Ratos AB (RATO.B) AI Stock Analysis

• Market Cap: kr11.65B
• Dividend Yield: 3.83%
• Average Volume (3M): 605.97K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 1.31
• Revenue Growth: -13.86%
• EPS Growth: -77.94%
• Country: SE
• Employees: 10,900
• Sector: Services
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 1.59
• Shares Outstanding: 242,748,630
• 10 Day Avg. Volume: 437,850
• 30 Day Avg. Volume: 605,974
• PEG Ratio: -0.52
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 3.25
• 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: kr43.50
• Price Target Upside: 24.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: kr37.00 ▲(5.47% Upside)

Ratos AB's overall stock score is primarily influenced by its stable financial performance, despite some risks from declining revenue and cash flow. Technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The dividend yield offers some support but is not sufficient to offset valuation concerns.

Ratos AB Business Overview & Revenue Model

Company Description

Ratos AB (RATO.B) is a Swedish investment company that specializes in acquiring and managing a portfolio of medium-sized companies across various sectors, including industrials, consumer goods, and services. The company focuses on fostering growth and operational improvements in its portfolio companies, aiming to enhance their long-term value while also providing strategic support and resources. Ratos operates with a commitment to sustainability and corporate responsibility, positioning itself as a partner that can help drive innovation and efficiency within its investments.

How the Company Makes Money

Ratos AB generates revenue primarily through the appreciation of its equity investments in portfolio companies. The company makes money by acquiring significant stakes in these companies, then working on improving their operational performance and profitability. Revenue streams include capital gains from the sale of these investments, as well as dividends received from profitable portfolio companies. Additionally, Ratos may earn management fees for providing strategic guidance and operational support to its portfolio, and it can also benefit from any exit strategies, such as initial public offerings (IPOs) or secondary sales. Key partnerships with industry leaders and financial institutions can enhance Ratos's ability to successfully navigate the market and optimize the value of its investments.

Ratos AB Financial Statement Overview

Summary

Ratos AB exhibits a solid financial performance with strong operational margins, a healthy balance sheet, and robust cash flow generation. The company has significantly reduced its debt, enhancing its financial position, despite a decline in net income in 2024.

Income Statement

Ratos AB has demonstrated consistent growth in its revenue over the years, with a significant rebound in 2023. Gross profit margin and net profit margin are stable, though net income declined in 2024 due to increased expenses impacting net profit margin. EBIT and EBITDA margins remain strong, indicating robust operational performance.

Balance Sheet

The company's balance sheet is strong, with a notable reduction in total debt leading to a zero debt-to-equity ratio in 2024, indicating a healthy financial structure. Return on equity has decreased due to a decline in net income, but the equity ratio remains stable, suggesting good asset management and financial stability.

Cash Flow

Ratos AB maintains a strong cash flow position with positive free cash flow growth. The operating cash flow to net income ratio is high, reflecting efficient cash generation relative to net income. The free cash flow to net income ratio is also robust, demonstrating the company's ability to generate cash beyond its net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.31B	32.12B	33.75B	29.88B	22.55B	20.94B
Gross Profit	12.62B	13.96B	14.65B	5.20B	4.25B	3.96B
EBITDA	3.30B	3.23B	3.99B	2.66B	2.45B	2.17B
Net Income	3.10B	249.00M	1.22B	879.00M	1.14B	693.00M
Balance Sheet
Total Assets	30.86B	34.54B	36.13B	37.17B	28.39B	28.64B
Cash, Cash Equivalents and Short-Term Investments	1.51B	2.19B	2.36B	2.53B	2.23B	2.83B
Total Debt	9.30B	9.00B	10.43B	13.04B	8.03B	8.33B
Total Liabilities	13.99B	19.78B	21.68B	23.39B	15.06B	17.36B
Stockholders Equity	14.85B	12.27B	12.31B	12.29B	11.94B	9.37B
Cash Flow
Free Cash Flow	2.66B	3.16B	4.04B	1.03B	1.03B	2.54B
Operating Cash Flow	2.97B	3.44B	4.28B	1.43B	1.45B	3.20B
Investing Cash Flow	-624.00M	-972.00M	-542.00M	-4.26B	-258.00M	-694.00M
Financing Cash Flow	-2.51B	-2.62B	-3.80B	2.99B	-2.23B	-2.47B

Ratos AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.08
• 50DMA: Negative
• 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:RATO.B, the sentiment is Negative. The current price of 35.08 is below the 20-day moving average (MA) of 35.11, below the 50-day MA of 37.66, and above the 200-day MA of 34.17, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 53.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:RATO.B.

