Medicover AB (MCOV.B) AI Stock Analysis

• Market Cap: kr31.40B
• Dividend Yield: 0.66%
• Average Volume (3M): 56.76K
• Price to Earnings (P/E): 39.5
• Beta (1Y): 0.55
• Revenue Growth: 13.89%
• EPS Growth: 231.42%
• Country: SE
• Employees: 47,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.39
• Shares Outstanding: 74,428,720
• 10 Day Avg. Volume: 49,170
• 30 Day Avg. Volume: 56,757
• PEG Ratio: 0.11
• Price to Book (P/B): 5.74
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 16.48
• 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): 0.73
• Revenue Forecast (FY): kr2.67B

• Rating: 56 Neutral
• Price Target: kr215.00 ▼(-0.46% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by balance-sheet leverage and a high valuation (P/E ~36.7, low yield). Offsetting factors include improving fundamentals (2025 profitability and free-cash-flow rebound) and a positive earnings-call outlook with multi-year growth and margin targets. Technically, the stock’s trend remains weak-to-neutral with negative MACD and price below longer-term moving averages.

Positive Factors

Sustained organic revenue growth

Medicover has delivered multi-year, double-digit organic growth, with FY25 organic +12.7% and Q4 organic +10.6%. Durable top-line momentum across healthcare and diagnostics supports scale economics, network expansion and long-term demand visibility, underpinning margin recovery and capacity investments over the next 2–6 months.

Improving cash generation and FCF

Operating cash flow and free cash flow have stepped up materially (FY25 operating cash €343.7m; FCF €185.6m). Strong cash conversion provides durable funding for maintenance and growth CapEx (~6–7% of revenue), supports deleveraging plans and shareholder returns, and reduces dependence on external financing over the medium term.

Clear 3‑year targets and integration progress

Management has articulated explicit 2028 financial targets and a leverage ceiling, while reporting near-complete SYNLAB and Sports & Wellness integration. This clear strategic roadmap and visible M&A execution increase management accountability, improve potential scale benefits, and support sustainable margin and ROIC improvement if execution continues as planned.

Negative Factors

Elevated leverage and rising debt

Leverage has increased materially (debt from €367M in 2020 to €1,440M in 2025; D/E ~2.67), reducing financial flexibility. High gross debt limits the firm's ability to absorb shocks, constrains incremental M&A or expansion without deleveraging, and raises refinancing and interest-rate sensitivity risks over the next several quarters.

Regulatory pricing pressure in Germany

Reimbursement reform in Germany has structurally reduced diagnostic pricing, muting price contribution even as volumes rose. Given Germany's scale in diagnostics, persistent regulatory pricing headwinds could compress segment margins and limit EBITDA leverage, creating a multi-quarter ceiling on profitability improvements absent offsetting actions.

Execution and integration risks

Operational execution risks are evident: immature hospitals incurred losses (EUR 3.1m), some SYNLAB synergies remain unrealized, and an India strike disrupted government-pay services. These operational frictions can persist through multiple quarters, delaying EBITDA conversion, cash recovery and full benefit from recent acquisitions.

Medicover AB Business Overview & Revenue Model

Company Description

Medicover AB (MCOV.B) is a leading healthcare and diagnostic services provider based in Sweden. The company operates across various sectors including healthcare services, diagnostics, and health insurance. Medicover offers a wide range of core products and services, such as outpatient and inpatient care, preventive healthcare services, and laboratory diagnostics, catering to both individual patients and corporate clients across Europe and Asia. The company aims to enhance the quality of healthcare through innovative solutions and comprehensive services.

How the Company Makes Money

Medicover AB generates revenue through multiple streams primarily centered around healthcare services and diagnostic solutions. The company earns income from its healthcare facilities, which include hospitals and outpatient clinics, by charging for medical consultations, treatments, and surgeries. Additionally, Medicover generates substantial revenue from its diagnostic services, which encompass laboratory tests and imaging services. The company also offers health insurance products, further diversifying its revenue base. Significant partnerships with corporate clients for occupational health services and collaborations with various healthcare providers enhance its earnings potential. Overall, Medicover's focus on integrated healthcare solutions and a growing demand for quality healthcare services contribute to its financial success.

Medicover AB Financial Statement Overview

Summary

Strong multi-year revenue growth with a clear profitability rebound in 2025 and improving free cash flow, but the balance sheet is a major constraint as leverage has risen materially (debt up sharply and debt-to-equity elevated).

Income Statement

Revenue growth has been strong over the past several years (2020–2024) and remained positive in 2025, showing solid demand momentum. Profitability, however, is mixed: margins were materially stronger in 2020–2021, compressed sharply in 2022–2024, and improved in 2025 with a clear rebound in operating profit and net income. Overall, the top-line trajectory is a strength, but the multi-year margin volatility and relatively modest recent profitability keep the score in the mid-range.

Balance Sheet

Leverage has trended up meaningfully since 2020: total debt rose from 367.4M (2020) to 1,439.8M (2025), while equity growth has been slower. Debt-to-equity increased from 0.82 (2020) to 2.67 (2024), pointing to elevated balance-sheet risk and reduced flexibility. The positive offset is that equity remains positive and the company has continued to scale assets, but the higher leverage profile is the key constraint.

