Ratos AB (RATO.B) AI Stock Analysis

• Market Cap: kr12.48B
• Dividend Yield: 3.7%
• Average Volume (3M): 409.16K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.26
• Revenue Growth: -22.65%
• EPS Growth: -14.05%
• Country: SE
• Employees: 10,900
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.48
• Shares Outstanding: 242,748,630
• 10 Day Avg. Volume: 387,906
• 30 Day Avg. Volume: 409,161
• 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: kr50.00
• Price Target Upside: 31.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: kr43.00 ▲(13.04% Upside)

The score is driven primarily by improved profitability and a strengthening balance sheet, supported by consistently positive free cash flow. Technicals are constructive with price above major averages, though momentum is somewhat stretched. Valuation is reasonable with a mid-teens P/E and ~3.4% yield, but weakening revenue and volatility in earnings/cash conversion keep the overall score in the upper-middle range.

Positive Factors

Profitability Metrics

Strong profitability metrics indicate effective cost management and operational efficiency, which are crucial for sustaining long-term business growth.

Balance Sheet Health

A solid balance sheet with manageable leverage and high return on equity suggests financial stability and efficient use of capital, supporting future investment opportunities.

Cash Conversion

Strong cash conversion from profits ensures liquidity and the ability to reinvest in growth opportunities, enhancing long-term business resilience.

Negative Factors

Revenue Decline

A significant decline in revenue can hinder growth potential and market competitiveness, requiring strategic adjustments to reverse the trend.

Free Cash Flow Growth

Decreasing free cash flow growth may limit the company's ability to fund new investments and manage debt, impacting long-term financial flexibility.

Net Profit Margin

A low net profit margin indicates challenges in converting revenue into profit, which could affect the company's ability to sustain profitability in the long run.

Ratos AB Business Overview & Revenue Model

Company Description

Ratos AB (publ) is a private equity firm specializing in buyouts, turnarounds, add on acquisitions, and middle market transactions. The firm does not invest in early stages and in companies that operate in the arms industry, pornography, or are detrimental to the environment. It seeks to invest in unlisted medium sized companies. The firm invests in industry, construction and services, consumer, and technology sectors. The firm typically invests in the Nordic region, with focus on Sweden, Finland, Denmark, and Norway. It seeks to invest in companies with equity investments between SEK250 million ($29.66 million) and SEK5000 million ($762.77 million), sales value between SEK300 million ($45.77 million) and SEK5000 million (762.77 million) and EBITDA greater than SEK50 million ($5.15 million). The firm prefers minority and majority stakes. The firm prefers to be the principal owner with a minimum holding of at least 20 percent and also seeks a board seat. It prefers to hold its investment between five to ten years. It invests through its own balance sheet and bank loans. Ratos AB (publ) was founded in 1934 and is based in Stockholm, Sweden.

How the Company Makes Money

Ratos AB generates revenue primarily through the management and performance of its portfolio companies. The company earns money by taking equity stakes in these businesses, which allows it to benefit from their growth and profitability. Key revenue streams include capital gains from the sale of investments, dividends received from portfolio companies, and management fees associated with its investment operations. Additionally, Ratos often engages in operational improvements within its companies, which can lead to increased valuations and higher returns upon exit. The company may also establish significant partnerships with industry leaders and leverage these relationships to enhance the performance of its investments.

Ratos AB Financial Statement Overview

Summary

Profitability improved materially in TTM (net margin ~14.5% vs ~0.8% in 2024) and leverage is trending down (debt-to-equity ~0.52). Offsetting this, revenue declined ~11.6% in TTM and both earnings and cash conversion have been volatile, limiting confidence in durability.

Income Statement

Profitability improved materially in TTM (Trailing-Twelve-Months), with net profit margin rising to ~14.5% versus ~0.8% in 2024, and stronger operating profitability versus the prior year. However, the top line is weakening: revenue is down ~11.6% in TTM (Trailing-Twelve-Months) after a slight decline in 2024, indicating pressure on growth. Margins are decent overall, but earnings have been volatile across years (notably the low 2024 profit level).

Balance Sheet

Leverage looks manageable and improving: debt-to-equity is ~0.52 in TTM (Trailing-Twelve-Months), down from ~0.73 in 2024 and ~1.06 in 2022, suggesting a healthier capital structure. Equity also increased meaningfully in TTM (Trailing-Twelve-Months), supporting balance-sheet resilience. The main watchout is that returns have been inconsistent (very low in 2024, high in TTM), which can signal underlying earnings volatility for an asset-management/holding-type profile.

Cash Flow

Cash generation is solid, with positive free cash flow in every period shown and TTM (Trailing-Twelve-Months) free cash flow of ~2.7B. Free cash flow is reasonably supported by earnings in TTM (Trailing-Twelve-Months) (about ~88% of net income). Still, cash conversion remains a weaker spot: operating cash flow is below net income in TTM (Trailing-Twelve-Months), and free cash flow growth has been uneven (down in 2024, modestly up in TTM), indicating variability in underlying cash quality and momentum.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.02B	32.12B	33.75B	29.88B	22.55B	20.94B
Gross Profit	9.56B	13.96B	14.64B	11.69B	9.11B	8.32B
EBITDA	3.56B	3.23B	5.19B	2.91B	2.65B	2.52B
Net Income	3.64B	249.00M	1.22B	548.00M	2.64B	693.00M
Balance Sheet
Total Assets	29.67B	34.54B	36.13B	37.17B	28.39B	28.64B
Cash, Cash Equivalents and Short-Term Investments	891.00M	2.19B	2.36B	2.53B	2.23B	2.83B
Total Debt	7.94B	9.00B	10.43B	13.04B	8.03B	8.33B
Total Liabilities	12.38B	19.78B	21.68B	23.39B	15.06B	17.36B
Stockholders Equity	15.18B	12.27B	12.31B	12.29B	11.94B	9.37B
Cash Flow
Free Cash Flow	2.69B	3.16B	4.04B	1.03B	1.03B	2.54B
Operating Cash Flow	3.06B	3.44B	4.28B	1.43B	1.45B	3.20B
Investing Cash Flow	-636.00M	-972.00M	-542.00M	-4.26B	-258.00M	-694.00M
Financing Cash Flow	-3.57B	-2.62B	-3.80B	2.99B	-2.23B	-2.47B

