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

• Market Cap: kr17.35B
• Dividend Yield: 1.22%
• Average Volume (3M): 84.62K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.84
• Revenue Growth: 3.19%
• EPS Growth: 4.60%
• Country: SE
• Employees: 1,056
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.13
• Shares Outstanding: 111,151,680
• 10 Day Avg. Volume: 73,269
• 30 Day Avg. Volume: 84,624
• PEG Ratio: -14.90
• Price to Book (P/B): 7.53
• Price to Sales (P/S): 3.80
• P/FCF Ratio: 28.67
• 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): 4.92
• Revenue Forecast (FY): kr5.70B

• Rating: 69 Neutral
• Price Target: kr143.00 ▲(1.56% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by strong financial quality (low leverage, solid margins, and high-quality free cash flow). Offsetting this are weak technical signals (below key moving averages with negative MACD) and a relatively high P/E with only a modest dividend yield, which increases sensitivity to the recent sharp revenue decline.

Positive Factors

Conservative balance sheet

Very low leverage and a large equity base provide durable financial resilience. This reduces refinancing and interest-rate risk, preserves capacity for opportunistic investment or M&A, and supports operations through demand cycles, improving stability over the next 2–6 months.

High-quality cash generation

Robust operating and free cash flow that closely tracks earnings underpins self-funded investment, dividends and strategic flexibility. Strong cash conversion lowers reliance on external funding, enabling the company to navigate cyclical downturns and sustain operations long-term.

Healthy profitability margins

Sustained mid-teens EBIT and strong gross margins are notable for a distributor, indicating pricing power, favorable supplier terms or efficient operations. These margins support consistent return generation and cash flow even if revenue growth moderates, aiding durability.

Negative Factors

Sharp revenue decline

A more than 50% TTM revenue drop materially reduces scale and raises questions about demand, lost contracts, or portfolio changes. Such a structural decline pressures utilization, fixed-cost absorption and investment plans, impairing earnings visibility over several quarters.

Margin compression risk

Reported margin deterioration versus prior years suggests adverse mix, pricing pressure, or cost increases. Persistent compression would erode free cash flow and returns, forcing cuts to reinvestment or shareholder distributions and weakening competitive positioning.

Variable cash conversion / working capital

Intermittent weaknesses in cash conversion and working-capital swings increase earnings and liquidity volatility. This complicates forecasting and capital allocation, potentially forcing short-term financing or delaying strategic projects during periods of cash strain.

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

Strong overall fundamentals supported by a very conservative balance sheet (debt-to-equity ~0.06), solid profitability for a distributor (TTM gross margin ~30.9%, net margin ~11.3%, EBIT margin ~14.2%), and robust cash generation (TTM FCF ~703M; FCF to net income ~0.94). The main offset is the sharp TTM revenue decline (-52.4%) and some margin compression versus 2023–2024, which raises near-term earnings trajectory risk.

Income Statement

Profitability remains solid for a distributor, with TTM (Trailing-Twelve-Months) gross margin ~30.9% and net margin ~11.3%, and EBIT margin holding in the mid-teens (~14.2%). However, growth has cooled materially: after steady revenue expansion in 2021–2024, TTM (Trailing-Twelve-Months) revenue growth is sharply negative (-52.4%) and margins are down versus 2023–2024 levels, signaling a meaningful near-term demand and/or mix headwind.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (TTM (Trailing-Twelve-Months) debt-to-equity ~0.06) and a large equity base (equity ~2.68B vs. assets ~3.60B). Returns on equity are strong (TTM (Trailing-Twelve-Months) ~24.6%), albeit lower than the exceptionally high levels seen in 2021–2023, suggesting profitability normalization rather than financial stress.

Cash Flow

Cash generation is robust and high-quality: TTM (Trailing-Twelve-Months) operating cash flow (~763M) and free cash flow (~703M) both closely track reported earnings (free cash flow to net income ~0.94). Free cash flow growth is strong in the TTM (Trailing-Twelve-Months) period, though the multi-year pattern shows variability (including weaker conversion in 2022), indicating working-capital or timing volatility even as overall cash conversion remains healthy.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.32B	5.24B	5.14B	4.73B	3.77B
Gross Profit	751.00M	1.88B	1.84B	1.71B	1.37B
EBITDA	863.00M	870.00M	875.00M	821.20M	647.90M
Net Income	593.00M	606.00M	607.20M	575.70M	457.00M
Balance Sheet
Total Assets	3.60B	3.33B	2.93B	2.80B	2.05B
Cash, Cash Equivalents and Short-Term Investments	812.00M	557.00M	232.50M	108.90M	144.80M
Total Debt	110.00M	140.10M	147.40M	377.20M	90.80M
Total Liabilities	913.00M	943.00M	940.80M	1.21B	680.00M
Stockholders Equity	2.68B	2.39B	1.99B	1.59B	1.37B
Cash Flow
Free Cash Flow	705.00M	657.00M	736.40M	241.10M	265.60M
Operating Cash Flow	763.00M	692.00M	790.70M	262.50M	319.30M
Investing Cash Flow	-171.00M	-68.00M	-149.00M	-152.70M	-54.30M
Financing Cash Flow	-319.00M	-307.00M	-515.50M	-152.60M	-498.40M

