Investor AB (INVE.B) AI Stock Analysis

• Market Cap: kr875.92B
• Dividend Yield: 1.71%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 37.5
• Beta (1Y): 0.99
• Revenue Growth: 3.97%
• EPS Growth: -87.10%
• Country: SE
• Employees: 19,060
• Sector: Financial
• Sector Strength: 75
• Industry: Asset Management
• EPS (TTM): 14.78
• Shares Outstanding: 1,821,936,800
• 10 Day Avg. Volume: 1,856,015
• 30 Day Avg. Volume: 1,980,852
• 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: kr338.00
• Price Target Upside: 16.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: kr303.00 ▲(4.48% Upside)

Investor AB's strong financial performance is the most significant factor, supported by robust profitability and cash flow. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The lack of earnings call and corporate events data limits further 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 capital appreciation and dividends from its investments in portfolio companies. The company holds substantial equity interests in a variety of firms, enabling it to benefit from their financial performance. Key revenue streams include dividend income received from its stakes in publicly traded companies and realized gains from the sale of investments. Additionally, Investor AB may engage in strategic partnerships and joint ventures that enhance its portfolio value and provide further revenue opportunities. The company's long-term investment horizon allows it to capitalize on growth trends in its sectors, contributing to a stable earnings profile.

Investor AB Financial Statement Overview

Summary

Investor AB demonstrates strong profitability with high margins and significant revenue growth, indicating a robust recovery. However, historical volatility in growth rates and a declining return on equity pose risks. The balance sheet is solid with low leverage, and cash flow metrics are positive, supporting financial health.

Income Statement

Investor AB's income statement shows strong profitability with a high gross profit margin of 87.36% and a net profit margin of 28.68% for the TTM. The company has experienced significant revenue growth of 110.72% in the TTM, indicating a robust recovery from previous periods. However, the volatility in revenue growth rates over the years suggests potential risks in maintaining consistent growth.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.13, indicating prudent leverage management. The equity ratio stands at 85.26%, showcasing strong equity backing. However, the return on equity has decreased to 2.82% in the TTM, suggesting reduced efficiency in generating returns from equity.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 41.76% in the TTM, indicating improved cash generation. The free cash flow to net income ratio of 0.81 suggests effective conversion of income into cash. However, the operating cash flow to net income ratio is not available for the TTM, limiting a comprehensive assessment.

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: Neutral
• Last Price: 290.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INVE.B, the sentiment is Neutral. The current price of 290 is below the 20-day moving average (MA) of 292.49, above the 50-day MA of 289.02, and below the 200-day MA of 292.84, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 17.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:INVE.B.

Investor AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
INVE.B	62 Neutral	kr875.92B	37.47	2.79%	1.71%	3.97%	-87.10%
0H13	―	kr158.62B	12.13	8.17%	―	―	―
0MHU	―	kr158.62B	12.16	8.17%	―	―	―
0RH1	―	kr22.55B	―	-6.65%	―	―	―
0GWB	―	kr117.01B	16.16	6.37%	―	―	―
IV62	―	€2.05B	―		―	―	―