Mekonomen AB (MEKO) AI Stock Analysis

• Market Cap: kr3.58B
• Dividend Yield: 5.42%
• Average Volume (3M): 293.46K
• Price to Earnings (P/E): 113.0
• Beta (1Y): 0.53
• Revenue Growth: 2.16%
• EPS Growth: -90.31%
• Country: SE
• Employees: 5,616
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.19
• Shares Outstanding: 56,416,622
• 10 Day Avg. Volume: 156,502
• 30 Day Avg. Volume: 293,463
• PEG Ratio: -1.23
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 5.08
• 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): 9.69
• Revenue Forecast (FY): kr18.64B

• Rating: 47 Neutral
• Price Target: kr70.00 ▲(0.00% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by the sharp 2025 profitability decline and higher leverage risk, with additional pressure from weak technical momentum (below key moving averages, negative MACD). Resilient free cash flow and a high dividend yield provide partial support, but the very high P/E limits the valuation outlook.

Positive Factors

Resilient free cash flow

Consistent positive free cash flow across 2023–2025 demonstrates the business can generate cash even amid earnings volatility. That durability supports dividend payments, working capital and selective capex, and provides a buffer to deleverage or fund strategic initiatives without immediate reliance on external financing.

Scale in parts distribution & workshops

Mekonomen’s integrated wholesale distribution plus owned/affiliated workshop concepts creates recurring B2B flows and captive parts demand. This structural network gives purchasing scale, logistics efficiency, and recurring service revenue, supporting margin resilience and competitive positioning over the medium term.

Track record of multi-year revenue growth

Several years of revenue expansion prior to 2025 indicate the company successfully scaled market share and distribution reach. That historical growth shows the business model can capture demand and suggests structural capabilities (sales, logistics, network effects) that can support recovery if cyclical or one-off pressures abate.

Negative Factors

Sharp 2025 profitability collapse

A dramatic fall in reported profitability materially weakens retained earnings and operating leverage. If margins remain depressed, the company may face reduced reinvestment capacity, pressure on dividend sustainability and impaired ability to fund strategy internally, increasing reliance on cost reductions or external capital.

Rising leverage and weaker equity base

A sharp increase in debt alongside falling equity raises financial risk and interest burden just as profits weakened. Higher leverage reduces flexibility for strategic investments, increases refinancing and covenant risk, and magnifies downside from further operational setbacks over the next several quarters.

2025 revenue decline and margin pressure

Material top-line contraction reduces scope for fixed-cost absorption and weakens bargaining power with suppliers. Sustained revenue declines would erode workshop volumes and parts turnover, compress gross margins and hinder the network economics that historically supported profitability and cash generation.

Mekonomen AB Business Overview & Revenue Model

Company Description

Meko AB (publ) operates in the automotive aftermarket business in Sweden, Norway, Denmark, Poland, Estonia, Latvia, Lithuania, and Finland. It provides spare parts, consumables, and tools, as well as workshop services and car accessories under the ProMeister and Carwise brands. The company offers a range of solutions and products for the consumers and companies through its branches, affiliated workshops, and wholesale and logistics operations. It serves customers under the AutoMester, AlltiBil, BilXtra, CarPeople, Din Bilpartner, Hella Servicepartner, Inter Data Service, MECA BIlservice, Mekonomen Bilverkstad, MekoPartner, O.K. Serwis, and Speedy brands. The company was formerly known as Mekonomen AB (publ) and changed its name to Meko AB (publ) in May 2022. Meko AB (publ) was founded in 1973 and is based in Stockholm, Sweden.

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

Cash flow remains resilient (2025 operating cash flow 1.0B and free cash flow 0.8B), but 2025 shows a sharp deterioration in profitability (net income down to 36M from 433M in 2024) alongside a notable rise in debt (8.9B vs 5.3B) and lower equity, increasing financial risk.