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 127.93, above the 50-day MA of 132.28, and above the 200-day MA of 139.90, indicating a neutral trend. The MACD of -1.50 indicates Negative momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 43.47 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	69 Neutral	kr17.35B	34.09	25.27%	1.22%	3.19%	4.60%
BUFAB	68 Neutral	kr20.31B	30.46	15.97%	1.03%	-1.37%	14.78%
AQ	65 Neutral	kr17.16B	26.72	15.15%	0.83%	2.60%	3.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALIG	61 Neutral	kr12.08B	25.44	9.59%	2.09%	-1.74%	26.36%
STOR.B	55 Neutral	kr14.99B	18.63	5.21%	0.88%	-4.70%	―
BERG.B	45 Neutral	kr7.56B	37.27	-3.67%	1.25%	4.65%	-136.09%

OEM International AB Class B Corporate Events

OEM International Maintains Record 2025 Orders as Currency Headwinds Bite Earnings

OEM International reported a mixed fourth quarter of 2025, with incoming orders up 5% but net sales down 2% as negative currency effects offset modest organic growth and acquisition contributions. Profitability was broadly stable, with EBITA for the quarter slipping 2% yet the EBITA margin holding at 15.2%, while full-year 2025 again reached record levels for order intake and sales despite a slight decline in earnings per share.

Regional performance diverged, as Finland, the Baltics and China delivered strong organic growth, while Denmark, Norway, the British Isles and Eastern Central Europe saw weaker demand but robust order intake, and Sweden posted marginally positive growth under currency pressure. OEM intensified its acquisition strategy with three deals in electronic components, industrial automation and energy-related systems, using its solid balance sheet to strengthen its market position and prepare for continued expansion in a cautious and uncertain industrial climate.

The most recent analyst rating on ($SE:OEM.B) stock is a Hold with a SEK146.00 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 Finalises Acquisition of Multicomponent Norden AB

OEM International AB, a European technology trading group specialising in components and systems, operates through 35 units in 15 countries and competes by offering strong local market presence and efficient logistics. Its business model is built around representing leading suppliers and providing them with a cost‑effective sales and distribution channel across selected European markets.

The company has completed its previously announced acquisition of Multicomponent Norden AB after receiving unconditional approval from the Swedish Inspectorate of Strategic Products. The transaction, now finalised, means Multicomponent Norden AB will be consolidated into OEM International’s financial statements from 16 February 2026, signalling further expansion of the group’s operations and product offering in its core markets.

The most recent analyst rating on ($SE:OEM.B) stock is a Hold with a SEK146.00 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 Expands in Norway With CRE8 Systems Acquisition

OEM International, a major European technology trading group specialising in components and systems distribution, continues to build its presence across selected European markets through a network of 35 operating units in 15 countries. The company positions itself as an efficient, logistics-driven sales channel for leading suppliers seeking local market reach.

The group has signed an agreement to acquire a majority stake in Norwegian firm CRE8 Systems AS, with the transaction closing on 12 February. By correcting an earlier misstatement of the closing date, OEM underscores that the deal has now formally completed, signalling further expansion in Norway and reinforcing its strategic push to deepen its footprint in the Nordic technology trading market.

The most recent analyst rating on ($SE:OEM.B) stock is a Hold with a SEK146.00 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 Enters Offshore Market with Majority Acquisition of Norway’s CRE8 Systems

OEM International has agreed to acquire a majority stake in Norway-based CRE8 Systems AS, which develops and manufactures hydraulic power units and chemical injection systems for the oil, gas, and energy sectors. Together with its subsidiary Gexsys, CRE8 employs 35 people in Stavanger and generates about NOK 170 million in annual sales, with OEM retaining an option to acquire full ownership.

The deal marks OEM International’s strategic entry into the offshore industry and expands its market presence in Norway, creating a platform for further business in the energy segment. Closing took place on 11 February, and the acquisition is expected to contribute positively to OEM’s earnings in the current financial year, signalling incremental growth potential for shareholders and strengthening the group’s industry positioning.

The most recent analyst rating on ($SE:OEM.B) stock is a Hold with a SEK146.00 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 Names Henrik Forsberg Schoultz Deputy CEO to Drive M&A-Led Growth

OEM International AB has appointed Henrik Forsberg Schoultz as Deputy CEO, effective early April 2026, adding him to the executive management team. He is tasked with working closely with CEO Jörgen Zahlin to refine group strategy, accelerate value-accretive M&A activity and support the scaling and long-term performance of the company’s decentralised portfolio of businesses.

Forsberg Schoultz brings extensive experience in acquisition-driven, decentralised organisations, including senior roles at Neudi & Co, Nordstjernan and most recently as President and CEO of CellMark AB. The appointment underscores OEM’s ambition to step up earnings growth and capital deployment, leveraging his strategic and deal-making background to strengthen the company’s growth trajectory and value creation for stakeholders.

The most recent analyst rating on ($SE:OEM.B) stock is a Hold with a SEK146.00 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 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.