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

• Market Cap: kr18.66B
• Dividend Yield: 1.22%
• Average Volume (3M): 84.62K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.78
• 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: kr146.00 ▲(3.69% 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

Very low leverage (debt/equity 0.046) and a high ROE (25.1%) give the company durable financial flexibility. This reduces default and refinancing risk, enables reinvestment or dividends from internal capital, and supports resilience through industry cycles.

Strong cash generation

Robust operating cash flow (covers net income) and positive free cash flow growth (12.3%) show sustainable cash conversion. Reliable FCF supports capex, working capital, acquisitions or shareholder returns without relying on external financing, strengthening long-term strategy execution.

Stable revenue and healthy margins

Consistent TTM revenue growth (~9.7%) with a healthy gross margin (31%) and solid net margin (11.3%) indicate resilient demand and effective cost control in industrial distribution. These structural margins support long-term profitability and reinvestment capacity.

Negative Factors

Slight margin erosion

A noted slight decline in gross margin suggests emerging pricing pressure or rising input costs. If this trend persists, it can gradually compress operating margins and returns, forcing either margin recovery actions or greater volume growth to maintain profitability over the medium term.

Declining cash conversion trend

Although FCF remains positive, a slight decrease in FCF-to-net-income indicates weaker cash conversion, possibly from working capital swings or higher capex. Continued weakening would limit internal funding for growth or dividends and may increase dependence on external capital.

Limited forward guidance

Absence of guidance or public earnings highlights reduces transparency and forward visibility for investors. Over the medium term, limited disclosure can complicate planning for capital providers, increase perceived risk, and make it harder to assess sustainability of growth and margins.

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: Negative
• 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 above the 20-day moving average (MA) of 134.42, below the 50-day MA of 142.46, and below the 200-day MA of 141.03, indicating a bearish trend. The MACD of -2.99 indicates Negative momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 77.02 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	kr18.66B	30.81	25.27%	1.22%	3.19%	4.60%
AQ	68 Neutral	kr18.57B	27.94	15.15%	0.83%	2.60%	3.05%
ALIG	65 Neutral	kr15.23B	21.62	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	kr19.95B	31.74	15.33%	1.03%	-1.37%	14.78%
STOR.B	58 Neutral	kr18.80B	17.65	5.21%	0.88%	-4.70%	―
BERG.B	45 Neutral	kr7.77B	-113.27	-3.67%	1.25%	4.65%	-136.09%

OEM International AB Class B Corporate Events

OEM International expands UK automation footprint with acquisition of Motion29

OEM International’s UK subsidiary, OEM Automatic Ltd, has acquired 100% of Welsh-based Motion29 Ltd, an industrial automation distributor with annual sales of about SEK 13 million, broadening its footprint in the UK automation market. Motion29, founded in 2006 and known for its safety and signalling product portfolio, will be integrated into OEM Automatic UK’s operations during 2026, a move expected to strengthen OEM’s Sensors and Safety offering while having a marginally positive impact on earnings this year and reinforcing the group’s positioning in the European industrial automation supply chain.

The most recent analyst rating on ($SE:OEM.B) stock is a Hold with a SEK143.00 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 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.