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Thule Group AB Unsponsored ADR (THUPY)
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Thule Group AB Unsponsored ADR (THUPY) AI Stock Analysis

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THUPY

Thule Group AB Unsponsored ADR

(OTC:THUPY)

Rating:68Neutral
Price Target:
$16.00
▲(18.87% Upside)
Thule Group AB's overall stock score reflects solid financial performance with strong revenue growth and gross margins. However, challenges in profitability, cash flow stability, and high valuation weigh on the score. The earnings call provided a mixed sentiment, with record sales and strong product launches offset by market challenges and declining EBIT margins.

Thule Group AB Unsponsored ADR (THUPY) vs. SPDR S&P 500 ETF (SPY)

Thule Group AB Unsponsored ADR Business Overview & Revenue Model

Company DescriptionThule Group AB (publ) operates as a sports and outdoor company. It offers roof racks; roof boxes; carriers for transporting bikes, water, and winter sports equipment and rooftop tents; awnings, bike carriers, and tents for RVs and caravans; bike trailers, child bike seats, and strollers; luggage, backpacks, and laptop and sport bags; and hiking backpacks, camera bags, and cases for consumer electronics. The company offers its products primarily under the Thule and Case Logic brands. It operates in Sweden, other Nordic countries, Germany, rest of Europe, the United States, other North America, Central/South America, the Asia/Pacific Rim, and internationally. Thule Group AB (publ) was founded in 1942 and is headquartered in Malmö, Sweden.
How the Company Makes MoneyThule Group AB makes money through the design, manufacturing, and sale of its diverse product portfolio aimed at outdoor enthusiasts and active consumers. The company's revenue model primarily revolves around direct sales through retail partners, as well as its own online and offline channels. Key revenue streams include sales from its roof rack systems, bike and water sport carriers, rooftop tents, and luggage solutions. Thule's earnings are bolstered by its strong brand reputation and strategic partnerships with retailers worldwide, which facilitate broad market access and customer reach. Additionally, the company invests in innovation to maintain its competitive edge and sustain consumer interest in its products.

Thule Group AB Unsponsored ADR Earnings Call Summary

Earnings Call Date:Jul 15, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While Thule achieved record-breaking sales and continued strong product launches and recognition, it faced challenges in market conditions, particularly in North America, and saw a decline in EBIT margin due to increased costs. The improvements made in North America and strong cash flow indicate positive steps forward, but the overall sentiment remains cautious due to persistent market challenges.
Q2-2025 Updates
Positive Updates
Record Sales in Thule History
The quarter marked the biggest in terms of sales in Thule history, with sales reaching SEK 3.4 billion, 16% more than the previous year, excluding currency effects.
Strong Product Launches and Innovations
New product categories and innovations drove growth, including updates to best-selling products like the Thule EasyFold 3 and North America-specific bike carriers.
Recognition for Product Design
Thule received 10 new Red Dot awards and won the ADAC car seat test, Europe's most important consumer test for car seats.
Improvement in North America
Despite a weak market, the North America sales trend improved significantly, with a reduction in organic sales decline from -13% in Q1 to -3% in Q2.
Cash Flow and Inventory Management
Cash flow from operations was strong at SEK 800 million. The company is on track to reduce inventory by another SEK 200 million this year.
Negative Updates
Continued Weak Market Conditions
The market remained tough, particularly in North America, with cautious consumer and retailer behavior affecting sales.
Negative Currency Effects
The quarter experienced a significant negative currency effect of almost 6%, impacting reported growth.
EBIT Margin Decline
The adjusted EBIT margin was down 2 percentage points compared to the previous year, due to higher product development costs.
Challenges in the Bags & Mounts Category
The Bags business, part of the Bags & Mounts category, experienced a 21% decline in organic net sales due to legacy product phase-outs and cautious retailer behavior in North America.
Company Guidance
During the Thule Group's Q2 2025 call, the company reported a significant increase in sales, with total sales in reported currency reaching SEK 3.4 billion, marking a 10% increase in reported growth and a 16% increase excluding currency effects compared to the previous year. Organic growth was noted at 1.5%, with Europe experiencing a 4% rise while North America saw a 3% decline. The company emphasized the impact of new products and categories, including Quad Lock, which contributed significantly to the growth. Despite facing a tough market, particularly in North America, Thule achieved its highest quarterly sales in history, surpassing the peak during the pandemic. Gross margin improved by nearly 2 percentage points, primarily due to Quad Lock's higher gross margin profile. However, EBIT margin decreased by 2 percentage points due to increased costs in driving growth in a challenging market. The company maintained a strong cash flow from operations at nearly SEK 800 million and is on track to reduce inventory by an additional SEK 200 million this year. In addition, Thule announced a SEK 450 million investment in automating its warehouse facility in Poland, expected to save approximately SEK 100 million annually starting in 2028.