Ratos AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.04
• 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:RATO.B, the sentiment is Neutral. The current price of 38.04 is below the 20-day moving average (MA) of 38.70, above the 50-day MA of 37.33, and above the 200-day MA of 36.85, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 48.78 is Neutral, neither overbought nor oversold. The STOCH value of 60.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:RATO.B.

Ratos AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORES	74 Outperform	kr5.45B	6.22	―	6.23%	-0.22%	-58.80%
RATO.B	69 Neutral	kr12.48B	15.08	6.59%	3.70%	-22.65%	-14.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SVOL.B	67 Neutral	kr5.77B	12.77	7.83%	0.79%	-25.75%	-27.25%
CRED.A	63 Neutral	kr9.41B	7.76	12.47%	2.18%	4.72%	-38.28%
MCAP	62 Neutral	kr7.39B	37.23	15.16%	―	11.30%	-14.49%
BURE	53 Neutral	kr16.30B	-3.03	-23.18%	1.13%	22.38%	-153.85%

Ratos AB Corporate Events

Aibel Wins NOK 20 Billion Equinor Framework Deals, Bolstering Ratos-Owned Energy Supplier

Aibel has secured major framework agreements with Equinor, estimated at NOK 20 billion over an initial five-year term, reinforcing its leading role in maintenance and modifications on the Norwegian continental shelf and covering a wide portfolio of onshore and offshore installations, as well as extended modification projects. The contracts, which are set to be signed later in January, are expected to provide substantial workload and a stable platform for further development of Aibel’s technology, organisation and infrastructure, strengthening both the company’s strategic collaboration with Equinor and the value proposition of its owners, including Ratos, in the energy transition and offshore services market.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK43.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos-Owned HL Display to Acquire German POS Specialist Deinzer

HL Display, the in-store merchandising specialist majority-owned by Ratos, has agreed to acquire Germany-based Deinzer Holding GmbH, a premium provider of custom, multi-material point-of-sale display solutions with €30 million in annual turnover and 180 employees. The deal, which remains subject to competition authority approval expected in early 2026, will significantly strengthen HL Display’s bespoke offering and create a hub for permanent, custom-made display solutions in Germany and Central Europe, reinforcing its position as a leading European supplier and supporting Ratos’s broader growth strategy in retail-focused industrial businesses.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK43.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos-Owned Plantasjen Names Retail Veteran Are Ellingsve as New CEO

Ratos-owned Plantasjen Group, the leading Nordic plants and gardening retailer, has appointed retail veteran Are Ellingsve as its new CEO effective 1 April 2026, succeeding outgoing chief executive Jesper Lien, who will leave the company at year-end 2025. Current CFO Nils Eriksson will serve as acting CEO during the transition period from January to March 2026, and Plantasjen’s chair, Katarina Grönwall, highlighted Ellingsve’s track record in driving growth and profitability and his mandate to further strengthen the chain’s market position and advance its long-term strategic plan, building on the stronger financial footing established under Lien’s six-year tenure.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK43.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Appoints Johan Ekener as New CEO of KVD

Ratos AB has appointed Johan Ekener as the new CEO of KVD, succeeding Jan Krepp. Ekener, who has held various roles within the Ratos Group, is expected to leverage his strategic expertise and leadership skills to drive KVD’s next phase of growth. KVD, a leading online marketplace for vehicle valuation and brokerage in Sweden, is poised for new opportunities under Ekener’s leadership, following a successful restructuring process under Krepp that enhanced profitability.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK43.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Appoints Gustaf Salford as New CEO

Ratos has appointed Gustaf Salford as its new CEO, effective December 1, succeeding Jonas Wiström who is retiring. Salford, who previously led Elekta, brings extensive leadership experience and is expected to drive innovation and growth at Ratos. His appointment is seen as a strategic move to further develop and implement Ratos’s future strategy, ensuring continued stability and profitability. The transition is planned to be smooth, with Wiström remaining available until March 2026 to assist.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK43.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Announces Leadership Change with EVP Departure

Ratos has announced a significant change in its leadership team as Anders Slettengren, Executive Vice President, will be leaving the company to join Axel Johnson as EVP Strategy & Investments by April 2026. Anders has been instrumental in strengthening Ratos’ stability and driving positive EBITA development, and his departure marks a notable transition for the company. His contributions have been highly valued, and his exit is seen as a loss, but also a moment for Ratos to continue its growth with renewed leadership.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK43.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

HL Display CEO Björn Borgman to Depart for ITAB

Ratos announced that Björn Borgman, CEO of its subsidiary HL Display, will be leaving to become President and CEO of ITAB. Borgman, who has been with HL Display for ten years and CEO for the past five, will remain until a successor is appointed by April. The departure marks a significant leadership change for HL Display, a company known for its extensive global reach and innovative solutions in the retail sector.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK38.00 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 January-September 2025 Interim Report

Ratos AB announced the release of its interim report for January-September 2025, scheduled for 21 October. The report will be presented by CEO Jonas Wiström and CFO Anna Vilogorac, with a live presentation available on YouTube. This announcement reflects Ratos’s commitment to transparency and engagement with stakeholders, potentially impacting investor relations and market perception.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK38.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.