OEM International AB Class B (OEM.B) AI Stock Analysis

• Market Cap: kr19.24B
• Dividend Yield: 1.22%
• Average Volume (3M): 84.62K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.79
• Revenue Growth: 3.19%
• EPS Growth: 4.60%
• Country: SE
• Employees: 1,056
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.16
• Shares Outstanding: 111,151,680
• 10 Day Avg. Volume: 73,269
• 30 Day Avg. Volume: 84,624
• PEG Ratio: -112.03
• Price to Book (P/B): 6.49
• Price to Sales (P/S): 2.96
• P/FCF Ratio: 23.59
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: kr152.00 ▲(7.95% Upside)

OEM International AB Class B's strong financial performance is the primary driver of its score, reflecting robust revenue growth, profitability, and conservative financial management. Technical analysis suggests neutral momentum with potential oversold conditions. However, the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Conservative Balance Sheet

Extremely low leverage and a strong ROE provide durable financial flexibility. Low debt reduces insolvency risk, supports reinvestment or M&A, and leaves balance sheet capacity to fund downturns or strategic initiatives without heavy refinancing needs over the next 2–6 months.

Robust Cash Generation

Strong operating cash conversion and double-digit free cash flow growth underpin sustainable internal funding. Reliable cash generation supports capex, working capital, dividends, and buybacks, reducing dependence on external financing and enabling steady execution of strategy.

Healthy Margins and Revenue Growth

Consistent top-line expansion combined with solid gross and net margins indicates durable demand and operational efficiency in the distribution business. Stable margins support cash flow and reinvestment, helping sustain profitability across industrial cycles.

Negative Factors

Slight Margin Compression

A declining gross margin, even from a healthy level, signals rising input costs or pricing pressure which can erode operating leverage. If this persists structurally, it will reduce long-term profitability and limit free cash flow available for growth or returns.

Weaker Cash Conversion Trend

A declining FCF-to-net-income ratio suggests working capital or capex demands are rising relative to earnings. That trend, if sustained, can constrain internal funding for expansion, dividends, or debt paydown and increase reliance on external financing.

Modest EPS Growth

Low single-digit EPS growth points to limited earnings acceleration relative to peers. Over a multi-month horizon this can cap returns on invested capital and reduce flexibility for substantial capital allocation shifts unless operational improvements or higher organic growth materialize.

OEM International AB Class B Business Overview & Revenue Model

Company Description

OEM International AB (publ), together with its subsidiaries, provides products and systems for industrial applications. The company offers a range of industrial automation components in the areas of electrical components, flow technology, motors, transmissions and brakes, ball bearings and seals, appliance components, and installation components, as well as machine components and cables, engines, and pressure and flow components. It sells its products in Sweden, Finland, the Baltic States, China, Denmark, Norway, the United Kingdom, and East Central Europe. The company was incorporated in 1973 and is based in Tranås, Sweden.

How the Company Makes Money

OEM International generates revenue primarily through the distribution of a wide array of industrial products, which includes electrical components, automation systems, and mechanical solutions. The company's revenue model is based on a combination of direct sales to end customers and partnerships with manufacturers, allowing them to earn a margin on products sold. Key revenue streams include sales of both standard and customized products, along with value-added services such as technical support, training, and logistics solutions. Significant partnerships with established manufacturers enable OEM International to offer competitive pricing and a broad product range, thereby contributing to sustained earnings growth.

OEM International AB Class B Financial Statement Overview

Summary

OEM International AB Class B demonstrates strong financial health with consistent revenue growth and profitability. The company maintains a conservative balance sheet with low leverage and strong equity returns. Cash flow generation is robust, supporting ongoing operations and potential growth initiatives.

Income Statement

OEM International AB Class B shows strong revenue growth with a TTM increase of 9.7%, indicating robust demand in the industrial distribution sector. The gross profit margin is healthy at 31%, though it has slightly decreased from previous years. Net profit margin remains solid at 11.3%, reflecting effective cost management. EBIT and EBITDA margins are stable, suggesting consistent operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.046, indicating prudent financial leverage. Return on equity is strong at 25.1%, showcasing effective use of shareholder funds. The equity ratio is solid, reflecting a stable financial position with adequate asset backing.