Income Statement

Revenue expanded strongly from 2021–2024, but 2025 shows a sharp reversal with revenue down materially and profitability compressing: EBIT fell to 500M and net income dropped to just 36M versus 433M in 2024. While prior years showed relatively steady operating profitability (EBIT margin around ~5% in 2022–2024), the latest year indicates meaningful margin pressure and weaker earnings quality. Strength: multi-year revenue growth into 2024; Weakness: significant 2025 earnings deterioration and higher volatility.

Balance Sheet

Leverage has been moderate historically (debt-to-equity roughly ~0.8–1.0 in 2020–2024), with equity generally stable. However, 2025 debt rose sharply to 8.9B from 5.3B in 2024 while equity declined to 5.9B, increasing balance-sheet risk and reducing financial flexibility. Strength: previously reasonable leverage profile; Weakness: recent jump in debt and declining equity signal higher risk if weaker profits persist.

Cash Flow

Cash generation has been a relative bright spot: operating cash flow remained solid across the period and was 1.0B in 2025, with free cash flow at 0.8B and positive free-cash-flow growth in 2023–2025. In 2022–2024, free cash flow was consistently close to reported earnings, supporting earnings quality. Strength: resilient free cash flow even in a weaker 2025; Weakness: cash flow coverage metrics provided are modest, and the 2025 profit collapse raises the importance of sustaining cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.37B	18.55B	17.28B	14.39B	12.55B
Gross Profit	7.88B	8.29B	1.16B	6.65B	5.84B
EBITDA	1.50B	1.98B	1.73B	1.52B	1.61B
Net Income	36.00M	433.00M	419.00M	454.00M	572.00M
Balance Sheet
Total Assets	17.52B	16.91B	16.04B	15.77B	13.23B
Cash, Cash Equivalents and Short-Term Investments	566.00M	607.00M	623.00M	741.00M	892.00M
Total Debt	8.90B	5.33B	5.61B	5.84B	4.80B
Total Liabilities	11.51B	10.29B	9.87B	9.85B	8.00B
Stockholders Equity	5.86B	6.45B	6.04B	5.80B	5.17B
Cash Flow
Free Cash Flow	800.00M	1.16B	1.02B	840.00M	1.05B
Operating Cash Flow	1.01B	1.38B	1.25B	1.05B	1.23B
Investing Cash Flow	-280.00M	-112.00M	213.00M	-1.53B	-201.00M
Financing Cash Flow	-737.00M	-1.29B	-1.59B	286.00M	-569.00M

Mekonomen AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 70.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 70 is above the 20-day moving average (MA) of 67.80, above the 50-day MA of 69.82, and below the 200-day MA of 82.66, indicating a bearish trend. The MACD of -1.64 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 27.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:MEKO.

Mekonomen AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NELLY	71 Outperform	kr3.84B	13.97	51.02%	―	12.45%	118.98%
BORG	70 Outperform	kr1.61B	17.16	23.44%	4.95%	9.20%	11.72%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BMAX	61 Neutral	kr3.65B	16.85	7.24%	1.40%	4.04%	433.33%
BILI.A	58 Neutral	kr11.08B	13.69	15.18%	4.43%	3.59%	0.80%
BULTEN	48 Neutral	kr877.30M	-98.07	-0.32%	5.49%	-10.68%	-103.85%
MEKO	47 Neutral	kr3.58B	112.96	0.68%	5.42%	2.16%	-90.31%

Mekonomen AB Corporate Events

MEKO Sets Date for 2025 Year-End Report and Investor Presentation

MEKO AB will publish its year-end report for 2025 on 12 February at 07:30 CET, followed by an English-language webcast and telephone conference at 09:00 CET where President and CEO Pehr Oscarson and CFO Christer Johansson will present the financial results and take questions from investors and analysts. Presentation materials and a replay of the conference will be made available in the Investors section of the company’s website, underlining MEKO’s efforts to maintain transparent communication with the market and provide stakeholders with detailed insight into its performance and strategic direction.

The most recent analyst rating on (SE:MEKO) stock is a Buy with a SEK100.00 price target. To see the full list of analyst forecasts on Mekonomen AB stock, see the SE:MEKO Stock Forecast page.

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.