Midsummer AB (MIDS) AI Stock Analysis

• Market Cap: €819.78M
• Dividend Yield: N/A
• Average Volume (3M): 751.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 87.43%
• EPS Growth: 64.20%
• Country: SE
• Employees: 127
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -0.06
• Shares Outstanding: 337,358,500
• 10 Day Avg. Volume: 1,001,524
• 30 Day Avg. Volume: 751,278
• PEG Ratio: 0.03
• Price to Book (P/B): 3.99
• Price to Sales (P/S): 5.76
• P/FCF Ratio: -4.24
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: kr1.50 ▼(-9.09% Downside)

Midsummer AB's overall stock score is primarily driven by its financial performance challenges, including high leverage and negative profitability. Technical analysis further indicates bearish momentum, while the valuation is unattractive due to negative earnings and no dividend yield. The lack of earnings call and corporate events data did not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and increasing demand for Midsummer AB's solar products, supporting long-term business expansion.

Free Cash Flow Growth

Positive free cash flow growth suggests improving cash generation capabilities, which can enhance financial flexibility and support future investments.

Equity Ratio Stability

A stable equity ratio indicates a balanced approach to financing, which can provide resilience against financial volatility and support ongoing operations.

Negative Factors

High Leverage

High leverage increases financial risk and can strain cash flows, potentially limiting the company's ability to invest in growth opportunities.

Negative Profit Margins

Negative profit margins highlight significant cost management issues, which could hinder the company's path to profitability and long-term sustainability.

Negative Operating Cash Flow

Negative operating cash flow indicates challenges in generating sufficient cash from operations, which may impact the company's ability to cover expenses and invest in growth.

Midsummer AB Business Overview & Revenue Model

Company Description

Midsummer AB (MIDS) is a Swedish company specializing in the design and production of innovative solar energy solutions, particularly lightweight and flexible solar panels. Operating primarily in the renewable energy sector, MIDS focuses on providing sustainable energy solutions for residential, commercial, and industrial applications. The company aims to facilitate the transition to a greener energy landscape by offering high-efficiency solar products that are easy to install and integrate into various environments.

How the Company Makes Money

Midsummer AB generates revenue primarily through the sale of its solar panel products, which are marketed to both individual consumers and businesses seeking to adopt renewable energy solutions. The company’s revenue model includes direct sales, licensing of its technology, and potential partnerships with construction firms and energy providers to incorporate its solar solutions into larger projects. Key revenue streams also stem from ongoing maintenance services and support for installed systems, as well as potential government incentives for renewable energy adoption that may enhance customer purchasing decisions. Strategic partnerships with industry stakeholders further contribute to its market reach and financial performance.

Midsummer AB Financial Statement Overview

Summary

Midsummer AB is experiencing robust revenue growth, yet it faces severe profitability and cash flow challenges. High leverage and negative returns on equity further exacerbate financial risks. The company needs to focus on improving operational efficiency and cost management to achieve sustainable profitability and strengthen its financial position.

Income Statement

Midsummer AB's income statement reveals significant challenges. The company has experienced a substantial revenue growth rate of 102.43% in the TTM period, indicating strong top-line growth. However, profitability remains a major concern with negative margins across the board, including a net profit margin of -306.48% and an EBIT margin of -237.85%. These figures suggest that despite growing revenues, the company is struggling to control costs and achieve profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.70 in the TTM period, indicating significant leverage and potential financial risk. The return on equity is deeply negative at -150.78%, reflecting ongoing losses. However, the equity ratio stands at a reasonable level, suggesting some stability in asset financing. Overall, the balance sheet highlights financial strain with high leverage and poor returns.

Cash Flow

Cash flow analysis reveals critical issues, with negative operating and free cash flows. The free cash flow growth rate is positive at 58.58% in the TTM period, but the company is still burning cash, as indicated by the negative operating cash flow to net income ratio of -0.54. The free cash flow to net income ratio of 1.56 suggests that the company is generating some cash relative to its net losses, but overall cash flow management remains a significant challenge.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	99.75M	52.08M	49.63M	53.38M	94.41M	71.95M
Gross Profit	23.73M	2.38M	33.77M	-18.11M	27.30M	54.32M
EBITDA	-54.76M	-96.58M	-128.28M	-34.94M	-70.83M	-49.17M
Net Income	-101.72M	-129.45M	-222.21M	-87.83M	-129.51M	-116.35M
Balance Sheet
Total Assets	486.57M	418.06M	517.56M	469.42M	491.24M	520.39M
Cash, Cash Equivalents and Short-Term Investments	53.05M	8.46M	20.52M	2.39M	159.16M	217.61M
Total Debt	196.81M	247.85M	236.51M	249.92M	212.46M	215.63M
Total Liabilities	358.14M	342.78M	322.90M	285.94M	238.28M	264.46M
Stockholders Equity	128.43M	75.29M	194.65M	183.48M	252.96M	255.93M
Cash Flow
Free Cash Flow	-136.96M	-70.77M	-130.64M	-171.17M	-178.74M	-132.69M
Operating Cash Flow	-105.78M	-8.20M	-71.06M	-101.37M	-63.39M	-79.69M
Investing Cash Flow	-21.58M	-62.57M	-63.90M	-69.80M	-115.35M	-53.00M
Financing Cash Flow	84.56M	58.73M	148.45M	13.47M	118.97M	238.59M

Midsummer AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MIDS, the sentiment is Negative. The current price of 1.65 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.42, and below the 200-day MA of 1.67, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 25.55 is Positive, neither overbought nor oversold. The STOCH value of 18.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:MIDS.

Midsummer AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DORO	64 Neutral	€1.03B	14.97	12.13%	―	6.04%	32.55%
ADVE	62 Neutral	€650.99M	27.79	22.29%	0.61%	27.82%	305.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SIVE	52 Neutral	€1.05B	-7.69	-11.60%	―	24.53%	35.12%
EG7	49 Neutral	kr1.44B	-6.45	―	―	1.74%	-5214.06%
SOLT	40 Neutral	€281.09M	-0.18	-43.66%	―	-19.50%	-141.89%
MIDS	38 Underperform	€819.78M	-6.15	-85.33%	―	87.43%	64.20%

Midsummer AB Corporate Events

Midsummer and Saab Collaborate on Solar Cell Factory in Colombia

Midsummer AB has initiated discussions with Saab to expand production capacity for a solar cell factory in Colombia, as part of Saab’s offset commitment related to its Gripen sale to the country. This collaboration, which includes a Memorandum of Understanding signed in November 2024, aims to establish a factory for thin-film solar cells, leveraging Midsummer’s proprietary technology. The project underscores Midsummer’s scalable production capabilities and aligns with Colombia’s renewable energy goals, potentially enhancing Midsummer’s market presence in the region.

The most recent analyst rating on (SE:MIDS) stock is a Hold with a SEK2.00 price target. To see the full list of analyst forecasts on Midsummer AB stock, see the SE:MIDS Stock Forecast page.