Mekonomen AB (MEKO) AI Stock Analysis

• Market Cap: kr4.08B
• Dividend Yield: 5.42%
• Average Volume (3M): 293.46K
• Price to Earnings (P/E): 96.4
• Beta (1Y): 0.61
• Revenue Growth: 2.16%
• EPS Growth: -90.31%
• Country: SE
• Employees: 5,616
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.10
• Shares Outstanding: 56,416,622
• 10 Day Avg. Volume: 156,502
• 30 Day Avg. Volume: 293,463
• PEG Ratio: 5.40
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 6.44
• 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: kr100.00
• Price Target Upside: 42.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: kr78.00 ▲(11.43% Upside)

Mekonomen AB's overall stock score reflects a stable financial position with strong cash flow, but concerns over revenue pressure and high leverage. Technical analysis suggests potential bearish trends, and the high P/E ratio indicates overvaluation, partially offset by a solid dividend yield.

Mekonomen AB Business Overview & Revenue Model

Company Description

Mekonomen AB (MEKO) is a leading automotive aftermarket company based in Sweden, specializing in the sale of spare parts, accessories, and services for vehicles. The company operates through various segments, including retail, wholesale, and workshops, catering to both consumers and professional customers. Mekonomen offers a wide range of products, including automotive components, tools, and maintenance services through its extensive network of stores and workshops across the Nordic region.

How the Company Makes Money

Mekonomen generates revenue primarily through the sale of automotive parts and accessories, as well as through the provision of repair and maintenance services in its workshops. Its revenue model includes direct sales to consumers and businesses, as well as wholesale distribution to independent workshops. Key revenue streams include retail sales from physical stores and e-commerce platforms, service fees from workshops, and partnerships with suppliers that provide exclusive products. Additionally, Mekonomen benefits from loyalty programs and promotional campaigns that drive customer retention and increase sales volume, contributing significantly to its earnings.

Mekonomen AB Financial Statement Overview

Summary

Mekonomen AB's financial statements reflect challenges in revenue growth and cash flow generation, with moderate profitability and increased leverage. The stable gross profit margin is a positive, but the decline in net profit margin and cash flow metrics highlight areas for improvement.

Income Statement

Mekonomen AB's income statement shows a mixed performance. The TTM data reveals a decline in revenue growth rate at -0.92%, indicating a potential slowdown in sales. Gross profit margin is healthy at 44.29%, but net profit margin has decreased to 1.42%, reflecting pressure on profitability. EBIT and EBITDA margins are moderate, suggesting operational efficiency but with room for improvement.

Balance Sheet

The balance sheet indicates a stable yet cautious financial position. The debt-to-equity ratio has increased to 1.19 in TTM, suggesting higher leverage which could pose risks if not managed carefully. Return on equity is modest at 4.18%, indicating moderate efficiency in generating profits from shareholders' equity. The equity ratio stands at 32.76%, showing a balanced asset financing structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -32.96% in TTM. The operating cash flow to net income ratio is low at 0.13, indicating potential issues in cash generation relative to reported profits. The free cash flow to net income ratio is 0.62, suggesting that a portion of net income is not translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.44B	18.55B	17.28B	14.39B	12.55B	11.76B
Gross Profit	7.94B	8.29B	1.16B	6.65B	5.84B	5.45B
EBITDA	1.54B	1.98B	1.73B	1.52B	1.61B	1.54B
Net Income	42.00M	433.00M	419.00M	454.00M	572.00M	432.00M
Balance Sheet
Total Assets	18.13B	16.91B	16.04B	15.77B	13.23B	12.19B
Cash, Cash Equivalents and Short-Term Investments	505.00M	607.00M	623.00M	741.00M	892.00M	420.00M
Total Debt	6.52B	5.33B	5.61B	5.84B	4.80B	4.69B
Total Liabilities	12.01B	10.29B	9.87B	9.85B	8.00B	7.60B
Stockholders Equity	5.97B	6.45B	6.04B	5.80B	5.17B	4.53B
Cash Flow
Free Cash Flow	711.00M	1.16B	1.02B	840.00M	1.05B	1.47B
Operating Cash Flow	1.02B	1.38B	1.25B	1.05B	1.23B	1.63B
Investing Cash Flow	-299.00M	-112.00M	213.00M	-1.53B	-201.00M	-186.00M
Financing Cash Flow	-957.00M	-1.29B	-1.59B	286.00M	-569.00M	-1.34B

Mekonomen AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.00
• 50DMA: Positive
• 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 Positive. The current price of 70 is below the 20-day moving average (MA) of 71.36, below the 50-day MA of 72.24, and below the 200-day MA of 91.57, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 75.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:MEKO.

Mekonomen AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NELLY	72 Outperform	kr3.42B	23.03	51.02%	―	12.45%	118.98%
BILI.A	69 Neutral	kr12.18B	17.03	15.18%	4.43%	3.59%	0.80%
BORG	69 Neutral	kr1.50B	17.34	23.44%	4.95%	9.20%	11.72%
BMAX	65 Neutral	kr3.32B	18.85	7.24%	1.40%	4.04%	433.33%
BULTEN	62 Neutral	kr1.08B	-174.89	-0.32%	5.49%	-10.68%	-103.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MEKO	61 Neutral	kr4.08B	96.42	0.68%	5.42%	2.16%	-90.31%

Mekonomen AB Corporate Events

MEKO Expands Group Management to Boost Market Position

MEKO is enhancing its Group management by incorporating new members and expanding existing roles to improve decision-making, profitability, and market position. This strategic move aims to bolster MEKO’s performance, efficiency, and growth in a competitive market by integrating entrepreneurially driven local leaders into the management team, thus broadening the company’s commercial focus and strengthening cross-group initiatives.

The most recent analyst rating on (SE:MEKO) stock is a Hold with a SEK78.00 price target. To see the full list of analyst forecasts on Mekonomen AB stock, see the SE:MEKO Stock Forecast page.

MEKO AB to Release Q3 2025 Interim Report

MEKO AB announced the release of its Interim Report for the third quarter of 2025, scheduled for November 13. The report will be presented in a webcast and telephone conference by CEO Pehr Oscarson and CFO Christer Johansson, providing insights into the company’s financial performance and strategic direction.

The most recent analyst rating on (SE:MEKO) stock is a Buy with a SEK105.00 price target. To see the full list of analyst forecasts on Mekonomen AB stock, see the SE:MEKO Stock Forecast page.