Lifco Ab (LIFCO.B) AI Stock Analysis

• Market Cap: kr163.52B
• Dividend Yield: 0.7%
• Average Volume (3M): 296.63K
• Price to Earnings (P/E): 45.9
• Beta (1Y): 1.11
• Revenue Growth: 9.39%
• EPS Growth: 10.45%
• Country: SE
• Employees: 7,424
• Sector: Services
• Sector Strength: N/A
• Industry: Conglomerates
• EPS (TTM): 1.96
• Shares Outstanding: 423,836,460
• 10 Day Avg. Volume: 318,820
• 30 Day Avg. Volume: 296,626
• PEG Ratio: 52.99
• Price to Book (P/B): 7.97
• Price to Sales (P/S): 5.57
• P/FCF Ratio: 36.86
• 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: kr380.50
• Price Target Upside: 10.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: kr385.00 ▲(11.53% Upside)

Lifco Ab's overall stock score reflects strong financial performance as the most significant factor, supported by efficient operations and stable capital structure. However, the stock's valuation appears high, and technical indicators suggest potential short-term weakness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Generation

Strong cash generation enhances financial flexibility, enabling reinvestment in growth opportunities and resilience against economic downturns.

Profitability

High profitability margins reflect efficient operations and pricing power, contributing to sustained earnings and competitive advantage.

Negative Factors

Rising Debt Levels

Increasing debt levels can strain financial resources and limit the company's ability to invest in growth or weather economic challenges.

Cost Pressures

Declining gross margins suggest rising costs, which could pressure profitability if not managed effectively, impacting long-term financial health.

Operating Cash Flow

A decrease in operating cash flow coverage may indicate potential liquidity challenges, affecting the company's ability to fund operations and growth.

Lifco Ab Business Overview & Revenue Model

Company Description

Lifco AB is a diversified industrial group based in Sweden, primarily engaged in the manufacturing and distribution of products and services within three key sectors: Dental, Demolition & Tools, and Systems solutions. The company offers a wide range of core products including dental equipment and consumables, specialized demolition tools, and tailored systems solutions for various industries, focusing on high-quality, innovative offerings that meet the needs of its customers across different markets.

How the Company Makes Money

Lifco AB generates revenue through multiple streams, primarily from the sale of its products in the aforementioned sectors. The Dental segment earns income through the sale of dental equipment, instruments, and consumables to dental practices and clinics, while the Demolition & Tools segment derives revenue from providing specialized tools and equipment for construction and demolition activities. Additionally, the Systems solutions segment contributes to earnings by offering customized solutions and support services to various industrial clients. The company also benefits from strategic partnerships with suppliers and distributors, enhancing its market reach and product offerings, which further supports its revenue generation efforts.

Lifco Ab Financial Statement Overview

Summary

Lifco Ab demonstrates strong financial performance with consistent revenue and profit growth, efficient operations, and a stable capital structure. However, attention is needed on rising debt levels and maintaining cost efficiencies.

Income Statement

Lifco Ab demonstrates strong revenue growth with a TTM growth rate of 2.05% and consistent profitability, evidenced by a solid gross profit margin of 43.91% and a net profit margin of 12.51%. The EBIT and EBITDA margins are healthy at 18.36% and 22.18%, respectively, indicating efficient operations. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.63, reflecting a balanced approach to leveraging. Return on equity is robust at 19.24%, showcasing effective use of equity capital. The equity ratio stands at 44.61%, indicating a stable capital structure. Nonetheless, the increasing debt levels over the years could pose future risks if not managed carefully.

Cash Flow

Lifco Ab's cash flow performance is strong, with a free cash flow growth rate of 4.86% in the TTM period. The operating cash flow to net income ratio of 0.37 and free cash flow to net income ratio of 0.91 highlight efficient cash generation relative to earnings. The consistent growth in free cash flow suggests a solid cash position, though the operating cash flow coverage ratio has slightly decreased, indicating potential areas for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.84B	26.14B	24.45B	21.55B	17.48B	13.78B
Gross Profit	12.23B	11.59B	10.82B	9.01B	7.33B	5.81B
EBITDA	6.52B	6.66B	5.08B	5.13B	4.08B	3.03B
Net Income	3.56B	3.30B	3.27B	2.78B	2.39B	1.67B
Balance Sheet
Total Assets	41.79B	38.89B	34.29B	29.77B	24.88B	18.26B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.52B	1.59B	1.70B	1.51B	1.17B
Total Debt	11.85B	10.36B	9.52B	8.26B	6.91B	4.92B
Total Liabilities	23.01B	20.48B	18.96B	16.43B	14.12B	9.59B
Stockholders Equity	18.64B	18.26B	15.21B	13.24B	10.64B	8.61B
Cash Flow
Free Cash Flow	4.30B	3.95B	4.02B	2.72B	2.63B	2.55B
Operating Cash Flow	4.69B	4.49B	4.46B	3.07B	2.94B	2.81B
Investing Cash Flow	-4.74B	-3.34B	-4.16B	-2.72B	-3.29B	-1.30B
Financing Cash Flow	-99.00M	-1.40B	-346.00M	-308.00M	573.00M	-998.00M

