Rusta AB (RUSTA) AI Stock Analysis

• Market Cap: kr14.17B
• Dividend Yield: 1.7%
• Average Volume (3M): 458.32K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.64
• Revenue Growth: 7.53%
• EPS Growth: 5.81%
• Country: SE
• Employees: 4,752
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Department Stores
• EPS (TTM): 2.16
• 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): 3.59
• Revenue Forecast (FY): kr12.57B

• Rating: 72 Outperform
• Price Target: kr100.00 ▲(19.62% Upside)
• Action: Upgraded Date: 03/14/26
• Date: Action: Upgraded 03/14/26

The score is driven by attractive valuation (low P/E) and strong technical trend/momentum (price above key moving averages with positive MACD). These positives are tempered by the main risk factor: an elevated leverage profile on the balance sheet that can amplify volatility if demand or margins weaken.

Positive Factors

Strong free cash flow generation

Sustained, sharply higher TTM free cash flow improves financial flexibility: it funds reinvestment in stores and logistics, supports debt paydown, and provides a durable buffer versus retail seasonality, enabling multi-quarter deleveraging or targeted growth without equity issuance.

Revenue growth with stable gross margins

Accelerating revenue alongside stable low-40% gross margins implies the company is converting sales growth into sustainable gross profit. That combination supports operating leverage, funds fixed-cost coverage, and underpins multi-quarter margin stability even if some categories face pressure.

Value retail model with scale and sourcing advantages

A high-turnover, value retail model plus direct sourcing and private-label potential creates structural cost advantages. Scale-enabled purchasing and fast assortment refresh sustain competitiveness, drive working-capital efficiency, and make margins more resilient over several quarters.

Negative Factors

Elevated financial leverage (~3x equity)

Debt at roughly three times equity increases sensitivity to revenue or margin shocks. High leverage constrains strategic flexibility, raises refinancing and interest expense risks, and requires sustained strong cash generation over multiple quarters to materially reduce leverage without cutting investment.

Modest net profit margin (~4%)

A modest net margin leaves limited room to absorb cost inflation, markdowns, or input price shocks. Even with solid gross margins, low net profitability limits retained earnings growth and slows the pace at which cash can be deployed to reduce leverage or fund strategic initiatives.

Profitability volatility tied to inventory and consumer cycles

Historic earnings volatility driven by inventory and demand swings complicates planning and raises execution risk. When combined with elevated leverage, cyclical profit swings can quickly erode cash buffers and force defensive actions, limiting the company's ability to pursue growth consistently.

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 makes money primarily by selling consumer goods at retail prices through its physical stores and e-commerce/digital sales channels (where available). The core revenue stream is net sales from merchandise across its main product categories (e.g., home, household consumables, DIY, garden/outdoor, and seasonal goods). Its earnings model is driven by (1) retail gross margin: purchasing products from suppliers at wholesale/import prices and reselling them at a markup; (2) scale and sourcing: using high-volume purchasing, private-label and exclusive products where applicable, and direct sourcing/importing to lower unit costs and support competitive pricing; and (3) operating leverage: spreading fixed costs (store leases, distribution, administration) over growing sales volumes and maintaining efficient logistics and inventory management to support high stock turnover. Additional income sources (e.g., services, third-party commissions, or advertising income) are not publicly confirmable here and are therefore null.

Rusta AB Financial Statement Overview

Summary

Operating performance and cash generation are solid (Income Statement 74; Cash Flow 70) with stable gross margin and stronger TTM free cash flow, but the balance sheet is a meaningful constraint (Balance Sheet 55) due to elevated leverage that increases downside sensitivity in a retail cycle.

Income Statement

TTM (Trailing-Twelve-Months) results show solid top-line momentum, with revenue growth accelerating versus prior annual periods, and profitability holding up: gross margin remains strong and stable around the low-40% range while EBITDA margin stays in the mid-teens. Net profit margin is modest (~4%) but improved versus weaker years, indicating better operating leverage. Key watch-out: profitability has been somewhat volatile across the annual history (notably a stronger 2022 vs. weaker 2023), suggesting earnings sensitivity to cost/inventory and consumer demand cycles.

Balance Sheet

The balance sheet is the main constraint. Leverage remains elevated with debt roughly ~3x equity in TTM (Trailing-Twelve-Months), which is improved from earlier years but still high for retail and can limit flexibility in a downturn. Positively, equity has grown over time and returns on equity are strong, reflecting good profitability relative to the capital base. The risk is that high leverage amplifies earnings volatility and leaves less room if margins compress.

