Swedencare AB (SECARE) AI Stock Analysis

• Market Cap: kr6.65B
• Dividend Yield: 5.8%
• Average Volume (3M): 158.67K
• Price to Earnings (P/E): 71.4
• Beta (1Y): 0.27
• Revenue Growth: 7.30%
• EPS Growth: 29.44%
• Country: SE
• Employees: 587
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.15
• Shares Outstanding: 159,840,960
• 10 Day Avg. Volume: 83,346
• 30 Day Avg. Volume: 158,673
• PEG Ratio: 2.06
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.75
• 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: kr60.01
• Price Target Upside: 48.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: kr46.00 ▲(14.14%Upside)

Swedencare AB's strong financial performance, marked by significant revenue and cash flow growth, is the primary driver of the score. The technical analysis indicates moderate bullish sentiment, while a high P/E ratio suggests potential overvaluation concerns, partially offset by a high dividend yield.

Positive Factors

Growth Forecast

The company anticipates an acceleration in organic growth, aiming for double-digit figures by the end of 2025.

M&A Activity

The company is optimistic about the M&A market and, with a reduced net debt/EBITDA ratio of 2.05x, plans to complete at least one acquisition this year.

Revenue Growth

Net revenue rose by 7% year-on-year, with a 5% organic growth.

Negative Factors

Earnings Report

Swedencare's 4Q24 report missed expectations.

Operational Performance

Swedencare reported mixed 1Q25 results with operational EBITDA declining 10% year-on-year.

Unit Performance

The company continues to face negative growth in its largest unit, NaturVet, which declined by 21%.

Swedencare AB Business Overview & Revenue Model

Company Description

Swedencare AB (SECARE) is a Swedish company specializing in the development, production, and marketing of premium pet healthcare products. Operating within the pet care sector, Swedencare offers a diverse range of products that include nutritional supplements, dental care solutions, and grooming products aimed at enhancing the well-being and longevity of pets. The company is recognized for its innovative and high-quality offerings that cater to both consumer and veterinary markets globally.

How the Company Makes Money

Swedencare AB generates revenue through the sale of its pet healthcare products, which are distributed across various channels, including veterinary clinics, pet specialty stores, online retailers, and direct-to-consumer platforms. The company's key revenue streams are driven by its popular brands and product lines, such as the ProDen PlaqueOff range, which is well-regarded for its dental care benefits. Swedencare's growth is further augmented by strategic acquisitions and partnerships that expand its product portfolio and enhance its market reach. By leveraging a combination of organic growth and strategic acquisitions, Swedencare continues to strengthen its position in the global pet healthcare industry.

Swedencare AB Financial Statement Overview

Summary

Swedencare AB exhibits solid financial health with strong revenue growth, effective cost management, and robust cash flow generation. While the equity base is strong and debt levels are manageable, there is room for improvement in net profit margins and return on equity.

Income Statement

Swedencare AB has demonstrated significant revenue growth over the years, with a consistent increase in total revenue from 2021 to TTM 2025. The gross profit margin is strong at 46.1% for TTM 2025, indicating effective cost management. However, the net profit margin has decreased slightly from previous years, standing at 3.6% in TTM 2025, suggesting pressure on net profitability. The EBIT and EBITDA margins are healthy, reflecting efficient operations. Overall, the company shows robust revenue growth and operational efficiency, although net profit margins could improve.

Balance Sheet

Swedencare AB maintains a solid financial position with a high equity ratio of 74.2% for TTM 2025, indicating financial stability and a low reliance on debt. The debt-to-equity ratio is manageable at 0.24, showing prudent leverage usage. The return on equity is decent at 1.27% for TTM 2025, suggesting moderate returns to shareholders. While the balance sheet is stable, there is room for improvement in maximizing equity returns.

Cash Flow

The company's free cash flow has shown positive growth, with a steady increase in recent years, reaching 310.2 million in TTM 2025. The operating cash flow to net income ratio is strong at 4.16 for TTM 2025, indicating healthy cash generation relative to net income. Free cash flow to net income ratio is healthy, supporting the company’s ability to reinvest and manage debt. Overall, cash flow metrics are robust, supporting operational and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.58B	2.54B	2.34B	1.83B	770.44M	239.95M
Gross Profit	1.19B	1.46B	1.29B	1.02B	385.87M	157.34M
EBITDA	543.40M	549.50M	484.00M	392.40M	138.73M	54.87M
Net Income	92.60M	98.90M	58.60M	94.50M	54.62M	48.53M
Balance Sheet
Total Assets	9.81B	10.32B	9.52B	10.00B	3.47B	1.15B
Cash, Cash Equivalents and Short-Term Investments	526.90M	186.80M	237.30M	245.07M	136.09M	284.08M
Total Debt	1.74B	1.51B	1.66B	1.91B	721.53M	178.71M
Total Liabilities	2.53B	2.28B	2.32B	2.54B	1.05B	217.53M
Stockholders Equity	7.28B	8.03B	7.21B	7.46B	2.42B	932.95M
Cash Flow
Free Cash Flow	310.20M	287.80M	408.00M	185.51M	98.06M	35.52M
Operating Cash Flow	385.20M	359.10M	444.00M	260.20M	125.85M	36.50M
Investing Cash Flow	-126.60M	-151.90M	-176.40M	-4.67B	-1.87B	-619.66M
Financing Cash Flow	50.10M	-274.20M	-271.60M	4.49B	1.59B	821.50M

Swedencare AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 40.3 is below the 20-day moving average (MA) of 41.26, above the 50-day MA of 39.67, and below the 200-day MA of 43.23, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 23.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SECARE.

Swedencare AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIOT	72 Outperform	kr11.45B	44.71	6.41%	11.13%	-1.01%	6.10%
SECARE	71 Outperform	kr6.65B	71.36	1.21%	5.80%	7.30%	29.44%
MCAP	62 Neutral	kr6.87B	33.76	16.42%	―	10.18%	-1.08%
FLERIE	52 Neutral	kr3.68B	0.31	-15.21%	―	-75.91%	―
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	16.99%	1.69%