L E Lundbergfoeretagen AB (LUND.B) AI Stock Analysis

• Market Cap: kr138.38B
• Dividend Yield: 0.92%
• Average Volume (3M): 103.43K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.84
• Revenue Growth: 7.90%
• EPS Growth: -18.95%
• Country: SE
• Employees: 4,170
• Sector: General
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 18.92
• Shares Outstanding: 152,000,000
• 10 Day Avg. Volume: 124,905
• 30 Day Avg. Volume: 103,432
• PEG Ratio: 0.11
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 4.36
• P/FCF Ratio: 67.55
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: kr656.00 ▲(29.77% Upside)
• Action: Upgraded Date: 03/04/26
• Date: Action: Upgraded 03/04/26

Overall score is driven by solid underlying financial strength (low leverage, strong reported profitability) and favorable technical trend/momentum. Offsetting factors are weak 2025 free-cash-flow conversion and some year-to-year volatility in margins/earnings quality, while valuation is supportive on P/E but less so on dividend yield.

Positive Factors

Conservative balance sheet

A low debt-to-equity ratio (~0.20) and a rising equity base provide Lundberg durable financial flexibility to hold long-term investments through cycles, fund opportunistic capital needs, and reduce insolvency risk. This supports sustained ability to compound value and pursue strategic stakes over time.

Diversified cash-generating model

Lundberg’s income mix—dividends, capital gains, rental income and energy sales—creates multiple recurring cash streams that reduce dependence on any single sector. That diversification supports steadier distributable cash and allows the firm to reinvest or redeploy capital across cycles for durable returns.

Improving reported profitability

Profitability strengthened in 2025 with a high net margin and materially improved ROE, indicating better asset performance and earnings power. If sustained, higher returns enhance the company's capacity to generate shareholder value and finance growth from internal earnings rather than external financing.

Negative Factors

Weak free cash flow conversion

Free cash flow dropped sharply in 2025 and covered only ~23% of net income, limiting cash available for dividends, buybacks or reinvestment. Persistent weak conversion would constrain durable capital allocation and reduce the practical ability to turn reported earnings into shareholder returns.

Material margin and earnings volatility

Large year-to-year swings in margins suggest earnings are influenced by lumpy investment outcomes or non-recurring items. That volatility undermines predictability of core earnings and distributable cash, complicating strategic planning and increasing the risk that one-off gains may not repeat.

Weak top-line momentum

Revenue decline and negative recent revenue growth indicate limited organic expansion of recurring operations (rental/operating income). Reduced top-line momentum raises reliance on capital gains for earnings growth and increases sensitivity to market swings in asset valuations, affecting long-term stability.

L E Lundbergfoeretagen AB Business Overview & Revenue Model

Company Description

L E Lundbergföretagen AB (publ) manufactures and sells paperboard, paper, and sawn wood products in Sweden and internationally. It operates through Lundberg's Real Estate Operations, Lundberg's Asset Management, Hufvudstaden, and Holmen segments. The company is also involved in the forest and power operations; and equity management, including securities trading. In addition, it owns and manages commercial office, and retail properties. L E Lundbergföretagen AB (publ) was founded in 1944 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

L E Lundbergfoeretagen AB generates revenue primarily through its real estate holdings, which include commercial and residential properties that provide rental income. Additionally, the company earns significant revenue from its investments in energy production, particularly in renewable energy sources, as well as from its manufacturing subsidiaries that produce a variety of industrial goods. Key revenue streams include leasing agreements, energy sales contracts, and product sales from its manufacturing operations. Strategic partnerships with other firms in the energy and construction sectors further enhance its revenue potential, while the company's diversified portfolio helps mitigate risks associated with economic fluctuations.

L E Lundbergfoeretagen AB Financial Statement Overview

Summary

Strong profitability and a conservatively levered balance sheet (low debt-to-equity ~0.20) support resilience, with improved ROE in 2025. The main risk is quality/consistency: margins and earnings show meaningful volatility, and 2025 free cash flow fell sharply with weak conversion (~23% of net income).

Income Statement

Revenue has been broadly stable over the last few years, but 2025 saw a modest decline (-2.44%) after slight growth in 2024. Profitability is strong overall (2025 net margin ~41.5%), with a sharp step-up in net income versus 2024 (SEK 12.1B vs SEK 6.3B). The main weakness is volatility in margins and earnings quality year-to-year, highlighted by a large swing in gross margin (2024 ~48.1% vs 2025 ~18.2%) and uneven operating profitability across the period.

Balance Sheet

The balance sheet is conservatively levered, with low debt relative to equity (debt-to-equity ~0.20 in 2025) and a growing equity base (SEK 127.8B in 2025 vs SEK 99.6B in 2021). Returns on equity have improved meaningfully versus 2024 (about 9.5% in 2025 vs 5.5% in 2024), supporting balance-sheet quality. The key watch-out is that profitability/returns can fluctuate materially by year, which can affect the pace of intrinsic value compounding.

Cash Flow

Cash generation is positive, with operating cash flow up in 2025 (SEK 8.25B vs SEK 7.67B in 2024), but free cash flow weakened sharply in 2025 (SEK 1.88B vs SEK 5.55B in 2024) and declined year-over-year. Free cash flow conversion is a notable weak point in 2025, with free cash flow covering only ~23% of net income, suggesting earnings were not matched by cash retained after investment/capital flows. Historically, conversion was much stronger (2022–2024), so the 2025 dip is the main concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.07B	31.37B	30.64B	31.41B	26.20B
Gross Profit	5.28B	15.09B	15.33B	18.40B	13.42B
EBITDA	17.66B	11.87B	11.20B	9.51B	18.75B
Net Income	12.08B	6.30B	7.25B	1.51B	11.37B
Balance Sheet
Total Assets	241.55B	224.40B	216.10B	211.75B	202.52B
Cash, Cash Equivalents and Short-Term Investments	0.00	1.28B	2.04B	2.79B	2.21B
Total Debt	26.02B	20.55B	19.65B	20.84B	22.14B
Total Liabilities	62.49B	57.69B	55.77B	57.82B	55.35B
Stockholders Equity	127.79B	113.73B	107.56B	99.82B	99.58B
Cash Flow
Free Cash Flow	1.88B	5.55B	8.23B	7.36B	4.79B
Operating Cash Flow	8.25B	7.67B	9.89B	8.74B	6.49B
Investing Cash Flow	-6.34B	-5.88B	-5.16B	-4.26B	-4.56B
Financing Cash Flow	-1.64B	-2.55B	-5.50B	-3.91B	-1.34B

L E Lundbergfoeretagen AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 505.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:LUND.B, the sentiment is Positive. The current price of 505.5 is below the 20-day moving average (MA) of 557.93, below the 50-day MA of 532.74, and above the 200-day MA of 502.05, indicating a bullish trend. The MACD of 14.21 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 86.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:LUND.B.

L E Lundbergfoeretagen AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVE.A	80 Outperform	kr1.09T	6.91	8.06%	1.61%	79.31%	-65.65%
INVE.B	79 Outperform	kr1.09T	6.97	8.06%	1.60%	79.31%	-65.65%
LUND.B	78 Outperform	kr138.38B	11.46	6.47%	0.92%	7.90%	-18.95%
INDU.A	76 Outperform	kr211.17B	5.98	8.24%	2.00%	13.97%	-56.08%
INDU.C	76 Outperform	kr211.17B	5.95	8.24%	2.02%	13.97%	-56.08%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KINV.B	46 Neutral	kr16.89B	-5.03	0.33%	―	-97.64%	―