Teqnion AB (TEQ) AI Stock Analysis

• Market Cap: kr2.73B
• Dividend Yield: N/A
• Average Volume (3M): 17.97K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 0.27
• Revenue Growth: 11.32%
• EPS Growth: -43.95%
• Country: SE
• Employees: 506
• Sector: Technology
• Sector Strength: 88
• Industry: Industrial - Distribution
• EPS (TTM): 2.67
• Shares Outstanding: 17,165,756
• 10 Day Avg. Volume: 33,754
• 30 Day Avg. Volume: 17,967
• PEG Ratio: 10.82
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 17.65
• 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: 69 Neutral
• Price Target: kr202.00 ▲(14.12% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by stable-to-good fundamentals and improving 2025 cash flow, partially offset by rising leverage and recent margin/growth softening. Technicals add support due to a strong uptrend, while valuation tempers the score given the relatively high P/E.

Positive Factors

Acquisitive, decentralized business model

Teqnion’s model of acquiring profitable niche industrial and tech businesses and leaving operational responsibility decentralized creates a durable multi-source earnings base. This reduces reliance on any single product/customer, enables bolt-on value creation, and supports predictable subsidiary cash flows for reinvestment and debt service.

Long-term revenue growth & healthy gross margins

Revenue expanded steadily from 2020–2025 and gross margins have stayed in the mid-40% range, providing structural profitability. Sustained top-line expansion plus healthy gross margins support margins at the operating level, enabling reinvestment into subsidiaries and funding for strategic initiatives over the medium term.

Improved cash generation in 2025

A material rebound in operating and free cash flow in 2025, with consistently positive FCF across years, strengthens the company’s ability to fund capex, acquisitions and service debt. Reliable FCF underpins financial flexibility and supports long-term value creation despite cyclical volatility.

Negative Factors

Rising leverage

Debt scaled up meaningfully in 2025 and now represents a much larger share of capital, raising structural financial risk. Higher leverage constrains strategic optionality, increases interest exposure, and reduces resilience to margin shocks or cyclical revenue weakness unless deleveraging occurs or cash generation remains strong.

Margin compression from 2022–2023 levels

Operating and net margins have declined from earlier peaks, suggesting persistent mix, cost or integration pressures rather than a one-off. If margins remain compressed, long-term return on invested capital and the ability to convert revenue growth into shareholder returns will be limited, raising structural profitability concerns.

Slowing recent revenue growth

Revenue growth decelerated to low-single digits in 2025, reducing organic momentum behind the acquisitive model. Slower top-line expansion makes deleveraging harder, increases reliance on M&A to hit targets, and signals potential softness in end markets or challenges integrating/expanding subsidiaries over the medium term.

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

Solid long-term revenue growth and healthy gross margins, with a strong rebound in operating and free cash flow in 2025. Offsetting this are slowing recent growth, margin compression versus 2022–2023, and higher leverage in 2025 that increases financial risk.

Income Statement

Revenue has grown strongly over the long run (from 2020 to 2025), but the latest annual growth slowed to a low-single-digit pace in 2025 after mid-single-digit growth in 2024. Profitability remains solid with healthy gross margins (mid-40% range in recent years), but operating profit and net margins have trended down from 2022–2023 levels, suggesting some mix, cost, or integration pressure. Net income in 2025 was slightly higher than 2024, but earnings are below the 2023 peak despite higher revenue.

Balance Sheet

The balance sheet shows a meaningful build in scale and equity over time, which supports resilience. However, leverage has increased: total debt rose notably in 2025 versus 2024, and debt is now a sizable portion relative to equity (up from roughly half of equity in 2023–2024 to closer to three-quarters in 2025 based on provided figures). Returns on equity were strong in 2021–2023 and moderated in 2024, indicating profitability is still decent but not as efficient as earlier years, while higher debt adds financial risk if margins remain pressured.

Cash Flow

Cash generation improved materially in 2025, with operating cash flow and free cash flow both rising sharply and free cash flow growth turning strongly positive versus the decline in 2024. Free cash flow is also consistently positive across the period, supporting flexibility for reinvestment and debt service. A key watch-out is that 2024 cash conversion was weaker (operating cash flow was low relative to net income that year), highlighting that working-capital or timing effects can introduce volatility even when reported earnings are steady.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.80B	1.57B	1.48B	1.32B	920.20M
Gross Profit	856.00M	704.50M	670.90M	565.40M	399.60M
EBITDA	314.30M	222.40M	232.40M	186.30M	143.18M
Net Income	98.50M	95.80M	125.00M	110.30M	79.50M
Balance Sheet
Total Assets	2.05B	1.72B	1.49B	1.07B	799.14M
Cash, Cash Equivalents and Short-Term Investments	209.50M	196.00M	199.80M	47.30M	85.79M
Total Debt	642.80M	466.20M	360.80M	261.50M	176.92M
Total Liabilities	1.17B	862.50M	752.60M	626.30M	460.52M
Stockholders Equity	874.70M	858.00M	734.00M	443.00M	336.85M
Cash Flow
Free Cash Flow	173.10M	77.70M	117.90M	97.40M	114.53M
Operating Cash Flow	184.60M	96.20M	125.20M	104.90M	120.66M
Investing Cash Flow	-318.40M	-139.10M	-159.00M	-139.80M	-165.32M
Financing Cash Flow	157.40M	30.80M	185.90M	-4.30M	10.10M

Teqnion AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 177.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TEQ, the sentiment is Negative. The current price of 177 is above the 20-day moving average (MA) of 168.79, above the 50-day MA of 172.61, and above the 200-day MA of 159.79, indicating a bearish trend. The MACD of -4.29 indicates Positive momentum. The RSI at 38.19 is Neutral, neither overbought nor oversold. The STOCH value of 26.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:TEQ.

Teqnion AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEQ	69 Neutral	kr2.73B	27.74	―	―	11.32%	-43.95%
OEM.B	69 Neutral	kr18.55B	31.32	25.27%	1.22%	3.19%	4.60%
BUFAB	68 Neutral	kr22.27B	35.44	15.33%	1.03%	-1.37%	14.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LIME	60 Neutral	kr2.44B	21.89	32.28%	1.41%	11.23%	16.24%
ALLIGO.B	60 Neutral	kr6.90B	26.21	6.80%	1.64%	―	―
HTRO	50 Neutral	kr5.67B	-441.85	3.38%	―	0.01%	-71.63%