Nilorngruppen AB Class B (NIL.B) AI Stock Analysis

• Market Cap: kr621.41M
• Dividend Yield: 2.33%
• Average Volume (3M): 19.84K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.43
• Revenue Growth: 4.54%
• EPS Growth: 15.80%
• Country: SE
• Employees: 667
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.44
• Shares Outstanding: 10,441,988
• 10 Day Avg. Volume: 7,556
• 30 Day Avg. Volume: 19,839
• PEG Ratio: -1.04
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 8.78
• 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): 5.42
• Revenue Forecast (FY): kr953.00M

• Rating: 65 Neutral
• Price Target: kr58.00 ▼(-5.54% Downside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is supported primarily by solid financial resilience (strong recent cash generation and conservative leverage) and a reasonable valuation, but is held back by weak technicals (clear downtrend and negative momentum) and fundamental concerns around margin compression, with earnings-call sentiment remaining mixed due to softer order intake and continued luxury-segment weakness.

Positive Factors

Consistent strong cash generation

Consistent operating cash flow (≈89–94M) and sustained free cash flow (≈77–86M) provide durable internal funding for capex, restructuring, and dividends. Reliable cash conversion reduces refinancing risk, supports strategic investments, and smooths earnings volatility across multiple quarters.

Conservative leverage and solid equity base

Low debt-to-equity (~0.23) and a sizable equity base give the company financial flexibility to invest, pursue acquisitions, and absorb cyclical shocks. This balance-sheet strength supports long-term capital allocation, reduces solvency risk, and underpins the ability to sustain operations during downturns.

Structural investments in digital and production capabilities

Deploying Nilörn:CONNECT and upgrading factories in Portugal and Bangladesh are structural moves to improve compliance, traceability, and unit economics. These initiatives enhance product offering differentiation, strengthen supply‑chain control, and create durable operational efficiencies and customer engagement channels.

Negative Factors

Severe gross margin collapse

A decline in gross margin to ~7.8% from prior mid‑40% levels is a material structural issue. It implies deep pricing, mix, or cost pressure that erodes operating leverage and cash generation. Restoring margins will require durable changes to pricing, sourcing, or product mix to avoid long-term profitability damage.

Revenue volatility and falling order intake

Volatile top-line performance combined with a 13% drop in order intake undermines revenue visibility and planning. Persistent demand weakness risks excess capacity, working-capital swings, and weaker multi‑period growth, constraining the company's ability to leverage fixed costs and stabilize margins.

Exposure to weak luxury segment

Prolonged softness in the luxury segment hurts higher‑margin product lines and packaging demand, increasing client concentration risk. If the luxury recovery is delayed, margin pressure will persist and management may need to reallocate resources or pursue lower‑margin channels, reducing long-term profitability.

Nilorngruppen AB Class B Business Overview & Revenue Model

Company Description

Nilörngruppen AB produces and sells labels, packaging products, and accessories primarily in the fashion and garment industries in Nordic countries, the rest of Europe, and Asia. It also offers hangtags, woven labels, printed labels, badges, buttons, rivets, waist tags, patches, tapes, strings and seals, zip pullers, heat transfers, pins and charms, stickers, and button bags. The company provides retail packaging products; flat packed and rigid boxes; plastic, paper, and tote bags; suit covers, drawstring bags, and tissue papers; and E-commerce packaging solutions. In addition, the company offers care and RFID labels, security and copying protection products, and retail information services. The company was founded in 1970 and is headquartered in Boras, Sweden.

How the Company Makes Money

Nilorngruppen AB generates revenue through several key streams, primarily by selling its manufactured goods across diverse markets. The company's revenue model is built on a combination of direct sales, long-term contracts with industrial clients, and retail partnerships for consumer products. Significant revenue is derived from their textile division, which caters to both the fashion industry and technical applications. Additionally, Nilorngruppen benefits from strategic partnerships with suppliers and distributors that expand its market reach and enhance its product offerings. The company also invests in research and development to innovate new products, which contributes to its competitive advantage and revenue growth.

