Skane-moellan AB (SKMO) AI Stock Analysis

• Market Cap: kr569.80M
• Dividend Yield: 2.43%
• Average Volume (3M): 272.00
• Price to Earnings (P/E): 58.5
• Beta (1Y): -0.32
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SE
• Employees: 28
• Sector: Services
• Sector Strength: N/A
• Industry: Packaged Foods
• EPS (TTM): 0.24
• Shares Outstanding: 11,000,000
• 10 Day Avg. Volume: 114
• 30 Day Avg. Volume: 272
• PEG Ratio: -1.87
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 2.75
• P/FCF Ratio: 0.00
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: kr51.00 ▼(-11.76% Downside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is primarily supported by strong financial stability (zero debt and solid equity), but is held back by deteriorating operating trends and volatile free cash flow. Technicals remain weak with the stock below major moving averages, and valuation is unfavorable given the high P/E with only a modest dividend yield.

Positive Factors

Balance-sheet strength

Zero reported debt and stable equity provide durable financial flexibility. That capital structure lowers solvency risk, supports investment or cyclical buffering without relying on external funding, and gives management optionality to support operations or pursue opportunities over the medium term.

Consistent operating cash generation

Sustained positive operating cash flow indicates the milling business converts sales into cash, enabling organic funding of working capital and routine capex. Over 2–6 months this supports operational continuity, modest reinvestment, and potential steady dividend capacity despite earnings variability.

Staple-product, defensive market position

Supplying essential flour and cereal ingredients anchors the company in a defensive segment with steady baseline demand. Customer reliance from bakeries and food producers creates recurring B2B relationships and predictable volumes, supporting revenue stability versus discretionary consumer markets.

Negative Factors

Declining revenue trend

A multi-year revenue contraction culminating in a notable 6.5% drop in 2025 signals weakening end-market demand or lost share. Continued top-line decline erodes scale economics, limits margin recovery potential, and constrains reinvestment capacity unless growth trends are reversed.

Margin compression and lower returns

Material margin erosion and falling returns reduce profitability resilience. Lower net margins and ROE indicate weaker pricing power or rising input/operating costs, making it harder to absorb commodity swings or fund growth internally without sustained efficiency gains or better mix.

Volatile free cash flow

Large swings in free cash flow, including a drop to zero in 2025, undermine predictable capital allocation. Volatility hampers consistent investment, dividend policy, or buffer-building, and increases vulnerability if capital needs arise even though debt is currently zero.

Skane-moellan AB Business Overview & Revenue Model

Company Description

Skåne-möllan AB (publ) engages in the production and sale of flour and cereal products to bakeries, food industries, and consumers in Sweden. It offers organic wheat, organic cut rye, whole grain wheat, bakery wheat, graham, rye, and barley flour products; heat treated grain products; oat flour and oat flakes; and oat kernels. The company sells its flour products under the Möllarens brands. Skåne-möllan AB (publ) was founded in 1971 and is based in Tågarp, Sweden.

How the Company Makes Money

Skane-moellan AB Financial Statement Overview

Summary

Balance sheet is a major strength with zero debt and stable equity, providing high financial flexibility. However, operating performance has weakened: revenue declined (notably -6.5% in 2025) and net margins compressed to ~4.7%. Cash generation is mixed with positive operating cash flow but highly volatile free cash flow (down to zero in 2025).

Income Statement

The company remains profitable, but operating performance has weakened. Revenue has been slightly down for several years and fell more sharply in 2025 (-6.5% vs. 2024). Profitability has compressed meaningfully from 2020–2021 levels (net margin ~10%) to 2025 (net margin ~4.7%), with EBIT also down notably versus 2024. Strengths are consistent positive earnings and still-positive operating margins, but the recent trend shows decelerating demand and margin pressure.

Balance Sheet

Balance sheet strength is a clear positive: total debt is reported at zero across all periods, and equity is stable (~SEK 158–163m) with a low-risk capital structure. Returns on equity remain positive but have stepped down from the 2020–2022 range (roughly mid-teens) to ~7.0% in 2025, reflecting weaker profitability rather than leverage. Overall, financial flexibility is high with limited balance-sheet risk.

Cash Flow

Cash generation is mixed. Operating cash flow is positive in most years and improved in 2025 (SEK 24.8m), supporting reported earnings (cash flow above net income in 2025). However, free cash flow has been volatile: strong in 2023–2024 but dropped to zero in 2025 (a -100% decline), indicating heavier investment or working-capital drag. The business can generate cash, but consistency of cash available after reinvestment is a key weakness.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	252.90M	236.40M	265.00M	271.13M	271.96M	213.96M
Gross Profit	46.40M	39.00M	47.20M	44.58M	54.82M	51.39M
EBITDA	22.10M	11.80M	23.20M	21.70M	31.02M	32.59M
Net Income	15.80M	11.10M	16.20M	14.79M	20.78M	21.91M
Balance Sheet
Total Assets	184.40M	187.30M	194.70M	200.94M	193.90M	190.49M
Cash, Cash Equivalents and Short-Term Investments	48.50M	67.20M	60.20M	61.63M	44.30M	72.43M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	32.30M	29.00M	31.60M	38.80M	31.07M	33.36M
Stockholders Equity	152.10M	158.30M	163.10M	162.14M	162.83M	157.13M
Cash Flow
Free Cash Flow	23.60M	0.00	13.36M	33.72M	-12.35M	19.29M
Operating Cash Flow	25.10M	24.80M	19.80M	41.03M	-6.78M	33.37M
Investing Cash Flow	-7.00M	-2.40M	-5.80M	-8.31M	-5.94M	2.22M
Financing Cash Flow	0.00	-15.40M	-15.40M	-15.40M	-15.40M	-13.20M

Skane-moellan AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASE	67 Neutral	kr695.18M	18.21	―	―	34.18%	242.91%
SKMO	58 Neutral	kr569.80M	58.47	―	2.43%	―	―
NNH	57 Neutral	kr119.57M	17.54	―	―	5.91%	―
SNX	56 Neutral	kr542.71M	21.64	―	0.51%	22.02%	127.51%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SCST	55 Neutral	kr8.26B	17.69	―	2.56%	7.37%	2.90%