Swedencare AB (SECARE) AI Stock Analysis

• Market Cap: kr5.82B
• Dividend Yield: 0.67%
• Average Volume (3M): 342.93K
• Price to Earnings (P/E): 89.2
• Beta (1Y): 0.29
• Revenue Growth: 5.41%
• EPS Growth: -14.85%
• Country: SE
• Employees: 587
• Sector: Healthcare
• Sector Strength: 49
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.04
• Shares Outstanding: 159,840,960
• 10 Day Avg. Volume: 282,525
• 30 Day Avg. Volume: 342,926
• PEG Ratio: 1.15
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 3.02
• P/FCF Ratio: 26.62
• 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: kr45.32
• Price Target Upside: 22.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: kr38.00 ▲(2.56% Upside)

Swedencare AB's overall stock score is primarily influenced by its strong financial performance, despite challenges in profitability and cash flow. The technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. These factors collectively contribute to a moderate overall score.

Positive Factors

Growth and Margin Potential

A solid recovery setup and intact medium-term margin expansion potential support the Buy recommendation.

Local Manufacturing and Tariff Impact

Management expects minimal impact from tariffs due to its local manufacturing footprint and sourcing capabilities.

Organic Growth and Profitability

The company reiterated its full-year guidance for double-digit organic growth and improved profitability.

Negative Factors

Investor Confidence

Downside risk is driven more by eroding investor confidence than the magnitude of the miss.

Operational Challenges

The recurring pattern of quarterly misses, margin compression, and execution delays is likely to reinforce skepticism around its ability to deliver.

Quarterly Performance

Swedencare’s Q2 results are likely to weigh on the stock as the company once again fell short of expectations across key metrics.

Swedencare AB Business Overview & Revenue Model

Company Description

Swedencare AB is a leading global provider of premium pet healthcare products, primarily focusing on the development and distribution of innovative solutions for companion animals. The company's offerings include a wide range of pet care products such as dental care, probiotics, skin and coat care, and other specialty supplements. Catering to the growing demand for animal wellness, Swedencare operates in the veterinary and retail markets, ensuring that pet owners have access to high-quality health products for their furry companions.

How the Company Makes Money

Swedencare AB generates revenue through the sale of its comprehensive portfolio of pet healthcare products, which are distributed via multiple channels including veterinary clinics, retail outlets, and online platforms. The company capitalizes on the increasing trend of pet humanization, where pet owners are willing to invest more in the health and well-being of their animals. Key revenue streams include direct sales to veterinary professionals and partnerships with retailers to expand product availability. Additionally, Swedencare's strategic acquisitions and collaborations with other pet health companies enhance its product offerings and market reach, further driving its revenue growth.

Swedencare AB Financial Statement Overview

Summary

Swedencare AB exhibits solid financial health with strong revenue growth, effective cost management, and robust cash flow generation. The company maintains financial stability with a strong equity base and manageable debt levels. Areas for improvement include enhancing net profit margins and return on equity to further capitalize on growth opportunities. Overall, Swedencare is well-positioned financially within the pharmaceutical industry.

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	2.60B	2.54B	2.34B	1.83B	770.44M	239.95M
Gross Profit	1.49B	1.46B	1.29B	1.02B	385.87M	157.34M
EBITDA	494.40M	549.50M	484.00M	392.40M	138.73M	54.87M
Net Income	64.80M	98.90M	58.60M	94.50M	54.62M	48.53M
Balance Sheet
Total Assets	9.78B	10.32B	9.52B	10.00B	3.47B	1.15B
Cash, Cash Equivalents and Short-Term Investments	124.00M	186.80M	237.30M	245.07M	136.09M	284.08M
Total Debt	1.81B	1.51B	1.66B	1.91B	721.53M	178.71M
Total Liabilities	2.85B	2.28B	2.32B	2.54B	1.05B	217.53M
Stockholders Equity	6.92B	8.03B	7.21B	7.46B	2.42B	932.95M
Cash Flow
Free Cash Flow	291.60M	287.80M	408.00M	185.51M	98.06M	35.52M
Operating Cash Flow	336.80M	359.10M	444.00M	260.20M	125.85M	36.50M
Investing Cash Flow	-524.90M	-151.90M	-176.40M	-4.67B	-1.87B	-619.66M
Financing Cash Flow	153.80M	-274.20M	-271.60M	4.49B	1.59B	821.50M

Swedencare AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.05
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 37.05 is below the 20-day moving average (MA) of 39.23, below the 50-day MA of 41.77, and below the 200-day MA of 43.08, indicating a bearish trend. The MACD of -1.95 indicates Positive momentum. The RSI at 37.66 is Neutral, neither overbought nor oversold. The STOCH value of 45.61 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
MCAP	68 Neutral	kr9.82B	49.03	15.85%	―	9.32%	-7.55%
SECARE	57 Neutral	kr5.82B	89.17	0.87%	0.67%	5.41%	-14.85%
SUS	57 Neutral	kr5.10B	35.59		―	12.41%	-32.19%
Sector *	51 Neutral	kr6.00B	8.79	-28.70%	2.24%	51.61%	19.20%
FLERIE	47 Neutral	kr3.35B	0.29	-5.91%	―	101.21%	-102.52%