Pierce Group AB (PIERCE) AI Stock Analysis

• Market Cap: kr698.49M
• Dividend Yield: N/A
• Average Volume (3M): 95.03K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.81
• Revenue Growth: 8.07%
• EPS Growth: 61.01%
• Country: SE
• Employees: 320
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Specialty Retail
• EPS (TTM): -0.37
• Shares Outstanding: 79,374,100
• 10 Day Avg. Volume: 56,424
• 30 Day Avg. Volume: 95,030
• PEG Ratio: 0.01
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -106.47
• 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: 60 Neutral
• Price Target: kr9.50 ▲(19.05%Upside)

Pierce Group AB's stock score is primarily driven by its promising financial recovery and strong operational performance, with a solid equity position and efficient cash flow generation. However, technical analysis presents mixed signals, and valuation concerns persist due to a negative P/E ratio. The absence of earnings call and corporate events data limits further insights.

Pierce Group AB Business Overview & Revenue Model

Company Description

Pierce Group AB (PIERCE) is a leading e-commerce company specializing in the sale of motorcycle and snowmobile gear, parts, and accessories. Headquartered in Sweden, the company operates across multiple European markets, catering to enthusiasts and professionals through its various online platforms. Pierce Group AB aims to provide a comprehensive range of products, including apparel, helmets, maintenance parts, and performance accessories, ensuring a high level of customer satisfaction through competitive pricing and efficient distribution networks.

How the Company Makes Money

Pierce Group AB makes money primarily through the online retail sale of motorcycle and snowmobile products. Its revenue model is based on direct-to-consumer sales via dedicated e-commerce websites, which offer an extensive catalog of products sourced from various manufacturers and brands. The company benefits from a strong online presence and leverages digital marketing strategies to drive traffic and conversion rates on its platforms. Additionally, Pierce Group AB may engage in partnerships with key suppliers and manufacturers to enhance its product offerings and maintain competitive pricing. The company also focuses on optimizing its supply chain and logistics operations to ensure timely deliveries and cost efficiencies, contributing to its profitability.

Pierce Group AB Financial Statement Overview

Summary

Pierce Group AB demonstrates a promising financial recovery, with notable improvements in profitability and operational efficiency. The balance sheet shows strong equity and manageable debt levels, indicating financial soundness. Cash flow stability supports ongoing operations, but historical volatility in earnings and cash flow requires cautious progress monitoring. The overall financial position is positive, with areas for continued focus on maintaining stability and growth.

Income Statement

Pierce Group AB has shown a significant turnaround in profitability. The gross profit margin improved to 44.5% in 2024 from 39.5% in 2023, and the net profit margin turned positive at 2.2% from -6.2%. Revenue grew by 5.9% from 2023 to 2024, indicating healthy growth. The EBIT and EBITDA margins also improved substantially, reflecting better operational efficiency. However, historical volatility in earnings suggests a need for cautious optimism.

Balance Sheet

The balance sheet shows a solid equity position with the equity ratio rising to 60.4% in 2024. The debt-to-equity ratio is low at 0.08, indicating low leverage. ROE improved to 5.4% in 2024, reflecting better profitability, yet it remains relatively modest. The company has consistently reduced debt, enhancing financial stability, but past leverage issues require ongoing attention.

Cash Flow

Pierce Group AB's cash flow is strong with a free cash flow of SEK 105 million in 2024, despite a decrease from the previous year. The operating cash flow to net income ratio is 2.92, indicating efficient cash generation relative to income. Historical fluctuations in cash flow metrics highlight potential risks, but current figures suggest good liquidity management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.63B	1.54B	1.67B	1.59B	1.52B
Gross Profit	725.00M	607.00M	657.00M	728.00M	711.00M
EBITDA	47.00M	-34.00M	8.00M	98.00M	95.00M
Net Income	36.00M	-96.00M	-58.00M	7.00M	-1.00M
Balance Sheet
Total Assets	1.10B	970.00M	1.08B	1.03B	920.00M
Cash, Cash Equivalents and Short-Term Investments	297.00M	222.00M	136.00M	18.00M	87.00M
Total Debt	52.00M	54.00M	65.00M	249.00M	548.00M
Total Liabilities	437.00M	343.00M	364.00M	594.00M	863.00M
Stockholders Equity	666.00M	627.00M	719.00M	441.00M	57.00M
Cash Flow
Free Cash Flow	105.00M	119.00M	-5.00M	-87.00M	127.00M
Operating Cash Flow	105.00M	127.00M	9.00M	-61.00M	156.00M
Investing Cash Flow	-8.00M	-8.00M	-16.00M	-12.00M	-42.00M
Financing Cash Flow	-29.00M	-28.00M	124.00M	2.00M	-133.00M

Pierce Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.98
• 50DMA: Negative
• 100DMA: Negative
• 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:PIERCE, the sentiment is Neutral. The current price of 7.98 is below the 20-day moving average (MA) of 8.18, below the 50-day MA of 8.95, and below the 200-day MA of 8.58, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:PIERCE.

Pierce Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BORG	74 Outperform	kr1.51B	17.27	22.33%	2.50%	14.83%	20.70%
BORG	74 Outperform	kr1.51B	17.27	22.33%	2.50%	14.83%	20.70%
SODER	69 Neutral	kr273.34M	33.33	9.16%	2.47%	8.28%	-5.74%
RUG	68 Neutral	kr1.29B	22.75	9.80%	19.12%	2.61%	-14.95%
RUG	68 Neutral	kr1.29B	22.75	9.80%	19.12%	2.61%	-14.95%
NELLY	67 Neutral	kr1.30B	12.79	45.93%	―	6.78%	217.60%
NELLY	67 Neutral	kr1.30B	12.79	45.93%	―	6.78%	217.60%
Sector *	64 Neutral	kr11.54B	16.57	10.84%	9.89%	2.66%	5.01%
PIERCE	60 Neutral	kr698.49M	19.05	-3.61%	―	8.07%	61.01%
BOAT	44 Neutral	kr671.44M	―	-9.23%	―	-18.61%	-290.93%
BOAT	44 Neutral	kr671.44M	―	-9.23%	―	-18.61%	-290.93%

Pierce Group AB Corporate Events

Pierce Group AB’s AGM Decisions Focus on Growth and Incentives

Pierce Group AB’s Annual General Meeting on May 20, 2025, resulted in several key resolutions. The company decided not to distribute dividends, re-elected board members, approved a remuneration report, and authorized the board to issue new shares to potentially finance acquisitions. Additionally, a long-term incentive program was introduced for key employees, allowing them to earn shares based on performance targets. These decisions aim to strengthen the company’s capital structure and incentivize its management team.

Pierce Group AB Reports Revenue Growth Amid Operational Changes

Pierce Group AB reported a 13% increase in net revenue for the first quarter of 2025, despite facing challenges that resulted in a negative EBIT and cash flow. The company has decided to discontinue segment reporting to enhance operational integration and announced a series C share issue to support its performance-based share program. Additionally, there have been changes in the CFO position, with Fredrik Ideström resigning and Fredrik Kjellgren set to take over in the fourth quarter of 2025.

Pierce Group Appoints New CFO Amid Strategic Transformation

Pierce Group has announced the appointment of Fredrik Kjellgren as the new Chief Financial Officer, effective in the fourth quarter of 2025. This strategic move is part of the company’s ongoing transformation to enhance competitiveness. Kjellgren, with his extensive experience in finance roles at large organizations, is expected to drive efficiency and profitability, contributing significantly to the management team.