Collector AB (NORION) AI Stock Analysis

• Market Cap: kr10.86B
• Dividend Yield: N/A
• Average Volume (3M): 166.24K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.45
• Revenue Growth: 0.78%
• EPS Growth: 13.82%
• Country: SE
• Employees: 399
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.59
• Shares Outstanding: 205,381,000
• 10 Day Avg. Volume: 158,870
• 30 Day Avg. Volume: 166,237
• PEG Ratio: 0.57
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 2.53
• P/FCF Ratio: 11.16
• 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: kr72.00
• Price Target Upside: 25.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 7.87
• Revenue Forecast (FY): kr3.94B

• Rating: 54 Neutral
• Price Target: kr60.00 ▲(4.90% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is held back mainly by materially higher financial risk from the sharp leverage increase and weak technical momentum (price below key moving averages with negative MACD). Offsetting these are strong profitability, improved 2025 free cash flow, and a relatively low P/E valuation.

Positive Factors

High profitability

Sustained high operating and net margins indicate the company converts revenue to profit efficiently. Durable profitability provides internal capital for reinvestment, supports return on equity, and cushions earnings during top-line softness, strengthening long-term resilience.

Improved cash generation

A transition to materially positive operating cash flow and strong free cash flow in 2025 shows the business can generate real cash from operations. Persistent FCF supports debt servicing, investment in digital capabilities, and underpins the quality of reported earnings over time.

Diversified fee-based model

Multiple recurring revenue streams—collection fees, credit information, commissions and partner channels—combined with a digital focus reduce dependence on any single product. This diversified, service-oriented model supports steady cash flows and scalability across clients.

Negative Factors

Sharp leverage increase

A sudden, large increase in debt materially raises financial risk and interest burden. Elevated leverage reduces flexibility for capital allocation, heightens refinancing and covenant risk, and makes the firm vulnerable to rate rises or weaker cash generation over the medium term.

Top-line softness

Recent revenue decline implies earnings gains are driven more by margin improvements than sustainable volume growth. Persistent or recurring top-line weakness limits scalability, undermines long-term growth prospects, and raises reliance on cost efficiencies to sustain profits.

Cash flow volatility

Historic swings in operating cash flow reduce confidence in consistent FCF generation. Volatility complicates planning for servicing elevated debt levels and funding investments, increasing the probability that temporary shocks could force asset sales or expensive refinancing.

Collector AB Business Overview & Revenue Model

Company Description

Norion Bank AB provides financial solutions for corporate and private individuals with a focus on small and medium-sized companies in Sweden, Finland, Norway, and internationally. It operates through Corporate, Real estate, Consumer, and Payments segments. The company offers personal loans, corporate loans, and factoring services; real estate loans; unsecured loans; and credit cards. It also provides payment and checkout solutions for e-commerce and retail chains, as well as invoicing and payment by instalment services for private individuals. The company was formerly known as Collector Bank AB and changed its name to Norion Bank AB in September 2023. Norion Bank AB was founded in 1999 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

Collector AB generates revenue through multiple streams, including fees from debt collection services, commissions on credit management solutions, and sales of financial products. The company charges clients a percentage of the amount collected on debts, which constitutes a significant portion of its income. Additionally, Collector AB earns fees from providing credit information and risk assessment services to businesses. Strategic partnerships with financial institutions and technology providers enhance its service offerings and market reach, contributing to overall revenue growth. The company's focus on digital transformation and customer-centric solutions further drives profitability.

Collector AB Financial Statement Overview

Summary

Strong profitability (net margin ~26%, operating margin ~34%) and higher net income (1.27B to 1.44B) are positives, and 2025 free cash flow improved (~1.24B). However, the balance sheet is a major risk with debt jumping to ~56.5B (from ~3.0B) and debt-to-equity rising to ~5.7x, while revenue also slipped (-1.9%).

Income Statement

Profitability is a clear strength: the latest annual period shows strong gross and operating profitability (net margin ~26%, operating margin ~34%), with net income rising from 1.27B (2024) to 1.44B (2025). Revenue, however, has turned slightly negative in the most recent year (-1.9% after modest growth in 2024), indicating earnings growth is being driven more by margin/efficiency than top-line expansion. Overall, the income statement looks solid but not без risk given the recent revenue softness.

Balance Sheet

The balance sheet is the main concern due to a sharp leverage step-up: total debt jumps to ~56.5B in 2025 from ~3.0B in 2024, pushing debt vs. equity to ~5.7x (from ~0.3x). While equity is still meaningful (~9.5B) and returns on equity remain healthy (~14%), the magnitude of the debt increase materially raises financial risk and reduces flexibility if credit conditions or asset quality weaken.

Cash Flow

Cash generation improved materially in 2025 with operating cash flow turning positive (~1.31B) and free cash flow strong (~1.24B), following negative operating/free cash flow in 2024. Free cash flow is also broadly in line with reported earnings in 2025, which is supportive for quality of profits. That said, cash flow has been volatile over time (very large negative operating cash flow in 2021), which lowers confidence in consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.48B	5.62B	4.97B	3.70B	3.00B
Gross Profit	3.82B	3.70B	3.65B	3.21B	2.64B
EBITDA	1.92B	1.68B	1.70B	1.50B	995.00M
Net Income	1.44B	1.26B	1.29B	1.14B	753.00M
Balance Sheet
Total Assets	67.53B	67.21B	54.06B	48.68B	44.29B
Cash, Cash Equivalents and Short-Term Investments	0.00	4.20B	3.20B	3.11B	5.31B
Total Debt	56.52B	2.99B	1.36B	3.47B	5.73B
Total Liabilities	58.05B	58.16B	45.75B	41.61B	38.38B
Stockholders Equity	9.48B	9.05B	8.30B	7.07B	5.92B
Cash Flow
Free Cash Flow	1.24B	-178.00M	2.30B	238.00M	-3.55B
Operating Cash Flow	1.31B	-101.00M	2.36B	277.00M	-3.51B
Investing Cash Flow	-79.00M	-139.00M	-58.00M	-39.00M	-39.00M
Financing Cash Flow	-555.00M	1.12B	-2.14B	-2.49B	4.96B

Collector AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 57.20
• 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:NORION, the sentiment is Negative. The current price of 57.2 is below the 20-day moving average (MA) of 57.62, below the 50-day MA of 61.37, and below the 200-day MA of 62.83, indicating a bearish trend. The MACD of -1.25 indicates Negative momentum. The RSI at 44.15 is Neutral, neither overbought nor oversold. The STOCH value of 30.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:NORION.

Collector AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFBANK	78 Outperform	kr10.39B	13.97	26.88%	―	15.59%	24.31%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HOFI	62 Neutral	kr13.18B	8.66	17.97%	1.78%	19.81%	5.77%
NORION	54 Neutral	kr10.86B	9.63	―	―	0.78%	13.82%
QLIRO	49 Neutral	kr545.74M	-5.11	-16.73%	―	-11.93%	-821.71%
INTRUM	48 Neutral	kr5.31B	-3.46	-11.59%	―	-6.65%	95.09%