Trelleborg AB (TREL.B) AI Stock Analysis

• Market Cap: kr78.04B
• Dividend Yield: 2.22%
• Average Volume (3M): 433.52K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.12
• Revenue Growth: 2.94%
• EPS Growth: -59.33%
• Country: SE
• Employees: 16,237
• Sector: Industrials
• Sector Strength: 80
• Industry: Industrial - Machinery
• EPS (TTM): 15.74
• Shares Outstanding: 213,047,180
• 10 Day Avg. Volume: 394,044
• 30 Day Avg. Volume: 433,516
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: kr364.25
• Price Target Upside: 8.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Trelleborg AB demonstrates strong financial health with solid profitability, no debt, and efficient cash management. However, the technical analysis indicates a bearish trend which offsets some of the financial strengths. The valuation is reasonable, offering moderate appeal. Overall, while the company's financials are strong, the current market sentiment and technical indicators suggest caution.

Trelleborg AB Business Overview & Revenue Model

Company Description

Trelleborg AB is a global leader in engineered polymer solutions that seal, damp, and protect critical applications in demanding environments. The company operates through several business areas, including Trelleborg Industrial Solutions, Trelleborg Sealing Solutions, and Trelleborg Wheel Systems. Its core products and services cater to a variety of industries such as aerospace, automotive, healthcare, and agriculture, providing innovative solutions for sealing, fluid handling, and anti-vibration applications.

How the Company Makes Money

Trelleborg AB generates revenue primarily through the sale of its engineered polymer solutions across its diverse business segments. Trelleborg Sealing Solutions contributes significantly to its earnings by supplying advanced sealing technologies for critical applications in industries like aerospace and healthcare. Trelleborg Industrial Solutions provides solutions for fluid handling and anti-vibration systems, serving industries such as automotive and marine. Additionally, Trelleborg Wheel Systems, focusing on specialty tires and wheels for agricultural and industrial vehicles, is another key revenue stream. The company's earnings are bolstered by strong customer relationships and strategic partnerships that enhance its product offerings and market reach. Trelleborg's focus on innovation and sustainability also plays a crucial role in maintaining its competitive edge and driving its financial performance.

Trelleborg AB Financial Statement Overview

Summary

Trelleborg AB presents a robust financial profile with strong profitability, no debt burden, and efficient cash flow management. The company maintains strong margins and a high return on equity, pointing to efficient operations and solid financial health.

Income Statement

Trelleborg AB has a consistent revenue stream with minimal revenue growth in recent years, evidenced by stable total revenues from 2021 to 2024. The company exhibits a strong gross profit margin of approximately 35.3% in 2024, though slightly down from previous years. Despite a decline in EBIT margin from 2023 to 2024, the company maintains a healthy net profit margin of approximately 29.4%, indicating strong net profitability. The EBITDA margin of 21.8% in 2024 remains robust, highlighting efficient operational performance.

Balance Sheet

Trelleborg AB's balance sheet is solid with no total debt reported in 2024, indicating improved financial health compared to previous years. The equity ratio is strong at 68.7%, reflecting a well-capitalized company with reduced liabilities. The return on equity (ROE) of 24.2% in 2024 illustrates the company’s capability to generate returns on shareholder capital. Overall, the balance sheet demonstrates financial stability with a focus on equity funding.

Cash Flow

The company has shown a positive free cash flow, although it declined from 2023 to 2024. Operating cash flow to net income ratio remains stable, indicating efficient cash generation relative to net income. Despite a decrease in free cash flow, Trelleborg AB effectively manages its cash flows, sustaining operations and capital expenditures comfortably. This indicates that the company is in a strong position to meet its financial obligations and invest in growth opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
34.29B	34.29B	30.09B	33.86B	32.84B
	Gross Profit
12.09B	12.09B	10.75B	11.02B	10.52B
	EBIT
5.52B	5.73B	5.08B	5.33B	4.31B
	EBITDA
7.48B	7.25B	6.33B	5.42B	5.53B
	Net Income Common Stockholders
10.07B	10.07B	3.43B	3.72B	2.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.16B	10.56B	3.94B	3.47B	5.77B
	Total Assets
60.51B	60.52B	77.07B	55.64B	53.76B
	Total Debt
0.00	8.30B	24.91B	11.21B	15.24B
	Net Debt
-2.16B	-2.25B	20.98B	7.75B	9.49B
	Total Liabilities
18.94B	18.79B	39.58B	22.64B	24.81B
	Stockholders Equity
41.56B	41.72B	37.48B	32.99B	28.95B
Cash Flow		Free Cash Flow
3.19B	3.58B	2.62B	3.40B	4.13B
	Operating Cash Flow
5.08B	5.25B	3.92B	4.80B	5.36B
	Investing Cash Flow
-7.31B	-1.96B	-12.31B	-1.81B	-868.00M
	Financing Cash Flow
-6.18B	-13.30B	-579.00M	-7.24B	-1.19B

Trelleborg AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 336.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TREL.B, the sentiment is Negative. The current price of 336.2 is above the 20-day moving average (MA) of 320.66, below the 50-day MA of 361.51, and below the 200-day MA of 373.08, indicating a neutral trend. The MACD of -5.23 indicates Negative momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 81.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:TREL.B.

Trelleborg AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALFA	78 Outperform	kr162.44B	21.83	18.80%	2.16%	6.40%	18.28%
ATCO.B	78 Outperform	kr701.17B	22.57	27.15%	2.21%	0.54%	1.79%
HUSQ.B	70 Outperform	kr25.63B	26.32	3.88%	5.54%	-4.87%	-47.39%
SAND	70 Neutral	kr252.13B	17.28	15.81%	2.83%	-1.09%	15.72%
TREL.B	66 Neutral	kr78.04B	21.43	9.02%	2.22%	2.94%	-59.33%
SKF.B	65 Neutral	kr86.26B	13.67	11.14%	4.04%	-3.96%	2.77%
Sector *	64 Neutral	$4.24B	11.64	5.23%	249.83%	4.07%	-10.54%