Cash Flow

Cash generation is a clear strength. TTM (Trailing-Twelve-Months) free cash flow is strong and sharply higher than the last annual period, indicating improved cash conversion and/or disciplined investment/spending. Free cash flow is healthy relative to earnings, supporting reinvestment and potential debt reduction. However, operating cash flow covers only a moderate portion of total debt, so deleveraging would likely require sustained strong cash flow over multiple periods.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	12.47B	11.83B	11.12B	10.20B	9.49B	8.63B
Gross Profit	5.13B	5.09B	4.83B	4.19B	4.01B	3.64B
EBITDA	1.92B	1.82B	1.71B	1.35B	1.55B	1.31B
Net Income	541.00M	476.00M	408.00M	261.00M	615.30M	401.20M
Balance Sheet
Total Assets	9.38B	9.35B	9.10B	8.85B	8.19B	6.96B
Cash, Cash Equivalents and Short-Term Investments	300.00M	99.00M	171.00M	182.20M	169.70M	66.00M
Total Debt	5.19B	5.66B	5.72B	5.93B	5.17B	4.50B
Total Liabilities	7.20B	7.61B	7.50B	7.58B	6.92B	5.97B
Stockholders Equity	2.18B	1.74B	1.59B	1.27B	1.26B	988.60M
Cash Flow
Free Cash Flow	1.33B	727.00M	1.23B	834.30M	367.90M	265.80M
Operating Cash Flow	1.76B	1.12B	1.40B	1.01B	624.90M	744.80M
Investing Cash Flow	-468.00M	-405.00M	-165.00M	-172.40M	607.20M	-387.50M
Financing Cash Flow	-1.12B	-791.00M	-1.24B	-825.80M	-1.13B	-356.90M

Rusta AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.60
• 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:RUSTA, the sentiment is Positive. The current price of 83.6 is above the 20-day moving average (MA) of 81.84, above the 50-day MA of 82.32, and above the 200-day MA of 73.56, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 69.50 is Neutral, neither overbought nor oversold. The STOCH value of 99.02 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
CLAS.B	78 Outperform	kr25.05B	9.43	42.23%	1.88%	9.30%	38.37%
RUSTA	72 Outperform	kr14.17B	9.48	―	1.70%	7.53%	5.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
THULE	60 Neutral	kr22.78B	23.21	14.62%	3.54%	8.93%	-12.56%
HUSQ.B	54 Neutral	kr21.43B	15.04	5.76%	2.20%	-1.74%	-0.59%

Rusta AB Corporate Events

Rusta lifts sales, margins and cash flow on resilient discount retail demand

Rusta AB reported strong growth for its third quarter and year-to-date period, with net sales rising 9.0% in the quarter and 6.9% for the period, driven by solid like-for-like growth and higher sales excluding currency effects. Profitability improved as gross margins edged up, EBITA margins widened, and net profit increased, while the loyalty club expanded and the store base grew modestly, underscoring a robust operating performance and strengthened financial position supported by significantly higher operating cash flow and lower leverage.

The retailer delivered a 10.5% increase in quarterly sales excluding currency effects and a 6.5% like-for-like uplift, indicating resilient consumer demand and effective commercial execution. Strong cash generation, reflected in a sharp rise in operating cash flow and a move to net cash on an EBITDA basis, enhances financial flexibility for further expansion and investments, reinforcing Rusta’s competitive standing in the discount retail segment and offering a positive signal to shareholders and other stakeholders.

Earnings per share improved both for the quarter and the nine-month period, mirroring the stronger earnings profile and operational leverage achieved despite a relatively modest pace of store openings. With gross profit up 10.4% in the quarter and 7.2% for the period, and loyalty membership climbing to nearly 6.9 million, the company appears well placed to sustain growth in its core markets and deepen customer engagement in a challenging retail environment.

The most recent analyst rating on (SE:RUSTA) stock is a Hold with a SEK89.00 price target. To see the full list of analyst forecasts on Rusta AB stock, see the SE:RUSTA Stock Forecast page.

Rusta Sets March 12 Date for Q3 2025/2026 Results Presentation

Rusta AB will present its interim report for the third quarter of the 2025/2026 financial year, covering November to January, on Thursday, 12 March 2026, with the report set for release at 7:00 a.m. CET and a webcast presentation at 9:00 a.m. CET. Chief executive Göran Westerberg and chief financial officer Sofie Malmunger will host the English-language presentation, which will be accessible via webcast or teleconference with a Q&A option, underscoring the company’s continued focus on transparency and engagement with investors and other stakeholders.

The most recent analyst rating on (SE:RUSTA) stock is a Hold with a SEK89.00 price target. To see the full list of analyst forecasts on Rusta AB stock, see the SE:RUSTA Stock Forecast page.

Rusta accelerates Nordic expansion with 13 new store openings in spring 2026

Discount retailer Rusta AB is accelerating its bricks-and-mortar expansion, leveraging a strong store pipeline to open 13 new outlets across Sweden, Norway and Finland during the first half of 2026. The push includes its first city-centre store in Helsinki, aimed at reaching new customer segments that do not typically visit its out-of-town locations.

With these additions, Rusta’s network will grow to 244 stores in the Nordics and Germany, reinforcing its position in the competitive low-price market. New stores are planned in several Finnish cities including Heinola, Kemi, Nokia, Tampere and Mariehamn, as well as in Swedish towns such as Laholm and Lidingö and Norwegian locations including Kristiansand and Sortland, underlining the group’s long-term growth strategy in physical retail.

The most recent analyst rating on (SE:RUSTA) stock is a Hold with a SEK89.00 price target. To see the full list of analyst forecasts on Rusta AB stock, see the SE:RUSTA Stock Forecast page.