Investor AB (INVE.B) AI Stock Analysis

• Market Cap: kr960.86B
• Dividend Yield: 1.62%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.97
• Revenue Growth: 79.31%
• EPS Growth: -65.65%
• Country: SE
• Employees: 19,060
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 19.53
• Shares Outstanding: 1,821,936,800
• 10 Day Avg. Volume: 2,738,399
• 30 Day Avg. Volume: 2,745,947
• 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: kr361.00
• Price Target Upside: 12.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: kr365.00 ▲(13.71% Upside)

Investor AB's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is the primary driver of its stock score. The technical analysis supports a positive outlook, with the stock trading above key moving averages, although caution is advised due to potential overbought conditions. Valuation metrics further enhance the attractiveness of the stock, with a reasonable P/E ratio and a decent dividend yield. However, challenges in maintaining profit margins and cash flow generation slightly temper the overall score.

Positive Factors

Strong Profitability

High profit margins indicate efficient operations and pricing power, contributing to sustained profitability and competitive advantage.

Robust Balance Sheet

Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Effective Cash Generation

Strong cash flow growth supports reinvestment in the business and shareholder returns, underpinning long-term financial health.

Negative Factors

Declining Return on Equity

A declining ROE can signal challenges in deploying capital effectively, potentially impacting investor confidence and future growth.

Volatility in Revenue Growth

Inconsistent revenue growth can indicate market or operational challenges, affecting predictability and long-term strategic planning.

Earnings Call Data Absence

Lack of earnings call insights limits transparency and investor understanding of management's strategic direction and operational performance.

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 dividends and capital gains from its portfolio of investments. The company acquires and holds significant equity stakes in publicly traded companies, which provide regular dividend income. Additionally, as these companies grow and increase in value, Investor AB benefits from capital appreciation when it sells its shares or receives dividends from these investments. The company also engages in private equity investments, where it seeks to enhance value through active management and operational improvements. Strategic partnerships with other investment firms and industry players further bolster its revenue potential by expanding its investment opportunities and enhancing its portfolio performance.

Investor AB Financial Statement Overview

Summary

Investor AB demonstrates strong revenue growth and profitability, supported by a robust balance sheet with low leverage. However, there are challenges in maintaining profit margins and generating cash flow. The company is well-positioned in terms of financial stability, but there is a need to address declining margins and cash flow generation to sustain long-term growth.

Income Statement

Investor AB shows strong revenue growth with a 56.29% increase in TTM, indicating robust business expansion. The gross profit margin is high at 87.23%, and the net profit margin is healthy at 28.68%. However, the net profit margin has decreased from the previous year, suggesting some pressure on profitability. Overall, the company demonstrates strong revenue generation and profitability, though there are signs of margin compression.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.13, indicating prudent financial leverage. The return on equity is modest at 2.82% for TTM, which is a decline from previous years, suggesting reduced efficiency in generating returns from equity. The equity ratio stands at 85.41%, reflecting a strong equity base relative to total assets. Overall, the balance sheet is stable with low leverage, but there is room for improvement in return on equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -6.03% in TTM, indicating challenges in cash generation. The free cash flow to net income ratio is strong at 81.05%, suggesting efficient conversion of profits into cash. However, the operating cash flow to net income ratio is low, indicating potential issues in cash flow generation relative to net income. Overall, cash flow management is adequate but shows signs of pressure in cash generation.

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: 321.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 321 is above the 20-day moving average (MA) of 318.13, above the 50-day MA of 314.04, and above the 200-day MA of 293.62, indicating a bullish trend. The MACD of 2.31 indicates Positive momentum. The RSI at 55.57 is Neutral, neither overbought nor oversold. The STOCH value of 49.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:INVE.B.

Investor AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDU.A	81 Outperform	kr170.12B	12.33	8.24%	2.05%	13.97%	-56.08%
INVE.B	77 Outperform	kr960.86B	13.67	8.06%	1.62%	79.31%	-65.65%
INDU.C	74 Outperform	kr170.12B	12.33	8.24%	2.05%	13.97%	-56.08%
LUND.B	70 Outperform	kr126.48B	16.65	6.47%	0.92%	7.90%	-18.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KINV.B	59 Neutral	kr23.75B	192.14	0.33%	―	-97.64%	―
KINV.A	56 Neutral	€23.97B	199.46	―	―	-97.64%	―