Transtema Group AB (TRANS) AI Stock Analysis

• Market Cap: kr225.49M
• Dividend Yield: N/A
• Average Volume (3M): 111.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 10.36%
• EPS Growth: -100.68%
• Country: SE
• Employees: 1,345
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -3.05
• Shares Outstanding: 42,951,157
• 10 Day Avg. Volume: 92,478
• 30 Day Avg. Volume: 111,771
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -4.67
• 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): 0.26
• Revenue Forecast (FY): kr2.42B

• Rating: 42 Neutral
• Price Target: kr5.00 ▼(-45.65% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by weakened financial performance in 2025 (losses, higher leverage, and cash burn). Technicals add further pressure due to a strong downtrend despite oversold readings. Valuation is not supportive because the negative P/E reflects current losses and there is no dividend yield data.

Positive Factors

Recurring service contracts

The company earns recurring revenues from maintenance, fault repair and operational support contracts. This services-led model creates steady, contract-backed cash flow streams that smooth project cyclicality and support long-term revenue visibility when network owners retain multi-year frameworks.

Prior profitability and cash generation

Historically positive margins and strong operating/free cash flow in 2021–2024 show the business can generate profits and convert earnings to cash. Those operating capabilities imply the company retains core execution and margin potential that can be redeployed if operational headwinds are addressed.

Exposure to structural telecom buildout

Transtema's core activities — fiber rollout, mobile site work and technical field services — align with secular telecom infrastructure expansion. Structural demand for fiber and mobile densification supports multi-year serviceable demand for installations and maintenance, underpinning durable addressable market growth.

Negative Factors

2025 profitability reversal

A swing to net losses and negative margins in 2025 represents a material earnings deterioration. Persistent margin weakness would erode internally generated capital, reduce reinvestment ability and could force cost-cutting or restructuring measures that undermine growth and service capacity over the medium term.

Negative operating and free cash flow

The shift to cash burn increases funding risk and reduces financial flexibility. If negative operating cash flow persists, the company may need external financing or to draw on liquidity, raising costs and constraining investment in technicians, equipment and execution capacity that sustain recurring service revenues.

Higher leverage and weakened equity

A materially higher debt-to-equity ratio reduces balance-sheet resilience and increases interest and refinancing risk. Elevated leverage limits strategic flexibility, raises vulnerability to cyclical downturns, and could pressure covenant headroom or require deleveraging that diverts cash from growth investments.

Transtema Group AB Business Overview & Revenue Model

Company Description

Transtema Group AB provides services and solutions to customers in the areas of networking and communications in Sweden. It offers design, construction, documentation, maintenance, and other consulting services for communications networks as well as data storage, networking, and IoT solutions. The company offers operation and maintenance services, including network monitoring, consulting, support, and field services; communication network, including fiber, mobile, copper mesh, and real estate network, IoT, wireless networks, mobile indoor coverage, network equipment; electricity, telecommunications and security, including electricity meter, charging stations, telesystem, and electrical installations; and data centers, site services. The company was founded in 1997 and is headquartered in Mölndal, Sweden.

How the Company Makes Money

Transtema makes money primarily by selling services tied to the build-out and ongoing operation of communication networks. Its revenue model is largely project- and contract-based, where customers pay for (1) deployment work such as installing and upgrading network infrastructure (e.g., fiber rollout activities and mobile network site-related work) and (2) recurring/ongoing services such as maintenance, fault repair, and operational support delivered through field technicians and service teams. Revenues are typically generated through service agreements and framework contracts with network owners and telecom operators, as well as orders for specific projects. Earnings are driven by the volume of network investment (new build and upgrades), the size and duration of service/maintenance contracts, utilization of technical staff and subcontractors, and the company’s ability to deliver work efficiently across multiple geographic areas. Specific information about named partnerships, customer concentration, or exact segment revenue split is null.

Transtema Group AB Financial Statement Overview

Summary

Financial performance weakened sharply in 2025: profitability turned negative, leverage increased as equity fell, and operating/free cash flow shifted to negative. Prior years showed profitability and stronger cash generation, but the latest results indicate elevated operational and funding risk.

Income Statement

Profitability deteriorated sharply in the latest annual period (2025), with revenue down ~3% and margins turning negative (gross and net loss). This is a significant reversal from 2022–2023 when the company generated solid positive net margins (~5%) and strong growth (notably 2022). 2024 already showed pressure with near break-even results, and 2025 confirms a weakening earnings trajectory despite EBITDA remaining modestly positive.

Balance Sheet

Leverage increased materially in 2025, with debt rising and debt-to-equity jumping to ~1.66 versus ~0.64–0.82 in 2021–2024, while equity fell meaningfully. Returns on equity also swung deeply negative in 2025 after being positive in 2021–2023, reflecting the loss-making year. The balance sheet is still supported by a meaningful equity base, but the higher leverage and declining equity reduce financial flexibility.

Cash Flow

Cash generation weakened significantly in 2025, with operating cash flow and free cash flow turning negative and free cash flow dropping sharply versus 2024. This contrasts with 2024’s strong positive operating and free cash flow and generally positive cash conversion in earlier years. While 2025 free cash flow appears higher than net income in magnitude (loss year effect), the core issue is the shift to cash burn, increasing funding risk if it persists.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.60B	2.49B	2.69B	2.46B	1.69B
Gross Profit	-106.69M	1.34B	1.40B	1.28B	1.11B
EBITDA	160.23M	154.24M	377.04M	278.99M	141.68M
Net Income	-126.29M	-9.30M	132.09M	128.77M	88.45M
Balance Sheet
Total Assets	1.41B	1.64B	1.71B	1.60B	859.80M
Cash, Cash Equivalents and Short-Term Investments	5.68M	126.06M	67.11M	93.30M	177.82M
Total Debt	663.54M	414.51M	355.84M	316.33M	172.68M
Total Liabilities	1.00B	1.09B	1.16B	1.21B	608.44M
Stockholders Equity	400.63M	556.47M	558.19M	387.65M	250.43M
Cash Flow
Free Cash Flow	-78.17M	161.95M	12.56M	98.04M	196.29M
Operating Cash Flow	-43.31M	185.56M	27.22M	109.17M	210.64M
Investing Cash Flow	-99.43M	-113.17M	-62.69M	-208.46M	-13.98M
Financing Cash Flow	26.35M	-14.37M	9.05M	14.68M	-83.90M

Transtema Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TRANS, the sentiment is Negative. The current price of 9.2 is above the 20-day moving average (MA) of 5.48, above the 50-day MA of 6.57, and below the 200-day MA of 10.92, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 33.80 is Neutral, neither overbought nor oversold. The STOCH value of 17.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:TRANS.

Transtema Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TALK	75 Outperform	kr111.01M	5.55	115.17%	―	0.44%	80.01%
AVT.B	69 Neutral	kr393.10M	30.50	33.71%	1.22%	34.25%	57.77%
OVZON	67 Neutral	kr7.27B	34.72	-1.33%	―	77.67%	68.35%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ELTEL	48 Neutral	kr1.33B	58.96	0.72%	―	-6.38%	―
NETEL	43 Neutral	kr196.72M	-2.06	―	―	-13.07%	-372.35%
TRANS	42 Neutral	kr225.49M	-2.89	0.35%	―	10.36%	-100.68%