Lagercrantz Group AB Class B (LAGR.B) AI Stock Analysis

• Market Cap: kr42.39B
• Dividend Yield: 1.04%
• Average Volume (3M): 460.06K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 1.23
• Revenue Growth: 14.55%
• EPS Growth: 20.36%
• Country: SE
• Employees: 2,966
• Sector: Industrials
• Sector Strength: 72
• Industry: Information Technology Services
• EPS (TTM): 1.52
• Shares Outstanding: 199,442,840
• 10 Day Avg. Volume: 1,006,811
• 30 Day Avg. Volume: 460,061
• PEG Ratio: 2.58
• Price to Book (P/B): 11.08
• Price to Sales (P/S): 4.53
• P/FCF Ratio: 36.60
• 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: kr270.00
• Price Target Upside: 22.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 6
• Revenue Forecast (FY): kr10.59B

• Rating: 70 Outperform
• Price Target: kr243.00 ▲(9.86% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven primarily by strong operating performance and margins, partially offset by higher leverage and weaker cash conversion. Technicals remain supportive due to the price holding above major moving averages, but mixed momentum signals add caution. A high P/E and low dividend yield meaningfully weigh on the overall score.

Positive Factors

Strong profit margins and ROE

Sustained high gross and operating margins plus ~28% ROE indicate durable pricing power, efficient operations and effective capital deployment. Over months this supports internal funding for growth, resilience through cycles, and the ability to generate returns above funding costs for acquisitions.

Acquisition-driven, decentralized model

A decentralized roll-up strategy in specialized B2B niches creates durable competitive advantages: local customer relationships, technical know-how, and scalable cross-selling and purchasing synergies. This structural model supports steady, repeatable earnings expansion over the medium term.

Healthy absolute cash generation

Material and positive free cash flow provides ongoing funding for acquisitions, capex and shareholder returns. Consistent FCF near earnings levels suggests the business converts profits into spendable cash, enabling strategic investments without sole reliance on external financing.

Negative Factors

Elevated leverage

Higher debt relative to equity increases financial risk and reduces flexibility for opportunistic investments or to absorb shocks. Over a 2–6 month horizon, elevated leverage raises refinancing and interest-rate sensitivity, constraining strategic options if cash flow weakens.

Weak operating cash conversion

Low conversion of reported earnings into operating cash suggests working-capital strain or timing mismatches. This structural drag can limit liquidity available for reinvestment or debt paydown and makes funding acquisitions or dividend policies more dependent on external financing.

Slowing organic revenue growth

A marked deceleration in organic growth implies the company may be entering a more mature phase, increasing reliance on acquisitions to sustain headline revenue growth. Over months this raises execution risk and pressure to find accretive targets to maintain past expansion rates.

Lagercrantz Group AB Class B Business Overview & Revenue Model

Company Description

Lagercrantz Group AB (publ) operates as a technology company in Sweden, Denmark, Norway, Finland, the United Kingdom, Germany, Poland, rest of Europe, and internationally. The company operates through five divisions: Electrify, Control, TecSec, Niche Products, and International. It offers special products in RFID and light controls. The company also provides electric connections systems, electric installation materials, electric and electro-mechanical components, and wiring harness, as well as safety switches, cabling, electrical enclosures, and infrastructural products comprising masts and aerial brackets for the manufacturing, power production, electricity distribution, infrastructure, and property sectors. In addition, it offers products, systems, services, and support in the areas of network access, and digital image transmission/technical security, as well as control systems and software. Further, the company produces and sells proprietary technical products and solutions to other companies. Additionally, it provides products used in manufacturing and dispensing foodstuffs; material handling products; furniture and fittings for workplaces, shops, or warehouses; special plastic doors; and galvanized steel wires for roadway, mast, and agriculture applications, as well as offers snow clearance and airport runway cleaning services. Lagercrantz Group AB (publ) was founded in 1906 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Lagercrantz Group AB generates revenue through several key streams. Primarily, the company earns money by selling a wide range of products, including electronic components, systems for industrial automation, and mechanical solutions. Their revenue is bolstered by ongoing maintenance and technical support services, which provide recurring income. Additionally, Lagercrantz Group often collaborates with leading manufacturers and suppliers, creating significant partnerships that enhance their product offerings and market reach. These partnerships enable the company to stay competitive and responsive to market demands, further contributing to its earnings.

Lagercrantz Group AB Class B Financial Statement Overview

Summary

Fundamentals are strong with solid, stable profitability (TTM gross margin ~39%, EBIT ~15.7%, net ~11.1%) and consistent multi-year revenue expansion, but the profile is tempered by higher leverage (debt-to-equity ~1.22) and weaker cash conversion (operating cash flow ~54% of net income).

Income Statement

TTM (Trailing-Twelve-Months) revenue is 10.29B with positive growth (~4%), extending a multi-year upward trend from 4.09B (2021) to 9.39B (2025 annual). Profitability is solid and stable: gross margin ~39%, EBIT margin ~15.7%, and net margin ~11.1% in TTM, generally consistent with prior years. The main weakness is that growth has cooled materially versus the stronger expansion seen in 2022–2023, suggesting a more mature/normalized growth phase.

Balance Sheet

Returns are strong, with TTM return on equity around 28%, reflecting good profitability and efficient capital use. However, leverage has stepped up: total debt is 4.99B against equity of 4.09B (debt-to-equity ~1.22) in TTM, higher than recent annual periods, which increases financial risk and reduces flexibility if conditions soften. Asset base has grown alongside the business (TTM assets ~12.61B), but the rising debt load is the key offset.

