Company DescriptionMedCap AB (publ) is a private equity firm specializing in investments in secondary direct, later stage, industry consolidation, growth capital, middle market, mature, turnarounds, buyout. It prefers to invest in healthcare equipment and services, biotechnology, life sciences, and pharmaceuticals companies. The firm prefers to invest in small to medium size companies that are not listed on the stock exchange and are based in Northern Europe. It typically invests between SEK25 million ($2.75 million) to SEK150 million ($16.51 million) with enterprise value and sales revenue between SEK50 million ($5.90 million) to SEK200 million ($23.06 million) and EBITDA between SEK1 million ($0.11 million) to SEK50 million ($5.50 million). The firm seeks to acquire stakes between 20% and 50% in its portfolio companies. It uses its capital and loans and makes balance sheet investments. MedCap AB (publ) was founded in 2001 and is based in Stockholm, Sweden.

How the Company Makes Money

MedCap AB Financial Statement Overview

Summary

MedCap AB demonstrates strong financial health with consistent revenue growth, solid profitability, and effective cash flow management. The balance sheet is conservative with low leverage, but attention to liquidity and cost pressures is advisable.

Income Statement

Very Positive

MedCap AB has demonstrated robust revenue growth, with a consistent increase in total revenue over the years. The TTM period shows a gross profit margin of 47.1% suggesting strong control over cost of goods sold. The net profit margin for the TTM is 11.0%, indicating healthy profitability. The EBIT and EBITDA margins of 13.9% and 20.7%, respectively, highlight efficient operational management. However, a slight decline in EBIT and EBITDA margins compared to the previous annual period points to potential cost pressures.

Balance Sheet

Positive

The company's balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.27 during the TTM, signifying low leverage. The return on equity for TTM stands at 15.4%, showcasing effective use of shareholder funds to generate profit. The equity ratio of 64.3% indicates a stable capital structure with significant equity financing. However, the decreasing trend in cash and cash equivalents may warrant attention for liquidity management.

Cash Flow

Very Positive

MedCap AB has shown a positive operating cash flow to net income ratio of 1.60 for TTM, indicating strong cash generation relative to its net income. The free cash flow to net income ratio is 1.29, reflecting efficient capital expenditure management. Despite a decline in free cash flow growth rate, the company maintains a healthy cash flow position supporting its operations and future investments.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.84B	1.81B	1.59B	1.11B	916.30M	817.40M
	Gross Profit
865.60M	1.06B	926.40M	462.40M	369.80M	326.60M
	EBIT
255.00M	272.30M	227.50M	170.90M	127.00M	89.10M
	EBITDA
381.50M	396.00M	327.40M	237.30M	186.80M	147.80M
	Net Income Common Stockholders
201.70M	207.40M	172.20M	117.60M	96.50M	60.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
315.20M	370.10M	188.20M	236.20M	139.70M	146.50M
	Total Assets
2.03B	1.99B	1.66B	1.43B	1.17B	1.08B
	Total Debt
347.30M	358.00M	261.20M	340.00M	256.90M	263.70M
	Net Debt
32.10M	-12.10M	73.00M	103.80M	117.20M	117.20M
	Total Liabilities
721.00M	703.20M	635.10M	570.60M	471.80M	479.30M
	Stockholders Equity
1.31B	1.28B	1.02B	856.30M	696.00M	595.70M
Cash Flow		Free Cash Flow
260.90M	293.80M	188.70M	41.20M	55.40M	91.20M
	Operating Cash Flow
323.10M	360.00M	228.00M	85.50M	116.30M	115.60M
	Investing Cash Flow
-171.10M	-128.80M	-152.30M	-56.10M	-64.80M	-131.90M
	Financing Cash Flow
-57.40M	-46.10M	-119.70M	61.20M	-64.10M	144.50M

MedCap AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
61MA		€600.76M	33.51	16.42%	―	―	―
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%
1W6		€366.39M	105.00	7.13%	0.28%	―	―
BLZ		€1.97B	360.93	0.27%	0.91%	―	―
7EU		€10.06M	―	-24.32%	―	―	―
6ZB		€377.56M	19.65	5.76%	―	―	―
SKD		€566.89M	14.51	7.27%	2.80%	―	―

* Healthcare Sector Average

Performance Comparison

DE:61MA

MedCap AB

39.85

-8.65

-17.84%

DE:1W6

Idun Industrier AB Class B

31.50

12.75

68.00%

DE:BLZ

Bure Equity AB

26.42

-5.79

-17.98%

DE:7EU

Vo2 Cap Holding AB

0.13

-0.09

-40.91%

DE:6ZB

Linc AB

6.49

-1.50

-18.77%

DE:SKD

Svolder AB Class B

5.32

-0.25

-4.49%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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