Thule Group AB Unsponsored ADR (THUPY) AI Stock Analysis

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Thule Group AB Unsponsored ADR

(OTC:THUPY)

Rating:72Outperform

Price Target:

$15.50

▲(6.53%Upside)

Thule Group AB shows a balanced profile with strong profitability and strategic growth initiatives, but faces challenges in cash flow and North American market performance. The technical outlook is cautiously optimistic, though valuation concerns due to a high P/E ratio weigh on the stock's attractiveness. Mixed earnings call highlights and lowlights suggest a need for cautious optimism.

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

Market Cap

$3.14B

Dividend Yield2.96%

Average Volume (3M)85.00

Price to Earnings (P/E)30.1

Beta (1Y)1.01

Revenue Growth4.45%

EPS Growth-4.51%

CountryUS

Employees2,800

SectorConsumer Cyclical

Sector Strength59

IndustryLeisure

Share Statistics

EPS (TTM)0.12

Shares Outstanding215,676,330

10 Day Avg. Volume0

30 Day Avg. Volume85

Financial Highlights & Ratios

PEG Ratio-0.61

Price to Book (P/B)3.41

Price to Sales (P/S)0.00

P/FCF Ratio129.82

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

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 generates revenue primarily through the sale of its wide array of transportation and outdoor products. The company's key revenue streams include the sale of bike racks, roof boxes, and other vehicle-related accessories, as well as products for carrying children and pets. Thule has a strong presence in both retail and online channels, catering to a diverse customer base that includes outdoor enthusiasts, sports professionals, and families. Significant partnerships with automotive manufacturers, retailers, and distributors help expand Thule's market reach and enhance its brand visibility. The company's earnings are also influenced by seasonal demand patterns, with sales often peaking during warmer months when outdoor activities are more popular.

Thule Group AB Unsponsored ADR Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 7.38%|

Next Earnings Date:Jul 15, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment. While Thule reported significant achievements such as overall revenue growth, a record gross margin, and success with the Quad Lock acquisition, these are counterbalanced by challenges in the North American market, negative cash flow, and a reduced EBIT margin. The company has taken steps to address these challenges, but the balance of highlights and lowlights suggests a cautious outlook.

Q1-2025 Updates

Positive Updates

Overall Revenue Growth

Sales increased by 10% compared to last year despite weak North American market performance.

Record Gross Margin

Gross margin reached an all-time high of 44.8%, primarily driven by the acquisition of Quad Lock.

Recognition for Product Design

Thule received seven new iF Design awards in 2025, highlighting its strong product design capabilities.

Quad Lock Acquisition Success

Quad Lock showed over 20% sales growth while maintaining high margins, contributing significantly to revenue and gross margin.

New Product Launches

Successful launches of new products, including bike carriers and rooftop boxes, which have been well received in the market.

Negative Updates

North America Market Challenges

Organic growth in North America declined by 13% due to a weak market, exacerbated by new tariffs.

Negative Cash Flow

Cash flow for operations was negative SEK 334 million, affected by seasonal inventory build-up and accounts receivable.

Reduced EBIT Margin

EBIT margin fell almost 2 percentage points to 15.1% from last year's 17%, impacted by earlier phasing of costs.

Retailer Cautiousness

Retailers are cautious, particularly in North America, impacting sales as they hesitate to build inventory.

Discontinuation of U.S. Car Seat Project

Thule stopped the North American car seat project due to a lack of growth in the premium segment and to focus on more promising opportunities.

Company Guidance

During the Thule Q1 2025 call, several key metrics were shared indicating the company's performance and strategic direction. Sales increased by 10% despite a weak North American market, with organic growth showing a decline of 3%. North America saw a 13% drop, while Europe remained flat, largely influenced by cautious consumer and retailer behavior after U.S. tariffs were announced. Gross margin reached a record high of 44.8%, although EBIT margin fell to 15.1%, nearly two percentage points lower than the previous year. The EBIT for the quarter was SEK 401 million, slightly down from SEK 412 million last year. Cash flow from operations was negative SEK 334 million, attributed to seasonal working capital patterns. Thule aims to reduce inventory by SEK 200 million in 2025. The acquired Quad Lock business contributed significantly to the gross margin increase, with its sales momentum continuing strongly. Changes in North America, including a new sales organization and product focus, are underway to improve competitiveness. Thule announced a 10% price increase in North America effective June 1, aiming to offset tariff impacts. The company remains committed to its long-term growth strategy, targeting SEK 20 billion in sales and a 20% EBIT margin by 2030.

