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

• Market Cap: kr13.05B
• Dividend Yield: 3.12%
• Average Volume (3M): 113.78K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.89
• Revenue Growth: 2.80%
• EPS Growth: -8.84%
• Country: SE
• Employees: 2,450
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 2.31
• Shares Outstanding: 93,271,730
• 10 Day Avg. Volume: 104,815
• 30 Day Avg. Volume: 113,784
• PEG Ratio: -1.76
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 389.90
• 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: kr122.00
• Price Target Upside: 8.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 7.64
• Revenue Forecast (FY): kr11.06B

• Rating: 52 Neutral
• Price Target: kr105.00 ▼(-6.58% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is held back primarily by 2025 financial deterioration—especially the sharp drop in cash generation—and a clear technical downtrend. Valuation is a partial offset, supported by a moderate P/E and a solid dividend yield.

Positive Factors

Diversified B2B and retail product portfolio

A multi-segment product mix and multi-channel distribution (B2B resellers, corporate customers, retail) reduces dependence on any single end market. That structural diversification supports steadier revenue, cross-selling, and resilience across demand cycles over the medium term.

Long-term revenue growth trend

Sustained top-line growth over multiple years indicates the company can expand sales organically or via brand rollouts. Durable revenue momentum supports scale economics, supplier leverage and reinvestment capacity, helping maintain competitive positioning over the next several quarters.

Historically solid profitability and stable balance sheet

Consistent returns on shareholder capital and substantial equity versus assets provide a financial cushion. A generally stable balance sheet and moderate historical leverage support strategic flexibility, dividend capacity and resilience to cyclical stress if operating performance stabilizes.

Negative Factors

Sharp deterioration in cash generation (2025)

A collapse in operating and free cash flow materially reduces internal funding for inventory, capex and dividends. Poor cash conversion signals working-capital or margin issues that can persist, increasing reliance on external financing and constraining strategic investments over the medium term.

Margin step-down and gross margin decline (2025)

A meaningful margin deterioration suggests structural pressure: pricing weakness, rising input costs or adverse mix. Persisting lower gross and net margins undermine earnings quality and cash generation, reducing the company's ability to fund growth or absorb future cost shocks.

Increased leverage and weaker returns in 2025

An uptick in leverage alongside falling returns reduces financial flexibility. Higher debt servicing needs during a period of weaker profits increases solvency risk, limits room for acquisitions or buybacks, and raises sensitivity to interest or demand shocks over the coming months.

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 generates revenue primarily through the sale of promotional products and apparel. Its revenue model is based on both direct sales and distribution agreements with various retailers and wholesalers. The company benefits from a diversified product range that appeals to different market segments, allowing it to target corporate clients for promotional items as well as individual consumers for branded apparel. Significant partnerships with leading brands and organizations enhance its market presence and revenues. Additionally, New Wave Group leverages its design and manufacturing capabilities to offer customized solutions, which can command higher margins, further contributing to its earnings.

New Wave Group AB Class B Financial Statement Overview

Summary

Historically solid profitability and a generally stable balance sheet are offset by clear 2025 pressure: a notable margin step-down and a sharp deterioration in operating and free cash flow (weak cash conversion versus net income).

Income Statement

Revenue has grown over the long run (2020–2025), but the most recent year shows only modest top-line growth and a notable profitability step-down versus 2021–2024. Margins were strong historically (healthy operating and net profitability through 2024), but 2025 shows a sharp drop in gross margin and a lower net margin, suggesting pricing pressure, higher costs, or mix/headwinds. Net income remains solid, but the trend in 2025 reduces confidence in earnings quality and near-term momentum.

Balance Sheet

Leverage is moderate overall: debt relative to equity remains reasonable, though it increased in 2025 versus 2024, indicating a less conservative capital structure recently. Equity is substantial relative to total assets, and returns on shareholder capital have been consistently healthy, albeit down from the 2022–2023 peak. The balance sheet looks generally stable, but the uptick in leverage alongside softer profitability in 2025 is a watch item.

Cash Flow

Cash generation weakened meaningfully in 2025: operating cash flow fell sharply and free cash flow collapsed, with free cash flow covering only a small portion of net income. This is a material deterioration from 2023–2024, when free cash flow was strong and better aligned with earnings. While 2022 shows that cash flow can be volatile (including negative operating and free cash flow), the 2025 drop raises concerns around working capital, reinvestment needs, or earnings converting less effectively into cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.02B	9.53B	9.51B	8.84B	6.72B
Gross Profit	1.17B	4.71B	4.78B	4.38B	3.23B
EBITDA	1.49B	1.59B	1.86B	1.76B	1.24B
Net Income	783.00M	880.40M	1.12B	1.17B	760.30M
Balance Sheet
Total Assets	12.88B	11.33B	10.74B	10.94B	7.66B
Cash, Cash Equivalents and Short-Term Investments	526.00M	545.80M	372.60M	419.40M	327.90M
Total Debt	3.61B	2.36B	2.40B	2.75B	1.40B
Total Liabilities	6.06B	4.11B	4.28B	5.05B	3.09B
Stockholders Equity	6.82B	7.22B	6.46B	5.89B	4.57B
Cash Flow
Free Cash Flow	39.00M	968.60M	728.90M	-494.20M	1.08B
Operating Cash Flow	653.00M	1.28B	963.80M	-360.00M	1.21B
Investing Cash Flow	-938.00M	-296.80M	-220.90M	-522.20M	-114.20M
Financing Cash Flow	316.00M	-830.10M	-785.40M	934.10M	-1.11B

New Wave Group AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 112.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NEWA.B, the sentiment is Negative. The current price of 112.4 is above the 20-day moving average (MA) of 102.15, above the 50-day MA of 108.38, and above the 200-day MA of 112.36, indicating a bearish trend. The MACD of -2.30 indicates Negative momentum. The RSI at 31.86 is Neutral, neither overbought nor oversold. The STOCH value of 45.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
CLAS.B	73 Outperform	kr21.88B	17.87	46.00%	1.88%	9.30%	38.37%
NELLY	71 Outperform	kr3.84B	13.97	51.02%	―	12.45%	118.98%
BOKUS	67 Neutral	kr1.11B	14.48	―	4.49%	9.46%	59.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOI.B	54 Neutral	kr6.12B	123.28	2.04%	6.24%	-2.98%	-30.48%
BHG	53 Neutral	kr4.29B	36.21	―	―	5.27%	15.33%
NEWA.B	52 Neutral	kr13.05B	19.42	12.33%	3.12%	2.80%	-8.84%

New Wave Group AB Class B Corporate Events

New Wave Group Tops SEK 10 Billion in Sales but Sees Profit Ease in 2025

New Wave Group AB reported that its annual revenue surpassed SEK 10 billion for the first time in 2025, with full-year net sales rising 5.1% to SEK 10.0 billion and fourth-quarter sales climbing 11.2% to SEK 3.1 billion, though profitability softened as operating profit and earnings per share declined year-on-year. The company secured a new long-term financing agreement providing a SEK 3.8 billion credit facility, finalized negotiations with the U.S. Department of Justice over previously forgiven PPP loans without additional financial impact, and continued to generate solid operating cash flow, positioning management to remain optimistic about future growth despite margin pressure and currency headwinds.

The most recent analyst rating on ($SE:NEWA.B) stock is a Hold with a SEK120.00 price target. To see the full list of analyst forecasts on New Wave Group AB Class B stock, see the SE:NEWA.B Stock Forecast page.