MedCap AB (MCAP) AI Stock Analysis

• Market Cap: kr9.48B
• Dividend Yield: N/A
• Average Volume (3M): 24.77K
• Price to Earnings (P/E): 48.9
• Beta (1Y): 0.57
• Revenue Growth: 9.32%
• EPS Growth: -7.55%
• Country: SE
• Employees: 570
• Sector: Healthcare
• Sector Strength: 37
• Industry: Asset Management
• EPS (TTM): 3.60
• Shares Outstanding: 15,044,353
• 10 Day Avg. Volume: 42,397
• 30 Day Avg. Volume: 24,772
• PEG Ratio: -13.89
• Price to Book (P/B): 6.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.66
• 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: kr479.04
• Price Target Upside: -22.23% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: kr671.00 ▲(8.93%Upside)

MedCap AB's strong financial performance supports its stock score, driven by robust revenue growth and profitability. However, technical analysis suggests potential short-term volatility due to overbought conditions, and the high P/E ratio raises concerns about valuation. These factors collectively result in a moderate overall stock score.

MedCap AB Business Overview & Revenue Model

Company Description

MedCap AB (MCAP) is a Sweden-based investment company that focuses on acquiring and developing small to medium-sized enterprises (SMEs) within the healthcare sector. The company's investment portfolio spans across various segments of the healthcare industry, including pharmaceuticals, medical devices, and healthcare services. MedCap aims to create long-term value by leveraging its industry expertise to drive growth and improve operational efficiencies within its portfolio companies.

How the Company Makes Money

MedCap AB makes money primarily through the strategic acquisition and management of healthcare-related companies. The company generates revenue through the operational profits of its portfolio companies, which encompass a diverse range of healthcare sectors such as pharmaceuticals, medical devices, and healthcare services. MedCap enhances the value of its investments by working closely with the management of its portfolio companies to boost their market presence, streamline operations, and foster innovation. Additionally, MedCap may realize earnings through the eventual sale or public offering of its portfolio companies, thereby capitalizing on the increased value created through its strategic guidance and industry expertise. Significant partnerships with other healthcare organizations and stakeholders also play a role in enhancing the performance and profitability of its investments.

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. However, potential cost pressures and liquidity concerns warrant attention.

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	1.84B	1.81B	1.59B	1.11B	916.30M	817.40M
Gross Profit	865.60M	1.06B	926.40M	462.40M	369.80M	326.60M
EBITDA	381.50M	396.00M	327.40M	237.30M	186.80M	147.80M
Net Income	201.70M	207.40M	172.20M	117.60M	96.50M	60.90M
Balance Sheet
Total Assets	2.03B	1.99B	1.66B	1.43B	1.17B	1.08B
Cash, Cash Equivalents and Short-Term Investments	315.20M	370.10M	188.20M	236.20M	139.70M	146.50M
Total Debt	347.30M	358.00M	261.20M	340.00M	256.90M	263.70M
Total Liabilities	721.00M	703.20M	635.10M	570.60M	471.80M	479.30M
Stockholders Equity	1.31B	1.28B	1.02B	856.30M	696.00M	595.70M
Cash Flow
Free Cash Flow	260.90M	293.80M	188.70M	41.20M	55.40M	91.20M
Operating Cash Flow	323.10M	360.00M	228.00M	85.50M	116.30M	115.60M
Investing Cash Flow	-171.10M	-128.80M	-152.30M	-56.10M	-64.80M	-131.90M
Financing Cash Flow	-57.40M	-46.10M	-119.70M	61.20M	-64.10M	144.50M

MedCap AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 616.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MCAP, the sentiment is Positive. The current price of 616 is above the 20-day moving average (MA) of 507.27, above the 50-day MA of 462.55, and above the 200-day MA of 467.38, indicating a bullish trend. The MACD of 30.84 indicates Negative momentum. The RSI at 83.10 is Negative, neither overbought nor oversold. The STOCH value of 66.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:MCAP.

MedCap AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCAP	68 Neutral	kr9.48B	48.88	15.85%	―	9.32%	-7.55%
SVOL.B	64 Neutral	kr5.90B	13.31	-3.12%	3.00%	―	―
BURE	64 Neutral	€22.27B	189.45	0.27%	0.92%	13.61%	-97.82%
IDUN.B	63 Neutral	kr4.28B	105.95	7.13%	0.27%	2.42%	20.90%
LINC	57 Neutral	€4.62B	17.85	-10.05%	―	37.32%	-39.07%
Sector *	52 Neutral	kr5.63B	10.38	-63.86%	1.96%	27.11%	26.73%