Investor AB (INVE.B) AI Stock Analysis

• Market Cap: kr869.35B
• Dividend Yield: 2.67%
• Average Volume (3M): 2.97M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 1.00
• Revenue Growth: -3.74%
• EPS Growth: -73.16%
• Country: SE
• Employees: 19,060
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): -10.35
• Shares Outstanding: 1,821,936,800
• 10 Day Avg. Volume: 2,504,688
• 30 Day Avg. Volume: 2,974,926
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.42
• 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: 10.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: kr315.00 ▲(11.15%Upside)

Investor AB's strong balance sheet and improving cash flow metrics are the primary drivers of its score. The stock's technical indicators suggest a neutral outlook, while its valuation is fair with a moderate dividend yield. Volatility in income statement figures slightly impacts the overall score.

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
EBITDA	77.00B	124.27B	135.83B	-71.11B	232.71B	53.25B
Net Income	43.27B	113.34B	127.05B	-74.76B	228.06B	52.79B
Balance Sheet
Total Assets	946.19B	952.09B	838.45B	724.37B	795.54B	571.05B
Cash, Cash Equivalents and Short-Term Investments	39.33B	17.62B	31.46B	13.16B	18.33B	19.67B
Total Debt	103.91B	98.94B	89.14B	91.16B	87.11B	86.00B
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: Neutral
• Last Price: 283.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 283.4 is above the 20-day moving average (MA) of 279.21, above the 50-day MA of 282.47, and below the 200-day MA of 295.32, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 80.47 is Negative, 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
INVE.B	72 Outperform	kr869.35B	20.06	5.42%	2.67%	-3.74%	-73.16%
LUND.B	69 Neutral	kr119.59B	23.33	4.47%	0.95%	18.94%	-40.44%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
INDU.C	63 Neutral	kr151.86B	39.02	2.33%	22.34%	-49.11%	-87.67%
BURE	56 Neutral	kr21.49B	185.23	0.27%	0.95%	13.61%	-97.82%
KINV.A	56 Neutral	kr24.18B	―		―	-95.90%	27.54%
INDU.A	54 Neutral	kr150.62B	38.75	2.33%	2.36%	-49.11%	-87.67%