Swedencare AB (SECARE) AI Stock Analysis

• Market Cap: kr4.01B
• Dividend Yield: 0.66%
• Average Volume (3M): 305.00K
• Price to Earnings (P/E): 72.2
• Beta (1Y): 0.60
• Revenue Growth: 6.65%
• EPS Growth: 1.41%
• Country: SE
• Employees: 587
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.11
• Shares Outstanding: 159,840,960
• 10 Day Avg. Volume: 222,741
• 30 Day Avg. Volume: 305,002
• PEG Ratio: -2.54
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 2.27
• P/FCF Ratio: 22.24
• 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: kr55.00
• Price Target Upside: 135.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.47
• Revenue Forecast (FY): kr2.90B

• Rating: 54 Neutral
• Price Target: kr25.00 ▲(7.07% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held up by solid underlying financial performance, led by strong long-term revenue expansion and positive free cash flow. It is pulled down meaningfully by weak technicals (price below all major moving averages with negative MACD) and by expensive valuation (high P/E with only a modest dividend yield).

Positive Factors

Sustained multi-year revenue growth

Swedencare’s revenue scale-up from ~240m to ~2.69bn over five years shows durable demand and successful geographic and product rollouts. Sustained top-line expansion supports long-term investment in brands, distribution scale benefits, and the ability to fund R&D or M&A from growing sales.

Consistent positive free cash flow

Repeated positive operating cash flow and materially positive free cash flow provide a durable internal funding source for operations, capex, and debt servicing. Even with recent declines, sustained FCF supports strategic flexibility and lowers reliance on external financing over the medium term.

Multi-channel, brand-led business model

A diversified channel mix (veterinary, retail, e-commerce) and owned brand portfolio create multiple durable customer touchpoints and distribution options. This structure supports cross-channel resilience, recurring clinic recommendations, and geographic rollouts, reinforcing long-term revenue durability and brand equity.

Negative Factors

Margin and profitability deterioration

Profitability fell materially in 2025 despite higher revenue, indicating margin pressure from costs, pricing, or mix shifts. Persistent or structural margin compression would erode returns on the company’s sizable equity base and limit reinvestment capacity unless operational efficiency is restored.

Weakening free cash flow momentum

Two consecutive years of falling free cash flow signal weakening cash conversion and less headroom for organic investment, acquisitions, or debt reduction. If this trend continues, the business could face tighter funding choices and reduced buffer against market or execution risks over the medium term.

Deterioration in balance-sheet flexibility

A notable increase in debt alongside lower equity reduces financial flexibility and increases leverage risk even if historical ratios were moderate. This trend limits capacity for opportunistic investment and raises sensitivity to cash flow volatility, potentially constraining strategic options.

Swedencare AB Business Overview & Revenue Model

Company Description

Swedencare AB (publ), together with its subsidiaries, develops, manufactures, markets, and sells pet healthcare products. It offers ProDen PlaqueOff powder, a food supplement for cats and dogs, which reduce the formation of plaque and tartar; ProDen PlaqueOff dental bites, a pet dental product; ProDen PlaqueOff powder cat; ProDen PlaqueOff dental bones for dogs; ProDen PlaqueOff mini dental care bones, a chewy bone for smaller dogs; and ProDen PlaqueOff soft chews for dogs and cats. The company also provides dietary supplements for cats, dogs, and horses under the NutriScience brand, such as Glucosamine and Stomax used to renew joint cartilage, bones, muscles, ligaments, and sinews; ArthriAid for joints and mobility; KalmAid, which helps to calm nervous dogs; and OmegaAid and RevitalAid, a feed supplement used for healthy skin and coat. In addition, it develops and manufactures equine supplements, including Gastrocare used to relieve gastric pain and improve appetite; Equine Gold, which helps horse to thrive; ArthriAid used to aid horse's own natural manufacture of cartilage; and AnxiKalm, a supplement to calm excitable horses. Further, the company provides ProDen PlaqueOff teeth and gums, a natural food supplement to enhance dental hygiene and prevent tartar buildup for human. It distributes its products through pharmacies, veterinary clinics, pet shops, animal hospital, and online. Swedencare AB (publ) was incorporated in 1993 and is headquartered in Malmö, Sweden.