Cash Flow

Cash generation is healthy in absolute terms (TTM operating cash flow 1.44B; free cash flow 1.20B) and free cash flow tracks earnings reasonably well (about 83% of net income). The weakness is cash conversion: operating cash flow is only ~54% of net income in TTM (and similar or lower in prior years), indicating working-capital drag and/or timing effects. Free cash flow growth is modest in TTM (~1%), and the prior annual period showed a small decline, pointing to a steadier—but less accelerating—cash profile.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	10.29B	9.39B	8.13B	7.25B	5.48B	4.09B
Gross Profit	4.02B	3.66B	3.20B	2.74B	2.09B	1.58B
EBITDA	1.84B	1.50B	1.70B	1.43B	1.08B	773.00M
Net Income	1.14B	1.02B	877.00M	758.00M	572.00M	388.00M
Balance Sheet
Total Assets	12.61B	11.22B	9.84B	8.03B	6.21B	4.61B
Cash, Cash Equivalents and Short-Term Investments	490.00M	456.00M	355.00M	360.00M	210.00M	151.00M
Total Debt	4.99B	4.09B	3.25B	2.63B	2.16B	1.39B
Total Liabilities	8.52B	7.38B	6.37B	5.02B	3.98B	2.75B
Stockholders Equity	4.09B	3.84B	3.47B	3.01B	2.23B	1.85B
Cash Flow
Free Cash Flow	1.20B	1.16B	1.21B	892.00M	471.00M	692.00M
Operating Cash Flow	1.44B	1.32B	1.33B	1.07B	594.00M	782.00M
Investing Cash Flow	-1.72B	-1.29B	-1.29B	-1.02B	-765.00M	-415.00M
Financing Cash Flow	383.00M	90.00M	-47.00M	87.00M	224.00M	-333.00M

Lagercrantz Group AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 221.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:LAGR.B, the sentiment is Negative. The current price of 221.2 is above the 20-day moving average (MA) of 211.31, above the 50-day MA of 205.54, and above the 200-day MA of 216.85, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 48.55 is Neutral, neither overbought nor oversold. The STOCH value of 46.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:LAGR.B.

Lagercrantz Group AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAGR.B	70 Outperform	kr42.39B	34.92	30.31%	1.04%	14.55%	20.36%
EXS	65 Neutral	kr1.49B	20.39	15.90%	1.13%	10.92%	-2.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PACT	62 Neutral	kr2.69B	24.25	14.35%	2.13%	-4.36%	-31.55%
KNOW	58 Neutral	kr3.04B	-2.35	2.38%	2.03%	-9.85%	-38.24%
ANOD.B	55 Neutral	kr9.20B	33.80	15.03%	1.20%	-31.59%	0.21%
DUST	50 Neutral	kr1.92B	-22.97	―	―	-5.00%	-1757.14%

Lagercrantz Group AB Class B Corporate Events

Lagercrantz lifts profitability, steps up margin targets on back of strong quarter and acquisition-led growth

Lagercrantz Group reported a strong third quarter and nine-month period for its 2025/26 financial year, with net revenue up 16% in the quarter to SEK 2.85 billion and EBITA up 20%, lifting the margin to 18.0%. Over the first nine months, revenue climbed 13% and EBITA rose 16%, while earnings per share over the last 12 months increased to SEK 5.53, return on equity reached 29% and operating cash flow improved, underscoring robust profitability, capital efficiency and a solid balance sheet.
The group’s acquisitive growth strategy continued at high pace, with 12 acquisitions since January 2025 adding annual sales of about SEK 1.44 billion, just over 15% of starting revenues, including recent deals in forestry and construction machinery parts and pharmaceutical tablet compression tools that broaden its exposure to attractive niches. On the back of sustained earnings momentum and a net revenue run rate now above SEK 10 billion, management has raised its financial ambitions, targeting an EBITA margin of 20% within 2–3 years and consistently higher profit relative to working capital, reinforcing Lagercrantz’s positioning as a consolidator in specialised technology segments and signalling continued deal-making and operational improvements despite a still-weak construction market and geopolitical uncertainty.

The most recent analyst rating on ($SE:LAGR.B) stock is a Hold with a SEK213.00 price target. To see the full list of analyst forecasts on Lagercrantz Group AB Class B stock, see the SE:LAGR.B Stock Forecast page.

Lagercrantz Group Appoints New CFO

Lagercrantz Group AB has announced the appointment of Karin Mellegård Djärf as its new Chief Financial Officer, effective in the spring of 2026. Karin brings extensive experience from both private and public companies, having previously served as CFO at ByggPartner Gruppen AB. This leadership change marks a strategic step for Lagercrantz as it continues to develop, while the current CFO, Peter Thysell, will be leaving the company for new opportunities.

The most recent analyst rating on ($SE:LAGR.B) stock is a Hold with a SEK237.00 price target. To see the full list of analyst forecasts on Lagercrantz Group AB Class B stock, see the SE:LAGR.B Stock Forecast page.

Lagercrantz Group Acquires Majority Stake in I Holland

Lagercrantz Group AB has acquired 85% of I Holland Limited, a UK-based leader in tablet compression tools for the pharmaceutical industry, enhancing its TecSec division with a globally recognized business. The acquisition is expected to contribute positively to Lagercrantz’s earnings per share, with I Holland’s management team retaining a 15% stake and continuing to lead the company under Lagercrantz’s ownership.

The most recent analyst rating on ($SE:LAGR.B) stock is a Hold with a SEK221.00 price target. To see the full list of analyst forecasts on Lagercrantz Group AB Class B stock, see the SE:LAGR.B Stock Forecast page.