J.M. AB (JM) AI Stock Analysis

• Market Cap: kr8.55B
• Dividend Yield: 2.45%
• Average Volume (3M): 243.29K
• Price to Earnings (P/E): 47.8
• Beta (1Y): 1.01
• Revenue Growth: -13.68%
• EPS Growth: -17.89%
• Country: SE
• Employees: 1,860
• Sector: General
• Sector Strength: N/A
• Industry: Residential Construction
• EPS (TTM): -0.09
• Shares Outstanding: 64,504,840
• 10 Day Avg. Volume: 191,924
• 30 Day Avg. Volume: 243,286
• PEG Ratio: -0.46
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.75
• P/FCF Ratio: 3.12
• 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: 13.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: kr142.00 ▲(7.01% Upside)

The overall stock score of 59 reflects a combination of stable financial performance and bearish technical indicators. The high P/E ratio suggests overvaluation, which, combined with declining profit margins, poses a risk. However, the company's strong equity position and cash flow management are positive factors.

Positive Factors

Strong Equity Position

A strong equity position with no financial leverage enhances stability and reduces risk, providing a solid foundation for future growth.

Efficient Cash Generation

Efficient cash generation supports operational needs and strategic investments, ensuring the company can sustain and grow its business.

Sustainability Focus

A focus on sustainability aligns with market trends, potentially commanding higher prices and attracting a broader customer base, enhancing long-term competitiveness.

Negative Factors

Declining Revenue Growth

Declining revenue growth can indicate market challenges or competitive pressures, potentially impacting the company's ability to expand and invest in new projects.

Decreasing Profit Margins

Decreasing profit margins suggest rising costs or inefficiencies, which can erode profitability and limit reinvestment capacity over time.

Liquidity Concerns

Potential liquidity issues could restrict the company's ability to meet short-term obligations and fund operations, posing a risk to financial stability.

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

J.M. AB demonstrates stable financial health with strong equity and cash flow management. However, challenges in revenue growth and declining profit margins present areas for improvement. The balance sheet's lack of leverage is a significant strength, but liquidity should be monitored to ensure continued operational efficiency.

Income Statement

The company's revenue has shown fluctuation over recent years with revenue declining from 2023 to 2024. Gross profit margins are healthy, but there is a notable decrease in net profit margin from the previous year, indicating increased costs or reduced efficiency. The EBIT and EBITDA margins have also decreased, reflecting tighter operating conditions.

Balance Sheet

The company's balance sheet reveals a strong equity position with a debt-to-equity ratio of 0, indicating a lack of financial leverage, which is positive for stability. The equity ratio is solid, reflecting a stable foundation. However, the decline in cash and cash equivalents suggests potential liquidity concerns.

Cash Flow

Operating cash flow increased significantly in 2024, indicating efficient cash generation from core operations. The free cash flow to net income ratio is positive, showing robust cash management. However, the historical cash flow volatility poses a risk if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.84B	14.27B	15.97B	15.75B	15.65B	16.29B
Gross Profit	1.40B	1.63B	2.76B	3.14B	3.21B	2.95B
EBITDA	525.00M	904.00M	1.60B	2.07B	2.32B	2.13B
Net Income	179.00M	353.00M	1.03B	1.50B	1.80B	1.54B
Balance Sheet
Total Assets	24.10B	25.16B	30.07B	24.38B	24.39B	23.09B
Cash, Cash Equivalents and Short-Term Investments	498.00M	506.00M	1.67B	1.84B	3.98B	3.04B
Total Debt	10.68B	11.74B	16.04B	8.48B	8.38B	7.66B
Total Liabilities	16.11B	16.99B	22.10B	15.66B	16.01B	15.49B
Stockholders Equity	7.99B	8.17B	7.97B	8.72B	8.38B	7.60B
Cash Flow
Free Cash Flow	4.40B	3.45B	1.06B	-2.64B	-966.00M	-711.00M
Operating Cash Flow	4.66B	3.47B	1.06B	-2.63B	-961.00M	-710.00M
Investing Cash Flow	-55.00M	-69.00M	-2.00M	-29.00M	-17.00M	-79.00M
Financing Cash Flow	-4.63B	-4.58B	-1.50B	504.00M	1.91B	1.44B

J.M. AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 132.70
• 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 Negative. The current price of 132.7 is below the 20-day moving average (MA) of 135.39, below the 50-day MA of 139.61, and below the 200-day MA of 143.79, indicating a bearish trend. The MACD of -0.56 indicates Negative momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 36.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:JM.

J.M. AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JM	59 Neutral	kr8.55B	47.78	2.25%	2.45%	-13.68%	-17.89%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
BONAV.A	44 Neutral	kr3.25B	―	―	―	-24.13%	-70.19%
BONAV.B	43 Neutral	€3.44B	-21.55	-2.36%	―	-24.13%	-70.19%