Nilorngruppen AB Class B Financial Statement Overview

Summary

Balance sheet and cash flow are strengths (low leverage and strong recent free cash flow), but earnings quality is pressured by stalled growth and margin compression—most notably the sharp 2025 gross margin drop highlighted in the income statement analysis.

Income Statement

Revenue has been volatile—strong growth in 2021–2022, followed by contraction in 2023 and essentially flat sales in 2024–2025. Profitability has also cooled from peak levels in 2021–2022: net margin fell from ~11% (2021) and ~10.7% (2022) to ~6.2% (2024) and ~5.3% (2025). A major red flag is 2025 gross margin dropping sharply to ~7.8% versus the mid‑40% range in prior years, which materially compresses operating leverage and raises questions about pricing, mix, or costs.

Balance Sheet

Leverage looks conservative with debt-to-equity in the ~0.23 range in 2024–2025, improving from the higher ~0.38 level seen in 2020 and 2023. Equity remains sizable relative to the asset base, supporting balance-sheet stability. Returns on equity are solid (mid-teens recently), though below the exceptionally strong levels in 2021–2022, indicating profitability has normalized even as leverage stayed controlled.

Cash Flow

Cash generation is a clear strength in the last three years: operating cash flow is consistently strong (roughly 89–94M in 2023–2025) and free cash flow remains high (about 77–86M), with free cash flow up meaningfully in 2025. Free cash flow tracks net income well in 2023–2025 (roughly ~0.86–0.95x), suggesting earnings quality is reasonable. The main weakness is the sharp cash flow dip in 2022 (very low operating and free cash flow versus profits), highlighting potential working-capital or timing volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	945.11M	944.67M	869.77M	942.81M	788.30M
Gross Profit	73.79M	427.52M	379.71M	416.52M	364.13M
EBITDA	105.86M	118.90M	94.19M	164.55M	144.10M
Net Income	49.94M	58.50M	39.34M	101.00M	87.44M
Balance Sheet
Total Assets	575.75M	597.49M	577.85M	613.98M	556.07M
Cash, Cash Equivalents and Short-Term Investments	101.68M	100.81M	104.72M	113.08M	116.37M
Total Debt	77.75M	81.56M	111.49M	95.62M	75.71M
Total Liabilities	231.51M	247.10M	283.03M	280.76M	277.81M
Stockholders Equity	343.41M	349.61M	294.47M	333.22M	278.26M
Cash Flow
Free Cash Flow	86.12M	84.63M	77.00M	10.09M	67.98M
Operating Cash Flow	90.77M	94.26M	89.11M	26.73M	78.83M
Investing Cash Flow	-30.19M	-22.22M	-17.74M	-8.37M	-11.74M
Financing Cash Flow	-42.05M	-79.63M	-62.94M	-23.19M	-21.95M

Nilorngruppen AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NIL.B, the sentiment is Negative. The current price of 61.4 is above the 20-day moving average (MA) of 57.68, below the 50-day MA of 61.78, and above the 200-day MA of 59.34, indicating a bearish trend. The MACD of -2.66 indicates Positive momentum. The RSI at 37.40 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:NIL.B.

Nilorngruppen AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BORG	70 Outperform	kr1.69B	18.66	23.44%	4.95%	9.20%	11.72%
NIL.B	65 Neutral	kr621.41M	12.51	16.85%	2.33%	4.54%	15.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DURC.B	58 Neutral	kr770.25M	-308.11	-1.19%	2.30%	-4.95%	-157.76%
BOAT	46 Neutral	kr596.84M	-3.55	-11.15%	―	-17.48%	20.08%
PIERCE	46 Neutral	kr729.10M	-747.62	-1.41%	―	15.59%	16.67%
BALCO	44 Neutral	kr366.04M	-10.22	-4.80%	―	-0.80%	-442.39%