J.M. AB (JM) AI Stock Analysis

• Market Cap: kr8.43B
• Dividend Yield: 2.38%
• Average Volume (3M): 243.29K
• Price to Earnings (P/E): 154.8
• Beta (1Y): 0.71
• Revenue Growth: -13.68%
• EPS Growth: -17.89%
• Country: SE
• Employees: 1,860
• Sector: General
• Sector Strength: N/A
• Industry: Residential Construction
• EPS (TTM): 0.53
• Shares Outstanding: 64,504,840
• 10 Day Avg. Volume: 191,924
• 30 Day Avg. Volume: 243,286
• PEG Ratio: -1.91
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 0.00
• 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: kr151.00
• Price Target Upside: 9.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.73
• Revenue Forecast (FY): kr11.51B

• Rating: 43 Neutral
• Price Target: kr132.00 ▼(-3.93% Downside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is primarily held down by deteriorating financial performance (falling revenue, sharply lower margins/ROE, and free cash flow near zero in 2025) and an elevated P/E. Technicals are also soft with the stock trading below key moving averages, only partly offset by modest positive MACD and a ~2.38% dividend yield.

Positive Factors

Nordic market leadership in residential development

Operating as a leading residential developer across Sweden, Norway and Finland gives JM scale and local market knowledge that support sustained land access, municipal partnerships and execution capabilities. This regional franchise helps secure multi-year project pipelines and competitive positioning over economic cycles.

Multiple, complementary revenue streams

JM’s mix of home sales, third‑party contracting, property management and leasing plus active land acquisition creates durable cashflow diversification. These complementary streams reduce reliance on any single market segment and support long‑term revenue visibility across development cycles.

Proven prior profitability (2020–2023)

A track record of strong profitability through 2020–2023 shows JM can deliver healthy margins and returns when market conditions are favorable. This operational history signals capable project execution, cost control and an ability to restore earnings power as demand or pricing conditions normalize.

Negative Factors

Recent sharp revenue and margin deterioration

Sustained declines in revenue and steep margin compression materially weaken JM’s earnings power and limit reinvestment capacity. A drop from mid‑single digit margins to near zero undermines returns, reduces buffer for cost shocks and raises the time needed to recover profitability in a slow housing market.

Moderate-to-elevated leverage

Leverage above 1x limits financial flexibility and amplifies downside in a housing downturn. Even with improvement versus 2023, meaningful debt loads constrain capacity to fund new projects internally, increase refinancing and interest risks, and make earnings volatility more damaging to balance sheet health.

Weak and volatile cash generation; FCF near zero

Material swing to near‑zero free cash flow highlights volatility from working capital and project timing, reducing internal funding for development and dividend capacity. Persistently weak FCF raises dependence on external financing, increasing funding risk and constraining long‑term strategic flexibility.

J.M. AB Business Overview & Revenue Model

Company Description

JM AB (publ) develops and sells housing and residential areas in the Nordic region. The company operates in five segments: JM Residential Stockholm, JM Residential Sweden, JM International, JM Property Development, and JM Construction. It also engages in the acquisition of development properties; planning, pre-construction, production, management, and sale of residential units; development of rental housing, residential care facilities, and commercial properties; and contract works primarily in the Greater Stockholm area. The company was founded in 1945 and is headquartered in Solna, Sweden.

How the Company Makes Money

JM generates revenue primarily through the sale of residential units, which includes apartments and single-family homes developed by the company. The company earns significant income from its construction projects, where it acts as a contractor to build properties for its own account and for third-party clients. Additional revenue streams include property management services and the leasing of commercial properties. JM also engages in land acquisition for future development, which allows for long-term revenue potential. Strategic partnerships with municipalities and financial institutions further bolster its earnings by facilitating project financing and development opportunities.

J.M. AB Financial Statement Overview

Summary

Recent fundamentals are weak: revenue contracted in 2024 and fell further in 2025 (~9.7%), margins compressed sharply (net margin ~6.4% in 2023 to ~0.5% in 2025; gross margin down to ~11.8% in 2025), and ROE declined to ~1% in 2025. Balance sheet leverage remains meaningful (~1.36x debt-to-equity in 2025) and free cash flow dropped to near zero in 2025 after stronger 2023–2024.

Income Statement

Operating performance has deteriorated materially over the last two years. Revenue declined in 2024 and fell further in 2025 (down ~9.7% in 2025), while profitability compressed sharply: net margin dropped from ~6.4% (2023) to ~2.5% (2024) and ~0.5% (2025). Gross margin also trended down meaningfully from ~20.5% (2021) to ~11.8% (2025), indicating weaker pricing and/or higher costs. The key positive is that the business was strongly profitable in 2020–2023, but the recent step-down in margins and earnings is the dominant takeaway.

Balance Sheet

Leverage is moderate-to-elevated and has become more of a constraint versus the 2022 position. Debt-to-equity improved from a high level in 2023 (~2.0x) but remains above 1x in 2024–2025 (~1.44x to ~1.36x), which can amplify risk in a housing downturn. Equity is sizable relative to assets, but returns to shareholders weakened dramatically as profits fell (return on equity dropped from ~13% in 2023 to ~4% in 2024 and ~1% in 2025). Overall, the balance sheet is not distressed, but flexibility is reduced compared with the stronger profitability period.

Cash Flow

Cash generation is volatile. Operating cash flow was negative in 2020–2022, then rebounded in 2023–2025, including strong operating inflow in 2024. However, free cash flow fell from strongly positive in 2023–2024 to essentially zero in 2025, pointing to weaker conversion or higher cash needs. Cash flow relative to revenue is modest (operating cash flow was ~10.7% of revenue in 2025 and ~24.5% in 2024), underscoring variability in working capital and project timing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.69B	14.27B	15.97B	15.75B	15.65B
Gross Profit	1.26B	1.63B	2.76B	3.14B	3.21B
EBITDA	342.00M	904.00M	1.60B	2.07B	2.32B
Net Income	56.00M	353.00M	1.03B	1.50B	1.80B
Balance Sheet
Total Assets	23.71B	25.16B	30.07B	24.38B	24.39B
Cash, Cash Equivalents and Short-Term Investments	580.00M	506.00M	1.67B	1.84B	3.98B
Total Debt	10.78B	11.74B	16.04B	8.48B	8.38B
Total Liabilities	15.78B	16.99B	22.10B	15.66B	16.01B
Stockholders Equity	7.93B	8.17B	7.97B	8.72B	8.38B
Cash Flow
Free Cash Flow	0.00	3.45B	1.06B	-2.64B	-966.00M
Operating Cash Flow	1.40B	3.47B	1.06B	-2.63B	-961.00M
Investing Cash Flow	-28.00M	-69.00M	-2.00M	-29.00M	-17.00M
Financing Cash Flow	-1.28B	-4.58B	-1.50B	504.00M	1.91B

J.M. AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 137.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:JM, the sentiment is Neutral. The current price of 137.4 is above the 20-day moving average (MA) of 134.22, below the 50-day MA of 137.74, and below the 200-day MA of 141.25, indicating a neutral trend. The MACD of -1.38 indicates Negative momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:JM.

J.M. AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
BONAV.B	49 Neutral	kr3.49B	-38.85	-2.36%	―	-24.13%	-70.19%
JM	43 Neutral	kr8.43B	154.80	2.25%	2.38%	-13.68%	-17.89%