Lifco Ab Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 345.20
• 50DMA: Positive
• 100DMA: Positive
• 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:LIFCO.B, the sentiment is Positive. The current price of 345.2 is below the 20-day moving average (MA) of 345.87, below the 50-day MA of 348.67, and below the 200-day MA of 357.20, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 42.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:LIFCO.B.

Lifco Ab Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOLA.B	73 Outperform	$16.27B	20.62	14.17%	2.47%	0.40%	38.42%
LIFCO.B	69 Neutral	kr163.52B	45.89	19.96%	0.70%	9.39%	10.45%
SECU.B	69 Neutral	kr78.55B	14.07	13.13%	3.16%	-0.74%	6.55%
VOLO	66 Neutral	€8.46B	35.27	14.16%	1.89%	9.65%	19.40%
LOOMIS	66 Neutral	kr24.03B	13.81	14.28%	3.75%	2.58%	19.07%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
BERG.B	48 Neutral	€8.71B	-120.30	-3.67%	1.26%	4.65%	-136.09%

Lifco Ab Corporate Events

Lifco AB Acquires UK-Based DB Orthodontics

Lifco AB has acquired DB Orthodontics Ltd, a UK-based company that produces and sells orthodontic materials to dental professionals globally. The acquisition, which will be consolidated into Lifco’s Dental business area in the fourth quarter of 2025, is not expected to significantly impact Lifco’s earnings or financial position this year.

Lifco AB Proposes New Board Member Anders Oscarsson

Lifco AB’s Nomination Committee has proposed Anders Oscarsson for the Board of Directors, replacing Axel Wachtmeister, who will not seek re-election in 2026. Oscarsson’s extensive experience in equities and owner relations at AMF is expected to bring valuable insights to Lifco’s strategic direction, potentially impacting its operations and stakeholder relations positively.

Lifco AB Expands with Acquisition of HEGUtechnik GmbH

Lifco AB has acquired a majority stake in HEGUtechnik GmbH, a German niche contract manufacturer specializing in electronic components for automation in harsh industrial environments. This acquisition, which will be consolidated into Lifco’s Business Area Systems Solutions, is not expected to significantly impact Lifco’s financials this year but strengthens its position in the contract manufacturing sector.

Lifco AB Reports Strong Growth and Strategic Acquisitions in 2025

Lifco AB reported a 9.0% increase in net sales to SEK 20,717 million for the first nine months of 2025, driven by acquisitions and organic growth. The company consolidated 13 new businesses, enhancing its market position, and maintained a strong financial position with interest-bearing net debt at 1.3 times EBITDA, allowing for potential future acquisitions.

Lifco Expands Dental Portfolio with Acquisition of Nobil Bio Ricerche

Lifco AB has announced the acquisition of a majority stake in Nobil Bio Ricerche, an Italian company specializing in customizing implant surfaces for dental manufacturers. This acquisition, set to be consolidated in Lifco’s Dental business area by the fourth quarter of 2025, is not expected to significantly impact Lifco’s financial performance for the current year. The move aligns with Lifco’s strategy of expanding its portfolio in niche markets, potentially enhancing its industry positioning and offering additional growth opportunities.

Lifco AB Acquires Citodent Imaging to Enhance Dental Business

Lifco AB has announced the acquisition of a majority stake in Citodent Imaging B.V., a Dutch company specializing in software for managing X-ray and diagnostic imaging for dentists in Europe. The acquisition, which will be integrated into Lifco’s Dental business area by the third quarter of 2025, is not expected to significantly impact Lifco’s earnings or financial position for the current financial year.