New Wave Group AB Class B (NEWA.B) AI Stock Analysis

• Market Cap: kr16.69B
• Dividend Yield: 2.78%
• Average Volume (3M): 213.94K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.16
• Revenue Growth: 3.68%
• EPS Growth: -11.21%
• Country: SE
• Employees: 2,450
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Specialty Retail
• EPS (TTM): 1.09
• Shares Outstanding: 93,271,730
• 10 Day Avg. Volume: 226,762
• 30 Day Avg. Volume: 213,937
• PEG Ratio: 0.87
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.66
• 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: kr114.80
• Price Target Upside: -8.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: kr138.00 ▲(9.70%Upside)

New Wave Group AB demonstrates strong financial performance and positive technical indicators, driving a bullish outlook. The company's valuation is reasonable, enhancing its attractiveness. Despite past cash flow challenges, recent improvements highlight ongoing financial robustness.

New Wave Group AB Class B Business Overview & Revenue Model

Company Description

New Wave Group AB (publ) designs, acquires, and develops brands and products in the corporate, sports, gifts, and home furnishings sectors in Sweden, the United States, Central Europe, rest of Nordiac countries, Southern Europe, and internationally. The company operates through segments: Corporate, Sports & Leisure, and Gifts & Home Furnishings. The Corporate segment offers promo wear products, such as clothes for printing and embroidery, as well as leisure, work, and sports clothes; promotional gifts, including pens, power banks, gift cards, bags, bed linens, and towels; and a range of work wear products comprising underwear, outer garments, reflective clothing, flame protective, and accessories for professional categories, which consist of construction and installation workers, painters and plasterers, transport and service, and hotel and restaurant workers. This segment offers its products under the D.A.D Sportswear, Hurricane, No Problems, BAGSFIRST, James Harvest Sportswear, Jingham, Mac One, Printer, Cottover, Clique, d-vice, Queen Anne, Toppoint, Grizzly, J. Harvest & Frost, Jobman, Graphix, Derby of Sweden, and ProJob brands. The Sports & Leisure segment provides clothes and shoes for sports, golf, hunting, fishing, shoe, and fashion trade under the Cutter & Buck, ANNIKA, Craft, Clique, AHEAD, Kate Lord, Paris Glove, Auclair, Laurentide, Seger, Termo Original, PAX, Marstrand, Sköna Marie, and Speedo brands. The Gifts & Home Furnishings segment offers gifts and home furnishing products under the Orrefors, Kosta Förlag, Lord Nelson Victory, Lord Nelson, Orrefors Hunting, Orrefors Jernverk, Nightingale, Queen Anne, Kosta Linnewäfveri, Kosta Boda, Kosta Boda Art Hotel, Kosta Lodge, ByOn, Victorian, VAKINME, and Sagaform brands. New Wave Group AB (publ) was incorporated in 1989 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

New Wave Group AB generates revenue through the sale of its diversified product lines across multiple sectors. The company's key revenue streams include corporate promotional products, which are sold to businesses looking to enhance their brand visibility; sports and leisure products, which include branded apparel and equipment sold to both retailers and directly to consumers; and gifts and home furnishings, which are distributed through various retail channels. New Wave Group's earnings are further supported by strategic partnerships with well-known brands and an extensive distribution network that spans multiple countries, enabling it to reach a broad customer base. Additionally, the company's investment in innovation and quality helps maintain competitive pricing and customer loyalty, contributing to its revenue growth.

New Wave Group AB Class B Financial Statement Overview

Summary

New Wave Group AB shows robust financial performance with consistent revenue growth and strong profit margins. The balance sheet is solid with reduced leverage and improved equity position, indicating financial stability. Cash flow management has improved, though past challenges require attention.

Income Statement

New Wave Group AB shows a positive revenue growth trend over the years, with a notable increase from 2020 to 2023. However, the growth slowed slightly in 2024. The company maintains solid gross and net profit margins, though the net profit margin decreased in 2024. Both EBIT and EBITDA margins are strong, indicating efficient operations.

Balance Sheet

The balance sheet reflects a strong financial position with increasing stockholders' equity and a notable decrease in total debt by 2024. The Debt-to-Equity ratio has improved significantly, indicating reduced leverage. The equity ratio is robust, showing a stable asset base funded by equity. The company's financial stability is a strong point.

Cash Flow

Operating cash flow has improved over time, with a substantial free cash flow growth observed in 2024. However, free cash flow was negative in 2022, indicating previous cash flow management challenges. The cash flow to net income ratios suggest adequate cash generation relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.72B	9.53B	9.51B	8.84B	6.72B	6.10B
	Gross Profit
3.93B	4.71B	4.78B	4.38B	3.23B	2.64B
	EBIT
1.29B	1.26B	1.58B	1.51B	1.01B	545.90M
	EBITDA
1.61B	1.59B	1.85B	1.76B	1.24B	791.50M
	Net Income Common Stockholders
903.10M	880.40M	1.12B	1.17B	760.30M	365.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
448.00M	545.80M	372.60M	419.40M	327.90M	325.10M
	Total Assets
10.85B	11.33B	10.74B	10.94B	7.66B	7.22B
	Total Debt
0.00	2.36B	2.40B	2.75B	1.40B	2.14B
	Net Debt
-448.00M	1.82B	2.03B	2.33B	1.07B	1.82B
	Total Liabilities
3.93B	4.11B	4.28B	5.05B	3.09B	3.36B
	Stockholders Equity
6.92B	7.22B	6.46B	5.89B	4.57B	3.85B
Cash Flow		Free Cash Flow
963.20M	968.60M	728.90M	-494.20M	1.08B	1.15B
	Operating Cash Flow
1.29B	1.28B	963.80M	-360.00M	1.21B	1.21B
	Investing Cash Flow
-331.00M	-296.80M	-220.90M	-522.20M	-114.20M	-57.50M
	Financing Cash Flow
-957.00M	-830.10M	-785.40M	934.10M	-1.11B	-1.16B

New Wave Group AB Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NEWA.B, the sentiment is Positive. The current price of 125.8 is above the 20-day moving average (MA) of 119.66, above the 50-day MA of 108.21, and above the 200-day MA of 104.17, indicating a bullish trend. The MACD of 3.52 indicates Negative momentum. The RSI at 71.83 is Negative, neither overbought nor oversold. The STOCH value of 87.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:NEWA.B.

New Wave Group AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEWA.B	78 Outperform	kr16.69B	18.46	12.85%	2.78%	3.68%	-11.21%
RVRC	74 Outperform	kr4.97B	17.02	23.17%	2.65%	7.35%	-0.42%
BORG	74 Outperform	kr1.44B	16.49	22.33%	5.24%	14.83%	20.70%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
FOI.B	60 Neutral	$7.51B	82.50	2.00%	4.84%	-6.37%	-72.36%
BOOZT	59 Neutral	kr5.34B	15.97		―	5.58%	―
BOAT	52 Neutral	€524.47M	―	-9.23%	―	-18.61%	-290.93%