Troax Group AB Class A (TROAX) AI Stock Analysis

• Market Cap: kr5.88B
• Dividend Yield: 2.57%
• Average Volume (3M): 60.05K
• Price to Earnings (P/E): 40.7
• Beta (1Y): 0.59
• Revenue Growth: -5.67%
• EPS Growth: -33.12%
• Country: SE
• Employees: 1,221
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.00
• Shares Outstanding: 60,000,000
• 10 Day Avg. Volume: 129,937
• 30 Day Avg. Volume: 60,046
• PEG Ratio: -1.07
• Price to Book (P/B): 4.65
• Price to Sales (P/S): 3.08
• 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: kr165.00
• Price Target Upside: 12.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.55
• Revenue Forecast (FY): kr304.06M

• Rating: 50 Neutral
• Price Target: kr103.00 ▼(-29.74% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is held back primarily by the sharp deterioration in the latest financial performance (large revenue drop, margin compression, and zero free cash flow) and very weak technical trend (well below major moving averages with negative momentum). A debt-free balance sheet and a ~3.7% dividend yield provide some support, but the high P/E limits valuation appeal.

Positive Factors

Debt-free balance sheet

A zero-debt position and sizable equity reduce financial risk and increase strategic flexibility. This durable balance-sheet strength supports funding working capital, selective capex or M&A, and helps the company weather industry cyclicality without near-term refinancing pressure.

Modular, recurring business model

Troax’s standardized modular products, tailored solution deliveries, and aftermarket parts create recurring and repeatable revenue streams. Diversified direct and distributor channels across geographic markets enhance customer reach and reduce reliance on single large contracts over the medium term.

Historically healthy margins

Prior periods of low-to-mid-teens net margins and previously strong free cash generation indicate underlying operational efficiency. Even after the 2025 setback, this historical margin capability supports a credible pathway to margin recovery as volumes normalize.

Negative Factors

Sharp revenue decline

A near-50% annual revenue decline is a structural risk that reflects weaker demand or lost project flow. Such a large drop creates durable headwinds from underutilized capacity, weaker pricing leverage, and slower ability to fund fixed costs, delaying normalization of profitability.

Weakened cash generation

Declining operating cash flow and zero free cash flow constrain internal funding for maintenance, growth, and dividends. Persistent weak cash conversion would force reliance on external financing or cutbacks in reinvestment, impairing long-term competitiveness and resilience.

Lower returns on capital

A material decline in ROE signals reduced capital efficiency and weaker profitability. Sustained lower returns limit the company’s ability to self-fund expansion and reduce shareholder value creation, making operational recovery and margin restoration critical for long-term performance.

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

Balance sheet strength is a key positive (no debt in 2025, sizable equity base), but the latest year showed a sharp operating downturn: revenue fell ~49% YoY, margins compressed materially, and cash generation weakened with free cash flow reported at zero. Overall financial risk is low, but near-term performance quality and cash consistency are pressured.

Income Statement

Profitability has historically been solid, with strong margins in 2020–2024 (net margin mostly in the low-to-mid teens). However, the 2025 annual report shows a sharp downturn: revenue fell ~49% year over year and margins compressed materially (net margin ~5% vs ~11% in 2024; operating margin ~9% vs ~16% in 2024). This points to weaker demand and/or operating deleverage, making the current earnings profile meaningfully less resilient than prior years.

Balance Sheet

The balance sheet looks conservatively positioned, highlighted by zero total debt in 2025 and a sizable equity base (equity ~177M vs assets ~398M). Leverage had been moderate in 2020–2024 (debt-to-equity roughly ~0.42–0.75), so the move to no debt reduces financial risk and increases flexibility. The trade-off is that returns on equity dropped significantly in 2025 (~8% vs ~17–28% in 2020–2024), reflecting weaker profitability rather than balance sheet strain.

