Investor AB (INVE.B) AI Stock Analysis

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Investor AB

(LSE:INVE.B)

Rating:69Neutral

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 (INVE.B) vs. iShares MSCI Sweden ETF (EWD)

Market Cap

kr871.65B

Dividend Yield1.74%

Average Volume (3M)3.39M

Price to Earnings (P/E)20.1

Beta (1Y)1.00

Revenue Growth-3.74%

EPS Growth-73.16%

CountrySE

Employees19,060

SectorFinancial

Sector Strength83

IndustryAsset Management

Share Statistics

EPS (TTM)14.13

Shares Outstanding1,821,936,800

10 Day Avg. Volume3,625,256

30 Day Avg. Volume3,387,841

Financial Highlights & Ratios

PEG Ratio-0.33

Price to Book (P/B)1.07

Price to Sales (P/S)0.00

P/FCF Ratio62.69

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

kr314.00

Price Target Upside10.54% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Investor AB Business Overview & Revenue Model

Company DescriptionInvestor AB, founded in 1916 and headquartered in Stockholm, Sweden, is a leading Nordic investment company. It invests in companies across various sectors including technology, industrials, healthcare, financial services, and consumer goods. The company operates through three main business areas: Listed Core Investments, Patricia Industries, and EQT. Investor AB is known for its long-term investment approach, focusing on creating sustainable value and growth for its portfolio companies.

How the Company Makes MoneyInvestor 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

Positive

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

Very Positive

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Neutral

Last Price284.05

Price Trends

50DMA

283.57

Positive

100DMA

296.42

Negative

200DMA

296.95

Negative

Market Momentum

MACD

-0.97

Positive

RSI

49.08

Neutral

STOCH

47.84

Neutral

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 284.05 is below the 20-day moving average (MA) of 286.92, above the 50-day MA of 283.57, and below the 200-day MA of 296.95, indicating a neutral trend. The MACD of -0.97 indicates Positive momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 47.84 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BURE	70 Neutral	€21.65B	186.64	0.27%	0.91%	13.61%	-97.82%
INVE.B	69 Neutral	kr871.65B	20.10	5.42%	1.74%	-3.74%	-73.16%
LUND.B	69 Neutral	kr121.72B	23.75	4.47%	0.94%	18.94%	-40.44%
Sector *	64 Neutral	$12.85B	9.81	7.59%	16985.65%	12.30%	-7.71%
KINV.A	56 Neutral	kr22.88B	―		―	-95.90%	27.54%
INDU.C	56 Neutral	kr150.89B	38.78	2.33%	2.38%	-49.11%	-87.67%
INDU.A	54 Neutral	kr150.89B	38.79	2.33%	2.37%	-49.11%	-87.67%

* Financial Sector Average

Performance Comparison

SE:INVE.B

Investor AB

284.05

2.10

0.74%

SE:INDU.A

Industrivarden AB Class A

349.40

-4.73

-1.34%

SE:LUND.B

L E Lundbergfoeretagen AB

490.80

-32.73

-6.25%

SE:INDU.C

Industrivarden AB Class C

349.30

-2.93

-0.83%

SE:BURE

Bure Equity AB

292.00

-75.57

-20.56%

SE:KINV.A

Kinnevik AB Class A

95.40

-9.70

-9.23%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.