MedCap AB (MCAP) AI Stock Analysis

• Market Cap: kr7.39B
• Dividend Yield: N/A
• Average Volume (3M): 21.82K
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.53
• 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: 15,077,583
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: kr581.00 ▲(9.01% Upside)

The score is driven primarily by solid underlying fundamentals (strong revenue growth and decent profitability) but is held back by softer TTM cash-flow conversion and higher recent leverage. Technical signals are neutral-to-mixed, and the high P/E valuation further limits the overall score.

Positive Factors

Multi-year Revenue Growth

Sustained multi-year revenue expansion indicates durable demand and successful scaling of the investment portfolio. Persistent top-line growth improves the company’s ability to invest in new deals, fund follow-on investments, and smooth returns across cycles, underpinning long-term value creation.

Healthy Operating Profitability

Consistently positive operating margins reflect effective portfolio selection and operational discipline. Mid-teens EBITDA and double-digit net margins provide resilience to shocks, support reinvestment capacity, and allow the firm to generate sustainable earnings from its healthcare-focused investments over time.

Sector Specialization & Active Management

Deep healthcare specialization and active portfolio management create structural advantages: better deal sourcing, technical diligence, and partnership opportunities. Domain expertise can drive higher conviction investments and value creation through operational support and targeted follow-on capital over multiple years.

Negative Factors

Weaker Cash-Flow Conversion

A recent slowdown in cash conversion reduces the company’s capacity to self-fund acquisitions or follow-on investments and increases reliance on external financing. Over months this can constrain deal activity, pressure liquidity buffers, and limit the pace of portfolio value realization.

Step-up in Leverage

An increase in leverage raises financial rigidity and interest cost sensitivity, reducing flexibility to pursue opportunistic investments or weather weak operating periods. If cash generation remains patchy, higher debt could magnify downside risk to returns and capital preservation over the medium term.

TTM Margin Pressure

Declining gross and net margins signal potential pricing pressure, cost inflation, or adverse portfolio mix. If persistent, margin compression will erode operating leverage and reduce free cash flow generation, challenging reinvestment plans and long-term return targets without corrective strategy or cost control.

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

Strong multi-year revenue expansion and healthy operating profitability support a solid base (Income Statement score 78). However, TTM shows margin pressure, a step-up in leverage (Balance Sheet score 74), and weaker cash-flow conversion with lower free cash flow (Cash Flow score 61), which raises near-term execution and liquidity sensitivity.

Income Statement

Revenue has compounded strongly from 2020–2024 with continued growth in TTM (Trailing-Twelve-Months), supporting a solid scale-up story. Profitability is healthy with EBIT and EBITDA margins holding in the mid-teens/low-20s range, and net margins near ~10–11% (though slightly softer in TTM versus 2024). A key watch item is the TTM gross margin decline versus 2023–2024, suggesting either mix/price pressure or higher costs that could limit near-term earnings leverage.

Balance Sheet

Leverage remains moderate with debt-to-equity generally in a conservative range, though TTM shows a step-up in debt levels versus 2023–2024. Equity has grown steadily over time, and returns on equity are consistently in the mid-teens, indicating decent capital efficiency. The main weakness is the recent leverage uptick alongside rising assets, which increases balance-sheet risk if profitability or cash generation weakens.

Cash Flow

Cash conversion is mixed. Free cash flow generally tracks net income reasonably well in recent years, but TTM shows weaker operating cash flow relative to earnings and a notable decline in free cash flow versus the prior annual period. While 2023–2024 demonstrated strong cash generation, the TTM slowdown introduces uncertainty around the durability of cash flows and the company’s ability to self-fund growth at the same pace.

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: 533.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 533 is above the 20-day moving average (MA) of 524.50, below the 50-day MA of 533.22, and below the 200-day MA of 533.32, indicating a bearish trend. The MACD of -9.92 indicates Positive momentum. The RSI at 34.03 is Neutral, neither overbought nor oversold. The STOCH value of 14.59 is Positive, 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	kr5.45B	6.22	―	6.23%	-0.22%	-58.80%
SVOL.B	67 Neutral	kr5.77B	12.77	7.83%	0.79%	-25.75%	-27.25%
CRED.A	63 Neutral	kr9.41B	7.76	12.47%	2.18%	4.72%	-38.28%
MCAP	62 Neutral	kr7.39B	37.23	15.16%	―	11.30%	-14.49%
BURE	53 Neutral	kr16.30B	-3.03	-23.18%	1.13%	22.38%	-153.85%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LINC	48 Neutral	kr3.47B	-8.68	-1.58%	―	45733.33%	-105.08%