Mekonomen AB (MEKO) AI Stock Analysis

• Market Cap: kr6.18B
• Dividend Yield: 5.15%
• Average Volume (3M): 66.05K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.73
• Revenue Growth: 6.89%
• EPS Growth: 9.91%
• Country: SE
• Employees: 5,616
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Auto - Parts
• EPS (TTM): 0.88
• Shares Outstanding: 56,416,622
• 10 Day Avg. Volume: 36,651
• 30 Day Avg. Volume: 66,050
• PEG Ratio: N/A
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.24
• 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: kr139.99
• Price Target Upside: 27.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: kr120.00 ▲(9.29%Upside)

Mekonomen AB's overall stock score is primarily driven by its strong financial performance, characterized by consistent revenue growth and solid cash flow management. The technical analysis indicates bearish momentum, tempering the score. The reasonable valuation adds a positive aspect, although the absence of impactful earnings call and corporate events data limits further insights.

Mekonomen AB Business Overview & Revenue Model

Company Description

Mekonomen AB (MEKO) is a leading automotive spare parts and service chain in the Nordic region. The company operates through a network of stores and workshops, providing a comprehensive range of automotive products and services. Mekonomen offers spare parts for cars and light trucks, as well as products for vehicle maintenance and repair. The company is committed to delivering high-quality automotive solutions to both consumers and businesses.

How the Company Makes Money

Mekonomen AB generates revenue primarily through the sale of automotive spare parts and accessories, and through its service workshops. The company operates a network of retail stores and affiliated workshops, providing a wide array of automotive products, ranging from essential spare parts to maintenance tools and accessories. Mekonomen's revenue streams include direct sales to consumers, sales to professional workshops, and service fees for vehicle repairs and maintenance. Additionally, the company may have strategic partnerships with automotive manufacturers and suppliers, which enhance its product offerings and market reach. Mekonomen's business model focuses on combining retail sales with professional automotive services, ensuring a steady stream of income from both product sales and service charges.

Mekonomen AB Financial Statement Overview

Summary

Mekonomen AB demonstrates strong financial performance with significant revenue growth and robust profitability margins. The balance sheet is stable with moderate leverage, though high debt levels need attention. Cash flow metrics are impressive, indicating efficient cash generation.

Income Statement

Mekonomen AB has demonstrated strong revenue growth with a compound annual growth rate of approximately 12.3% from 2019 to 2024. The gross profit margin for 2024 stands at 44.7%, reflecting efficient cost management. The net profit margin is stable at 2.3%, but there is room for improvement in net income growth. The EBIT and EBITDA margins are solid, at 4.9% and 10.6%, respectively, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.80 in 2024 illustrates a balanced leverage position, while the return on equity (ROE) is moderate at 6.5%. The equity ratio of 39.1% suggests a healthy proportion of equity financing. However, the considerable total debt level could pose risks if not managed properly.

Cash Flow

Mekonomen AB maintains a strong cash flow position, with a notable free cash flow growth rate of 13.9% from 2023 to 2024. The operating cash flow to net income ratio is robust at 3.18, and the free cash flow to net income ratio is 2.69, indicating effective cash management and the ability to generate cash from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.55B	17.28B	14.39B	12.55B	11.76B
Gross Profit	8.29B	1.16B	6.65B	5.84B	5.45B
EBITDA	1.98B	1.73B	1.52B	1.61B	1.54B
Net Income	433.00M	419.00M	454.00M	572.00M	432.00M
Balance Sheet
Total Assets	16.91B	16.04B	15.77B	13.23B	12.19B
Cash, Cash Equivalents and Short-Term Investments	607.00M	623.00M	741.00M	892.00M	420.00M
Total Debt	5.33B	5.61B	5.84B	4.80B	4.69B
Total Liabilities	10.29B	9.87B	9.85B	8.00B	7.60B
Stockholders Equity	6.62B	6.04B	5.80B	5.17B	4.53B
Cash Flow
Free Cash Flow	1.16B	1.02B	840.00M	1.05B	1.47B
Operating Cash Flow	1.38B	1.25B	1.05B	1.23B	1.63B
Investing Cash Flow	-112.00M	213.00M	-1.53B	-201.00M	-186.00M
Financing Cash Flow	-1.29B	-1.59B	286.00M	-569.00M	-1.34B

Mekonomen AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 109.80
• 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:MEKO, the sentiment is Neutral. The current price of 109.8 is above the 20-day moving average (MA) of 109.11, below the 50-day MA of 113.76, and below the 200-day MA of 124.56, indicating a neutral trend. The MACD of -0.98 indicates Negative momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 72.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:MEKO.