Cash Flow

Cash generation weakened in 2025: operating cash flow declined (to ~30.5M from ~42.5M in 2024) and free cash flow was reported at zero (down from ~31.7M in 2024). Cash conversion also softened versus prior years, with operating cash flow covering a smaller share of earnings than in 2022–2024. While earlier periods show healthy free cash flow relative to net income, the latest annual report raises near-term concerns about cash consistency and reinvestment or working-capital pressure.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	267.32M	278.50M	264.27M	284.08M	252.28M
Gross Profit	86.29M	106.00M	100.10M	95.83M	94.17M
EBITDA	50.02M	48.20M	57.65M	61.19M	58.09M
Net Income	13.75M	31.30M	35.71M	36.79M	39.78M
Balance Sheet
Total Assets	397.71M	329.66M	327.37M	291.08M	291.32M
Cash, Cash Equivalents and Short-Term Investments	39.56M	29.51M	33.16M	37.53M	35.19M
Total Debt	0.00	75.55M	86.61M	71.57M	82.32M
Total Liabilities	220.93M	149.60M	155.08M	136.20M	148.76M
Stockholders Equity	176.78M	180.10M	172.28M	154.88M	142.56M
Cash Flow
Free Cash Flow	0.00	31.71M	42.62M	40.18M	18.51M
Operating Cash Flow	30.46M	42.49M	54.97M	48.76M	32.17M
Investing Cash Flow	-36.57M	-16.17M	-45.07M	-13.17M	-14.58M
Financing Cash Flow	16.91M	-29.89M	-14.28M	-32.42M	-15.27M

Troax Group AB Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 146.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 146.6 is above the 20-day moving average (MA) of 103.31, above the 50-day MA of 129.64, and above the 200-day MA of 139.81, indicating a bearish trend. The MACD of -9.57 indicates Negative momentum. The RSI at 32.73 is Neutral, neither overbought nor oversold. The STOCH value of 71.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	73 Outperform	kr221.05B	26.73	20.42%	1.84%	3.54%	20.94%
EPRO.B	67 Neutral	kr16.09B	23.19	12.07%	1.33%	1.51%	-11.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALIG	61 Neutral	kr13.35B	22.15	9.59%	2.09%	-1.74%	26.36%
ABSO	59 Neutral	kr2.21B	31.70	―	1.51%	-8.97%	-31.59%
NMAN	54 Neutral	kr5.17B	19.00	―	2.41%	2.05%	-11.66%
TROAX	50 Neutral	kr5.88B	40.72	12.49%	2.57%	-5.67%	-33.12%

Troax Group AB Class A Corporate Events

Troax Hit by Weak Demand and One-Offs in 2025 but Banks on Acquisitions and Factory Moves for Recovery

Troax Group reported weaker fourth-quarter and full-year 2025 results, with order intake and sales down 5–6% and EBITA margin falling to 13.8% for the year, hit by soft demand, especially in the automotive sector, operational issues in North America, and one-off restructuring and relocation costs that pushed Q4 profit after tax to break-even and led the board to propose a lower dividend of EUR 0.24 per share. Management highlighted ongoing factory consolidation, including the shutdown of Polish production, the relocation of U.S. manufacturing to a new plant in Nashville, and three strategic acquisitions – China’s Vichnet plus assets from Denmark’s Dancop Group and Italy’s Stommpy – as key steps to strengthen production efficiency, broaden the product offering in flexible protective barriers and position the group for improved profitability and market share gains once demand normalizes and transformation projects are completed.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK153.00 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 Brings Polish Production Back to Sweden in Automation-Driven Reshoring Move

Troax is relocating its warehouse product manufacturing from Poland to its highly automated facility in Värnamo, Sweden, countering the broader offshoring trend in European industry. The six‑month move, involving 48 truckloads and 69 employees, is expected to generate about EUR 5 million in annual savings through higher productivity, digital integration and economies of scale, while also reducing exposure to geopolitical and energy risks and leveraging Sweden’s clean energy and robust industrial ecosystem. The transition was completed without significant disruption to customers, with 95% of the Polish workforce having already found new jobs, and the Värnamo site now being positioned as a future European hub for advanced automated manufacturing, underscoring Troax’s push for long‑term competitiveness and operational resilience.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK153.00 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 Date for Fourth-Quarter and Full-Year 2025 Results Presentation

Troax Group AB has announced that it will publish its fourth-quarter and full-year 2025 financial results on 5 February 2026 at 12:30 CET, followed by an English-language webinar presentation at 13:00 CET hosted by President and CEO Martin Nyström and CFO Anders Eklöf. The report and accompanying presentation will be made available on the company’s website, with investors and other stakeholders invited to register in advance for the online event, underscoring Troax’s ongoing efforts to maintain active communication and transparency with the capital market.

The most recent analyst rating on (SE:TROAX) stock is a Hold with a SEK153.00 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 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.