Pierce Group AB (PIERCE) AI Stock Analysis

• Market Cap: kr755.42M
• Dividend Yield: N/A
• Average Volume (3M): 407.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 15.59%
• EPS Growth: 16.67%
• Country: SE
• Employees: 320
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.10
• Shares Outstanding: 79,374,100
• 10 Day Avg. Volume: 187,984
• 30 Day Avg. Volume: 407,794
• PEG Ratio: 0.00
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -113.50
• 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): 0.97
• Revenue Forecast (FY): kr2.00B

• Rating: 46 Neutral
• Price Target: kr10.00 ▼(-30.07% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held down primarily by the TTM profitability and cash flow deterioration (negative operating and free cash flow, small net loss) and weak technical momentum (below major moving averages with negative MACD and low RSI). Strong revenue growth and a manageable leverage profile provide partial support, but valuation is constrained by losses and the lack of a dividend yield.

Positive Factors

Strong revenue growth

Sustained +72% TTM revenue growth signals durable demand for Pierce's motorcycle aftermarket offerings and successful customer acquisition. Over 2–6 months this supports scale benefits in purchasing, inventory turnover and distribution, making future gross-profit expansion and market-share gains more achievable.

Healthy gross margin

A ~42.5% gross margin indicates strong product economics in apparel, parts and consumables. Durable margin upside from assortment mix, private-label or exclusive SKUs and D2C pricing control can sustain profitability as revenue scales, providing a structural cushion against input-cost volatility.

Manageable leverage / strong equity base

Low leverage and a large equity base give financial flexibility to fund inventory, capex and market expansion without immediate refinancing risk. This balance-sheet strength supports multi-market e-commerce growth and cushions short-term earnings volatility while management executes longer-term initiatives.

Negative Factors

Deteriorating cash generation

A sharp reversal to negative operating and free cash flow reduces internal funding for inventory and marketing, increasing reliance on external financing or equity to sustain growth. Over several months this weakens financial optionality and pressures investment pacing, especially if working-capital needs persist.

Thin operating profitability

Very slim operating margins and a small TTM loss leave limited buffer against cost inflation or lower demand. Structural investments or rising fixed costs could keep profitability weak for months, making it harder for the firm to convert strong top-line growth into sustainable earnings.

Compressed returns / negative ROE

Negative ROE despite a sizable equity base signals that capital deployment isn't generating expected returns. Persisting below-cost-of-capital returns can limit reinvestment appetite and shareholder support, and suggests management must improve operating efficiency or restructure capital allocation to restore long-term value.

Pierce Group AB Business Overview & Revenue Model

Company Description

Pierce Group Ab (publ), an e-commerce company, engages in the sale of gears, parts, accessories, and streetwear to riders through online stores in Europe. It operates through Offroad, Onroad, and Other segments. The company serves motocross and enduro riders under the 24MX brand; motorcycle riders on highroads under the XLMOTO brand; and snowmobile riders under the Sledstore brand, as well as through a physical store in Stockholm. Pierce Group Ab (publ) was founded in 2008 and is headquartered in Hägersten, Sweden.

How the Company Makes Money

Pierce Group AB generates revenue primarily through its e-commerce sales, which encompass a diverse portfolio of products sold via its various online platforms. The company capitalizes on its strong brand presence and customer loyalty to drive sales. Key revenue streams include direct sales of motorcycle and outdoor products, as well as potential partnerships with manufacturers and suppliers that may involve affiliate marketing or wholesale arrangements. Additionally, PIERCE may benefit from seasonal promotions and marketing campaigns that attract new customers and incentivize repeat purchases, further enhancing its earnings.

Pierce Group AB Financial Statement Overview

Summary

Revenue growth is very strong (+72.1%) and gross margin is healthy (~42.5%), but operating profitability is thin (EBIT margin ~1.2%), TTM net margin is slightly negative (~-0.6%), and cash generation weakened sharply with negative operating cash flow (-3M) and negative free cash flow (-10M). Balance sheet leverage is moderate (debt-to-equity ~0.35), but returns are pressured by the recent loss.

Income Statement

TTM (Trailing-Twelve-Months) revenue growth is very strong (+72.1%), and gross margin remains healthy (~42.5%), pointing to solid demand and decent product economics. However, profitability is thin at the operating line (EBIT margin ~1.2%) and the company slipped to a small net loss (net margin ~-0.6%) in TTM after being profitable in 2024. EBITDA margin also compressed meaningfully versus 2024, suggesting higher operating costs and/or investment pressure.

