MedCap AB (MCAP) AI Stock Analysis

• Market Cap: €7.85B
• Dividend Yield: N/A
• Average Volume (3M): 21.82K
• Price to Earnings (P/E): 39.3
• Beta (1Y): 0.61
• Revenue Growth: 11.30%
• EPS Growth: -14.49%
• Country: SE
• Employees: 570
• Sector: Healthcare
• Sector Strength: 45
• Industry: Asset Management
• EPS (TTM): 3.83
• Shares Outstanding: 15,044,353
• 10 Day Avg. Volume: 14,106
• 30 Day Avg. Volume: 21,821
• PEG Ratio: 2.12
• Price to Book (P/B): 6.95
• Price to Sales (P/S): 4.93
• P/FCF Ratio: 30.31
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: kr579.00 ▲(11.99% Upside)

MedCap AB's strong financial performance is the primary driver of its stock score, reflecting robust revenue growth and solid profitability. However, technical indicators suggest bearish momentum, and the high P/E ratio points to potential overvaluation. The absence of dividend yield further impacts the valuation score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates MedCap's effective investment strategy in healthcare, enhancing its market position and potential for future profitability.

Balance Sheet Health

A low debt-to-equity ratio and high equity ratio demonstrate MedCap's solid financial foundation, providing stability and flexibility for future investments.

Cash Generation Ability

Strong cash generation relative to net income supports MedCap's operations and investment capacity, ensuring sustained growth and financial health.

Negative Factors

Declining Cash Reserves

A decline in cash reserves may impact liquidity management, potentially constraining MedCap's ability to capitalize on new investment opportunities.

Profit Margin Pressure

Decreasing margins suggest rising cost pressures, which could affect MedCap's profitability if not managed effectively over time.

Earnings Growth Challenges

Negative EPS growth indicates challenges in increasing profitability, which could hinder MedCap's ability to deliver shareholder value in the long term.

MedCap AB Business Overview & Revenue Model

Company Description

MedCap AB (publ) is a private equity firm specializing in investments in secondary direct, later stage, industry consolidation, growth capital, middle market, mature, turnarounds, buyout. It prefers to invest in healthcare equipment and services, biotechnology, life sciences, and pharmaceuticals companies. The firm prefers to invest in small to medium size companies that are not listed on the stock exchange and are based in Northern Europe. It typically invests between SEK25 million ($2.75 million) to SEK150 million ($16.51 million) with enterprise value and sales revenue between SEK50 million ($5.90 million) to SEK200 million ($23.06 million) and EBITDA between SEK1 million ($0.11 million) to SEK50 million ($5.50 million). The firm seeks to acquire stakes between 20% and 50% in its portfolio companies. It uses its capital and loans and makes balance sheet investments. MedCap AB (publ) was founded in 2001 and is based in Stockholm, Sweden.

How the Company Makes Money

MedCap AB generates revenue primarily through its investment portfolio in healthcare companies. The company earns money by acquiring stakes in promising healthcare businesses, which can include outright ownership or minority investments. Revenue streams include capital gains from the sale of these investments, dividends from portfolio companies, and management fees from its investment activities. Additionally, MedCap may establish strategic partnerships and collaborations within the healthcare sector, further enhancing its income potential through joint ventures or co-development agreements. The company's focus on innovative and high-potential segments of the healthcare market positions it favorably for growth and profitability.

MedCap AB Financial Statement Overview

Summary

MedCap AB exhibits strong financial health with impressive revenue growth, solid profitability margins, and effective cash flow management. The company maintains a conservative balance sheet with low leverage and strong equity financing. While operational efficiency remains high, monitoring potential cost pressures and liquidity is advisable to sustain growth momentum.

Income Statement

MedCap AB has demonstrated robust revenue growth, with a consistent increase in total revenue over the years. The TTM period shows a gross profit margin of 47.1% suggesting strong control over cost of goods sold. The net profit margin for the TTM is 11.0%, indicating healthy profitability. The EBIT and EBITDA margins of 13.9% and 20.7%, respectively, highlight efficient operational management. However, a slight decline in EBIT and EBITDA margins compared to the previous annual period points to potential cost pressures.

Balance Sheet

The company's balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.27 during the TTM, signifying low leverage. The return on equity for TTM stands at 15.4%, showcasing effective use of shareholder funds to generate profit. The equity ratio of 64.3% indicates a stable capital structure with significant equity financing. However, the decreasing trend in cash and cash equivalents may warrant attention for liquidity management.

Cash Flow

MedCap AB has shown a positive operating cash flow to net income ratio of 1.60 for TTM, indicating strong cash generation relative to its net income. The free cash flow to net income ratio is 1.29, reflecting efficient capital expenditure management. Despite a decline in free cash flow growth rate, the company maintains a healthy cash flow position supporting its operations and future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.99B	1.81B	1.59B	1.11B	916.30M	817.40M
Gross Profit	940.40M	1.06B	926.40M	462.40M	369.80M	326.60M
EBITDA	414.10M	396.00M	341.90M	237.30M	191.50M	147.80M
Net Income	196.80M	207.40M	172.20M	117.60M	96.50M	60.90M
Balance Sheet
Total Assets	2.48B	1.99B	1.66B	1.43B	1.17B	1.08B
Cash, Cash Equivalents and Short-Term Investments	358.70M	370.10M	188.20M	236.20M	139.70M	146.50M
Total Debt	506.10M	358.00M	261.20M	340.00M	256.90M	263.70M
Total Liabilities	1.07B	703.20M	635.10M	570.60M	471.80M	479.30M
Stockholders Equity	1.40B	1.28B	1.02B	856.30M	696.00M	595.70M
Cash Flow
Free Cash Flow	266.50M	293.80M	188.70M	41.20M	55.40M	91.20M
Operating Cash Flow	317.60M	360.00M	228.00M	85.50M	116.30M	115.60M
Investing Cash Flow	-355.70M	-128.80M	-152.30M	-56.10M	-64.80M	-131.90M
Financing Cash Flow	116.40M	-46.10M	-119.70M	61.20M	-64.10M	144.50M

MedCap AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 517.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MCAP, the sentiment is Negative. The current price of 517 is below the 20-day moving average (MA) of 537.60, below the 50-day MA of 556.64, and above the 200-day MA of 511.34, indicating a neutral trend. The MACD of -9.78 indicates Positive momentum. The RSI at 36.64 is Neutral, neither overbought nor oversold. The STOCH value of 31.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:MCAP.

MedCap AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORES	74 Outperform	kr5.16B	13.04	―	6.35%	-0.22%	-58.80%
CRED.A	74 Outperform	kr9.78B	7.54	12.47%	2.22%	4.72%	-38.28%
SVOL.B	64 Neutral	kr5.77B	12.83	7.83%	0.82%	-25.75%	-27.25%
MCAP	63 Neutral	€7.85B	39.28	15.16%	―	11.30%	-14.49%
BURE	58 Neutral	kr17.93B	-3.32	-23.18%	1.14%	22.38%	-153.85%
LINC	57 Neutral	kr3.85B	-48.00	-1.58%	―	45733.33%	-105.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%