Investor AB (INVE.B) AI Stock Analysis

• Market Cap: kr875.01B
• Dividend Yield: 2.63%
• Average Volume (3M): 3.25M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.00
• 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: 1,821,936,800
• 10 Day Avg. Volume: 3,370,593
• 30 Day Avg. Volume: 3,249,518
• PEG Ratio: -0.33
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 62.69
• 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: kr314.00
• Price Target Upside: 10.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ―

Investor AB's overall score reflects a strong balance sheet and attractive valuation, offset by volatility in income and a bearish technical outlook. The company's financial stability and cash flow improvements position it well, though technical indicators suggest caution in the short term.

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 a diversified portfolio of companies. The company earns money from capital appreciation, dividends, and interest income from its equity and debt investments. Its Listed Core Investments segment includes significant stakes in publicly traded companies, which provide dividends and potential capital gains. Patricia Industries, a wholly owned subsidiary, focuses on private companies, generating income through operational improvements and strategic growth initiatives in these businesses. Additionally, Investor AB benefits from its holdings in EQT, a leading private equity firm, which provides returns through fund management fees and carried interest from successful investments. The company's earnings are also influenced by macroeconomic factors, market conditions, and strategic partnerships that enhance its investment capabilities.

Investor AB Financial Statement Overview

Summary

Investor AB demonstrates a strong balance sheet with no debt and a high equity ratio, indicating financial stability. Cash flow metrics are improving, showing efficient cash generation capabilities. However, the income statement reveals volatility in revenue and profits, which affects overall financial performance.

Income Statement

Investor AB has experienced fluctuating revenue with a significant decline in 2022, followed by a recovery in 2023. Gross profit and net income margins are also volatile, with notable losses in 2022 but recovery in subsequent years. The company's EBIT and EBITDA margins are inconsistent due to significant losses in certain periods. The overall income statement reflects moderate profitability with some instability in revenue and profit margins.

Balance Sheet

The balance sheet is strong with a high equity ratio and no debt as of 2024. The company has maintained a healthy stockholders' equity, growing steadily over the years. The debt-to-equity ratio was zero in 2024, indicating no leverage-related risks, and return on equity shows strong profitability, especially in recent years.

Cash Flow

Cash flow from operations has shown recovery after negative figures in 2022, indicating improved operational efficiency. Free cash flow growth is positive, reflecting strong cash generation capabilities. The free cash flow to net income ratio signals good conversion of earnings into cash, although some fluctuations exist.

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: 283.90
• 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.B, the sentiment is Negative. The current price of 283.9 is below the 20-day moving average (MA) of 286.51, above the 50-day MA of 282.25, and below the 200-day MA of 296.76, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 76.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:INVE.B.

Investor AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BURE	70 Neutral	€21.34B	183.96	0.27%	0.89%	13.61%	-97.82%
INVE.B	69 Neutral	kr875.01B	20.19	5.42%	2.63%	-3.74%	-73.16%
LUND.B	69 Neutral	kr121.97B	23.79	4.47%	0.93%	18.94%	-40.44%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
KINV.A	56 Neutral	kr23.04B	―		―	-95.90%	27.54%
INDU.C	56 Neutral	kr150.89B	38.78	2.33%	2.34%	-49.11%	-87.67%
INDU.A	54 Neutral	kr152.32B	39.17	2.33%	2.35%	-49.11%	-87.67%