Balance Sheet

Leverage looks manageable in TTM with debt-to-equity around 0.35 and equity of ~663M versus ~117M debt, providing balance sheet flexibility. Total assets are stable (~1.13B). The key weakness is returns: TTM shows a slightly negative return on equity, reflecting the recent net loss and indicating profitability still isn’t consistently translating into shareholder returns.

Cash Flow

Cash generation deteriorated sharply in TTM, with operating cash flow turning slightly negative (-3M) and free cash flow also negative (-10M), a major reversal from the strong positive cash flows in 2023–2024. Free cash flow declined steeply (growth -81.8%), signaling weaker cash conversion and/or higher working-capital/investment needs. While prior years demonstrate the business can generate substantial cash, the latest TTM trend is a clear near-term risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.82B	1.63B	1.54B	1.67B	1.59B
Gross Profit	773.00M	725.00M	607.00M	657.00M	728.00M
EBITDA	27.00M	113.00M	-34.00M	8.00M	98.00M
Net Income	0.00	36.00M	-96.00M	-58.00M	26.00M
Balance Sheet
Total Assets	1.13B	1.10B	970.00M	1.08B	1.03B
Cash, Cash Equivalents and Short-Term Investments	235.00M	297.00M	222.00M	136.00M	18.00M
Total Debt	204.00M	52.00M	54.00M	103.00M	249.00M
Total Liabilities	463.00M	437.00M	343.00M	364.00M	594.00M
Stockholders Equity	663.00M	666.00M	627.00M	719.00M	441.00M
Cash Flow
Free Cash Flow	-10.00M	100.00M	124.00M	-5.00M	-87.00M
Operating Cash Flow	-3.00M	105.00M	127.00M	9.00M	-61.00M
Investing Cash Flow	-21.00M	-8.00M	-8.00M	-16.00M	-12.00M
Financing Cash Flow	-26.00M	-29.00M	-28.00M	124.00M	2.00M

Pierce Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PIERCE, the sentiment is Negative. The current price of 14.3 is above the 20-day moving average (MA) of 10.72, above the 50-day MA of 12.34, and above the 200-day MA of 11.10, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 35.20 is Neutral, neither overbought nor oversold. The STOCH value of 41.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:PIERCE.

Pierce Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NELLY	71 Outperform	kr3.84B	22.77	51.02%	―	12.45%	118.98%
BOKUS	67 Neutral	kr1.07B	12.10	―	4.49%	9.46%	59.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CDON	56 Neutral	kr833.22M	-14.04	―	―	―	―
OBAB	49 Neutral	kr353.45M	-25.49	―	―	27.27%	-1165.24%
PIERCE	46 Neutral	kr755.42M	-774.60	-1.41%	―	15.59%	16.67%

Pierce Group AB Corporate Events

Pierce Group lifts 2025 sales and margins as transformation gains traction

Pierce Group AB reported a transformational 2025 with net revenue rising 12 percent to SEK 1,816 million, or 14 percent in local currencies, driven by stronger sales and an improved product mix. Adjusted EBIT nearly doubled to SEK 45 million, lifting the adjusted operating margin to 2.5 percent despite a lower full-year cash flow and a marginal net loss per share.

In the fourth quarter, revenue grew 3 percent to SEK 464 million, while EBIT swung to a profit of SEK 10 million and free cash flow strengthened, leaving the group with net cash of SEK 235 million. The appointment of a new CFO and the renewal of a credit facility with a major Swedish bank support the company’s ongoing transformation and provide financial flexibility for its next phase of development.

The most recent analyst rating on (SE:PIERCE) stock is a Sell with a SEK11.50 price target. To see the full list of analyst forecasts on Pierce Group AB stock, see the SE:PIERCE Stock Forecast page.

Pierce Group Sets Date for 2025 Year-End Report and Investor Presentation

Pierce Group AB will publish its year-end report for 2025 on 20 February 2026 at 08:00 CET and will follow up with an English-language webcast and teleconference at 10:00 CET, hosted by CEO Göran Dahlin and CFO Fredrik Kjellgren. The scheduled presentation underscores the company’s effort to maintain transparent communication with investors and other stakeholders as it reports on its full-year performance in the competitive European powersports e-commerce market.

The most recent analyst rating on (SE:PIERCE) stock is a Sell with a SEK11.50 price target. To see the full list of analyst forecasts on Pierce Group AB stock, see the SE:PIERCE Stock Forecast page.