Rusta AB (RUSTA) AI Stock Analysis

• Market Cap: kr12.74B
• Dividend Yield: 1.75%
• Average Volume (3M): 458.32K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.66
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: kr88.00 ▲(6.09% 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 demonstrates strong revenue growth and profitability, supported by a healthy gross profit margin. However, the high debt-to-equity ratio indicates significant leverage, which could impact financial stability. Cash flow generation is adequate, but the decline in free cash flow growth is a concern. Overall, the company is performing well, but attention to leverage and cash flow trends is advisable.

Income Statement

Rusta AB shows strong revenue growth with a TTM increase of 8.88%, indicating robust sales performance. The gross profit margin remains healthy at 43.08%, and the net profit margin is stable at 4.03%. However, the EBIT margin of 7.35% suggests room for operational efficiency improvements. Overall, the income statement reflects solid growth and profitability, with potential for enhanced operational leverage.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.24, indicating significant leverage, which could pose financial risk. However, the return on equity is strong at 26.59%, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure. While profitability is commendable, the high leverage warrants caution.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 18.16% TTM, which is concerning. The operating cash flow to net income ratio is 0.38, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.65, reflecting decent cash conversion. While cash flow generation is adequate, the decline in free cash flow growth is a potential risk.

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: Positive
• Last Price: 82.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:RUSTA, the sentiment is Positive. The current price of 82.95 is above the 20-day moving average (MA) of 71.61, above the 50-day MA of 66.57, and above the 200-day MA of 70.44, indicating a bullish trend. The MACD of 4.01 indicates Negative momentum. The RSI at 81.07 is Negative, neither overbought nor oversold. The STOCH value of 94.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	kr12.74B	27.02	―	1.75%	7.53%	5.81%
THULE	65 Neutral	kr26.70B	25.30	14.62%	3.35%	8.93%	-12.56%
CLAS.B	63 Neutral	kr18.09B	20.53	―	1.93%	―	―
HUSQ.B	63 Neutral	kr27.26B	19.17	5.76%	2.10%	-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 Announces Key Resolutions at Annual General Meeting

Rusta AB held its annual general meeting on September 19, 2025, where several key resolutions were made. These included a dividend of SEK 1.45 per share, re-election and election of board members, and the re-election of the company’s auditor. Additionally, a long-term incentive program was approved for up to 40 employees, involving the allocation and potential transfer of company shares. This program aims to align employee incentives with company performance, potentially impacting shareholder value and employee engagement.

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.

Rusta AB Accelerates Expansion with Six New Nordic Stores

Rusta AB is undergoing a significant expansion phase, with plans to open six new stores across its Nordic markets in autumn 2025. This expansion reflects a revised forecast to establish 50-80 new stores over the next three years, highlighting Rusta’s strategy to strengthen its position in the Nordic variety hard discount market. The openings include the company’s first city location in Helsinki, indicating a strategic move to enhance its market presence and growth.

The most recent analyst rating on (SE:RUSTA) stock is a Hold with a SEK82.00 price target. To see the full list of analyst forecasts on Rusta AB stock, see the SE:RUSTA Stock Forecast page.

Rusta AB to Present Q1 2025/2026 Interim Report

Rusta AB announced the presentation of its first quarter 2025/2026 interim report, scheduled for September 11, 2025. The report will be presented by CEO Göran Westerberg and CFO Sofie Malmunger, and will be available via webcast and teleconference, reflecting the company’s commitment to transparency and stakeholder engagement.

The most recent analyst rating on (SE:RUSTA) stock is a Hold with a SEK81.00 price target. To see the full list of analyst forecasts on Rusta AB stock, see the SE:RUSTA Stock Forecast page.

Rusta AB Releases Comprehensive Annual and Sustainability Report

Rusta AB has released its Annual and Sustainability Report, detailing both financial and non-financial performance in alignment with GRI Standards. The report, available in Swedish and English, highlights the company’s commitment to sustainability and provides insights into its operations across various markets, including Sweden and Norway. This comprehensive report underscores Rusta’s strategic focus on sustainable growth and its impact on stakeholders.

The most recent analyst rating on (SE:RUSTA) stock is a Hold with a SEK81.00 price target. To see the full list of analyst forecasts on Rusta AB stock, see the SE:RUSTA Stock Forecast page.

Rusta AB Announces Board Changes Ahead of AGM 2025

Rusta AB’s nomination committee has proposed changes to its board of directors ahead of the Annual General Meeting on September 19, 2025. Claus Juel-Jensen is proposed as the new chairman, bringing over 25 years of retail experience, which is expected to aid Rusta’s expansion efforts. The committee suggests re-electing six current members and electing two new members, Eva-Lotta Sjöstedt and Åsa Källenius, while two members have declined re-election. These changes are anticipated to strengthen Rusta’s position as a leading retailer in the low-price market.

Rusta AB Announces Annual General Meeting for September 2025

Rusta AB has announced its annual general meeting scheduled for September 19, 2025, in Upplands Väsby, Sweden. Shareholders are required to register by September 15, 2025, to participate either in person, by proxy, or through postal voting. The agenda includes the election of the board, approval of financial statements, and a resolution on a long-term incentive program.