Profoto Holding AB (PRFO) AI Stock Analysis

• Market Cap: kr408.00M
• Dividend Yield: N/A
• Average Volume (3M): 21.33K
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.24
• Revenue Growth: -11.02%
• EPS Growth: -90.00%
• Country: SE
• Employees: 148
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.00
• Shares Outstanding: 40,000,000
• 10 Day Avg. Volume: 39,965
• 30 Day Avg. Volume: 21,334
• PEG Ratio: -0.74
• Price to Book (P/B): 4.74
• Price to Sales (P/S): 2.41
• P/FCF Ratio: -48.89
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: kr11.50 ▲(7.48% Upside)

Profoto Holding AB's overall stock score is primarily influenced by its strong profitability and high dividend yield, which are offset by bearish technical indicators and significant cash flow challenges. The lack of revenue growth and high P/E ratio also weigh on the score, suggesting caution for potential investors.

Positive Factors

High profitability margins

Sustained high gross margin (83.4%) and a positive net margin (12.6%) indicate durable product pricing power and cost efficiency in hardware production. These margins support long-term investment in R&D, high incremental profit on accessory sales, and resilience through product cycles.

Solid balance sheet and ROE

Moderate leverage (D/E 0.66) combined with a high ROE (~24%) suggests the company deploys capital effectively without excessive indebtedness. This financial posture supports strategic investment, dividend capacity, and resilience to cyclical downturns over the medium term.

Product ecosystem and repeatable sales

A core hardware franchise plus light-shaping accessories creates an installed-base flywheel: initial system sales can generate recurring accessory purchases and upgrades. This product ecosystem and global distribution mix support customer lifetime value and longer-term revenue per user expansion.

Negative Factors

Declining revenue growth

Significant negative revenue growth (~-11%) signals demand headwinds or market share pressure. Persistent top-line decline undermines operating leverage, limits reinvestment capacity, and can erode competitive advantage if not reversed, making medium-term earnings sustainability uncertain.

Weak free cash flow conversion

Deeply negative FCF growth and OCF covering only ~40% of net income indicate poor cash conversion and earnings quality. This constrains funding for capex, product development, or shareholder distributions and raises financing risk if adverse trends persist over several quarters.

Niche, cyclical end-market and limited scale

Dependence on professional photography and commercial imaging exposes revenue to cyclical content-production budgets. A small workforce and niche customer base suggest limited scale versus larger equipment competitors, constraining distribution reach and making revenue more sensitive to market swings.

Profoto Holding AB Business Overview & Revenue Model

Company Description

Profoto Holding AB (publ) provides lighting products for professional photographers in Sweden and internationally. The company offers lighting equipment for photography, including on and off camera flashes, monolights, studiopacks, and for smart phones; and light modifiers, which include softboxes, umbrellas, beauty dishes, reflectors, grids, gels, barndoors, collapsible reflectors, snoots, adapters, special effect tools, and accessories for light shaping tools. In addition, the company provides air remotes; accessories, which include bags and cases, batteries and chargers, cables, consumables, and stands; and smartphone photography products, including smartphone lights and light shaping tools. It offers its products through dealers and rental companies, as well as online. Profoto Holding AB (publ) was founded in 1968 and is headquartered in Sundbyberg, Sweden

How the Company Makes Money

Profoto generates revenue primarily through the sale of its professional lighting equipment, including flash units, continuous lights, light shaping tools, and various accessories. The company's revenue model is based on direct sales to professional photographers and videographers, as well as through partnerships with distributors and retailers worldwide. Key revenue streams include product sales, which are bolstered by a strong brand reputation for quality and innovation. Additionally, Profoto may engage in strategic partnerships with photography schools, studios, and industry events, which can contribute to brand visibility and sales. The company also invests in research and development to continuously enhance its product offerings, thereby attracting new customers and retaining existing ones.

Profoto Holding AB Financial Statement Overview

Summary

Profoto Holding AB shows strong profitability with high margins and a stable balance sheet, but faces challenges with declining revenue growth and significant cash flow issues. The company's efficient cost management is a positive, but the negative revenue growth and cash flow concerns need addressing to ensure long-term financial health.

Income Statement

Profoto Holding AB's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 6.44%, reflecting a challenging market environment. However, the company maintains strong profitability with a gross profit margin of 83.40% and a net profit margin of 12.59%. The EBIT and EBITDA margins are also healthy at 20.89% and 30.19%, respectively. Despite the revenue decline, the company demonstrates efficient cost management, but the negative revenue growth is a concern.

Balance Sheet

The balance sheet of Profoto Holding AB is relatively stable. The debt-to-equity ratio stands at 0.66, indicating moderate leverage. The return on equity (ROE) is 23.98%, showcasing effective utilization of equity to generate profits. The equity ratio is not explicitly provided, but the company's equity position appears solid given the total assets and stockholders' equity figures. Overall, the balance sheet reflects a stable financial position with manageable debt levels.

Cash Flow

The cash flow statement reveals some challenges for Profoto Holding AB. The free cash flow growth rate is significantly negative at -392.31%, indicating potential cash flow issues. The operating cash flow to net income ratio is 0.40, suggesting that operating cash flow is not fully covering net income. Additionally, the free cash flow to net income ratio is negative, highlighting concerns about cash generation relative to profits. The company needs to address its cash flow management to improve financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	654.00M	731.00M	787.00M	848.00M	732.00M	528.00M
Gross Profit	406.00M	607.00M	631.00M	619.00M	522.00M	321.00M
EBITDA	147.00M	209.00M	242.00M	289.00M	249.00M	13.00M
Net Income	12.00M	126.00M	155.00M	194.00M	158.00M	-18.00M
Balance Sheet
Total Assets	820.00M	872.00M	799.00M	801.00M	585.00M	673.00M
Cash, Cash Equivalents and Short-Term Investments	59.00M	21.00M	95.00M	150.00M	206.00M	254.00M
Total Debt	267.00M	257.00M	121.00M	121.00M	72.00M	100.00M
Total Liabilities	477.00M	501.00M	403.00M	410.00M	254.00M	339.00M
Stockholders Equity	342.00M	371.00M	396.00M	391.00M	331.00M	334.00M
Cash Flow
Free Cash Flow	38.00M	-36.00M	119.00M	185.00M	210.00M	124.00M
Operating Cash Flow	151.00M	97.00M	211.00M	236.00M	240.00M	153.00M
Investing Cash Flow	-130.00M	-133.00M	-109.00M	-192.00M	-146.00M	38.00M
Financing Cash Flow	4.00M	-38.00M	-155.00M	-97.00M	-135.00M	16.00M

Profoto Holding AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.70
• 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:PRFO, the sentiment is Negative. The current price of 10.7 is above the 20-day moving average (MA) of 10.51, above the 50-day MA of 10.27, and below the 200-day MA of 17.59, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.00 is Neutral, neither overbought nor oversold. The STOCH value of 56.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:PRFO.

Profoto Holding AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MIPS	72 Outperform	kr7.50B	54.52	23.68%	1.85%	23.02%	32.69%
NEWA.B	66 Neutral	kr14.61B	17.28	12.33%	3.12%	2.80%	-8.84%
THULE	65 Neutral	kr23.47B	21.85	14.62%	3.54%	8.93%	-12.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PRFO	59 Neutral	kr408.00M	34.00	3.22%	―	-11.02%	-90.00%
DOM	55 Neutral	kr12.16B	27.56	―	2.85%	-13.49%	60.49%
BULTEN	48 Neutral	kr915.08M	-83.19	-0.32%	5.49%	-10.68%	-103.85%