Troax Group AB Class A (TROAX) AI Stock Analysis

• Market Cap: kr8.82B
• Dividend Yield: 2.57%
• Average Volume (3M): 60.05K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 0.81
• Revenue Growth: -5.67%
• EPS Growth: -33.12%
• Country: SE
• Employees: 1,221
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.18
• Shares Outstanding: 60,000,000
• 10 Day Avg. Volume: 129,937
• 30 Day Avg. Volume: 60,046
• PEG Ratio: -2.80
• Price to Book (P/B): 6.49
• Price to Sales (P/S): 4.20
• P/FCF Ratio: 36.89
• 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: kr190.00
• Price Target Upside: 29.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: kr156.00 ▲(6.41% Upside)

The score is driven primarily by solid profitability and a generally sound balance sheet, tempered by weak recent TTM free-cash-flow conversion and a high P/E valuation. Technicals are mildly supportive but overall momentum is neutral.

Positive Factors

Consistent profitability and margins

Sustained gross and operating margins indicate durable pricing power and efficient cost structure. This supports reinvestment in product development and production scale, underpins return on capital, and provides a buffer through industry cycles, strengthening long-term cash flow potential.

Reasonable historical leverage and equity growth

Moderate historical leverage and growing equity signal balance-sheet resilience and financial flexibility. This enables the company to fund capex, pursue targeted M&A or absorb demand shocks without immediate refinancing pressure, supporting stable operations over the medium term.

Diversified revenue streams and recurring services

A mix of direct sales, distributor channels and recurring maintenance services creates a diversified revenue base. Recurring service contracts and long-term industrial client relationships reduce cyclicality and raise switching costs, supporting steadier revenue over multiple quarters.

Negative Factors

Weakened trailing‑12‑month free cash flow conversion

A sharp drop in FCF conversion reduces the firm's ability to self-fund capex, dividends or acquisitions. If sustained, this forces greater reliance on external financing, increases vulnerability to rate rises, and limits strategic flexibility to invest in growth or absorb shocks.

Step‑up in absolute debt and balance‑sheet size

A recent step‑up in debt and balance‑sheet size can compress financial headroom if not matched by durable cash generation. This raises interest and refinancing risk, could constrain capital allocation, and makes future margin or revenue shocks more damaging to solvency metrics.

Negative recent revenue and EPS trends

Declining revenue and sharply lower EPS point to demand softness, pricing or cost pressure, or project timing issues. If persistent, these trends erode profitability and returns, weaken competitive positioning, and necessitate structural actions to restore topline growth and margin durability.

Troax Group AB Class A Business Overview & Revenue Model

Company Description

Troax Group AB (publ), through its subsidiaries, produces and sells mesh panels in the Nordic region, the United Kingdom, North America, Continental Europe, and internationally. The company offers machine guarding systems, such as panels, posts, fixings, doors, locks and switches, barrier protection, and stainless steel machine guards; partition walls, anti-collapse systems, shelves, mesh panels for data centers, guard rails and kick plates on mezzanine, cage storages, single and double locker systems, and art storages; and mesh partition for storage spaces in apartment buildings, cellars, and attics; storage systems; vehicle storage systems; self storage systems, such as panels, hinged doors, roll up doors, mesh, kick plates, and corner guards, soffits, and burglar bars. It also provides accessories, comprising of wire tray systems, smart posts, cutting profiles, smart splice, kick plates, end profiles, panel curves, panel flexi, snapper, edge and gap covers, foam infills, PC holders, extension brackets, functional bonding, door closer, tubes, door frame fixings, cut profile partitioning and anti-collapse, raising foot, end raising foot, corner bracket, door closer partitioning, espagnolette, secure fasteners, shelf, store room numbering, door system holder numberplates, door system kit silence, spare parts securing plates, and door reinforcements. Troax Group AB (publ) was founded in 1955 and is headquartered in Hillerstorp, Sweden.

How the Company Makes Money

Troax Group AB generates revenue through the sale of its protective solutions, which includes a variety of products such as wire mesh partitions, machine guards, and shelving systems. The company has a strong revenue model that relies on direct sales to end-users as well as partnerships with distributors and system integrators who help market and sell their products. Key revenue streams include large contracts with industrial clients, recurring revenue from maintenance services, and project-based sales for customized solutions. Additionally, Troax's focus on innovation and quality helps to establish long-term relationships with clients, ensuring sustained revenue through repeat business and referrals.

Troax Group AB Class A Financial Statement Overview

Summary

Strong profitability and returns with reasonable leverage support the fundamentals, but the latest TTM shows a notable deterioration in free cash flow and a step-change increase in balance-sheet size/debt, raising near-term cash-generation and comparability risk.

