RugVista Group AB (RUG) AI Stock Analysis

• Market Cap: kr1.35B
• Dividend Yield: 1.87%
• Average Volume (3M): 16.06K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.31
• Revenue Growth: 11.38%
• EPS Growth: 16.09%
• Country: SE
• Employees: 101
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 1.27
• Shares Outstanding: 20,785,140
• 10 Day Avg. Volume: 12,541
• 30 Day Avg. Volume: 16,063
• PEG Ratio: 1.14
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 1.90
• P/FCF Ratio: 19.86
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.11
• Revenue Forecast (FY): kr831.40M

• Rating: 57 Neutral
• Price Target: kr69.00 ▼(-0.29% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

Overall score is driven primarily by moderate financial performance: profitability and returns have weakened versus prior peak years and leverage rose sharply in 2025, despite improved 2025 revenue growth and stronger recent cash flow. Technical indicators are mostly neutral but slightly negative (below key moving averages with negative MACD), and valuation is mid-range with a modest dividend yield.

Positive Factors

Direct-to-consumer e‑commerce model

A direct-to-consumer e-commerce model across multiple European markets provides durable advantages: scalable marketing and fulfillment, control of customer data and pricing, and lower reliance on third-party retail partners. These traits support steady growth and margin improvement over months to years as customer acquisition and retention efficiencies compound.

Revenue rebound in 2025

Return to revenue growth in 2025 signals restored demand and validates prior investments in assortment and channels. Sustained top-line growth, even modest, supports better absorption of fixed costs, provides operating leverage potential, and makes planned investments in marketing and logistics more viable over a 2–6 month horizon and beyond.

Positive recent cash generation

Stronger operating and free cash flow in recent years improves the company’s ability to fund inventory, marketing, and logistics without immediate external financing. Consistent positive FCF in 2023 and 2025 provides durable optionality to invest in growth, pay down debt, or shore up working capital during seasonal cycles.

Negative Factors

Multi‑year margin compression

A sustained decline in net margins versus prior peak years indicates structural pressure on pricing, mix, or cost base. Lower margins reduce reinvestment capacity and require higher revenue growth to deliver the same earnings, making profitability recovery dependent on durable improvements to sourcing, pricing power, or operating efficiency.

Sharply higher leverage in 2025

A material step-up in leverage weakens financial flexibility and raises interest and refinancing risk. Higher debt amplifies downside in slower demand periods and constrains the company’s ability to invest opportunistically, potentially forcing trade-offs between growth initiatives and balance sheet repair over the medium term.

Volatile cash flow history

Historical swings in operating and free cash flow, including a prior year of negative cash generation, demonstrate inconsistency in converting profits to cash. This volatility increases funding risk for inventory and marketing, and means management must maintain larger liquidity buffers or rely on financing during troughs.

RugVista Group AB Business Overview & Revenue Model

Company Description

Rugvista Group AB (publ) operates direct-to-consumer online platforms for carpet and rug sales in Europe. It operates through three segments: B2C, B2B, and Marketplaces & Other. The company offers carpets and rugs under the RugVista and CarpetVista brands. It also provides rug accessories, such as anti-slip articles and stain removers. The company was founded in 2005 and is headquartered in Limhamn, Sweden.

How the Company Makes Money

RugVista generates revenue primarily through the sale of rugs and carpets via its online platform. The company employs a direct-to-consumer model, which allows it to maintain competitive pricing while offering a wide selection of products. Key revenue streams include retail sales from its extensive catalog of rugs and supplementary home decor items. Additionally, RugVista may engage in partnerships with designers and manufacturers to expand its product offerings and enhance brand visibility, further contributing to its earnings. Seasonal promotions, marketing campaigns, and loyalty programs also play a significant role in boosting sales and customer retention.

RugVista Group AB Financial Statement Overview

Summary

Moderate fundamentals: revenue returned to growth in 2025 and cash flow improved recently, but profitability is meaningfully below 2020–2021 peaks with multi-year margin compression. Balance sheet risk increased in 2025 due to a sharp step-up in leverage (debt-to-equity ~0.41 vs ~0.04–0.07 previously).

Income Statement

Revenue has been relatively flat-to-modestly growing overall (2025 up ~3%, after a slight decline in 2024), but profitability has clearly stepped down from 2020–2021 levels. Net margin has moved from the mid-teens in 2020–2021 to high single-digits in 2024–2025, and operating profitability also softened versus prior peak years. Positives include still-solid positive margins and a 2025 rebound in revenue growth; the key concern is the multi-year margin compression and volatility in profit levels.

Balance Sheet

The balance sheet was conservatively levered through 2020–2024, but 2025 shows a sharp increase in debt, with debt-to-equity rising to ~0.41 versus ~0.04–0.07 previously. Equity has continued to build and returns on equity remain positive (~9%–13% in 2022–2025), but they are meaningfully below the ~19%–20% range seen in 2020–2021. Strength: still meaningful equity base; weakness: the step-up in leverage in 2025 and a lower return profile than earlier years.

Cash Flow

Cash generation is generally positive, with operating cash flow and free cash flow positive in most years and notably stronger in 2023 and 2025. However, cash flow quality has been volatile (including negative operating and free cash flow in 2022), and free cash flow has not consistently tracked earnings tightly (free cash flow relative to net income dipped in 2025 vs 2023). Strength: strong recent operating and free cash flow; weakness: historical volatility and a prior year with negative cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	784.39M	694.85M	702.20M	639.27M	704.98M
Gross Profit	84.52M	430.77M	360.27M	394.46M	454.15M
EBITDA	112.42M	83.12M	101.69M	86.43M	136.02M
Net Income	62.50M	51.77M	69.96M	58.87M	99.85M
Balance Sheet
Total Assets	899.82M	753.38M	705.62M	706.98M	717.38M
Cash, Cash Equivalents and Short-Term Investments	241.92M	219.46M	208.94M	139.98M	218.12M
Total Debt	244.52M	28.13M	23.12M	28.17M	28.49M
Total Liabilities	306.50M	196.53M	162.77M	203.32M	220.49M
Stockholders Equity	593.33M	556.85M	542.84M	503.65M	496.90M
Cash Flow
Free Cash Flow	75.15M	57.83M	115.41M	-21.83M	102.45M
Operating Cash Flow	110.41M	76.83M	128.07M	-11.74M	104.81M
Investing Cash Flow	-35.26M	-19.00M	-12.66M	-9.95M	-2.36M
Financing Cash Flow	-40.91M	-50.67M	-41.63M	-61.24M	-23.84M

RugVista Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:RUG, the sentiment is Negative. The current price of 69.2 is above the 20-day moving average (MA) of 66.47, above the 50-day MA of 67.02, and above the 200-day MA of 68.89, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 46.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:RUG.

RugVista Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NELLY	71 Outperform	kr3.84B	22.77	51.02%	―	12.45%	118.98%
BORG	70 Outperform	kr1.61B	17.48	23.44%	4.95%	9.20%	11.72%
EMBELL	62 Neutral	kr795.61M	11.53	12.72%	3.17%	0.78%	1.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RUG	57 Neutral	kr1.35B	21.62	10.85%	1.87%	11.38%	16.09%
CDON	56 Neutral	kr788.18M	-13.28	―	―	―	―
DSNO	49 Neutral	kr82.28M	-0.64	-197.48%	―	-10.50%	99.53%