Pierce Group AB (PIERCE) AI Stock Analysis

• Market Cap: €701.67M
• Dividend Yield: N/A
• Average Volume (3M): 83.14K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.80
• Revenue Growth: 8.07%
• EPS Growth: 61.01%
• Country: SE
• Employees: 320
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Specialty Retail
• EPS (TTM): -0.37
• Shares Outstanding: 79,374,100
• 10 Day Avg. Volume: 104,224
• 30 Day Avg. Volume: 83,136
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: 64 Neutral
• Price Target: kr9.50 ▲(7.22%Upside)

Pierce Group AB's stock score is driven by its improved financial performance and stable technical indicators. However, the negative P/E ratio and lack of dividend yield suggest valuation concerns that weigh down the overall score.

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 the online sale of motorcycle and motocross-related products. The company's key revenue streams include direct-to-consumer sales via its e-commerce websites, which feature an extensive selection of gear, parts, and accessories for motorcycles and motocross bikes. Additionally, Pierce Group AB benefits from partnerships with various suppliers and manufacturers, enabling it to offer a diverse and competitive product range. The company also leverages targeted digital marketing strategies to attract customers and drive sales growth across its platforms.

Pierce Group AB Financial Statement Overview

Summary

Pierce Group AB demonstrates a promising financial recovery with improved profitability and operational efficiency. Notable improvements include a positive net profit margin and a strong equity position. While the historical volatility in earnings necessitates cautious optimism, the overall financial position is positive.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Pierce Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.86
• 50DMA: Positive
• 100DMA: Negative
• 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:PIERCE, the sentiment is Positive. The current price of 8.86 is above the 20-day moving average (MA) of 8.79, above the 50-day MA of 8.41, and above the 200-day MA of 8.64, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 52.90 is Neutral, neither overbought nor oversold. The STOCH value of 63.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:PIERCE.

Pierce Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PIERCE	64 Neutral	€701.67M	19.05	-3.61%	―	8.07%	61.01%
Sector *	63 Neutral	$17.26B	10.39	-8.50%	3.06%	1.63%	-25.95%
9RN	―	€56.41M	―	-12.21%	―	―	―
98Q	―	€22.33M	36.07	8.09%	2.63%	―	―
81N	―	€127.55M	25.24	9.80%	1.89%	―	―
CD20	―	€170.52M	14.69	50.07%	―	―	―
6BB	―	€134.69M	17.11	22.33%	2.58%	―	―

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.