Ratos AB (RATO.B) AI Stock Analysis

• Market Cap: kr13.27B
• Dividend Yield: 3.37%
• Average Volume (3M): 519.20K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 1.25
• Revenue Growth: -5.70%
• EPS Growth: -62.59%
• Country: SE
• Employees: 10,900
• Sector: Industrials
• Sector Strength: 90
• Industry: Asset Management
• EPS (TTM): 0.39
• Shares Outstanding: 242,748,630
• 10 Day Avg. Volume: 411,843
• 30 Day Avg. Volume: 519,196
• PEG Ratio: 0.29
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.28
• 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: 29.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: kr44.00 ▲(14.35%Upside)

Ratos AB's stock score is primarily driven by its solid financial performance, characterized by strong operational margins and a healthy balance sheet. Technical indicators show positive momentum, but the valuation suggests the stock might be overvalued, with a relatively high P/E ratio. The dividend yield provides some compensation for the valuation concerns.

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 makes money primarily through its private equity investments, where it acquires and develops companies to enhance their value over time, subsequently realizing profits through divestments or public listings. The company generates revenue from dividends and capital gains from its investments. Ratos also earns management fees from its portfolio companies, contributing to its earnings. Significant partnerships and strategic collaborations within its investment portfolio further bolster Ratos's ability to optimize performance and drive revenue growth.

Ratos AB Financial Statement Overview

Summary

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

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
31.83B	32.12B	33.75B	29.88B	22.55B	20.94B
	Gross Profit
10.46B	13.96B	14.65B	5.20B	4.25B	3.96B
	EBIT
1.83B	1.67B	3.01B	1.62B	1.66B	1.46B
	EBITDA
3.50B	3.44B	3.99B	2.66B	2.45B	2.17B
	Net Income Common Stockholders
476.00M	249.00M	1.22B	879.00M	1.14B	693.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.34B	2.19B	2.36B	2.53B	2.23B	2.83B
	Total Assets
33.24B	34.54B	36.13B	37.17B	28.39B	28.64B
	Total Debt
0.00	9.00B	10.43B	13.04B	8.03B	8.33B
	Net Debt
-1.34B	6.82B	8.07B	10.50B	5.80B	5.50B
	Total Liabilities
19.41B	19.78B	21.68B	23.39B	15.06B	17.36B
	Stockholders Equity
11.53B	12.27B	12.31B	12.29B	11.94B	9.37B
Cash Flow		Free Cash Flow
3.03B	3.16B	4.04B	1.50B	1.03B	2.54B
	Operating Cash Flow
3.30B	3.44B	4.28B	1.91B	1.45B	3.20B
	Investing Cash Flow
-1.59B	-1.86B	-542.00M	-4.24B	-258.00M	-694.00M
	Financing Cash Flow
-2.54B	-2.62B	-3.80B	2.99B	-2.23B	-2.47B

Ratos AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:RATO.B, the sentiment is Positive. The current price of 38.48 is below the 20-day moving average (MA) of 38.87, above the 50-day MA of 34.42, and above the 200-day MA of 33.01, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 74.69 is Negative, neither overbought nor oversold. The STOCH value of 90.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:RATO.B.

Ratos AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCAP	76 Outperform	kr6.61B	32.47	16.42%	―	10.18%	-1.08%
IDUN.B	74 Outperform	€4.03B	102.16	7.13%	0.28%	2.42%	20.90%
RATO.B	72 Outperform	kr13.27B	27.51	4.06%	3.37%	-5.70%	-62.59%
BURE	70 Neutral	€21.65B	186.64	0.27%	0.91%	13.61%	-97.82%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
SVOL.B	64 Neutral	€6.23B	14.16	7.27%	2.80%	―	―
KINV.A	56 Neutral	€22.88B	―		―	-95.90%	27.54%

Ratos AB Corporate Events

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.