How the Company Makes Money

Swedencare AB generates revenue through the sale of its diverse product portfolio, which includes dietary supplements, dental care products, and other health-related items for pets. The company's revenue model is predominantly based on direct sales to consumers and veterinarians, as well as through partnerships with various distributors and retailers in the pet care industry. Key revenue streams include e-commerce sales, wholesale distribution, and international sales channels. Additionally, Swedencare benefits from strategic partnerships with veterinary clinics and pet stores, which help to expand its market reach and enhance brand visibility. The company's focus on continuous product innovation and maintaining high-quality standards also contributes to its earnings by fostering customer loyalty and repeat purchases.

Swedencare AB Financial Statement Overview

Summary

Strong multi-year revenue growth and consistently positive free cash flow support the score. Offsetting this, profitability weakened in 2025 (lower net income and EBIT despite higher revenue), free cash flow has declined for two consecutive years, and 2025 showed higher debt alongside lower equity versus 2024.

Income Statement

Revenue has expanded strongly over the past several years (from ~240m in 2020 to ~2.69bn in 2025), including an unusually large jump in 2021–2022 and continued growth thereafter. Profitability, however, has become less consistent: net income in 2025 (55.5m) is below 2024 (98.9m) despite higher revenue, and operating profit also stepped down (EBIT 135.3m in 2025 vs 225.0m in 2024). Earlier years showed healthier margins (notably 2020), while recent results suggest margin compression and/or higher cost structure.

Balance Sheet

Leverage looks manageable in the historical annual data, with debt-to-equity around ~0.19–0.30 (2020–2024) and a large equity base (6.66bn in 2025). That said, total debt increased in 2025 (2.10bn vs 1.51bn in 2024) while equity declined (6.66bn vs 8.03bn), which reduces balance-sheet flexibility versus last year. Returns on equity have been modest in recent years (roughly ~0.8%–2.3% in 2021–2024), consistent with lower profitability relative to the capital base.

Cash Flow

Cash generation remains solid, with positive operating cash flow each year and healthy free cash flow (275.6m in 2025; 287.8m in 2024). However, free cash flow growth turned negative in 2024 and fell further in 2025, indicating weakening cash momentum. In 2024, operating cash flow was slightly below net income (coverage ~0.91), and free cash flow was below net income (about ~0.80), suggesting cash conversion was adequate but not especially strong versus earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.69B	2.54B	2.34B	1.83B	770.44M
Gross Profit	1.52B	1.46B	1.29B	1.02B	385.87M
EBITDA	446.00M	549.50M	484.00M	392.40M	138.73M
Net Income	55.50M	98.90M	58.60M	94.50M	54.62M
Balance Sheet
Total Assets	9.51B	10.32B	9.52B	10.00B	3.47B
Cash, Cash Equivalents and Short-Term Investments	103.00M	186.80M	237.30M	245.07M	136.09M
Total Debt	2.10B	1.51B	1.66B	1.91B	721.53M
Total Liabilities	2.84B	2.28B	2.32B	2.54B	1.05B
Stockholders Equity	6.66B	8.03B	7.21B	7.46B	2.42B
Cash Flow
Free Cash Flow	275.60M	287.80M	408.00M	185.51M	98.06M
Operating Cash Flow	326.80M	359.10M	444.00M	260.20M	125.85M
Investing Cash Flow	-531.40M	-151.90M	-176.40M	-4.67B	-1.87B
Financing Cash Flow	137.80M	-274.20M	-271.60M	4.49B	1.59B

Swedencare AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SECARE, the sentiment is Negative. The current price of 23.35 is below the 20-day moving average (MA) of 24.10, below the 50-day MA of 31.30, and below the 200-day MA of 36.87, indicating a neutral trend. The MACD of -1.92 indicates Negative momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 61.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SECARE.

Swedencare AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIOG.B	68 Neutral	kr11.42B	33.96	22.26%	1.95%	7.88%	-6.35%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NANEXA	56 Neutral	kr632.32M	-54.51	-48.65%	―	-60.33%	58.04%
SECARE	54 Neutral	kr4.01B	72.19	0.88%	0.66%	6.65%	1.41%
ENZY	45 Neutral	kr475.76M	-9.17	―	―	19.17%	24.53%
ORX	44 Neutral	kr973.05M	-7.53	―	―	-8.79%	-91.09%
ERMA	44 Neutral	kr56.84M	-0.64	―	―	―	―