Income Statement

Profitability is consistently strong for an industrial name, with healthy gross and operating margins across the annual periods and solid net margins as well. Revenue growth has been positive in most recent annual years (after a 2023 dip), but margins have softened from the 2021–2023 highs into 2024 and TTM (Trailing-Twelve-Months), suggesting some normalization in pricing or cost pressure. The TTM (Trailing-Twelve-Months) revenue growth rate shown is extremely large versus the historical scale, which raises comparability/one-off risk when interpreting the latest growth figure.

Balance Sheet

Leverage appears reasonable with debt-to-equity around the ~0.4–0.6 range historically, and equity has grown over time, supporting balance sheet resilience. Returns on equity are strong, indicating efficient capital use, although the trend has eased from very high levels earlier in the period. A key watch item is the TTM (Trailing-Twelve-Months) step-up in absolute debt and balance sheet size versus prior annual reports, which could reflect acquisitions or reporting scope changes and increases financial risk if not matched by durable cash generation.

Cash Flow

Historically, cash conversion has been solid, with operating cash flow often covering net income well and free cash flow tracking earnings at a healthy rate in the annual periods. The latest TTM (Trailing-Twelve-Months) profile weakens materially: free cash flow is much lower relative to net income and operating cash flow coverage is also notably lighter, alongside negative free cash flow growth. This points to working-capital build, higher capital spending, or timing effects that make near-term cash generation a bigger risk than the income statement suggests.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	268.63M	278.50M	264.27M	284.08M	252.28M	163.62M
Gross Profit	102.07M	106.00M	100.10M	95.83M	94.17M	64.24M
EBITDA	44.32M	48.20M	57.65M	61.19M	58.09M	38.30M
Net Income	21.78M	31.30M	35.71M	36.79M	39.78M	23.24M
Balance Sheet
Total Assets	331.63M	329.66M	327.37M	291.08M	291.32M	245.34M
Cash, Cash Equivalents and Short-Term Investments	33.36M	29.51M	33.16M	37.53M	35.19M	32.49M
Total Debt	87.93M	75.55M	86.61M	71.57M	82.32M	85.16M
Total Liabilities	155.46M	149.60M	155.08M	136.20M	148.76M	131.31M
Stockholders Equity	176.16M	180.10M	172.28M	154.88M	142.56M	114.03M
Cash Flow
Free Cash Flow	24.60M	31.71M	42.62M	40.18M	18.51M	18.95M
Operating Cash Flow	39.63M	42.49M	54.97M	48.76M	32.17M	26.31M
Investing Cash Flow	-14.50M	-16.17M	-45.07M	-13.17M	-14.58M	-14.82M
Financing Cash Flow	-15.40M	-29.89M	-14.28M	-32.42M	-15.27M	-9.49M

Troax Group AB Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 146.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TROAX, the sentiment is Positive. The current price of 146.6 is below the 20-day moving average (MA) of 147.39, above the 50-day MA of 142.21, and above the 200-day MA of 144.79, indicating a bullish trend. The MACD of 1.45 indicates Positive momentum. The RSI at 53.12 is Neutral, neither overbought nor oversold. The STOCH value of 44.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:TROAX.

Troax Group AB Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALFA	71 Outperform	kr209.72B	25.14	20.42%	1.84%	3.54%	20.94%
NMAN	66 Neutral	kr5.64B	19.07	―	2.41%	2.05%	-11.66%
ALIG	65 Neutral	kr15.83B	22.48	9.59%	2.09%	-1.74%	26.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TROAX	63 Neutral	kr8.82B	36.07	12.49%	2.57%	-5.67%	-33.12%
EPRO.B	63 Neutral	kr17.43B	26.73	12.07%	1.33%	1.51%	-11.25%
ABSO	59 Neutral	kr2.30B	26.63	―	1.51%	-8.97%	-31.59%

Troax Group AB Class A Corporate Events

Troax Group Closes Acquisition of Chinese Safety Specialist Vichnet

Troax Group has completed the acquisition of Vichnet, the Chinese market leader in machine guarding and wire trays, reinforcing its position in industrial safety solutions and expanding its footprint in the strategically important APAC region. Vichnet, based in Ningbo with 2024 turnover of 26 MEUR and around 300 employees, will be integrated into Troax’s APAC reporting structure, adding a comprehensive portfolio of safety solutions for both Chinese and export markets, while the deal will entail approximately 1 MEUR in related costs, most of which will be recognized in the first quarter of 2026.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK150.00 price target. To see the full list of analyst forecasts on Troax Group AB Class A stock, see the SE:TROAX Stock Forecast page.

