Railcare Group AB (RAIL) AI Stock Analysis

• Market Cap: kr694.78M
• Dividend Yield: 2.43%
• Average Volume (3M): 10.34K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.21
• Revenue Growth: 4.27%
• EPS Growth: -3.28%
• Country: SE
• Employees: 187
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.85
• Shares Outstanding: 24,124,168
• 10 Day Avg. Volume: 6,142
• 30 Day Avg. Volume: 10,341
• PEG Ratio: -0.66
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 7.12
• 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: 73 Outperform
• Price Target: kr32.00 ▲(10.54% Upside)

Railcare Group AB's overall stock score is driven by its solid financial performance, characterized by revenue growth and strong cash flow generation. The positive technical indicators further support the stock's outlook. While the valuation is fair, the company's increased leverage is a concern that needs monitoring.

Positive Factors

Cash Flow Management

Strong free cash flow growth indicates effective cash generation, enhancing financial flexibility and supporting future investments.

Operational Efficiency

Positive EBIT and EBITDA margins suggest operational efficiency, allowing the company to sustain profitability despite revenue challenges.

Revenue Streams

Diverse revenue streams, including leasing, reduce dependency on a single income source, enhancing business resilience.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting the company's ability to invest in growth or weather economic downturns.

Declining Revenue Growth

Declining revenue growth indicates potential market challenges, which could impact long-term profitability and market position.

Profit Margin Pressure

Decreasing profit margins suggest cost management issues, which could erode profitability if not addressed effectively.

Railcare Group AB Business Overview & Revenue Model

Company Description

Railcare Group AB (RAIL) is a Swedish company specializing in railway services and infrastructure maintenance. The company operates primarily in the rail sector, providing a range of services including rail transport, track maintenance, and logistics solutions. Railcare focuses on enhancing the efficiency and safety of rail operations, catering to both public and private clients across Europe. Its core offerings include rail vehicle leasing, track inspection, and specialized maintenance services, which are crucial for the operational integrity of railway systems.

How the Company Makes Money

Railcare Group AB generates revenue through multiple streams tied to its core operations in the railway sector. The primary revenue sources include fees for rail transport services, which involve the movement of goods and materials across the rail network. Additionally, the company earns income from leasing rail vehicles to customers, providing a steady cash flow from long-term contracts. Railcare also derives revenue from maintenance and repair services for railway infrastructure, including track inspections and upgrades. Strategic partnerships with various railway operators and government agencies enhance its market position and lead to recurring contracts, contributing significantly to its financial performance.

Railcare Group AB Financial Statement Overview

Summary

Railcare Group AB's financial performance is mixed. The income statement shows declining revenue and profit margins, indicating challenges in revenue growth and cost management. The balance sheet highlights high leverage, posing potential financial risks. However, the cash flow statement is strong, with significant free cash flow growth, suggesting effective cash management.

Income Statement

Railcare Group AB's income statement shows mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is at 21.83%, which is a decline from previous years, indicating pressure on cost management. The net profit margin is relatively low at 4.45%, reflecting challenges in converting revenue into profit. Revenue growth has been negative recently, with a decline of 26.6% in the TTM period, which is concerning. However, the company maintains a positive EBIT and EBITDA margin, suggesting operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.15 in the TTM period, indicating significant leverage which could pose financial risk. Return on equity has decreased to 9.70%, showing reduced profitability for shareholders. The equity ratio stands at 26.09%, suggesting a moderate level of financial stability. Overall, the balance sheet reflects a leveraged position with potential risks if not managed carefully.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 35.81% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.40, which is lower than previous years, suggesting a need for better cash conversion. The free cash flow to net income ratio is healthy at 0.56, demonstrating effective cash management relative to net income. Overall, cash flow performance is robust, with positive growth trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	654.44M	635.30M	564.22M	497.04M	437.94M	401.30M
Gross Profit	152.10M	71.10M	154.81M	126.87M	114.25M	117.94M
EBITDA	94.92M	168.43M	112.01M	93.56M	107.51M	112.79M
Net Income	36.03M	30.39M	43.62M	36.78M	40.51M	43.77M
Balance Sheet
Total Assets	1.08B	1.04B	643.02M	592.87M	557.97M	521.39M
Cash, Cash Equivalents and Short-Term Investments	22.65M	61.69M	39.43M	31.98M	38.56M	24.79M
Total Debt	577.09M	591.82M	208.07M	218.06M	217.72M	226.85M
Total Liabilities	774.83M	757.30M	368.90M	348.78M	336.81M	326.53M
Stockholders Equity	303.64M	286.47M	274.12M	244.09M	221.15M	194.86M
Cash Flow
Free Cash Flow	111.25M	85.44M	41.91M	14.12M	57.06M	28.98M
Operating Cash Flow	164.69M	151.72M	102.28M	67.40M	100.24M	82.85M
Investing Cash Flow	-77.34M	-87.48M	-60.72M	-53.16M	-38.88M	-54.14M
Financing Cash Flow	-105.17M	-42.10M	-34.26M	-21.21M	-47.90M	-25.82M

Railcare Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:RAIL, the sentiment is Positive. The current price of 28.95 is above the 20-day moving average (MA) of 28.76, above the 50-day MA of 27.71, and above the 200-day MA of 26.60, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 55.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:RAIL.

Railcare Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAIL	73 Outperform	kr694.78M	19.28	―	2.43%	4.27%	-3.28%
GREEN	65 Neutral	€2.44B	17.53	8.53%	―	-0.37%	-39.70%
NORB.B	64 Neutral	€746.95M	58.81	1.98%	―	4.24%	29.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ELTEL	50 Neutral	€1.33B	98.49	0.72%	―	-6.38%	―
TRANS	48 Neutral	€327.29M	―	0.35%	―	10.36%	-100.68%
WBGR.B	40 Underperform	€537.56M	-0.86	-56.98%	―	-0.02%	-50.72%

Railcare Group AB Corporate Events

Railcare Group AB Reports Positive Interim Results Amid Growing Railway Industry

Railcare Group AB’s CEO, Mattias Remahl, presented the interim report for January to September 2025, highlighting the company’s ongoing commitment to providing sustainable and efficient railway solutions. The railway industry is experiencing positive growth, driven by increasing traffic volumes, investment programs, and environmental awareness, positioning Railcare to benefit from these trends.

Railcare Group AB Reports Strongest Quarter in Q3 2025

Railcare Group AB reported its strongest quarter to date in Q3 2025, with consolidated net sales reaching SEK 196.3 million and an operating profit of SEK 30.2 million. The company’s performance highlights its effective strategies in addressing rising demands and challenges in the railway sector, positioning it strongly within the industry.

Railcare Group AB Forms Nomination Committee for 2026 AGM

Railcare Group AB has established a Nomination Committee for its 2026 Annual General Meeting, consisting of representatives from major shareholders who collectively hold 40.1% of the company’s shares. The committee, chaired by Jonas Holmqvist, is tasked with proposing board members, fees, and auditors for the upcoming meeting, reflecting Railcare’s strategic governance efforts to align with shareholder interests.