Solid Forsakringsaktiebolag (SFAB) AI Stock Analysis

• Market Cap: kr1.90B
• Dividend Yield: 5.9%
• Average Volume (3M): 12.99K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.42
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SE
• Employees: 71
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 2.15
• Shares Outstanding: 18,128,403
• 10 Day Avg. Volume: 14,867
• 30 Day Avg. Volume: 12,989
• PEG Ratio: -1.37
• Price to Book (P/B): 2.90
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 22.07
• 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): 8.46
• Revenue Forecast (FY): kr1.08B

• Rating: 80 Outperform
• Price Target: kr119.00 ▲(37.10% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial performance (notably a debt-free balance sheet and solid profitability). Valuation is supportive with a moderate P/E and high dividend yield. Technicals are positive on trend, but overbought momentum signals increase short-term risk, slightly tempering the overall score.

Positive Factors

Debt-free Balance Sheet

A zero-debt balance sheet is a durable competitive advantage for an insurer: it lowers insolvency and refinancing risk, preserves capital for underwriting and reserves through cycles, and provides long-term financial flexibility to pursue growth or return capital without raising leverage.

Rising Equity Base

A steadily growing equity base strengthens regulatory capital and underwriting capacity, enabling the company to write more business and absorb losses. This structural capital buildup supports solvency, dividend sustainability, and strategic optionality over multiple years.

Consistent Profitability

Stable mid-teens EBIT and 10%+ net margins indicate durable underwriting discipline and pricing power. Consistent profitability generates internal capital and supports ROE, dividend distributions, and reinvestment without reliance on external financing over the medium term.

Negative Factors

Top-line Contraction

A material decline in revenue growth weakens scale and underwriting leverage. Sustained top-line contraction can pressure expense absorption, reduce earnings upside, and constrain reserve and capital accumulation, making it harder to sustain prior growth and returns over coming quarters.

Volatile Cash Conversion

Sharp swings and a recent collapse in cash conversion undermine the firm's ability to finance dividends, claims, and growth from operations. Even with strong accounting earnings, poor cash generation increases reliance on reserves or capital actions and raises medium-term liquidity risk.

Reduced Visibility in 2025 Metrics

Missing 2025 return metrics and a decline in total assets complicate trend assessment and risk modeling. Reduced transparency around recent asset and return dynamics makes it harder to judge sustainability of ROE and reserve adequacy across the next several quarters.

Solid Forsakringsaktiebolag Business Overview & Revenue Model

Company Description

Solid Försäkringsaktiebolag (publ) provides non-life insurance products for private individuals in Sweden, Denmark, Norway, Finland, and the rest of Europe. It operates in three segments: Personal Safety, Product, and Assistance. The company offers bicycle, consumer electronics, income, payment protection, ID theft, accident, travel and cancellation protection, and all-risk insurance products; and assistance, insurance associated with vehicle warranties, and various insurance products for the travel industry. It also provides a deductible for white goods, garden tools, glasses, watches, and jewelry. The company offers its products through retail chains, banks, credit institutions, travel agents, and car dealerships, as well as directly to consumers. Solid Försäkringsaktiebolag (publ) was incorporated in 1993 and is headquartered in Helsingborg, Sweden.

How the Company Makes Money

Solid Forsakringsaktiebolag Financial Statement Overview

Summary

Strong overall financial quality supported by consistently solid profitability and an exceptionally conservative balance sheet (zero debt, rising equity). Offsets include a 2025 revenue decline and a sharp deterioration in cash conversion in 2025 versus prior years.

Income Statement

Profitability is consistently solid, with net margins holding around ~10%–13% from 2021–2025 and EBIT margins generally in the mid-teens. Revenue expanded steadily from 2021–2024, but 2025 showed a notable contraction (down ~3.8%), which tempers the growth profile. Overall, earnings quality looks resilient, but the recent top-line slowdown is a clear watch item.

Balance Sheet

The balance sheet is very conservatively positioned with zero debt across all reported years, providing strong financial flexibility. Equity has trended higher over time (from ~206M in 2020 to ~534M in 2025), supporting stability. Returns on equity were strong where provided (roughly ~27%–36% in 2021–2024), though the absence of a 2025 figure and the decline in total assets in 2025 slightly reduce visibility and momentum.

Cash Flow

Free cash flow is generally healthy relative to earnings (near ~0.92–1.00 of net income in most years), but cash generation has been volatile. Operating cash flow coverage of net income was strong in 2021–2022 (~1.03x and ~0.98x) and improved again in 2024 (~0.86x), but weakened materially in 2023 (~0.46x) and was very low in 2025 (~0.17x). Despite a large 2025 free-cash-flow growth rate off a weaker base, the recent drop in cash conversion is the key concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.13B	1.25B	1.21B	1.11B	1.04B
Gross Profit	857.38M	649.57M	628.20M	496.19M	502.80M
EBITDA	187.94M	218.97M	226.89M	146.37M	161.66M
Net Income	149.04M	164.71M	165.36M	110.66M	119.98M
Balance Sheet
Total Assets	1.65B	1.74B	1.80B	1.79B	1.62B
Cash, Cash Equivalents and Short-Term Investments	275.75M	343.86M	353.42M	603.86M	613.14M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.12B	1.24B	1.34B	1.38B	1.29B
Stockholders Equity	533.87M	504.38M	459.67M	411.48M	327.41M
Cash Flow
Free Cash Flow	70.11M	113.08M	104.23M	184.65M	162.80M
Operating Cash Flow	70.11M	123.08M	113.42M	184.86M	163.06M
Investing Cash Flow	-9.98M	-9.28M	-235.65M	-173.96M	173.28M
Financing Cash Flow	-122.64M	-121.64M	-117.27M	-26.75M	-59.00M

Solid Forsakringsaktiebolag Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFAB	80 Outperform	kr1.90B	10.38	―	5.90%	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NORION	54 Neutral	kr11.03B	9.63	―	―	0.78%	13.82%