Rusta AB (RUSTA) AI Stock Analysis

• Market Cap: kr12.65B
• Dividend Yield: 1.7%
• Average Volume (3M): 458.32K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.60
• Revenue Growth: 7.53%
• EPS Growth: 5.81%
• Country: SE
• Employees: 4,752
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Department Stores
• EPS (TTM): 0.69
• Shares Outstanding: 153,528,980
• 10 Day Avg. Volume: 378,770
• 30 Day Avg. Volume: 458,316
• PEG Ratio: 1.56
• Price to Book (P/B): 6.96
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 16.70
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: kr88.00 ▲(5.26% Upside)

Rusta AB's overall stock score reflects strong financial performance with robust revenue growth and solid cash flow generation. However, high leverage and a high P/E ratio suggest potential risks and overvaluation. The technical analysis indicates bullish momentum, but the high RSI suggests the stock may be overbought. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market strategies and product appeal, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment and debt management, crucial for long-term growth.

Return on Equity

High return on equity reflects efficient use of capital to generate profits, indicating strong management performance and business efficiency.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and withstand economic downturns.

Net Profit Margin Pressure

Decreasing net profit margins suggest rising costs or pricing pressures, which could impact long-term profitability if not addressed.

Earnings to Cash Conversion

Limited conversion of earnings into free cash flow may restrict financial flexibility, affecting the company's ability to fund operations and growth.

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 diverse product offerings in its retail stores and online platforms. The company's revenue model is centered on a high-volume sales strategy, focusing on low prices and efficient inventory management. Key revenue streams include in-store sales, e-commerce sales, and seasonal promotions that drive traffic to their stores. Additionally, Rusta may collaborate with suppliers and manufacturers to offer exclusive products, enhancing its product range and appeal. The company's ability to adapt to market trends and consumer preferences also plays a significant role in its earnings, as it regularly updates its product selection to meet changing demands.

Rusta AB Financial Statement Overview

Summary

Rusta AB shows strong revenue growth and stable profitability margins, though net profit margins have seen slight pressure. The balance sheet reveals high leverage, which could be a risk factor, but the company maintains a strong return on equity. Cash flow performance is solid, with impressive free cash flow growth, though there is room for improvement in converting earnings into cash.

Income Statement

Rusta AB shows a solid revenue growth trajectory with a TTM revenue growth rate of 1.89%. Gross profit margins are stable around 42-43%, indicating efficient cost management. However, net profit margins have slightly decreased to 3.52% in the TTM, suggesting some pressure on profitability. EBIT and EBITDA margins are healthy, but there is room for improvement in operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 2.72 in the TTM, indicating significant leverage, which could pose financial risks. Return on equity is strong at 22.94%, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure but with potential vulnerability due to high debt levels.

Cash Flow

Rusta AB demonstrates robust free cash flow growth of 24.87% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.35, suggesting efficient conversion of income into cash. However, the free cash flow to net income ratio of 0.60 indicates that a significant portion of earnings is not translating into free cash flow, which could limit financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.16B	11.83B	11.12B	10.20B	9.49B	8.63B
Gross Profit	5.23B	5.09B	4.83B	4.19B	4.01B	3.64B
EBITDA	1.84B	1.82B	1.71B	1.35B	1.55B	1.31B
Net Income	468.00M	476.00M	408.00M	261.00M	615.30M	401.20M
Balance Sheet
Total Assets	9.46B	9.35B	9.10B	8.85B	8.19B	6.96B
Cash, Cash Equivalents and Short-Term Investments	107.00M	99.00M	171.00M	182.20M	169.70M	66.00M
Total Debt	5.57B	5.66B	5.72B	5.93B	5.17B	4.50B
Total Liabilities	7.60B	7.61B	7.50B	7.58B	6.92B	5.97B
Stockholders Equity	1.86B	1.74B	1.59B	1.27B	1.26B	988.60M
Cash Flow
Free Cash Flow	743.00M	727.00M	1.23B	834.30M	367.90M	265.80M
Operating Cash Flow	1.14B	1.12B	1.40B	1.01B	624.90M	744.80M
Investing Cash Flow	-409.00M	-405.00M	-165.00M	-172.40M	607.20M	-387.50M
Financing Cash Flow	-770.00M	-791.00M	-1.24B	-825.80M	-1.13B	-356.90M

Rusta AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 83.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 83.6 is above the 20-day moving average (MA) of 82.45, above the 50-day MA of 78.25, and above the 200-day MA of 72.38, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 76.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:RUSTA.

Rusta AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUSTA	65 Neutral	kr12.65B	26.84	―	1.70%	7.53%	5.81%
THULE	65 Neutral	kr23.40B	22.17	14.62%	3.54%	8.93%	-12.56%
CLAS.B	63 Neutral	kr19.17B	18.79	46.00%	1.88%	9.30%	38.37%
HUSQ.B	63 Neutral	kr25.97B	18.25	5.76%	2.20%	-1.74%	-0.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Rusta AB Corporate Events

Rusta AB Appoints Cathrine Wigzell as New CEO to Drive Growth

Rusta AB has announced the appointment of Cathrine Wigzell as its new CEO, effective June 2026, succeeding Göran Westerberg. Wigzell brings extensive international retail leadership experience, having previously led market expansion and strategy development at H&M Beauty. Her appointment is expected to drive Rusta’s growth and strengthen its position in the low-price market, offering more inspiring products and experiences while creating sustainable value for shareholders.

The most recent analyst rating on (SE:RUSTA) stock is a Hold with a SEK75.00 price target. To see the full list of analyst forecasts on Rusta AB stock, see the SE:RUSTA Stock Forecast page.

Rusta AB Announces Q2 2025/2026 Interim Report Presentation

Rusta AB has announced an invitation to its Q2 2025/2026 interim report presentation, scheduled for December 9, 2025. The presentation, led by CEO Göran Westerberg and CFO Sofie Malmunger, will be conducted in English and available via webcast and teleconference. This event is significant for stakeholders as it provides insights into Rusta’s financial performance and strategic direction in the competitive Nordic low-price retail market.

The most recent analyst rating on (SE:RUSTA) stock is a Hold with a SEK67.00 price target. To see the full list of analyst forecasts on Rusta AB stock, see the SE:RUSTA Stock Forecast page.