Cash Flow

Cash generation is a relative bright spot: operating cash flow and free cash flow have generally grown (with a notable dip in 2022 free cash flow), and 2025 shows a strong free-cash-flow step-up to 185.6M with healthy growth. Cash flow conversion versus earnings appears uneven in earlier years (free cash flow to net income is moderate in 2020–2021 and weaker in 2022–2024), but the most recent year indicates improving underlying cash performance.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.38B	2.09B	1.75B	1.51B	1.38B
Gross Profit	550.70M	448.30M	359.40M	335.60M	395.00M
EBITDA	377.70M	171.20M	257.40M	215.90M	274.90M
Net Income	77.50M	16.70M	17.60M	11.80M	101.80M
Balance Sheet
Total Assets	2.42B	2.14B	1.94B	1.83B	1.68B
Cash, Cash Equivalents and Short-Term Investments	88.20M	82.80M	64.40M	49.10M	277.90M
Total Debt	1.44B	1.24B	1.00B	940.00M	764.60M
Total Liabilities	1.88B	1.65B	1.41B	1.32B	1.12B
Stockholders Equity	532.80M	464.80M	496.50M	474.70M	517.60M
Cash Flow
Free Cash Flow	185.60M	139.60M	94.50M	29.60M	114.50M
Operating Cash Flow	343.70M	261.90M	205.00M	170.20M	216.70M
Investing Cash Flow	-322.10M	-134.70M	-119.80M	-184.80M	-333.60M
Financing Cash Flow	-5.80M	-108.00M	-73.70M	-24.30M	164.10M

Medicover AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 216.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MCOV.B, the sentiment is Negative. The current price of 216 is above the 20-day moving average (MA) of 211.80, above the 50-day MA of 211.52, and below the 200-day MA of 242.34, indicating a bearish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 32.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:MCOV.B.

Medicover AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATT	65 Neutral	kr15.49B	11.62	―	1.47%	2.96%	73.50%
AMBEA	63 Neutral	kr10.47B	17.78	13.39%	1.56%	10.83%	16.24%
VIMIAN	63 Neutral	kr13.17B	30.21	4.63%	―	17.13%	―
MCOV.B	56 Neutral	kr31.40B	39.46	―	0.66%	13.89%	231.42%
ASKER	54 Neutral	kr24.23B	63.17	―	―	―	―
HUM	52 Neutral	kr2.37B	10.62	7.53%	2.01%	2.11%	92.69%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Medicover AB Corporate Events

Medicover Delivers Strong 2025 Growth With Sharply Higher Profit and Dividend Hike

Medicover AB reported strong full-year 2025 results, with revenue rising 13.7% to €2.38 billion and organic growth of 12.7%, while operating profit more than doubled and net profit nearly quintupled, lifting margins across the board. The board proposed increasing the dividend to €0.20 per share, supported by a 31% rise in operating cash flow to €343.7 million and sharply higher earnings per share.

Fourth-quarter performance underscored the momentum, as revenue grew 10% and EBIT rose 50%, driven by solid demand in healthcare and diagnostics and robust fee-for-service expansion. Strategic acquisitions, particularly in diagnostics and sports/wellness, along with improving efficiency and growing customer relationships, strengthened Medicover’s market position despite softness in some lines and continued losses from immature hospitals in India and Romania.

The most recent analyst rating on ($SE:MCOV.B) stock is a Buy with a SEK241.00 price target. To see the full list of analyst forecasts on Medicover AB stock, see the SE:MCOV.B Stock Forecast page.

Medicover sets new 2026–2028 growth and margin targets

Medicover has set new financial targets for 2026–2028, aiming to grow organic revenue to more than €3.25 billion and organic adjusted EBITDA to above €600 million by 2028. The company plans to maintain net debt at or below three times adjusted EBITDA over the short term and adopt a dividend payout ratio of up to 50 percent of net profit, signalling a continued balance between growth investment and shareholder returns.

Management highlights Medicover’s strong track record of profitable organic expansion and says it will keep enlarging its network and product range while improving capacity utilisation and pursuing cross-border synergies. The group also intends to accelerate technology initiatives to boost efficiency and care quality, underlining confidence in sustaining margin expansion and reinforcing its positioning in key healthcare markets.

The most recent analyst rating on ($SE:MCOV.B) stock is a Buy with a SEK241.00 price target. To see the full list of analyst forecasts on Medicover AB stock, see the SE:MCOV.B Stock Forecast page.

Medicover Sets Date for Q4 and Year-End 2025 Results Presentation

Medicover AB has scheduled the publication of its year-end and fourth-quarter 2025 results for 10 February, with the report to be released ahead of trading and followed by an English-language conference call for media, analysts and investors later that morning. Chief executive John Stubbington and chief financial officer Anand Patel will present the figures and take questions, with presentation materials made available online, underscoring the company’s efforts to maintain transparent communication with the capital markets as it updates stakeholders on its financial performance and operational progress.

The most recent analyst rating on ($SE:MCOV.B) stock is a Buy with a SEK241.00 price target. To see the full list of analyst forecasts on Medicover AB stock, see the SE:MCOV.B Stock Forecast page.

Medicover Schedules February 2026 Investor Update in Stockholm

Medicover AB will host an Investor Update in Stockholm on 11 February 2026, where its CEO and CFO will brief investors, analysts and media on the group’s strategy, business performance and key priorities. The English-language event, which will be held both in person and via webcast, underscores the company’s efforts to maintain transparency with capital markets and may provide fresh insight into its operational trajectory and strategic positioning across its core healthcare and diagnostics markets.

The most recent analyst rating on ($SE:MCOV.B) stock is a Hold with a SEK234.00 price target. To see the full list of analyst forecasts on Medicover AB stock, see the SE:MCOV.B Stock Forecast page.