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

• Market Cap: kr20.35B
• Dividend Yield: 1.19%
• Average Volume (3M): 103.76K
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.87
• Revenue Growth: 3.12%
• EPS Growth: 2.10%
• Country: SE
• Employees: 1,056
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Distribution
• EPS (TTM): 4.34
• Shares Outstanding: 110,553,680
• 10 Day Avg. Volume: 140,592
• 30 Day Avg. Volume: 103,759
• PEG Ratio: -44.06
• Price to Book (P/B): 7.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.12
• 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

• Rating: 74 Outperform
• Price Target: ―

OEM International AB Class B has a strong financial foundation with consistent revenue growth and solid profitability, contributing significantly to its overall score. While technical indicators show positive momentum, valuation concerns due to a high P/E ratio suggest limited upside potential. Absent earnings call data and corporate events, the score primarily reflects solid financial health and cautious optimism in market trends.

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 AB makes money through the distribution and sale of a wide variety of industrial components and systems. The company's revenue model is primarily based on sourcing high-quality products from manufacturers and selling them to a diverse client base that includes companies in automation, electronics, and flow technology sectors. Key revenue streams include sales of automation components, electronic products, and flow technology systems. OEM International AB also benefits from significant partnerships with leading industrial manufacturers, which enable it to offer an extensive product range and maintain competitive pricing. Additionally, the company's strategic focus on expanding its market presence in Northern and Central Europe contributes to its earnings by capturing new business opportunities and enhancing its service offerings.

OEM International AB Class B Financial Statement Overview

Summary

OEM International AB Class B exhibits a robust financial profile with strong revenue growth, solid profitability, and a stable balance sheet. The company effectively converts income into cash and maintains low leverage, enhancing its financial flexibility. Despite a slight decline in free cash flow growth, the company's overall financial health remains strong, positioning it well for future opportunities and challenges in the industrial equipment distribution sector.

Income Statement

OEM International AB Class B shows strong financial performance with consistent revenue growth and solid profitability. The gross profit margin stands at 25.5% for TTM, reflecting efficient cost management. The net profit margin for TTM is 11.4%, supported by stable EBIT and EBITDA margins of 14.5% and 16.5% respectively. Revenue has grown approximately 8.6% year-over-year from 2022 to 2023, indicating robust growth in a competitive market.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.04 in TTM, indicating low leverage and financial risk. The equity ratio is 73.8%, showing a high level of equity financing. Return on equity is healthy at 24.1% for TTM, highlighting effective use of shareholder funds. The strong equity position underscores the company's financial stability.

Cash Flow

OEM International AB Class B demonstrates strong cash flow management with a TTM free cash flow of SEK 612 million. The operating cash flow to net income ratio is 1.08, indicating efficient cash conversion. The free cash flow to net income ratio is 1.02, suggesting the company generates substantial free cash flow relative to its net income. However, the free cash flow growth has slightly decreased, reflecting potential challenges in future cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.28B	5.24B	5.14B	4.73B	3.77B	3.28B
	Gross Profit
1.35B	1.88B	1.84B	1.71B	1.37B	1.14B
	EBIT
764.00M	763.00M	781.00M	735.10M	578.40M	408.50M
	EBITDA
870.00M	870.00M	875.00M	828.70M	647.90M	482.90M
	Net Income Common Stockholders
602.00M	606.00M	607.20M	575.70M	457.00M	317.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
635.00M	557.00M	232.50M	108.90M	144.80M	376.10M
	Total Assets
3.38B	3.33B	2.93B	2.80B	2.05B	1.99B
	Total Debt
104.00M	0.00	147.40M	377.20M	90.80M	103.50M
	Net Debt
-531.00M	-557.00M	-85.10M	268.30M	-54.00M	-272.60M
	Total Liabilities
885.00M	943.00M	940.80M	1.21B	680.00M	625.80M
	Stockholders Equity
2.49B	2.39B	1.99B	1.59B	1.37B	1.37B
Cash Flow		Free Cash Flow
612.00M	657.00M	736.40M	241.10M	265.60M	459.70M
	Operating Cash Flow
652.00M	692.00M	790.70M	262.50M	319.30M	468.80M
	Investing Cash Flow
-73.00M	-68.00M	-149.00M	-152.70M	-54.30M	-34.30M
	Financing Cash Flow
-312.00M	-307.00M	-515.50M	-152.60M	-498.40M	-97.10M

OEM International AB Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 144.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 144.6 is above the 20-day moving average (MA) of 139.94, above the 50-day MA of 136.68, and above the 200-day MA of 123.03, indicating a bullish trend. The MACD of 1.84 indicates Negative momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 79.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
MEKO	76 Outperform	€6.75B	15.60	6.71%	3.08%	6.89%	9.91%
SYSR	74 Outperform	kr18.08B	26.55	11.86%	1.34%	0.42%	-29.62%
OEM.B	74 Outperform	kr20.35B	33.79	25.16%	1.19%	3.12%	2.10%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
BERG.B	63 Neutral	kr8.62B	40.20	-2.78%	1.18%	5.27%	-127.05%
BUFAB	62 Neutral	kr16.01B	27.04	15.34%	1.21%	-4.43%	13.36%