Ratos AB (RATO.B) AI Stock Analysis

• Market Cap: kr12.36B
• Dividend Yield: 3.66%
• Average Volume (3M): 471.44K
• Price to Earnings (P/E): 42.3
• Beta (1Y): 1.29
• 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: 468,771
• 30 Day Avg. Volume: 471,442
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr44.00
• Price Target Upside: 17.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: kr38.00 ▲(1.33% Upside)

Ratos AB's overall stock score is driven primarily by its stable financial performance and positive technical indicators. The company's strong profitability metrics and solid balance sheet are offset by a decline in revenue and free cash flow growth. The technical analysis suggests a neutral to slightly positive trend, while the high P/E ratio indicates potential overvaluation. The absence of recent earnings call data and notable corporate events limits further insights.

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 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 demonstrates 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. The company needs to address these challenges to sustain its financial health and growth trajectory.

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	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: Positive
• Last Price: 37.50
• 50DMA: Positive
• 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 37.5 is above the 20-day moving average (MA) of 35.89, above the 50-day MA of 35.52, and above the 200-day MA of 34.90, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 65.12 is Neutral, neither overbought nor oversold. The STOCH value of 88.95 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	75 Outperform	kr5.35B	7.61	13.30%	5.99%	―	-10.54%
CRED.A	69 Neutral	kr10.12B	8.10	11.83%	2.13%	-6.84%	14.17%
MCAP	66 Neutral	kr8.52B	42.58	16.18%	―	9.32%	-7.55%
SVOL.B	64 Neutral	kr5.62B	638.69	―	3.16%	-96.46%	-99.03%
BURE	63 Neutral	kr20.52B	-7.29	23.26%	0.97%	22.27%	-145.59%
RATO.B	62 Neutral	kr12.36B	42.34	2.64%	3.66%	-13.86%	-77.94%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Ratos AB Corporate Events

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.

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.