Vestum AB (VESTUM) AI Stock Analysis

• Market Cap: kr3.02B
• Dividend Yield: N/A
• Average Volume (3M): 361.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -27.41%
• EPS Growth: 49.11%
• Country: SE
• Employees: 1,338
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.06
• Shares Outstanding: 375,809,480
• 10 Day Avg. Volume: 274,035
• 30 Day Avg. Volume: 361,435
• PEG Ratio: 11.30
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 12.69
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: kr8.00 ▼(-5.21% Downside)

Vestum AB's overall stock score is primarily impacted by its challenging financial performance and weak valuation. Technical analysis provides mixed signals, with potential bearish trends and overbought conditions. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Acquisition-led Business Model

Vestum's buy-and-develop model centers on acquiring specialized infrastructure-related businesses and operating them as portfolio companies. This structure supports durable revenue streams from operating subsidiaries, allows centralized capital allocation and operational improvement, and can compound value if integration and margin expansion succeed over months.

Diversified Subsidiary Revenue Base

Revenue is generated at the operating-company level across multiple infrastructure niches, providing demand exposure to construction, installation and maintenance activity. That diversified, end-market exposure can smooth group cash flows and reduce single-customer risk, supporting more stable earnings generation over a multi-month horizon.

Improved Leverage Position

A materially lower debt-to-equity ratio reduces financial risk and increases balance-sheet flexibility, enabling the group to pursue bolt-on acquisitions or fund working capital without immediate refinancing pressure. A stable equity ratio also supports resilience to cyclical swings in infrastructure demand over the coming months.

Negative Factors

Sustained Revenue Decline

Significant revenue contraction erodes scale advantages and limits internal cash generation needed to fund acquisitions or rebuild margins. Continued top-line decline constrains the group's ability to realize integration synergies and invest in operational improvements, making recovery and strategic execution harder over the medium term.

Weak Free Cash Flow Trends

A large drop in free cash flow reduces the company's ability to self-fund capex, acquisitions or debt reduction, increasing reliance on external financing. Weak FCF growth also limits flexibility to absorb working-capital swings common in contractionary periods, posing a structural threat to liquidity and execution.

Profitability and ROE Pressure

Persistent negative net margins and declining operating margins indicate structural profitability problems that impair the group's ability to generate shareholder returns. Negative ROE signals that current capital allocation and operating performance are not creating value, pressuring reinvestment and making long-term recovery more challenging.

Vestum AB Business Overview & Revenue Model

Company Description

Vestum AB (publ) engages in the clothes manufacturing and sale, construction, and infrastructure businesses in Sweden. The company designs, markets, and sells clothes and accessories, including urban functional garments in the premium streetwear segment under the WeSC brand for women and men in Sweden and internationally. It also provides demolition, remediation, and drilling services with a focus on construction-related, insurance, and real estate companies; contractor services for the assembly and installation of automation and passage systems for companies, municipalities, and private individuals; construction services primarily in the areas of railway environment and public transport projects; and aluminum and glass solutions to the housing and construction markets for customers in the segments of retailers, small house manufacturers, glaziers, construction companies, and private. In addition, the company engages in renting and selling containers and road products for construction-related operations, which include refrigerated, storage, construction, and office containers, as well as drive plates; the ground, assembly, and construction works related to infrastructure, such as roads, railways, pipelines, and communications; the supply of electrical installations and designs; and the provision of works related to power and lighting in private and public environments. It offers its clothes and accessories through e-commerce and resellers. The company was formerly known as WeSC AB (publ) and changed its name to Vestum AB (publ) in June 2021. Vestum AB (publ) was incorporated in 1999 and is based in Stockholm, Sweden.

How the Company Makes Money

Vestum generates revenue through its diversified portfolio of companies in the construction and infrastructure industries. The primary revenue streams include service contracts for construction projects, electrical installations, and environmental services. Additionally, Vestum benefits from operational efficiencies and cost synergies achieved through its acquisitions. The company may also engage in strategic partnerships with other firms to expand its market reach and service offerings, further contributing to its earnings. By leveraging a buy-and-build strategy, Vestum enhances its revenue potential through the integration of acquired companies and the optimization of their operations.

Vestum AB Financial Statement Overview

Summary

Vestum AB faces significant financial challenges with declining revenue and profitability, moderate leverage improvements, but poor returns on equity. Cash flow management is also concerning with negative free cash flow growth.

Income Statement

Vestum AB's income statement reveals a challenging financial position. The company has experienced a decline in revenue growth, with a negative growth rate of -8.89% in the TTM period. Gross profit margins have slightly improved over the years, but net profit margins remain negative, indicating ongoing profitability issues. The EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies. Overall, the income statement shows a need for strategic improvements to enhance revenue and profitability.

Balance Sheet

The balance sheet of Vestum AB shows moderate financial stability. The debt-to-equity ratio has improved to 0.47 in the TTM period, indicating a reduction in leverage. However, the return on equity remains negative, highlighting challenges in generating returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure. While there are improvements in leverage, the company needs to focus on enhancing shareholder returns.

Cash Flow

Vestum AB's cash flow statement indicates mixed performance. The free cash flow growth rate is negative at -32.41% in the TTM period, reflecting cash generation challenges. The operating cash flow to net income ratio is positive, suggesting some operational cash flow efficiency. However, the free cash flow to net income ratio is below 1, indicating limited cash flow relative to net income. The company needs to improve cash flow management to support its financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.95B	4.42B	5.76B	6.93B	1.05B	21.49M
Gross Profit	1.57B	2.16B	2.69B	3.17B	654.00M	6.76M
EBITDA	551.00M	674.00M	836.00M	773.00M	165.00M	1.00M
Net Income	-108.00M	-374.00M	-374.00M	141.00M	3.00M	-20.76M
Balance Sheet
Total Assets	6.55B	7.63B	8.38B	9.95B	8.32B	26.36M
Cash, Cash Equivalents and Short-Term Investments	22.00M	174.00M	345.00M	608.00M	1.52B	2.45M
Total Debt	1.70B	2.14B	2.45B	3.38B	3.00B	16.67M
Total Liabilities	2.83B	3.70B	4.32B	5.57B	4.72B	35.00M
Stockholders Equity	3.71B	3.91B	4.05B	4.37B	3.59B	-8.64M
Cash Flow
Free Cash Flow	196.00M	333.00M	566.00M	361.00M	-85.00M	-19.12M
Operating Cash Flow	267.00M	377.00M	634.00M	421.00M	-10.00M	-17.12M
Investing Cash Flow	206.00M	-275.00M	-32.00M	-1.27B	-2.58B	26.00K
Financing Cash Flow	-657.00M	-416.00M	-860.00M	-48.00M	3.78B	17.07M

Vestum AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.44
• 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:VESTUM, the sentiment is Negative. The current price of 8.44 is above the 20-day moving average (MA) of 8.07, above the 50-day MA of 8.43, and below the 200-day MA of 9.19, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 65.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:VESTUM.

Vestum AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NORB.B	64 Neutral	kr838.53M	35.23	1.98%	―	4.24%	29.69%
BYGGP	64 Neutral	kr1.95B	17.97	―	1.24%	4.25%	127.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ELTEL	56 Neutral	kr1.41B	104.06	0.72%	―	-6.38%	―
FG	54 Neutral	kr1.44B	-899.33	―	―	8.40%	-101.19%
VESTUM	50 Neutral	kr3.02B	-104.02	-0.85%	―	-27.41%	49.11%
WBGR.B	38 Underperform	kr287.70M	-0.46	-56.98%	―	-0.02%	-50.72%