Thule Group AB Unsponsored ADR Financial Statement Overview

Summary
Thule Group AB shows solid revenue growth and strong gross margins, but faces challenges in maintaining net profitability and cash flow stability. The increase in leverage and declining cash flow metrics suggest potential risks that need to be addressed to sustain long-term financial health.
Income Statement
75
Positive
Thule Group AB has shown consistent revenue growth, with a TTM increase of 3.11%. Gross profit margin improved to 44.3% in TTM, indicating efficient cost management. However, net profit margin decreased to 10.32% from 11.76% in the previous year, suggesting some pressure on profitability. EBIT and EBITDA margins have also slightly declined, reflecting potential challenges in operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio increased to 0.62 in TTM, indicating higher leverage compared to previous years. Return on equity remains strong at 13.92%, showcasing effective use of equity. The equity ratio is stable, suggesting a balanced capital structure, but the rising debt levels could pose a risk if not managed carefully.
Cash Flow
65
Positive
Operating cash flow has decreased in TTM, with a coverage ratio of 0.71, indicating less cash generation relative to net income. Free cash flow growth is negative, highlighting potential liquidity concerns. The free cash flow to net income ratio remains healthy at 87.89%, but the declining trend in cash flow metrics warrants attention.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.09B9.54B9.13B10.14B10.39B7.83B
Gross Profit4.47B4.07B3.74B3.86B4.16B3.23B
EBITDA1.48B1.89B1.88B1.94B2.50B1.81B
Net Income1.04B1.12B1.10B1.27B1.79B1.17B
Balance Sheet
Total Assets14.73B14.96B10.97B11.68B10.19B8.45B
Cash, Cash Equivalents and Short-Term Investments357.00M405.00M94.00M176.00M149.00M706.00M
Total Debt4.36B4.37B2.17B3.06B1.62B1.10B
Total Liabilities7.67B6.86B4.12B5.13B4.38B3.19B
Stockholders Equity7.05B8.10B6.85B6.55B5.82B5.25B
Cash Flow
Free Cash Flow1.54B2.05B1.60B172.00M621.00M1.44B
Operating Cash Flow1.75B2.31B1.85B616.00M1.13B1.61B
Investing Cash Flow-3.05B-3.10B-251.00M-464.00M-503.00M-170.00M
Financing Cash Flow1.30B1.10B-1.68B-136.00M-1.19B-1.00B

Thule Group AB Unsponsored ADR Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13.46
Price Trends
50DMA
14.35
Negative
100DMA
13.77
Negative
200DMA
14.78
Negative
Market Momentum
MACD
-0.14
Positive
RSI
38.72
Neutral
STOCH
-0.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THUPY, the sentiment is Negative. The current price of 13.46 is below the 20-day moving average (MA) of 14.15, below the 50-day MA of 14.35, and below the 200-day MA of 14.78, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of -0.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THUPY.

Thule Group AB Unsponsored ADR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$4.40B20.0427.51%1.25%3.83%28.57%
68
Neutral
$2.98B28.6514.70%3.62%11.20%-5.38%
68
Neutral
$2.90B14.46-52.57%-1.43%-2.50%
68
Neutral
$2.81B16.6623.49%3.63%-2.60%
67
Neutral
$401.67M-8.33%3.38%-3.56%-407.47%
61
Neutral
$17.96B13.14-5.29%3.00%1.25%-13.95%
57
Neutral
$1.73B-46.53%-2.35%-7104.57%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
THUPY
Thule Group AB Unsponsored ADR
13.46
-0.58
-4.13%
MODG
Topgolf Callaway Brands
9.12
-1.08
-10.59%
GOLF
Acushnet Holdings
76.19
11.42
17.63%
JOUT
Johnson Outdoors
40.78
6.53
19.07%
PRKS
United Parks & Resorts
54.35
2.29
4.40%
YETI
Yeti Holdings
36.21
-1.10
-2.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 27, 2025