Orron Energy (ORRON) AI Stock Analysis

• Market Cap: kr1.31B
• Dividend Yield: N/A
• Average Volume (3M): 408.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -3.20%
• EPS Growth: -2418.83%
• Country: SE
• Employees: 53
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): -0.36
• Shares Outstanding: 285,905,180
• 10 Day Avg. Volume: 349,805
• 30 Day Avg. Volume: 408,342
• PEG Ratio: -0.24
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 7.12
• P/FCF Ratio: -29.04
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: kr6.00 ▲(3.99% Upside)

Orron Energy's overall stock score is primarily impacted by its poor financial performance, with significant revenue declines and profitability issues. While technical analysis shows some positive momentum, the valuation is weak due to negative earnings. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Renewable Energy Focus

Orron Energy's focus on renewable energy positions it well for long-term growth as global demand for sustainable energy solutions increases.

Long-term PPAs

Long-term PPAs provide stable revenue streams, reducing financial volatility and ensuring predictable cash flows over time.

Government Incentives

Government incentives help reduce costs and increase funding for projects, supporting Orron Energy's growth in the renewable sector.

Negative Factors

Declining Revenue

Declining revenue indicates potential market challenges or operational inefficiencies, impacting long-term financial stability.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies, which can hinder the company's ability to reinvest and grow sustainably.

Negative Cash Flow

Negative cash flow indicates liquidity challenges, limiting Orron Energy's ability to fund operations and invest in growth opportunities.

Orron Energy Business Overview & Revenue Model

Company Description

Orrön Energy AB (publ) operates as an independent renewable energy company. It has wind and hydro assets in the Nordics, a wind farm in Finland, a hydropower plant in Norway, and a Karskruv wind farm in southern Sweden. The company was formerly known as Lundin Energy AB (publ) and changed its name to Orrön Energy AB (publ) in July 2022. Orrön Energy AB (publ) was founded in 2001 and is based in Stockholm, Sweden.

How the Company Makes Money

Orron Energy generates revenue through multiple key streams. Primarily, the company earns income from the sale of electricity generated from its solar and wind farms, which are often backed by long-term power purchase agreements (PPAs) with utility companies and large corporations. Additionally, Orron Energy offers consulting services that help businesses transition to renewable energy, providing another significant revenue source. The company also engages in the installation of renewable energy systems, charging for both the products and the labor involved. Strategic partnerships with technology providers and government incentives for renewable energy projects further enhance its profitability, allowing it to reduce costs and increase project funding.

Orron Energy Financial Statement Overview

Summary

Orron Energy faces significant financial challenges, with declining revenues, negative profit margins, and cash flow issues. The balance sheet shows moderate leverage but negative returns on equity. The company needs to address operational inefficiencies and improve profitability to stabilize its financial position.

Income Statement

Orron Energy's income statement shows significant challenges, with declining revenue and negative profit margins. The TTM data indicates a sharp revenue decline of 88.1% and a negative net profit margin of -66.5%. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and profitability issues. Historical data shows fluctuating revenue growth, but recent trends are concerning.

Balance Sheet

The balance sheet reveals moderate leverage with a debt-to-equity ratio of 0.26. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is stable, suggesting a reasonable proportion of equity financing, but the negative ROE highlights profitability concerns.

Cash Flow

Cash flow analysis shows negative operating and free cash flows in the TTM period, with a free cash flow growth rate of 32.18%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. While free cash flow to net income is stable at 1.0, the overall cash flow position is weak, reflecting operational struggles.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.50M	25.70M	28.00M	14.50M	0.00	2.53B
Gross Profit	22.50M	25.70M	14.09M	10.75M	0.00	1.43B
EBITDA	-14.20M	1.50M	-2.40M	5.00M	-12.20M	486.04M
Net Income	-33.20M	-13.40M	-8.00M	28.90M	493.80M	312.37M
Balance Sheet
Total Assets	450.20M	448.20M	500.70M	480.40M	7.91B	6.65B
Cash, Cash Equivalents and Short-Term Investments	37.50M	32.10M	27.50M	31.40M	130.00M	82.50M
Total Debt	95.70M	84.20M	115.50M	30.80M	0.00	3.99B
Total Liabilities	119.90M	108.80M	147.30M	96.80M	9.33B	8.42B
Stockholders Equity	327.80M	336.70M	350.70M	374.70M	-1.42B	-1.77B
Cash Flow
Free Cash Flow	-11.50M	-6.30M	15.40M	1.40B	1.73B	605.90M
Operating Cash Flow	-11.50M	-6.30M	15.50M	1.70B	3.06B	1.53B
Investing Cash Flow	-20.90M	32.60M	-79.10M	-458.60M	-1.41B	-1.08B
Financing Cash Flow	32.20M	-30.10M	57.70M	-831.70M	-1.30B	-456.20M

Orron Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ORRON, the sentiment is Positive. The current price of 5.77 is above the 20-day moving average (MA) of 4.74, above the 50-day MA of 4.62, and above the 200-day MA of 4.69, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 63.87 is Neutral, neither overbought nor oversold. The STOCH value of 88.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ORRON.

Orron Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ARISE	55 Neutral	kr1.94B	101.27	0.94%	2.85%	-3.73%	-91.74%
ORRON	51 Neutral	kr1.31B	-3.52	-9.16%	―	-3.20%	-2418.83%
MINEST	44 Neutral	€192.86M	―	-5.97%	―	-100.00%	31.68%
MAHA.A	40 Underperform	kr1.34B	―	0.66%	―	-22.91%	88.74%