Cash Flow

Operating cash flow is robust, covering net income effectively with a ratio of 0.93. Free cash flow growth is positive at 12.3%, highlighting strong cash generation capabilities. The free cash flow to net income ratio of 0.94 indicates efficient cash conversion, although it has slightly decreased compared to previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.34B	5.24B	5.14B	4.73B	3.77B	3.28B
Gross Profit	1.65B	1.88B	1.84B	1.71B	1.37B	1.14B
EBITDA	871.00M	870.00M	875.00M	821.20M	647.90M	482.90M
Net Income	605.00M	606.00M	607.20M	575.70M	457.00M	317.30M
Balance Sheet
Total Assets	3.52B	3.33B	2.93B	2.80B	2.05B	1.99B
Cash, Cash Equivalents and Short-Term Investments	663.00M	557.00M	232.50M	108.90M	144.80M	376.10M
Total Debt	151.00M	140.10M	147.40M	377.20M	90.80M	103.50M
Total Liabilities	957.00M	943.00M	940.80M	1.21B	680.00M	625.80M
Stockholders Equity	2.56B	2.39B	1.99B	1.59B	1.37B	1.37B
Cash Flow
Free Cash Flow	646.00M	657.00M	736.40M	241.10M	265.60M	459.70M
Operating Cash Flow	684.00M	692.00M	790.70M	262.50M	319.30M	468.80M
Investing Cash Flow	-145.00M	-68.00M	-149.00M	-152.70M	-54.30M	-34.30M
Financing Cash Flow	-281.00M	-307.00M	-515.50M	-152.60M	-498.40M	-97.10M

OEM International AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 140.80
• 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:OEM.B, the sentiment is Negative. The current price of 140.8 is below the 20-day moving average (MA) of 142.73, below the 50-day MA of 149.72, and below the 200-day MA of 140.95, indicating a bearish trend. The MACD of -3.10 indicates Positive momentum. The RSI at 38.42 is Neutral, neither overbought nor oversold. The STOCH value of 22.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:OEM.B.

OEM International AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OEM.B	70 Neutral	kr19.24B	31.54	25.27%	1.22%	3.19%	4.60%
STOR.B	69 Neutral	kr19.65B	18.27	5.21%	0.88%	-4.70%	―
AQ	68 Neutral	kr17.15B	25.97	15.15%	0.83%	2.60%	3.05%
ALIG	65 Neutral	kr15.64B	22.17	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	kr19.26B	32.34	15.33%	1.03%	-1.37%	14.78%
BERG.B	48 Neutral	kr8.26B	-114.07	-3.67%	1.25%	4.65%	-136.09%

OEM International AB Class B Corporate Events

OEM International Acquires Multicomponent Norden AB

OEM International AB has signed an agreement to acquire Multicomponent Norden AB, a distributor of electronic components to various sectors. This acquisition, which complements OEM’s existing portfolio, aims to enhance product range development and market penetration, with a marginally positive impact on earnings anticipated this year, pending regulatory approval.

The most recent analyst rating on ($SE:OEM.B) stock is a Hold with a SEK165.00 price target. To see the full list of analyst forecasts on OEM International AB Class B stock, see the SE:OEM.B Stock Forecast page.

OEM International AB Reports Strong Q3 2025 Performance Amid Expansion Plans

OEM International AB reported a 5% increase in net sales for Q3 2025, driven by strong demand in Sweden and Finland, despite negative currency impacts. The company is expanding its operations with a new property project for Elektro Elco in Jönköping, indicating a commitment to future growth and maintaining profitability amid varying market conditions.

The most recent analyst rating on ($SE:OEM.B) stock is a Hold with a SEK147.00 price target. To see the full list of analyst forecasts on OEM International AB Class B stock, see the SE:OEM.B Stock Forecast page.

OEM International Appoints Nomination Committee for 2026 AGM

OEM International has appointed its Nomination Committee for the 2026 Annual General Meeting, consisting of representatives from its four largest shareholders. The committee, chaired by Simon Tillmo, will prepare proposals for key positions and decisions for the upcoming meeting, impacting the company’s governance and strategic direction.

The most recent analyst rating on ($SE:OEM.B) stock is a Hold with a SEK147.00 price target. To see the full list of analyst forecasts on OEM International AB Class B stock, see the SE:OEM.B Stock Forecast page.