Midsummer AB (MIDS) AI Stock Analysis

• Market Cap: kr465.55M
• Dividend Yield: N/A
• Average Volume (3M): 751.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: kr1.50 ▲(10.29% Upside)

Midsummer AB's overall stock score reflects significant financial and technical challenges. The company's weak financial performance, characterized by high leverage and poor profitability, is the most significant factor. Technical analysis further indicates bearish sentiment with oversold conditions. Valuation concerns, including a negative P/E ratio, add to the risk profile, making the stock less attractive to investors.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong demand for Midsummer AB's solar products, suggesting a solid market position and potential for future expansion.

Product Innovation

Midsummer AB's focus on innovative solar solutions positions it well in the growing renewable energy sector, enhancing its competitive advantage and market appeal.

Market Position

Operating in the renewable energy sector aligns Midsummer AB with global trends towards sustainability, providing long-term growth opportunities as demand for clean energy increases.

Negative Factors

Profitability Challenges

The significant negative profit margin indicates ongoing profitability challenges, which could hinder reinvestment and growth efforts if not addressed.

High Leverage

High leverage suggests financial risk, potentially limiting Midsummer AB's ability to finance new projects or weather economic downturns without restructuring.

Cash Flow Issues

Negative cash flow growth indicates reliance on external financing, which could strain resources and affect the company's ability to sustain operations long-term.

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 shows strong revenue growth but faces severe profitability and cash flow challenges. High leverage and negative returns on equity further exacerbate financial risks. The company needs to improve operational efficiency and cost management to achieve sustainable profitability.

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	117.11M	52.08M	49.63M	53.38M	94.41M	71.95M
Gross Profit	18.70M	2.38M	33.77M	-18.11M	27.30M	54.32M
EBITDA	-76.62M	-96.58M	-128.28M	-34.94M	-70.83M	-49.17M
Net Income	-110.33M	-129.45M	-222.21M	-87.83M	-129.51M	-116.35M
Balance Sheet
Total Assets	423.20M	418.06M	517.56M	469.42M	491.24M	520.39M
Cash, Cash Equivalents and Short-Term Investments	24.20M	8.46M	20.52M	2.39M	159.16M	217.61M
Total Debt	194.50M	247.85M	236.51M	249.92M	212.46M	215.63M
Total Liabilities	313.58M	342.78M	322.90M	285.94M	238.28M	264.46M
Stockholders Equity	109.62M	75.29M	194.65M	183.48M	252.96M	255.93M
Cash Flow
Free Cash Flow	-116.16M	-70.77M	-130.64M	-171.17M	-178.74M	-132.69M
Operating Cash Flow	-78.13M	-8.20M	-71.06M	-101.37M	-63.39M	-79.69M
Investing Cash Flow	-28.43M	-62.57M	-63.90M	-69.80M	-115.35M	-53.00M
Financing Cash Flow	92.07M	58.73M	148.45M	13.47M	118.97M	238.59M

Midsummer AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

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 1.36 is below the 20-day moving average (MA) of 1.49, below the 50-day MA of 2.03, and below the 200-day MA of 1.71, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 29.48 is Positive, neither overbought nor oversold. The STOCH value of 79.04 is Neutral, 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
ADVE	63 Neutral	kr820.78M	35.04	22.29%	0.48%	27.82%	305.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SIVE	52 Neutral	kr1.23B	-9.05	-11.60%	―	24.53%	35.12%
EG7	49 Neutral	kr1.22B	-7.03	―	―	1.74%	-5214.06%
SOLT	42 Neutral	kr211.91M	-0.13	-46.09%	―	-24.54%	-102.75%
MIDS	39 Underperform	kr465.55M	-3.43	-105.89%	―	87.43%	64.20%

Midsummer AB Corporate Events

Midsummer AB to Hold Extraordinary General Meeting on Share Proposals

Midsummer AB has announced an extraordinary general meeting scheduled for December 23, 2025, to discuss several proposals including a rights issue of shares. The meeting will address resolutions that could impact the company’s share capital and shareholder structure, potentially affecting its financial strategy and market positioning.

Midsummer to Equip Colombian Solar Plant as Part of Saab’s Offset Commitment

Midsummer has announced its role in supplying production equipment for a solar plant in Colombia, which is part of Saab’s offset commitment related to the Gripen jet fighter sale. This facility will serve as a production hub for the Latin American market, with an initial order of 15 MW capacity equipment from Saab, gradually expanding to at least 100 MW. This strategic move positions Midsummer to enhance its footprint in the Latin American solar market, potentially increasing its influence and market share in the region.

Midsummer AB Announces SEK 175 Million Rights Issue and Debt Conversion for Expansion

Midsummer AB has announced a fully guaranteed rights issue of approximately SEK 175 million and reached an agreement on debt conversion to strengthen its financial position. This move is aimed at capitalizing on strong market demand and expanding its operations, particularly in Colombia, where the company plans to deliver production equipment for a solar cell factory with a capacity of 100 MW to 200 MW. The expansion in Colombia is part of a collaboration with Saab and represents a significant increase from a previous order, positioning Midsummer for growth and profitability.

Midsummer Expands into Latin America with New Colombian Subsidiary

Midsummer AB has established a subsidiary in Colombia to tap into the growing Latin American market for solar energy. The new subsidiary, Midsummer Colombia SAS, will focus on sales and business development in the region, leveraging Colombia’s high electricity prices, solar radiation, and incentives for renewable energy. The company’s lightweight solar panels are particularly suited for the region’s weak roofs, with a market potential of over 21 GW in Colombia alone. The expansion is expected to enhance Midsummer’s market positioning and drive future growth, with several installations already confirmed and a promising pipeline for 2026.

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.