Thule Group AB Unsponsored ADR Financial Statement Overview

Summary

Thule Group AB exhibits strong financial health with solid profitability, efficient cash generation, and a stable balance sheet. The company maintains good margins and a moderate leverage position. However, revenue growth and free cash flow trends indicate areas for improvement.

Income Statement

Positive

Thule Group AB shows a solid gross profit margin at approximately 43.6% for TTM, indicating efficient cost management. The net profit margin is also healthy at 11.1%. While the TTM revenue growth rate is modest at 2.53%, earlier periods show fluctuations. The EBIT margin is stable at 15.5%, though it has slightly decreased from previous years, suggesting some operational challenges. Overall, the company maintains strong profitability but could focus on boosting revenue growth.

Balance Sheet

Positive

Thule Group AB has a reasonable debt-to-equity ratio of 0.59, reflecting moderate leverage and solid financial stability with a sizable equity base. The return on equity (ROE) for TTM is robust at 14.2%, indicating effective utilization of shareholder funds. The equity ratio stands at 51.5%, suggesting a well-capitalized balance sheet. The company demonstrates financial strength, but should monitor debt levels to maintain this stability.

Cash Flow

Positive

The free cash flow growth rate shows a decline of 21.09% in the TTM period, highlighting some cash flow challenges. However, the operating cash flow to net income ratio is strong at 1.73, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also commendable at 1.49. Despite recent declines, the company has a strong cash generation capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.78B	9.54B	9.13B	10.14B	10.39B	7.83B
Gross Profit	4.27B	4.07B	3.74B	3.86B	4.16B	3.23B
EBITDA	1.51B	1.89B	1.88B	1.94B	2.50B	1.81B
Net Income	1.09B	1.12B	1.10B	1.27B	1.79B	1.17B
Balance Sheet
Total Assets	14.84B	14.96B	10.97B	11.68B	10.19B	8.45B
Cash, Cash Equivalents and Short-Term Investments	394.00M	405.00M	94.00M	176.00M	149.00M	706.00M
Total Debt	4.48B	4.37B	2.17B	3.06B	1.62B	1.10B
Total Liabilities	7.20B	6.86B	4.12B	5.13B	4.38B	3.19B
Stockholders Equity	7.64B	8.10B	6.85B	6.55B	5.82B	5.25B
Cash Flow
Free Cash Flow	1.62B	2.05B	1.60B	172.00M	621.00M	1.44B
Operating Cash Flow	1.89B	2.31B	1.85B	616.00M	1.13B	1.61B
Investing Cash Flow	-3.11B	-3.10B	-251.00M	-464.00M	-503.00M	-170.00M
Financing Cash Flow	1.50B	1.10B	-1.68B	-136.00M	-1.19B	-1.00B

Thule Group AB Unsponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price14.55

Price Trends

50DMA

13.27

Positive

100DMA

14.45

Positive

200DMA

14.96

Negative

Market Momentum

MACD

0.22

Negative

RSI

62.68

Neutral

STOCH

77.12

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THUPY, the sentiment is Positive. The current price of 14.55 is above the 20-day moving average (MA) of 13.86, above the 50-day MA of 13.27, and below the 200-day MA of 14.96, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 62.68 is Neutral, neither overbought nor oversold. The STOCH value of 77.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THUPY.

Thule Group AB Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	81 Outperform	$4.31B	20.36	27.15%	1.28%	2.07%	24.87%
YETI	73 Outperform	$2.53B	14.76	25.01%	―	8.38%	3.69%
THUPY	72 Outperform	$3.14B	30.10	14.00%	2.96%	4.45%	-4.51%
JOUT	64 Neutral	$299.15M	―	-9.70%	4.51%	-7.28%	-924.86%
PRKS	61 Neutral	$2.60B	12.63	-52.57%	―	-0.92%	0.80%
Sector *	56 Neutral	HK$23.97B	4.08	-1.57%	8.88%	0.06%	-64.88%
MODG	54 Neutral	$1.49B	―	-46.00%	―	-1.74%	-2020.38%

* Consumer Cyclical Sector Average

Performance Comparison

THUPY

Thule Group AB Unsponsored ADR

14.55

1.55

11.92%

MODG

Topgolf Callaway Brands

8.11

-6.89

-45.93%

GOLF

Acushnet Holdings

73.32

12.69

20.93%

JOUT

Johnson Outdoors

29.26

-2.84

-8.85%

PRKS

United Parks & Resorts

47.33

-7.58

-13.80%

YETI

Yeti Holdings

30.59

-6.35

-17.19%

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: Jun 25, 2025