Swedencare AB (SECARE) AI Stock Analysis

• Market Cap: €5.73B
• Dividend Yield: 0.66%
• Average Volume (3M): 305.00K
• Price to Earnings (P/E): 90.5
• 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): 0.32
• Shares Outstanding: 159,840,960
• 10 Day Avg. Volume: 222,741
• 30 Day Avg. Volume: 305,002
• 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: €54.99
• Price Target Upside: 53.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: kr40.00 ▲(11.58% Upside)

Swedencare AB's overall stock score is driven primarily by its solid financial performance, which is the strongest aspect of the company. Technical analysis indicates short-term bullish momentum, but longer-term resistance and overbought signals suggest caution. The high P/E ratio and low dividend yield reflect potential overvaluation, which weighs down the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments.

Cash Generation Ability

Efficient cash generation supports operational needs and strategic initiatives, ensuring sustainable business operations.

Negative Factors

Profitability Margins

Decreasing profit margins may hinder the company's ability to reinvest in growth and maintain competitive pricing.

Free Cash Flow Growth

Sustained negative free cash flow growth could limit the company's ability to fund new projects and manage debt.

Return on Equity

A declining return on equity may impact investor confidence and the company's ability to attract new capital.

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

Swedencare AB demonstrates solid financial health with consistent revenue growth and strong gross margins. The balance sheet is robust with low leverage, though the return on equity could be improved. Cash flow generation is stable, supporting operational needs. Overall, the company is well-positioned but should focus on enhancing profitability and returns to shareholders.

Income Statement

Swedencare AB shows a steady revenue growth with a TTM increase of 2.66%. The gross profit margin remains strong at 57.31%, indicating efficient production. However, the net profit margin has decreased to 2.49% in the TTM, suggesting rising costs or other financial pressures. EBIT and EBITDA margins are stable but slightly lower than previous years, reflecting consistent operational performance.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.26, indicating conservative leverage. The equity ratio is robust, showing strong asset backing. However, the return on equity is modest at 0.88%, suggesting room for improvement in generating returns for shareholders.

Cash Flow

Swedencare AB's cash flow is stable with a positive free cash flow growth of 7.51% in the TTM. The operating cash flow to net income ratio is strong at 0.87, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is slightly lower, suggesting some cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.67B	2.54B	2.34B	1.83B	770.44M	239.95M
Gross Profit	1.17B	1.46B	1.29B	1.02B	385.87M	157.34M
EBITDA	494.60M	549.50M	484.00M	392.40M	138.73M	54.87M
Net Income	63.00M	98.90M	58.60M	94.50M	54.62M	48.53M
Balance Sheet
Total Assets	9.60B	10.32B	9.52B	10.00B	3.47B	1.15B
Cash, Cash Equivalents and Short-Term Investments	145.10M	186.80M	237.30M	245.07M	136.09M	284.08M
Total Debt	1.73B	1.51B	1.66B	1.91B	721.53M	178.71M
Total Liabilities	2.76B	2.28B	2.32B	2.54B	1.05B	217.53M
Stockholders Equity	6.84B	8.03B	7.21B	7.46B	2.42B	932.95M
Cash Flow
Free Cash Flow	313.50M	287.80M	408.00M	185.51M	98.06M	35.52M
Operating Cash Flow	363.70M	359.10M	444.00M	260.20M	125.85M	36.50M
Investing Cash Flow	-531.20M	-151.90M	-176.40M	-4.67B	-1.87B	-619.66M
Financing Cash Flow	128.60M	-274.20M	-271.60M	4.49B	1.59B	821.50M

Swedencare AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 35.85 is below the 20-day moving average (MA) of 37.52, below the 50-day MA of 36.66, and below the 200-day MA of 38.40, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 11.06 is Positive, 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	80 Outperform	kr11.44B	35.83	22.26%	1.95%	7.88%	-6.35%
SECARE	64 Neutral	€5.73B	90.53	0.88%	0.66%	6.65%	1.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NANEXA	48 Neutral	kr536.33M	-13.02	-48.65%	―	-60.33%	58.04%
ORX	47 Neutral	kr1.06B	-5.32	―	―	-8.79%	-91.09%
ERMA	43 Neutral	kr130.53M	-1.46	―	―	―	―
ENZY	38 Underperform	kr492.75M	-9.10	―	―	19.17%	24.53%