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

• Market Cap: kr287.09M
• Dividend Yield: N/A
• Average Volume (3M): 5.15K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.34
• Revenue Growth: 14.89%
• EPS Growth: N/A
• Country: SE
• Employees: 164
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.53
• Shares Outstanding: 14,647,526
• 10 Day Avg. Volume: 5,468
• 30 Day Avg. Volume: 5,149
• PEG Ratio: -0.63
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 3.36
• 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: 68 Neutral
• Price Target: kr21.00 ▲(11.11% Upside)

TagMaster AB Class B's overall stock score is driven by its strong financial performance and attractive valuation, despite current bearish technical indicators. The company's solid cash flow and prudent leverage strategy provide a stable foundation, while its low P/E ratio offers potential upside. However, technical analysis suggests caution in the short term due to bearish momentum.

Positive Factors

Free Cash Flow Strength

Very strong FCF growth and near-1:1 conversion of net income to free cash flow provide durable internal funding for R&D, product upgrades, and working capital. This reduces reliance on external financing and supports strategic investments or opportunistic M&A over the medium term.

High Gross Margins

A ~69% gross margin indicates structural product differentiation and pricing power in hardware/software integration. Sustained high gross margins create room to absorb higher operating costs while funding software development and services, supporting durable profitability upside.

Prudent Leverage and Equity Base

Moderate leverage and a >50% equity ratio signal a conservative balance sheet that preserves financial flexibility. This stability supports multi-quarter investments, shields the company in downturns, and enables capital deployment without materially raising refinancing risk.

Negative Factors

Low Net Profit Margin

Despite strong gross margins, a very low net margin shows operating and non-operating costs erode profitability. Persistently thin net returns constrain retained earnings, limit reinvestment capacity, and make the business more sensitive to cost inflation or margin pressure over several quarters.

Moderate Return on Equity

A low ROE suggests limited effectiveness in converting shareholder capital into profits. Over a multi-quarter horizon this may signal inefficient capital allocation or weak operating leverage, reducing long-term shareholder value creation unless operational returns improve.

Modest Revenue Growth Rate

Single-digit trailing revenue growth indicates the company is growing but not capturing rapid market share in a large addressable market. Slower top-line expansion limits operating leverage benefits and delays margin improvement from software/services scaling over the medium term.

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 generates revenue through the sale of its RFID products and solutions, which include hardware such as readers and tags, as well as software licensing and service agreements. The company has established key revenue streams from direct sales to end-users, partnerships with system integrators, and collaborations with manufacturers that incorporate TagMaster's technology into their products. Additionally, recurring income from service contracts and software maintenance contributes to the overall revenue. Strategic partnerships with companies in various sectors, including transportation and logistics, further enhance TagMaster's market reach and revenue potential.

TagMaster AB Class B Financial Statement Overview

Summary

TagMaster AB Class B exhibits a solid financial position with consistent revenue growth and strong cash flow generation. While profitability margins are stable, there is potential for improvement in net profit margins. The balance sheet reflects a prudent leverage strategy, supporting long-term stability.

Income Statement

TagMaster AB Class B has shown a consistent revenue growth trend, with a TTM revenue growth rate of 6.02%. The gross profit margin remains strong at 68.88%, indicating efficient cost management. However, the net profit margin is relatively low at 1.34%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are modest, reflecting stable operational performance but with potential for enhancement.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.46, indicating a balanced approach to leveraging. The return on equity is modest at 2.31%, suggesting moderate efficiency in generating profits from shareholders' equity. The equity ratio stands at 53.93%, reflecting a solid equity base relative to total assets.

Cash Flow

TagMaster AB Class B demonstrates strong cash flow management, with a significant free cash flow growth rate of 89.32% in the TTM period. The operating cash flow to net income ratio is 0.19, and the free cash flow to net income ratio is 0.96, indicating effective conversion of income into cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	477.01M	420.44M	404.71M	358.60M	326.89M	286.45M
Gross Profit	263.34M	287.10M	277.12M	244.76M	223.53M	191.50M
EBITDA	60.38M	32.36M	35.61M	9.36M	23.56M	-414.00K
Net Income	21.19M	4.66M	13.68M	24.15M	5.86M	-20.37M
Balance Sheet
Total Assets	474.64M	556.69M	428.58M	413.93M	367.40M	319.15M
Cash, Cash Equivalents and Short-Term Investments	41.76M	46.89M	25.06M	36.22M	53.52M	51.79M
Total Debt	96.73M	147.62M	75.28M	57.28M	64.26M	50.45M
Total Liabilities	218.69M	270.44M	169.29M	161.70M	167.46M	141.40M
Stockholders Equity	255.96M	286.25M	259.29M	252.23M	199.94M	177.76M
Cash Flow
Free Cash Flow	52.31M	57.77M	27.50M	-8.06M	24.98M	23.73M
Operating Cash Flow	53.83M	58.64M	28.45M	-6.68M	26.25M	27.43M
Investing Cash Flow	-62.78M	-64.61M	-51.50M	-1.28M	-33.60M	-1.50M
Financing Cash Flow	4.17M	26.09M	11.96M	-15.04M	4.95M	-9.86M

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: Negative

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 19.06, above the 50-day MA of 17.44, and above the 200-day MA of 15.48, indicating a bullish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 60.45 is Neutral, neither overbought nor oversold. The STOCH value of 90.78 is Negative, 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	68 Neutral	kr287.09M	13.55	8.23%	―	14.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KEBNI.B	58 Neutral	kr446.00M	76.17	8.68%	―	9.30%	―
WAYS	55 Neutral	kr342.16M	618.08	―	―	10.55%	―
MAVEN	53 Neutral	kr257.28M	-37.78	-5.81%	―	-9.79%	-144.24%
INCOAX	44 Neutral	kr90.05M	-2.72	-24.59%	―	-48.24%	-48.99%