Rusta AB (RUSTA) AI Stock Analysis

• Market Cap: kr11.82B
• Dividend Yield: 1.49%
• Average Volume (3M): 87.74K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SE
• Employees: 4,752
• Sector: Consumer Defensive
• Sector Strength: 47
• Industry: Department Stores
• EPS (TTM): -0.41
• Shares Outstanding: 153,528,980
• 10 Day Avg. Volume: 80,716
• 30 Day Avg. Volume: 87,740
• 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: kr82.00
• Price Target Upside: 8.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: kr82.00 ▲(8.61% Upside)

Rusta AB's overall stock score reflects strong financial performance and reasonable valuation, tempered by mixed technical indicators. The company's robust revenue and profitability growth are significant strengths, but the high leverage and neutral technical signals present potential risks.

Rusta AB Business Overview & Revenue Model

Company Description

Rusta AB (publ) retails home and leisure products in Sweden, Norway, Finland, and Germany. It offers small furniture, lighting, rug and textile, kitchenware, table wear, and other decoration products; beauty, cleaning article, and disposal, as well as health related snack products. The company provides Christmas decorations, garden, and holiday items; home, travel, smart accessories; and paint, flooring, wallpaper, tools, equipment, and other home improvement products. It sells its products through stores and online. The company was founded in 1986 and is based in Upplands Väsby, Sweden.

How the Company Makes Money

Rusta AB generates revenue primarily through the sale of its extensive product range across its physical retail locations and online platforms. The company's key revenue streams include in-store sales from its department stores, which serve as the primary point of interaction with customers. Additionally, Rusta leverages e-commerce channels to capture online sales, reaching a broader audience beyond its physical presence. The company benefits from economies of scale by sourcing products directly from manufacturers, which helps in maintaining low prices and high margins. Strategic partnerships with suppliers and a strong supply chain management system also contribute to its profitability by ensuring a steady flow of products and efficient inventory management. Moreover, seasonal promotions and marketing campaigns drive customer footfall and sales, enhancing revenue during peak buying periods.

Rusta AB Financial Statement Overview

Summary

Rusta AB exhibits strong financial performance with robust revenue and profitability growth, supported by effective cost management. The company maintains a solid return on equity, but the high debt-to-equity ratio poses potential risks. Cash flows are strong, driven by substantial operating activities but impacted by increased capital expenditures.

Income Statement

Rusta AB demonstrated strong revenue growth with a 6.4% increase in the latest year, along with improved profitability metrics. The gross profit margin remained healthy at 43.1%, and the net profit margin increased to 4.0%, indicating efficient cost management. EBIT and EBITDA margins showed solid stability at 7.2% and 15.4%, respectively. Overall, the income statement reflects robust growth and improved profitability.

Balance Sheet

The balance sheet of Rusta AB shows a moderate level of leverage with a debt-to-equity ratio of 3.24, which is relatively high and could pose risks if not managed properly. However, there has been an increase in stockholders' equity, improving the equity ratio to 18.6%. Return on Equity (ROE) is strong at 27.3%, indicating good returns for shareholders. The balance sheet displays a mix of positive shareholder returns but also highlights potential risks due to its leverage.

Cash Flow

Rusta AB's cash flow analysis reveals a significant reliance on operating cash flow, which is double the net income, suggesting strong cash generation capabilities. However, free cash flow decreased by 41% year-over-year, reflecting higher capital expenditures. The free cash flow to net income ratio remains healthy at 1.53, indicating efficient cash conversion despite the decline. Overall, cash flows are solid but reflect increased investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.83B	11.83B	11.12B	10.20B	9.49B	8.63B
Gross Profit	5.10B	5.09B	4.83B	4.19B	4.01B	3.64B
EBITDA	1.83B	1.82B	1.71B	1.35B	1.55B	1.31B
Net Income	477.00M	476.00M	408.00M	261.00M	615.30M	401.20M
Balance Sheet
Total Assets	9.35B	9.35B	9.10B	8.85B	8.19B	6.96B
Cash, Cash Equivalents and Short-Term Investments	99.00M	99.00M	171.00M	182.20M	169.70M	66.00M
Total Debt	5.66B	5.66B	5.72B	5.93B	5.17B	4.50B
Total Liabilities	7.61B	7.61B	7.50B	7.58B	6.92B	5.97B
Stockholders Equity	1.74B	1.74B	1.59B	1.27B	1.26B	988.60M
Cash Flow
Free Cash Flow	727.00M	727.00M	1.23B	834.30M	367.90M	265.80M
Operating Cash Flow	1.12B	1.12B	1.40B	1.01B	624.90M	744.80M
Investing Cash Flow	-405.00M	-405.00M	-165.00M	-172.40M	607.20M	-387.50M
Financing Cash Flow	-790.00M	-791.00M	-1.24B	-825.80M	-1.13B	-356.90M

Rusta AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:RUSTA, the sentiment is Negative. The current price of 75.5 is below the 20-day moving average (MA) of 76.06, below the 50-day MA of 76.43, and above the 200-day MA of 74.73, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 31.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:RUSTA.

Rusta AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUSTA	66 Neutral	kr11.82B	24.59		1.49%	―	―
Sector *	63 Neutral	$20.42B	14.38	-2.77%	3.17%	2.07%	-6.17%
0GQE	―	kr22.11B	25.09	41.51%	―	―	―
0GTR	―	kr31.51B	24.71	5.10%	―	―	―
0R3W	―	kr29.03B	27.94	14.77%	―	―	―

Rusta AB Corporate Events

Rusta CEO Göran Westerberg to Step Down in 2026

Rusta AB announced that CEO Göran Westerberg will step down by June 30, 2026, after a successful tenure marked by significant sales growth, international expansion, and a successful listing on Nasdaq Stockholm. The Board will initiate a recruitment process for a new CEO to lead Rusta’s next phase, as the company continues to strengthen its position in the Nordic discount market.

Rusta AB Boosts Efficiency with New Bonded Warehouse

Rusta AB has established a bonded warehouse at its central fulfillment center in Norrköping, Sweden, to enhance cost efficiency across its value chain. This strategic move is expected to save approximately SEK 30 million annually from the 2026/2027 financial year, supporting Rusta’s long-term financial goals and improving its ability to manage growing shipment volumes cost-effectively.

Rusta AB to Present Q4 2024/25 Interim Report

Rusta AB has announced an upcoming presentation of its Q4 2024/25 interim report, scheduled for June 17, 2025. The presentation, led by CEO Göran Westerberg and CFO Sofie Malmunger, will provide insights into the company’s financial performance and strategic direction. This event highlights Rusta’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.