Troax Group Expands Safety Solutions Portfolio with Stommpy Acquisition

Troax Group AB has acquired Stommpy SpA, an Italian producer of flexible safety barriers, along with its Austrian subsidiary. This acquisition enhances Troax’s product line with Stommpy’s unique safety solutions, particularly in high-demand sectors like food and pharmaceuticals. The acquisition is expected to strengthen Troax’s position in the industrial safety solutions market, though it will not materially affect the company’s earnings per share or net debt/EBITDA.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK150.00 price target. To see the full list of analyst forecasts on Troax Group AB Class A stock, see the SE:TROAX Stock Forecast page.

Troax Group AB Announces CFO Transition

Troax Group AB announced that its CFO, Anders Eklöf, will leave his role in 2026 to take on a new challenge as the CFO of Herenco Group. The company will begin the process of recruiting a successor immediately. This transition marks a significant change in Troax’s leadership, as Anders Eklöf has been instrumental in the company’s positive development over the past nine years.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK150.00 price target. To see the full list of analyst forecasts on Troax Group AB Class A stock, see the SE:TROAX Stock Forecast page.

Troax Group Expands Industrial Safety Portfolio with Dancop Acquisition

Troax Group AB has announced the acquisition of Dancop A/S and its subsidiaries, expanding its industrial safety product offerings. This strategic acquisition, financed through existing cash, is expected to enhance Troax’s market position in safety solutions by integrating Dancop’s expertise in safety mirrors and flexible barriers. The transaction is not anticipated to significantly impact Troax’s earnings per share or net debt/EBITDA, and it underscores the company’s commitment to becoming a leader in industrial safety solutions.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK150.00 price target. To see the full list of analyst forecasts on Troax Group AB Class A stock, see the SE:TROAX Stock Forecast page.

Troax Group Acquires Vichnet to Strengthen Asian Market Presence

Troax Group has announced its acquisition of Vichnet, a market leader in machine guarding and wire tray solutions in China, for 350 MRMB. This strategic acquisition is expected to enhance Troax’s market position in Asia, particularly in the data center segment, and is projected to be accretive to earnings per share post-completion. The acquisition aligns with Troax’s strategy to become a global market leader in selected segments, leveraging Vichnet’s strong position in China to expand its offerings and improve customer service.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK170.00 price target. To see the full list of analyst forecasts on Troax Group AB Class A stock, see the SE:TROAX Stock Forecast page.

Troax Group Expands in Asia with Acquisition of Vichnet

Troax Group has announced the acquisition of Vichnet, a market leader in machine guarding and wire tray solutions in China, for 350 RMB on a cash/debt-free basis. This strategic acquisition aims to strengthen Troax’s market position in Asia, particularly in the data center segment, and is expected to be accretive to Troax’s earnings per share. The acquisition will be financed through existing cash and credit facilities, with the transaction expected to close by the end of 2025. This move aligns with Troax’s strategy to become a market leader worldwide in selected segments, enhancing its offering with tailored solutions for the Asian markets.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK170.00 price target. To see the full list of analyst forecasts on Troax Group AB Class A stock, see the SE:TROAX Stock Forecast page.

Troax Group Faces Challenges Amid Strategic Restructuring

Troax Group AB’s interim report for July to September 2025 reveals a challenging quarter with a 6% decrease in order intake and a 7% drop in sales compared to the previous year. The company faced headwinds in Europe and North America, with particular pressure from the automotive sector, although there was growth in the APAC region. The closure of a Polish facility and its consolidation with Swedish operations led to temporary negative effects on profitability. Despite these challenges, Troax remains optimistic about future growth, driven by strategic investments in North America and ongoing digitalization efforts. The company is focused on improving operational efficiency and customer experience, expecting these initiatives to enhance sales and profitability by 2026.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK170.00 price target. To see the full list of analyst forecasts on Troax Group AB Class A stock, see the SE:TROAX Stock Forecast page.

Troax Group Sets Ambitious 2030 Financial Targets

Troax Group AB has announced new financial targets for 2030, aiming to double its turnover to at least 550 million euros and maintain a profitability target of at least a 20% adjusted operating margin. The company plans to achieve this through market share growth, strategic acquisitions, and a focus on becoming a reputable partner for security solutions, while maintaining disciplined capital use and a strong financial structure.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK170.00 price target. To see the full list of analyst forecasts on Troax Group AB Class A stock, see the SE:TROAX Stock Forecast page.

Troax Group to Announce Q3 2025 Financial Results

Troax Group has announced that it will release its third-quarter results for 2025 on October 29, with a subsequent webinar presentation by the company’s President and CEO, Martin Nyström, and CFO, Anders Eklöf. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK151.00 price target. To see the full list of analyst forecasts on Troax Group AB Class A stock, see the SE:TROAX Stock Forecast page.