Ratos AB (RATO.B) AI Stock Analysis

• Market Cap: kr12.24B
• Dividend Yield: 3.69%
• Average Volume (3M): 409.16K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.32
• Revenue Growth: -22.65%
• EPS Growth: -14.05%
• Country: SE
• Employees: 10,900
• Sector: Services
• Sector Strength: N/A
• 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: 34.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: kr43.00 ▲(15.84% Upside)

Ratos AB's overall stock score is driven by its stable financial performance and positive technical indicators. The fair valuation further supports the stock's attractiveness, though revenue and cash flow challenges need attention.

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

Ratos AB shows stable financial performance with strong profitability metrics and a solid balance sheet. However, the decline in revenue and free cash flow growth poses potential risks.

Income Statement

Ratos AB's income statement shows mixed results. The company has a strong gross profit margin of 44.56% in TTM, indicating efficient cost management. However, the net profit margin is relatively low at 10.94%, and there is a concerning revenue decline of 11.06% in TTM. Despite these challenges, the EBIT and EBITDA margins are stable, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.63 in TTM, indicating manageable leverage. The return on equity is robust at 24.35%, showcasing effective use of equity to generate profits. The equity ratio stands at 48.13%, highlighting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals some weaknesses, with a decline in free cash flow growth by 12.24% in TTM. The operating cash flow to net income ratio is 0.63, indicating moderate cash generation from operations. The free cash flow to net income ratio is healthy at 0.90, suggesting good cash conversion from profits.

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: Positive
• Last Price: 37.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 37.12 is above the 20-day moving average (MA) of 36.59, below the 50-day MA of 37.35, and above the 200-day MA of 36.12, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 81.03 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
ORES	74 Outperform	kr5.50B	13.89	―	6.33%	-0.22%	-58.80%
CRED.A	74 Outperform	kr10.08B	7.77	12.47%	2.12%	4.72%	-38.28%
RATO.B	70 Neutral	kr12.24B	14.61	6.59%	3.69%	-22.65%	-14.05%
SVOL.B	64 Neutral	€5.81B	660.12	0.16%	0.79%	-96.46%	-99.03%
MCAP	63 Neutral	€8.74B	44.15	15.16%	―	11.30%	-14.49%
BURE	58 Neutral	€19.86B	-6.85	-23.18%	1.08%	22.38%	-153.85%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Ratos AB Corporate Events

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.

Ratos AB Releases Comparative Figures Reflecting Structural Changes

Ratos AB has released comparative figures ahead of its third-quarter interim report for 2025, reflecting structural changes including the divestment of airteam and the listing of Sentia on the Oslo Børs. The figures for continuing operations exclude Sentia and airteam, with Ratos retaining a 40% minority stake in Sentia. This stake is expected to contribute significantly to EBITA moving forward, despite a negligible impact in the second quarter of 2025 due to the timing of Sentia’s listing.

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 Announces Nomination Committee for 2026 AGM

Ratos AB has announced the formation of its Nomination Committee in preparation for the 2026 Annual General Meeting (AGM), scheduled for March 25, 2026, in Stockholm, Sweden. The committee, which includes representatives from major shareholders, is tasked with evaluating the Board of Directors’ composition and drafting proposals for board elections, auditor appointments, and remuneration. This move underscores Ratos’s commitment to transparent governance and stakeholder engagement, potentially influencing its strategic direction and reinforcing its market position.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK37.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Streamlines Business Segments and Restructures Management

Ratos has announced a strategic realignment, focusing on streamlining its business segments, which includes the divestment of its Construction Services segment. This move has led to the departure of Christian Johansson Gebauer, the Head of the Construction & Services business area. Under his leadership, the segment developed well, contributing to Ratos’ profitability and cohesion. The management team has been restructured following his departure, with Jonas Wiström continuing as President and CEO.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK37.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Announces CEO Retirement and Successor Search

Ratos has announced the retirement of its CEO, Jonas Wiström, after nearly eight years of service. The company is initiating a search for his successor, with the Chairman of the Board leading the recruitment process. Wiström will remain in his role until a new CEO is appointed, ensuring a smooth transition. This leadership change is significant for Ratos as it may impact its strategic direction and operations, given the CEO’s role in steering the company’s growth and maintaining its market position.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK37.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.