TagMaster AB Class B (TAGM.B) AI Stock Analysis

• Market Cap: kr363.26M
• Dividend Yield: N/A
• Average Volume (3M): 5.15K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.36
• Revenue Growth: 14.89%
• EPS Growth: N/A
• Country: SE
• Employees: 164
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 1.05
• Shares Outstanding: 14,647,526
• 10 Day Avg. Volume: 5,468
• 30 Day Avg. Volume: 5,149
• PEG Ratio: 0.03
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 4.52
• 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): 0.7
• Revenue Forecast (FY): kr513.00M

• Rating: 71 Outperform
• Price Target: kr27.00 ▲(42.86% Upside)
• Action: Upgraded Date: 02/07/26
• Date: Action: Upgraded 02/07/26

The score is driven primarily by improved 2025 financial performance with strong cash generation and manageable leverage, supported by a clear uptrend and positive momentum signals. Valuation looks reasonable on earnings, while historical volatility and the 2025 gross-margin drop temper the overall score.

Positive Factors

Cash generation

TagMaster demonstrates reliable cash conversion: operating and free cash flow were roughly SEK 57–59m in 2024–2025 and FCF closely matched reported earnings. This durable cash generation supports reinvestment, debt servicing, and strategic optionality over the medium term.

Revenue and margin improvement

Revenue accelerated materially (≈32% in 2025 vs ≈4% in 2024) alongside stronger operating and net margins. Such improvement indicates demand traction and operational leverage that, if sustained, can expand scale economics and improve multi-quarter profitability resilience.

Improved leverage and returns

Leverage appears more manageable with debt/equity improving to ~0.42 in 2025 and ROE rising to ~8.5% from ~1.6% in 2024. Better capital structure and higher returns enhance financial flexibility and reduce refinancing risk, supporting durable funding of growth initiatives.

Negative Factors

Gross-margin deterioration

A sharp gross-margin step-down in 2025, despite improved bottom-line metrics, points to pricing, cost or mix pressure. If structural, this erodes margin sustainability and forces reliance on higher volumes or stricter cost control to preserve operating profitability over coming quarters.

Historical earnings and cash volatility

The company has a history of earnings and cash-flow volatility, including operating losses and negative cash flow in 2020 and 2022. This uneven record reduces predictability, increases the likelihood of capital raises in downturns, and complicates medium-term planning.

Rising debt trend

While leverage is currently manageable, debt has increased relative to 2023. A rising debt trajectory heightens sensitivity to any reversal in revenue or margins, increasing interest/service obligations and potentially constraining strategic investments if performance weakens.

TagMaster AB Class B Business Overview & Revenue Model

Company Description

TagMaster AB (publ), a technology company, develops and sells advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies under the TagMaster, CitySync, Balogh, CA Traffic, Magsys, Hikob, and Sensys Networks brand names. The company develops and markets radio frequency identification products for traffic and rail applications; and automatic number plate recognition cameras for vehicle identification and access control. Its products are used in parking and access control, security, traffic, tolling, airport, mining and port, and fleet operation areas. The company exports its products primarily to Europe, the Middle East, Asia, and North America through a network of partners and systems integrators. TagMaster AB (publ) was incorporated in 1994 and is headquartered in Kista, Sweden.

How the Company Makes Money

TagMaster makes money primarily by selling AVI/access-control solutions and related components to customers (often via system integrators, resellers, and/or direct sales depending on market). Key revenue streams generally include: (1) hardware sales—RFID readers, antennas, transponders/tags, cameras and associated equipment used to identify vehicles and control entry/exit; (2) software and system sales—licenses or packaged software that manages identification events, access rules, and integrations with parking/access or traffic systems; (3) services—installation support, configuration/integration work, and after-sales technical support; and (4) aftermarket/recurring revenue—replacement tags, spare parts, maintenance and support agreements where applicable. Specific information on significant partnerships or the exact split between hardware, software, and services is null.

TagMaster AB Class B Financial Statement Overview

Summary

Results improved materially in 2025 with stronger revenue growth and higher EBIT/net margins, and cash conversion is a standout strength with solid operating and free cash flow. Balance sheet leverage appears manageable and ROE improved. Offsetting these positives are historical volatility (including prior losses/negative cash flow) and a notable gross-margin drop in 2025 that could signal underlying pressure.

Income Statement

Revenue growth improved materially in 2025 (up ~32% vs. ~4% in 2024), and profitability strengthened with higher operating and net margins (EBIT margin ~6.4% and net margin ~4.7% in 2025 vs. ~2.2% and ~1.1% in 2024). The longer-term record is mixed, with prior volatility including operating losses in 2020 and 2022, which tempers confidence in consistency. Gross margin also shows a sharp step-down in 2025 versus the prior years, indicating potential pricing, mix, or cost pressure despite better bottom-line results.

Balance Sheet

Leverage looks manageable, with debt to equity at ~0.42 in 2025 (improving from ~0.52 in 2024), and equity remains sizeable relative to the asset base. Returns on equity improved to ~8.5% in 2025 from a weak ~1.6% in 2024, signaling better profitability. However, debt levels have risen versus 2023 and the company has shown earnings volatility historically, which can raise balance-sheet risk if the improved operating performance does not hold.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are solid in 2024–2025 (both roughly ~SEK 57–59m), with free cash flow closely matching reported earnings in each year. Free cash flow growth is strong in 2025, and the business demonstrates an ability to convert profits into cash. The main drawback is volatility earlier in the period, including negative operating and free cash flow in 2022, indicating cash flows can be uneven through the cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	483.29M	420.44M	404.71M	358.60M	326.89M
Gross Profit	31.11M	287.10M	277.12M	244.76M	223.53M
EBITDA	74.89M	32.36M	35.61M	9.36M	23.56M
Net Income	22.55M	4.66M	13.68M	24.15M	5.86M
Balance Sheet
Total Assets	477.02M	556.69M	428.58M	413.93M	367.40M
Cash, Cash Equivalents and Short-Term Investments	41.16M	46.89M	25.06M	36.22M	53.52M
Total Debt	110.93M	147.62M	75.28M	57.28M	64.26M
Total Liabilities	213.28M	270.44M	169.29M	161.70M	167.46M
Stockholders Equity	263.74M	286.25M	259.29M	252.23M	199.94M
Cash Flow
Free Cash Flow	57.01M	57.77M	27.50M	-8.06M	24.98M
Operating Cash Flow	58.66M	58.64M	28.45M	-6.68M	26.25M
Investing Cash Flow	-3.25M	-64.61M	-51.50M	-1.28M	-33.60M
Financing Cash Flow	-56.44M	26.09M	11.96M	-15.04M	4.95M

TagMaster AB Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TAGM.B, the sentiment is Positive. The current price of 18.9 is below the 20-day moving average (MA) of 24.76, below the 50-day MA of 21.80, and above the 200-day MA of 17.23, indicating a bullish trend. The MACD of 0.92 indicates Positive momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 73.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:TAGM.B.

TagMaster AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAGM.B	71 Outperform	kr363.26M	11.43	8.82%	―	14.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAYS	60 Neutral	kr326.35M	32.02	―	―	10.55%	―
KEBNI.B	50 Neutral	kr350.78M	-22.37	8.68%	―	9.30%	―
MAVEN	47 Neutral	kr236.28M	-18.80	-5.81%	―	-9.79%	-144.24%
INCOAX	44 Neutral	kr67.73M	-2.29	-24.59%	―	-48.24%	-48.99%