Ratos AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRED.A	74 Outperform	kr10.58B	8.47	12.24%	2.06%	-6.84%	14.17%
MCAP	68 Neutral	kr9.82B	49.03	15.85%	―	9.32%	-7.55%
ORES	66 Neutral	kr5.55B	7.89		5.82%	―	-10.54%
Sector *	66 Neutral	€4.03B	17.05	-2.44%	3.89%	1.88%	-16.39%
SVOL.B	64 Neutral	kr5.67B	13.31	-3.12%	3.14%	-134.58%	-141.10%
BURE	60 Neutral	€20.88B	179.99	0.27%	0.99%	13.61%	-97.82%
RATO.B	57 Neutral	kr11.65B	40.30	2.64%	3.83%	-13.86%	-77.94%

Ratos AB Corporate Events

Ratos Announces SEK 300 Million Earnings Boost from Arbitration Award

Ratos announced a positive earnings impact of approximately SEK 300 million due to an arbitration award involving its subsidiary, Diab Group. The decision to decrease Diab’s PET production capacity and impair certain assets will also enhance cash flow by SEK 600 million, reflecting Ratos’s ongoing strategy to streamline operations.

The most recent analyst rating on ($SE:RATO.B) stock is a Buy with a SEK45.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos AB to Release Interim Report for January-June 2025

Ratos AB announced the release of its interim report for January to June 2025, scheduled for July 17. The report will be presented by CEO Jonas Wiström and CFO Anna Vilogorac, with a live presentation available on YouTube. This announcement underscores Ratos’s commitment to transparency and stakeholder engagement, providing insights into the company’s performance and strategic direction.

The most recent analyst rating on ($SE:RATO.B) stock is a Buy with a SEK45.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Appoints Markus Granlund as Permanent CEO of TFS HealthScience

Ratos has appointed Markus Granlund as the permanent CEO of TFS HealthScience, a global Contract Research Organization (CRO) specializing in clinical development services across various therapeutic areas. Granlund’s leadership is expected to enhance TFS’s operational efficiency and strategic positioning in the global CRO market, benefiting stakeholders through improved client value and patient outcomes.

The most recent analyst rating on ($SE:RATO.B) stock is a Buy with a SEK45.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos AB Streamlines Operations with Strategic Divestments

Ratos AB is advancing its strategy to streamline operations by focusing on fewer business segments, particularly in infrastructure and industrial product solutions. This move includes the public listing of Sentia and the divestment of airteam, marking a significant step in reallocating resources towards segments with profitable growth and strong margins. The transactions are expected to improve Ratos’s EBITA margin by 200 basis points, although the leverage ratio will be negatively impacted due to a strong cash position. The company’s current stake in Sentia is valued at SEK 2.2 billion, and its divestment could further improve the leverage ratio significantly.

The most recent analyst rating on ($SE:RATO.B) stock is a Buy with a SEK45.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Sentia ASA’s IPO Sees Strong Investor Demand

Sentia ASA, a subsidiary of Ratos, successfully completed its bookbuilding process for its initial public offering (IPO), attracting significant interest and being nearly 15 times oversubscribed. The IPO is expected to raise substantial proceeds, with Sentia’s shares commencing trading on Euronext Oslo Børs on 13 June 2025. This milestone reduces Ratos’ ownership in Sentia and is seen as a testament to Sentia’s strength and potential as a leading Nordic construction group.

The most recent analyst rating on ($SE:RATO.B) stock is a Buy with a SEK45.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Announces Sentia’s IPO on Euronext Oslo

Ratos AB announced the terms for Sentia’s initial public offering (IPO) on the Euronext Oslo Stock Exchange, with the prospectus approved by the Financial Supervisory Authority of Norway. The IPO consists of a secondary offering of up to 31,918,755 shares, with Ratos’ ownership in Sentia expected to reduce to approximately 39.8% post-IPO. This move is anticipated to enhance Sentia’s market presence and provide liquidity, potentially impacting Ratos’ strategic positioning in the construction sector.

The most recent analyst rating on ($SE:RATO.B) stock is a Buy with a SEK45.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Sentia to Pursue Euronext Oslo Børs Listing with Ratos Reducing Stake

Sentia, a leading Nordic construction group, plans to apply for a listing on Euronext Oslo Børs, with Ratos holding a 72% stake prior to the listing. The listing aims to increase visibility, broaden ownership, and improve access to capital markets, aligning with Ratos’ strategy to streamline its holdings. Ratos intends to reduce its ownership to below 50% through a public offering and private placement, with cornerstone investors committing NOK 670 million.

The most recent analyst rating on ($SE:RATO.B) stock is a Buy with a SEK45.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Announces Key Management Changes to Drive Strategic Focus

Ratos has announced changes to its management team, with Anna Vilogorac appointed as the new CFO, replacing the retiring Jonas Ågrup. Additionally, Wilhelm Montgomery has been promoted to Vice President of Strategy & Investments, reflecting Ratos’s increased focus on strategic execution and investments. These changes are part of Ratos’s ongoing transformation into a more streamlined and focused business group, aimed at enhancing value creation for stakeholders.

The most recent analyst rating on ($SE:RATO.B) stock is a Buy with a SEK45.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Completes Divestment of Airteam to Nalka Invest

Ratos AB has completed the divestment of airteam, a leading Nordic supplier of technical ventilation solutions, to Nalka Invest. This move aligns with Ratos’s strategy to streamline its operations towards a more uniform group with fewer platforms and strong margins, marking a significant step in its ongoing transformation.

The most recent analyst rating on ($SE:RATO.B) stock is a Buy with a SEK45.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.