Munters Group AB (MTRS) AI Stock Analysis

• Market Cap: kr31.29B
• Dividend Yield: 0.93%
• Average Volume (3M): 482.02K
• Price to Earnings (P/E): 105.3
• Beta (1Y): 1.51
• Revenue Growth: 4.97%
• EPS Growth: -65.71%
• Country: SE
• Employees: 4,999
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 1.05
• Shares Outstanding: 184,457,810
• 10 Day Avg. Volume: 374,483
• 30 Day Avg. Volume: 482,025
• PEG Ratio: 1.46
• Price to Book (P/B): 5.76
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 25.98
• 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: kr176.67
• Price Target Upside: 3.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: kr189.00 ▲(10.92% Upside)

Munters Group AB's stock is supported by strong technical momentum and solid growth in key segments like Data Center Technologies and FoodTech. However, the high P/E ratio and challenges in AirTech, along with increased leverage, weigh on the valuation and financial performance. The company's strategic initiatives and cost-saving measures provide a balanced outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and market expansion, particularly in sectors like Data Center Technologies and FoodTech, supporting long-term business sustainability.

Order Intake and Growth

Significant order intake growth reflects strong market demand and effective sales strategies, enhancing future revenue potential and market position.

Cash Flow Improvement

Improved cash generation capabilities provide financial flexibility for strategic investments and debt management, supporting long-term operational stability.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate rising operational costs and pricing pressures, which may impact long-term profitability if not addressed.

Increased Leverage

Higher leverage can strain financial resources and limit flexibility, posing a risk to long-term financial health and stability.

Challenges in AirTech

Persistent challenges in AirTech could hinder growth and profitability, requiring strategic adjustments to maintain competitive advantage and market relevance.

Munters Group AB Business Overview & Revenue Model

Company Description

Munters Group AB (MTRS) is a global leader in climate solutions, specializing in energy-efficient products and services that optimize air and water management across various industries. With a focus on sustainable solutions, the company operates primarily in two sectors: AirTech, which provides innovative solutions for air treatment and dehumidification, and FoodTech, which offers solutions for food preservation and processing. Munters' core products include industrial dehumidifiers, evaporative cooling systems, and air filtration systems, tailored to enhance productivity and sustainability in sectors such as agriculture, pharmaceuticals, and industrial manufacturing.

How the Company Makes Money

Munters Group AB generates revenue through the sale of its products and services within its two main sectors: AirTech and FoodTech. The company makes money by offering a range of climate control solutions that cater to specific industry needs, which include high-margin equipment sales and service contracts for maintenance and support. Key revenue streams include direct sales of climate control systems, installation services, and ongoing customer support and maintenance contracts. Additionally, Munters benefits from strategic partnerships with manufacturers and distributors in various sectors, enhancing its market reach and enabling access to new customer bases. The company's commitment to innovation and sustainability also positions it favorably in the growing market for energy-efficient solutions, further contributing to its earnings.

Munters Group AB Financial Statement Overview

Summary

Munters Group AB shows strong revenue growth and cash flow improvements, but faces challenges with declining profit margins and increased leverage. The company needs to focus on enhancing profitability and managing debt levels to ensure long-term financial stability.

Income Statement

Munters Group AB shows a strong revenue growth rate of 24% TTM, indicating robust demand and expansion. However, the net profit margin has decreased to 2.38% TTM from 6.30% in the previous year, suggesting pressure on profitability. The gross profit margin remains healthy at 33.18% TTM, but the decline in EBIT and EBITDA margins to 10.35% and 15.14% TTM, respectively, highlights increased operational costs.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.64 TTM, indicating higher leverage and potential financial risk. Return on equity has decreased to 6.77% TTM, reflecting reduced profitability on shareholders' investments. The equity ratio stands at 23.98% TTM, suggesting moderate financial stability but room for improvement in asset financing.

Cash Flow

Free cash flow growth is strong at 37.04% TTM, showing improved cash generation capabilities. However, the operating cash flow to net income ratio is relatively low at 0.22 TTM, indicating potential challenges in converting income into cash. The free cash flow to net income ratio of 0.38 TTM suggests moderate efficiency in cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.48B	15.45B	13.93B	10.39B	7.35B	7.01B
Gross Profit	4.99B	5.32B	4.42B	3.02B	2.35B	2.35B
EBITDA	2.23B	2.50B	2.08B	1.24B	1.03B	1.01B
Net Income	297.00M	973.00M	784.00M	577.00M	513.00M	420.00M
Balance Sheet
Total Assets	21.14B	21.98B	16.73B	15.42B	10.74B	9.57B
Cash, Cash Equivalents and Short-Term Investments	2.42B	1.53B	1.53B	914.00M	674.00M	970.00M
Total Debt	8.85B	7.60B	5.85B	4.50B	2.75B	2.79B
Total Liabilities	16.06B	16.07B	11.47B	10.11B	6.38B	5.82B
Stockholders Equity	5.07B	5.89B	5.26B	5.30B	4.36B	3.75B
Cash Flow
Free Cash Flow	925.00M	1.31B	396.00M	233.00M	177.00M	760.00M
Operating Cash Flow	1.80B	2.37B	1.07B	772.00M	519.00M	977.00M
Investing Cash Flow	-2.13B	-2.87B	-1.42B	-1.33B	-341.00M	-209.00M
Financing Cash Flow	1.41B	467.00M	1.01B	743.00M	-503.00M	-481.00M

Munters Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 170.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MTRS, the sentiment is Positive. The current price of 170.4 is below the 20-day moving average (MA) of 173.72, above the 50-day MA of 159.30, and above the 200-day MA of 133.54, indicating a neutral trend. The MACD of 4.60 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 6.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:MTRS.

Munters Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYSR	74 Outperform	kr18.12B	26.22	11.96%	1.55%	2.11%	13.90%
MTRS	70 Outperform	kr31.29B	105.29	13.34%	0.93%	4.97%	-65.71%
NMAN	66 Neutral	kr5.83B	19.71	―	2.41%	2.05%	-11.66%
ALIG	65 Neutral	kr15.36B	21.81	9.59%	2.09%	-1.74%	26.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BUFAB	62 Neutral	kr19.39B	32.89	15.33%	1.03%	-1.37%	14.78%
LIAB	57 Neutral	kr15.84B	29.24	7.36%	2.61%	-1.96%	-19.69%

Munters Group AB Corporate Events

Munters Secures Record $215 Million Order for Data Center Equipment

Munters Group AB has secured record orders worth approximately 215 million USD from a US hyperscaler for its Data Center Technologies business area. This significant order, the largest from a single customer, involves the deployment of custom-designed Computer Room Air Handlers across multiple US data centers from late 2026 to early 2028, highlighting Munters’ strong industry positioning and capability to support high-density AI facilities.

Munters Group AB Reports Strong Growth Amid Strategic Initiatives

Munters Group AB reported a strong performance for the January-September 2025 period, with a 57% increase in order intake and a 17% rise in net sales. The growth was driven by high demand in Data Center Technologies and FoodTech, despite challenges in AirTech. The company is implementing cost adjustments and efficiency initiatives in AirTech to address market challenges, aiming for significant cost savings by the end of 2026. Munters is also expanding its digital platform in FoodTech and enhancing its market position through strategic acquisitions and partnerships, positioning itself well for future growth.