Troax Group AB Class A (TROAX) AI Stock Analysis

• Market Cap: kr8.86B
• Dividend Yield: 2.57%
• Average Volume (3M): 60.05K
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.84
• Revenue Growth: -5.67%
• EPS Growth: -33.12%
• Country: SE
• Employees: 1,221
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.20
• 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: kr190.03
• Price Target Upside: 28.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: kr150.00 ▲(1.35% Upside)

Troax Group AB's overall stock score is primarily influenced by its solid financial performance, despite challenges in revenue growth and profitability. Technical analysis presents mixed signals, with potential for a reversal. The high P/E ratio suggests overvaluation, which impacts the overall score negatively.

Positive Factors

Strong Balance Sheet

A debt-free balance sheet enhances financial stability, allowing Troax to invest in growth opportunities without the burden of interest payments.

Efficient Cost Management

Sustained high gross margins reflect Troax's ability to control costs, supporting profitability even in challenging market conditions.

Market Diversification

Diversification across markets reduces dependency on any single region, providing resilience against localized economic downturns.

Negative Factors

Declining Revenue Growth

A decline in revenue growth could indicate challenges in market expansion or competitive pressures, potentially impacting future earnings.

Decreasing Cash Flow

Reduced cash flow generation can limit Troax's ability to fund new projects or return capital to shareholders, affecting long-term growth.

Pressure on Profitability

Declining profit margins suggest rising costs or pricing pressures, which may erode earnings if not addressed through operational improvements.

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

Troax Group AB demonstrates solid operational efficiency and a stable financial position. However, challenges in revenue growth and profitability are evident, with a declining net profit margin and negative revenue growth rate. The balance sheet is strong with manageable leverage, while cash flow generation shows some pressure.

Income Statement

Troax Group AB's income statement shows a stable gross profit margin around 38% over the years, indicating consistent cost management. However, the net profit margin has decreased to 8.7% in the TTM, reflecting a decline in profitability. The revenue growth rate is negative in the TTM, suggesting challenges in maintaining sales momentum. Despite this, the EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.53 in the TTM, suggesting manageable leverage. The return on equity has decreased to 13.4% in the TTM, indicating reduced profitability for shareholders. The equity ratio remains stable, showing a solid capital structure. Overall, the balance sheet portrays a stable financial position with some room for improvement in profitability.

Cash Flow

The cash flow statement shows a decline in free cash flow growth rate by 5.2% in the TTM, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.66, suggesting moderate cash generation efficiency. The free cash flow to net income ratio is strong at 0.94, indicating good cash conversion. Overall, the cash flow position is stable but shows signs of pressure.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	917.70M	278.50M	264.27M	284.08M	252.28M	163.62M
Gross Profit	344.72M	106.00M	100.10M	95.83M	94.17M	64.24M
EBITDA	148.45M	48.20M	57.65M	61.19M	58.09M	38.30M
Net Income	90.53M	31.30M	35.71M	36.79M	39.78M	23.24M
Balance Sheet
Total Assets	3.65B	329.66M	327.37M	291.08M	291.32M	245.34M
Cash, Cash Equivalents and Short-Term Investments	366.89M	29.51M	33.16M	37.53M	35.19M	32.49M
Total Debt	966.96M	75.55M	86.61M	71.57M	82.32M	85.16M
Total Liabilities	1.71B	149.60M	155.08M	136.20M	148.76M	131.31M
Stockholders Equity	1.94B	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	166.94M	42.49M	54.97M	48.76M	32.17M	26.31M
Investing Cash Flow	-36.97M	-16.17M	-45.07M	-13.17M	-14.58M	-14.82M
Financing Cash Flow	-35.70M	-29.89M	-14.28M	-32.42M	-15.27M	-9.49M

Troax Group AB Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 148.00
• 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:TROAX, the sentiment is Positive. The current price of 148 is above the 20-day moving average (MA) of 141.79, above the 50-day MA of 141.98, and above the 200-day MA of 146.94, indicating a bullish trend. The MACD of 2.07 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 84.55 is Negative, 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	kr190.71B	22.86	20.42%	1.84%	3.54%	20.94%
NMAN	66 Neutral	kr5.83B	19.71	―	2.41%	2.05%	-11.66%
ALIG	65 Neutral	kr15.36B	21.81	9.59%	2.09%	-1.74%	26.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EPRO.B	63 Neutral	kr17.88B	27.41	12.07%	1.33%	1.51%	-11.25%
TROAX	62 Neutral	kr8.86B	36.22	12.49%	2.57%	-5.67%	-33.12%
ABSO	59 Neutral	kr2.43B	28.21	―	1.51%	-8.97%	-31.59%

Troax Group AB Class A Corporate Events

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.

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.

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.

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.

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.

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.

Troax Group to Unveil 2030 Strategy at Capital Markets Day

Troax Group AB is hosting a Capital Markets Day on November 5, 2025, at its Hillerstorp premises, inviting investors, analysts, and media to gain insights into the company’s strategy and objectives for 2030. The event will feature presentations by senior executives, including a trading update, and will conclude with a factory tour, providing stakeholders with a comprehensive view of Troax’s future plans and operational strengths.

Troax Group Divests LagerMix to Focus on Core Business

Troax Group AB has announced the divestment of its subsidiary, LagerMix Rullportar AB, as part of a strategic portfolio review aimed at streamlining and focusing the group. LagerMix, which specializes in self-storage solutions for the Nordic market, will be acquired by its current management. This move is expected to allow LagerMix to grow more robustly under new ownership, while the transaction will not materially impact Troax’s financial metrics.