Troax Group AB Class A (TROAX) AI Stock Analysis

• Market Cap: kr8.10B
• Dividend Yield: 2.81%
• Average Volume (3M): 53.08K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.83
• Revenue Growth: -1.17%
• EPS Growth: -26.46%
• Country: SE
• Employees: 1,221
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 0.22
• Shares Outstanding: 60,000,000
• 10 Day Avg. Volume: 38,396
• 30 Day Avg. Volume: 53,077
• 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: kr160.09
• Price Target Upside: 18.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: kr157.00 ▲(15.95% Upside)

Troax Group AB's overall score is driven by its strong financial performance, highlighted by a solid balance sheet and efficient cost management. However, the stock faces challenges due to weak technical indicators and a need for improved operational efficiency and cash flow generation. Valuation metrics are moderately favorable, balancing growth potential with income generation.

Troax Group AB Class A Business Overview & Revenue Model

Company Description

Troax Group AB Class A (TROAX) is a leading provider of innovative safety solutions designed to protect people, property, and processes. Operating primarily in the manufacturing and logistics sectors, Troax specializes in the production and distribution of metal-based protective systems including mesh panels, machine guarding, and warehouse partitioning. The company is committed to delivering high-quality products that enhance safety and efficiency across a wide range of industrial environments.

How the Company Makes Money

Troax Group AB makes money primarily through the sale of its safety solutions products, catering to various industries such as manufacturing, warehousing, and logistics. The company's key revenue streams include direct sales of its core products like mesh panels and machine guarding systems, often customized to client specifications. Troax also benefits from strategic partnerships with distributors and agents who help expand its market reach. Additionally, the company's focus on innovation and product development enables it to offer premium solutions, often leading to increased customer loyalty and repeat business. Troax's strong presence in multiple geographic markets further contributes to its diversified revenue base.

Troax Group AB Class A Financial Statement Overview

Summary

Troax Group AB shows a strong financial position with consistent revenue growth, a solid balance sheet, and efficient cost management. However, operational efficiency and cash flow generation could be improved, despite the absence of debt, which significantly lowers financial risk.

Income Statement

Troax Group AB has demonstrated a consistent revenue growth over the years, although the latest year shows a slight decline. The company has maintained a healthy gross profit margin above 35%, indicating efficient cost management. However, the net profit margin has slightly declined over the period, reflecting some pressure on profitability. The EBIT and EBITDA margins have also shown slight decreases, suggesting operational efficiency could be improved.

Balance Sheet

The balance sheet reveals a strong equity position with an increasing equity ratio, reaching 54.8% in the latest period. The company has zero total debt as of the latest year, significantly reducing financial risk. The return on equity remains robust, reflecting effective use of equity capital. Overall, the balance sheet shows a stable and low-risk financial structure.

Cash Flow

The cash flow statement indicates a solid operating cash flow, although it has decreased from the previous year. The free cash flow has been stable, but the free cash flow growth rate is negative, indicating a need for improved cash generation. The operating cash flow to net income ratio is strong, suggesting good cash conversion from earnings, even as the free cash flow to net income ratio remains stable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.90M	278.50M	264.27M	284.08M	252.28M	163.62M
Gross Profit	105.90M	106.00M	100.10M	95.83M	94.17M	64.24M
EBITDA	52.60M	48.20M	57.65M	61.19M	61.88M	38.30M
Net Income	29.90M	31.30M	35.71M	36.79M	39.78M	23.24M
Balance Sheet
Total Assets	339.30M	329.66M	327.37M	291.08M	291.32M	245.34M
Cash, Cash Equivalents and Short-Term Investments	28.70M	29.51M	33.16M	37.53M	35.19M	32.49M
Total Debt	0.00	75.55M	86.61M	71.57M	82.32M	85.16M
Total Liabilities	147.10M	149.60M	155.08M	136.20M	148.76M	131.31M
Stockholders Equity	192.20M	180.10M	172.28M	154.88M	142.56M	114.03M
Cash Flow
Free Cash Flow	40.40M	31.71M	42.62M	40.18M	18.51M	18.95M
Operating Cash Flow	41.90M	42.49M	54.97M	48.76M	32.17M	26.31M
Investing Cash Flow	-16.50M	-16.17M	-45.07M	-13.17M	-14.58M	-14.82M
Financing Cash Flow	-27.20M	-29.89M	-14.28M	-32.42M	-15.27M	-9.49M

Troax Group AB Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 135.4 is below the 20-day moving average (MA) of 142.19, below the 50-day MA of 147.41, and below the 200-day MA of 182.27, indicating a bearish trend. The MACD of -3.55 indicates Positive momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 6.55 is Positive, 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
ALIG	76 Outperform	kr17.96B	24.71	9.98%	1.81%	-0.39%	34.10%
AQ	73 Outperform	kr17.90B	27.25	15.38%	0.82%	-1.58%	-1.95%
INT	68 Neutral	kr4.64B	33.50	44.69%	―	74.04%	43.99%
TROAX	66 Neutral	kr8.10B	29.92	14.35%	2.81%	-1.17%	-26.46%
ITAB	63 Neutral	kr4.45B	25.37	4.60%	3.16%	46.85%	-60.03%
Sector *	60 Neutral	kr41.58B	12.28	-0.40%	2.20%	1.33%	-2.77%
FAG	57 Neutral	kr6.98B	30.91	3.14%	3.54%	-9.25%	-56.03%

Troax Group AB Class A Corporate Events

Troax Group AB Interim Report Highlights Safety Commitment and Market Leadership

Troax Group AB’s interim report for January to June 2025 emphasizes its commitment to safety and ‘peace of mind’ by safeguarding people and assets in industrial settings. As a global market leader, Troax’s operations and strong local presence ensure excellent customer service and quick deliveries, impacting its market positioning positively.

Troax Group to Announce Q2 2025 Financial Results

Troax Group has announced that it will release its second quarter 2025 financial results on July 18, with a presentation by the President & CEO and CFO scheduled for the same day. This announcement is significant for stakeholders as it provides insights into the company’s performance and strategic direction in the indoor perimeter protection industry.

Troax Group Announces Restructuring to Optimize Global Operations

Troax Group AB is implementing a restructuring initiative to optimize its manufacturing operations in Europe and North America. The company plans to consolidate production units, reduce its workforce by approximately 225 employees, and close its manufacturing facility in Poland, shifting operations to other locations within the group. These measures aim to align with market demand and enhance operational efficiency, with expected annual savings of 10 MEUR. Troax is also continuing its investment in a new facility in Tennessee, which will increase capacity and cost efficiency for the North American market. The restructuring costs are expected to be 6 MEUR, reported as non-recurring costs in the second quarter of 2025.