Teqnion AB (TEQ) AI Stock Analysis

• Market Cap: kr3.16B
• Dividend Yield: N/A
• Average Volume (3M): 17.97K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.35
• Revenue Growth: 11.32%
• EPS Growth: -43.95%
• Country: SE
• Employees: 506
• Sector: Technology
• Sector Strength: 88
• Industry: Industrial - Distribution
• EPS (TTM): -1.31
• Shares Outstanding: 17,165,756
• 10 Day Avg. Volume: 33,754
• 30 Day Avg. Volume: 17,967
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: kr161.00 ▼(-9.14% Downside)

Teqnion AB's stock score is primarily influenced by its solid financial performance, despite challenges with declining gross margins and increased leverage. The technical analysis shows a bullish trend, but the stock appears overbought, posing a risk of a pullback. Valuation is a concern due to a high P/E ratio and lack of dividend yield, making the stock less appealing for value and income investors.

Teqnion AB Business Overview & Revenue Model

Company Description

Teqnion AB (publ), a diversified industrial company, operates in the industry, growth, and niche business areas. The company markets and sells instruments and consumables for clinical laboratories and research laboratories. It also offers folding electric wheelchairs for county councils and end users; surge protection/lightning protection, uninterruptible power supply, and potential equalization material products; fasteners, hydraulic components, fittings, gaskets, seals, ball bearings, lifting products, and transmission items for workshops and industrial customers; and lamps and home furnishing products. In addition, the company produces customer-specific building components; builds houses; supplies electromechanical and electronic components for various applications; light sources and luminaires; and specializes in contract manufacturing business. Further, it engages in the refrigerator renovation and rental of refrigerators and bar counters for various events; and chip-cutting metalworking and printing operations. Additionally, the company supplies current and metering transformers; repairs and maintains marine and industrial gas turbines; and markets and sells stainless steel products to professional kitchens. The company also develops, manufactures, sells, and distributes equipment for military exercise firing in the form of various types of indication systems for presentation of firing data; repair and dismantling of vehicles; tailor-made and turnkey solutions for protective vehicles; and supplies weighing scales. Teqnion AB (publ) was incorporated in 2006 and is based in Solna, Sweden.

How the Company Makes Money

Teqnion AB generates revenue through a diversified model that includes the sale of proprietary technology solutions, consulting services, and licensing agreements. The company earns money by providing advanced materials and engineering services to clients in various sectors, including automotive, aerospace, and renewable energy. Key revenue streams include direct sales of products, project-based consulting fees, and recurring income from long-term service contracts. Teqnion also benefits from strategic partnerships with industry leaders and research institutions, which enhance its market presence and open up additional avenues for revenue generation.

Teqnion AB Financial Statement Overview

Summary

Teqnion AB shows solid revenue growth and profitability, but faces challenges with declining gross margins and increased leverage. Cash flow generation is moderate, with a notable decline in free cash flow growth. The company should focus on managing costs and leverage to maintain financial stability.

Income Statement

Teqnion AB has demonstrated consistent revenue growth, with a TTM growth rate of 4.7%. The company maintains a healthy EBIT margin of 10.69% and a net profit margin of 6.91% in the TTM. However, there has been a decline in gross profit margin from 45.47% in 2023 to 35.35% in the TTM, indicating potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.62 in the TTM, reflecting higher leverage. Return on equity remains strong at 13.43%, though it has decreased from previous years. The equity ratio is stable, indicating a balanced capital structure but with increased debt levels.

Cash Flow

Teqnion AB's free cash flow growth has declined by 24.24% in the TTM, which is a concern. The operating cash flow to net income ratio is 0.25, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is healthy at 83.24%, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67B	1.57B	1.48B	1.32B	920.20M	659.09M
Gross Profit	589.10M	704.50M	670.90M	565.40M	399.60M	259.25M
EBITDA	248.60M	222.40M	229.60M	186.30M	143.18M	85.33M
Net Income	115.20M	95.80M	125.00M	110.30M	79.50M	43.59M
Balance Sheet
Total Assets	1.94B	1.72B	1.49B	1.07B	799.14M	534.30M
Cash, Cash Equivalents and Short-Term Investments	137.40M	196.00M	199.80M	47.30M	85.79M	120.34M
Total Debt	550.00M	466.20M	360.80M	261.50M	176.92M	116.16M
Total Liabilities	1.04B	862.50M	752.60M	626.30M	460.52M	275.20M
Stockholders Equity	892.30M	858.00M	734.00M	443.00M	336.85M	256.85M
Cash Flow
Free Cash Flow	86.90M	77.70M	117.90M	97.40M	114.53M	111.31M
Operating Cash Flow	104.40M	96.20M	125.20M	104.90M	120.66M	114.83M
Investing Cash Flow	-232.80M	-139.10M	-159.00M	-139.80M	-165.32M	-62.80M
Financing Cash Flow	91.30M	30.80M	185.90M	-4.30M	10.10M	-20.46M

Teqnion AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 177.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TEQ, the sentiment is Positive. The current price of 177.2 is above the 20-day moving average (MA) of 158.74, above the 50-day MA of 151.82, and above the 200-day MA of 156.33, indicating a bullish trend. The MACD of 6.09 indicates Negative momentum. The RSI at 63.92 is Neutral, neither overbought nor oversold. The STOCH value of 81.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:TEQ.

Teqnion AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTRO	68 Neutral	€3.90B	10.88	9.42%	―	0.07%	-31.25%
OEM.B	67 Neutral	€20.47B	32.55	25.27%	1.14%	3.19%	4.60%
LIME	67 Neutral	€4.00B	40.07	32.28%	1.06%	11.23%	16.24%
TEQ	65 Neutral	kr3.16B	27.45	―	―	11.32%	-43.95%
BUFAB	65 Neutral	€17.79B	29.97	15.89%	1.09%	-4.08%	27.56%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%