.00 ▲(9.49% Upside)

Investor AB's strong financial performance, characterized by robust revenue growth and efficient cost management, is a significant factor in its favorable stock score. The positive technical indicators and attractive valuation further enhance the stock's appeal. Despite some challenges in cash flow generation, the overall outlook remains positive.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust business expansion and effective investment strategies, enhancing long-term value creation.

Efficient Cost Management

High gross profit margins suggest effective cost control, which supports sustainable profitability and competitive advantage.

Solid Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility for future growth.

Negative Factors

Declining Return on Equity

A declining return on equity may indicate inefficiencies in generating returns from equity, potentially impacting investor confidence.

Net Profit Margin Decrease

A decrease in net profit margin suggests increased expenses or lower pricing power, which could affect future profitability.

Cash Flow Challenges

Declining free cash flow growth could limit the company's ability to invest in new opportunities, affecting long-term growth prospects.

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 capital appreciation and dividends from its investments in its portfolio companies. The company holds significant stakes in well-established firms, allowing it to benefit from their growth and profitability. Key revenue streams include dividends received from its holdings, realized gains from the sale of investments, and management fees from its investment operations. Additionally, Investor AB often engages in strategic partnerships and collaborations with other firms to enhance its investment capabilities and access new opportunities, further contributing to its earnings. The company's focus on long-term investments and its ability to adapt to market changes play a crucial role in sustaining its revenue generation.

Investor AB Financial Statement Overview

Summary

Investor AB demonstrates strong revenue growth and efficient cost management, as seen in its income statement. The balance sheet is solid with low leverage, although the return on equity has declined. Cash flow metrics indicate some challenges in cash generation, but overall, the company maintains a healthy financial position with potential for future growth.

Income Statement

Investor AB's income statement shows strong revenue growth in the TTM period with a 56.29% increase, indicating robust business expansion. The gross profit margin is high at 87.23%, reflecting efficient cost management. However, the net profit margin has decreased from previous years, now at 28.68%, suggesting increased expenses or lower pricing power. The EBIT and EBITDA margins remain healthy, indicating solid operational performance.

Balance Sheet

The balance sheet of Investor AB is stable, with a low debt-to-equity ratio of 0.13, indicating conservative leverage. The equity ratio is strong, showing a solid capital structure. However, the return on equity has decreased significantly in the TTM period to 2.82%, which may point to inefficiencies in generating returns from equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 6.03% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio remains healthy at 81.05%, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.88B	172.83B	183.96B	-24.82B	266.90B	90.63B
Gross Profit	119.19B	168.91B	180.49B	-27.30B	264.79B	88.46B
EBITDA	72.69B	114.39B	127.69B	-73.68B	228.32B	53.13B
Net Income	70.40B	113.34B	127.05B	-74.76B	228.06B	52.79B
Balance Sheet
Total Assets	1.05T	952.09B	838.45B	724.37B	795.54B	571.05B
Cash, Cash Equivalents and Short-Term Investments	22.28B	33.95B	31.85B	27.18B	18.91B	27.93B
Total Debt	115.54B	99.42B	89.53B	91.40B	87.27B	86.60B
Total Liabilities	153.18B	132.34B	121.02B	118.71B	112.04B	108.27B
Stockholders Equity	899.23B	819.36B	716.77B	604.87B	682.61B	461.84B
Cash Flow
Free Cash Flow	18.49B	19.16B	17.25B	12.24B	10.46B	8.19B
Operating Cash Flow	22.74B	23.58B	20.97B	16.61B	14.26B	10.97B
Investing Cash Flow	-30.31B	-11.06B	399.00M	-7.46B	-2.77B	-17.74B
Financing Cash Flow	6.24B	-14.57B	-15.43B	-15.10B	-13.17B	7.40B

Investor AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 328.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 328.8 is above the 20-day moving average (MA) of 324.11, above the 50-day MA of 318.66, and above the 200-day MA of 294.87, indicating a bullish trend. The MACD of 5.09 indicates Negative momentum. The RSI at 69.86 is Neutral, neither overbought nor oversold. The STOCH value of 93.46 is Negative, 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
INDU.A	81 Outperform	kr185.37B	13.42	8.24%	2.00%	13.97%	-56.08%
INVE.A	75 Outperform	kr1.04T	14.75	8.06%	1.61%	79.31%	-65.65%
EQT	68 Neutral	kr424.51B	44.77	―	1.21%	14.62%	108.05%
LUND.B	65 Neutral	kr129.70B	17.08	6.47%	0.92%	7.90%	-18.95%
BURE	58 Neutral	kr17.42B	-3.24	-23.18%	1.13%	22.38%	-153.85%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KINV.B	47 Neutral	kr22.86B	185.53	0.33%	―	-97.64%	―

Investor AB Corporate Events

Investor AB Appoints Ulrika Elfving as New General Counsel

Investor AB has announced the appointment of Ulrika Elfving as the new General Counsel and member of the Executive Leadership Team, effective in the second quarter of 2026. Elfving, who brings extensive legal experience from her previous role at Electrolux Group, is expected to contribute valuable perspectives to Investor’s operations, enhancing its active ownership strategy.

The most recent analyst rating on ($SE:INVE.A) stock is a Buy with a SEK360.00 price target. To see the full list of analyst forecasts on Investor AB stock, see the SE:INVE.A Stock Forecast page.

Laborie to Acquire JADA System, Expanding Obstetrics Portfolio

Patricia Industries’ subsidiary, Laborie, is set to acquire the JADA System from Organon, a medical device used to treat postpartum hemorrhage. This acquisition, valued at up to USD 465 million, will enhance Laborie’s obstetrics portfolio and is expected to be completed in the first quarter of 2026, subject to regulatory approval.

The most recent analyst rating on ($SE:INVE.A) stock is a Hold with a SEK318.00 price target. To see the full list of analyst forecasts on Investor AB stock, see the SE:INVE.A Stock Forecast page.