Mekonomen AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVRC	76 Outperform	kr5.13B	17.55	23.17%	2.57%	7.35%	-0.42%
MEKO	71 Outperform	kr6.18B	14.29	6.71%	5.15%	6.89%	9.91%
BULTEN	64 Neutral	kr1.20B	21.87	2.94%	4.80%	-6.33%	-40.22%
BMAX	63 Neutral	kr3.34B	21.66	6.68%	1.32%	4.40%	7603.52%
Sector *	63 Neutral	kr10.72B	19.19	4.75%	4.11%	1.65%	-11.04%
BONG	49 Neutral	kr147.42M	―	-2.25%	―	-6.28%	-6.63%

Mekonomen AB Corporate Events

MEKO AB to Release Q2 2025 Interim Report and Host Conference

MEKO AB announced the release of its Interim Report for the second quarter of 2025, scheduled for July 25. The company will host a webcast and telephone conference on the same day to present the results, led by President and CEO Pehr Oscarson and CFO Christer Johansson. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (SE:MEKO) stock is a Buy with a SEK140.00 price target. To see the full list of analyst forecasts on Mekonomen AB stock, see the SE:MEKO Stock Forecast page.

MEKO AB Completes Successful Bond Tender Offer

MEKO AB has announced the successful results of its tender offer for outstanding senior unsecured bonds, with SEK 731.25 million in bonds tendered and accepted. The settlement of this tender offer coincides with the issuance of new bonds worth SEK 1.25 billion, and MEKO plans to redeem remaining bonds by October 2025, indicating a strategic financial restructuring to enhance its market position.

The most recent analyst rating on (SE:MEKO) stock is a Buy with a SEK140.00 price target. To see the full list of analyst forecasts on Mekonomen AB stock, see the SE:MEKO Stock Forecast page.

MEKO AB Successfully Issues SEK 1.25 Billion in Bonds

MEKO AB has successfully issued senior unsecured bonds amounting to SEK 1.25 billion, with a five-year tenor and a floating interest rate. The proceeds will be used to finance a tender offer for existing bonds and for general corporate purposes, reflecting strong investor confidence in MEKO’s business fundamentals.

The most recent analyst rating on (SE:MEKO) stock is a Buy with a SEK140.00 price target. To see the full list of analyst forecasts on Mekonomen AB stock, see the SE:MEKO Stock Forecast page.

Mekonomen AB Announces Tender Offer and New Note Issuance

Mekonomen AB has announced a tender offer for its outstanding SEK notes, inviting noteholders to tender their notes for purchase by the company. This move is part of Mekonomen’s strategy to actively manage its debt maturities and liability composition. The company plans to issue new SEK denominated senior unsecured notes, with Danske Bank, Nordea, and SEB acting as dealer managers and arrangers. The tender offer is conditional on the successful issuance of these new notes, which will finance the purchase of the tendered notes.

The most recent analyst rating on (SE:MEKO) stock is a Buy with a SEK140.00 price target. To see the full list of analyst forecasts on Mekonomen AB stock, see the SE:MEKO Stock Forecast page.

MEKO AB Announces Key Resolutions at 2025 Annual General Meeting

MEKO AB, a company involved in the automotive industry, held its Annual General Meeting on May 15, 2025, in Stockholm. Key resolutions included the adoption of financial statements for 2024, a dividend of SEK 3.90 per share to be paid in two installments, and amendments to the articles of association regarding the number of board members. The meeting also re-elected board members and introduced a long-term share-based incentive program for key employees. Additionally, the board was authorized to acquire and transfer own shares and issue new shares, enhancing MEKO’s strategic flexibility.

The most recent analyst rating on (SE:MEKO) stock is a Buy with a SEK140.00 price target. To see the full list of analyst forecasts on Mekonomen AB stock, see the SE:MEKO Stock Forecast page.

MEKO AB to Present Q1 2025 Interim Report

MEKO AB announced that it will release its Interim Report for the first quarter of 2025 on May 15, followed by a webcast and telephone conference where the company’s President and CEO, Pehr Oscarson, along with CFO Christer Johansson, will present the results and address questions. This event is part of MEKO’s ongoing efforts to maintain transparency and engage with stakeholders, reflecting its commitment to being a leading partner in the automotive service industry.

The most recent analyst rating on (SE:MEKO) stock is a Buy with a SEK140.00 price target. To see the full list of analyst forecasts on Mekonomen AB stock, see the SE:MEKO Stock Forecast page.