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Electrolux AB Class B (ELUXY)
:ELUXY
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Electrolux AB
(OTC:ELUXY)
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Select Model
Rating:44Neutral
Price Target:
$11.50
▲(6.38% Upside)
Electrolux AB's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue growth, low profitability, and high leverage. Technical analysis indicates bearish trends, and the high P/E ratio suggests potential overvaluation. While the earnings call highlighted some operational improvements, ongoing challenges in key markets and financial metrics weigh heavily on the stock's attractiveness.
Electrolux AB (ELUXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.52B
Dividend YieldN/A
Average Volume (3M)124.00
Price to Earnings (P/E)106.6
Beta (1Y)1.02
Revenue Growth3.34%
EPS GrowthN/A
CountryUS
Employees41,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.14
Shares Outstanding137,442,800
10 Day Avg. Volume0
30 Day Avg. Volume124
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.47
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.24
Enterprise Value/Ebitda0.60
Forecast
1Y Price Target
$11.50Price Target Upside6.38% Upside
Rating ConsensusHold
Number of Analyst Covering1
Electrolux AB Business Overview & Revenue Model
Company DescriptionElectrolux AB (ELUXY) is a leading global appliance manufacturer headquartered in Stockholm, Sweden. The company specializes in home and professional appliances, offering a wide range of products including refrigerators, dishwashers, washing machines, vacuum cleaners, and cooking appliances. Electrolux operates across several sectors, including consumer electronics and professional kitchen solutions, catering to both residential and commercial markets. With a commitment to sustainability and innovation, Electrolux aims to enhance customer experiences through high-quality and energy-efficient products.
How the Company Makes MoneyElectrolux generates revenue primarily through the sale of its home and professional appliances. The company's revenue model is based on direct sales to consumers through various retail channels, including large appliance retailers, online marketplaces, and its own e-commerce platform. Key revenue streams include the sale of major appliances, small appliances, and professional equipment for the food service industry. Electrolux also benefits from after-sales services and spare parts sales, which provide ongoing revenue. Significant partnerships with retailers and distributors globally enhance its market reach, while investments in sustainable technologies and energy-efficient products resonate with environmentally conscious consumers, driving additional sales.
Electrolux AB Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable positive developments in operating margins, organic growth in the Americas, and successful product launches. However, these were tempered by significant challenges in the European market, competitive pricing pressures, and negative cash flow impacts from fines and tariffs. While there are positive strides in operational efficiency and innovation, the ongoing market uncertainties, particularly in Europe, pose a challenge.Q2-2025 Updates
Positive Updates
Operating Margin Improvement
Operating margin improved from 1.2% to 2.5%, with positive contributions from North America.
Organic Growth in Americas
Reported an organic growth of 1.8%, mainly driven by North America (4.1%) and Latin America, despite slight declines in Europe, Asia Pacific, Middle East, and Africa.
Cost Efficiency Achievements
Achieved SEK 0.6 billion in cost efficiencies in the second quarter, reaching SEK 2 billion for the first half of the year.
Successful Product Launches
Launched a new induction hob in Europe and a new pizza oven technology in North America with significant market reception.
Awards and Recognition
Electrolux was awarded 16 design awards and recognized three times by the Financial Times for sustainability.
Negative Updates
Depressed European Market
The European market remains very depressed, with volumes 11% lower than 2019, predominantly replacement-driven with high promotional pressures.
Negative Cash Flow Impact
Reported a negative operating cash flow after investments of SEK 741 million, impacted by a SEK 500 million fine related to an antitrust case in France.
Competitive Pricing Pressures
Faced negative price developments in Europe due to intense competition and promotional pressures, impacting margins.
Challenges with Tariffs and Currency
Experienced currency headwinds in Latin America and tariff impacts in North America, leading to a need for price adjustments.
Company Guidance
In the recent earnings call for the second quarter of fiscal year 2025, several key metrics and strategic actions were highlighted. The company reported an improvement in operating margin, increasing from 1.2% to 2.5%, despite challenging geopolitical conditions. Organic growth was recorded at 1.8%, driven primarily by North America and Latin America, although there was a slight decline in Europe, Asia Pacific, Middle East, and Africa. In North America, organic growth reached 4.1%, and the region also saw positive price movements, with strategic price increases to offset tariff impacts. The company achieved SEK 0.6 billion in year-over-year cost savings, contributing to a total of SEK 2 billion in cost efficiencies for the first half of the year. A significant development was the sale of the Kelvinator brand in India for SEK 180 million. Despite a subdued market in Europe, the Electrolux and AEG brands outperformed the market. The company remains committed to achieving SEK 3.5 billion to SEK 4 billion in cost efficiencies by year-end 2025 and is heavily investing in innovation and marketing to support its competitive position and growth ambitions.Electrolux AB Financial Statement Overview
Summary
Electrolux AB faces significant financial challenges, with declining revenue growth, low profitability, and high leverage. The income statement reflects struggles with maintaining margins, while the balance sheet indicates potential financial risk due to high debt levels. Cash flow analysis further underscores liquidity concerns, with negative free cash flow and low cash conversion ratios.Income Statement
Electrolux AB's income statement shows a challenging period with declining revenue growth and low profitability. The TTM data indicates a negative revenue growth rate of -1.85%, and the net profit margin is extremely low at 0.10%. Despite a slight improvement in gross profit margin to 15.99% in the TTM, the EBIT and EBITDA margins remain low at 1.96% and 6.48%, respectively. The company has struggled with profitability in recent years, as evidenced by negative net income in previous periods.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 5.24 in the TTM, indicating significant leverage and potential financial risk. The return on equity is low at 1.54%, reflecting limited profitability relative to shareholder equity. The equity ratio is also concerning, suggesting a heavy reliance on debt financing. These factors highlight potential stability issues and financial risk.40
Negative
Cash Flow
Cash flow analysis shows a negative free cash flow in the TTM, with a free cash flow to net income ratio of -3.39, indicating cash outflows relative to earnings. The operating cash flow to net income ratio is low at 0.014, suggesting challenges in converting income into cash. Although there was a significant improvement in free cash flow growth, the overall cash flow position remains weak.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 135.11B | 136.15B | 134.45B | 134.88B | 125.63B | 115.96B |
| Gross Profit | 21.60B | 20.30B | 17.14B | 17.70B | 23.98B | 22.27B |
| EBITDA | 8.75B | 7.67B | 3.22B | 5.29B | 11.31B | 10.42B |
| Net Income | 135.00M | -1.39B | -5.23B | -1.32B | 4.68B | 3.99B |
Balance Sheet | ||||||
| Total Assets | 113.62B | 125.39B | 120.05B | 127.10B | 107.61B | 99.60B |
| Cash, Cash Equivalents and Short-Term Investments | 10.68B | 16.34B | 15.50B | 17.73B | 11.09B | 20.37B |
| Total Debt | 42.40B | 43.63B | 40.87B | 41.38B | 18.82B | 18.07B |
| Total Liabilities | 105.52B | 115.67B | 108.78B | 110.65B | 89.00B | 80.89B |
| Stockholders Equity | 8.09B | 9.72B | 11.27B | 16.44B | 18.60B | 18.70B |
Cash Flow | ||||||
| Free Cash Flow | -3.25B | -451.00M | -1.70B | -9.66B | 1.02B | 6.59B |
| Operating Cash Flow | 892.00M | 4.20B | 4.00B | -2.27B | 7.06B | 11.93B |
| Investing Cash Flow | -3.05B | -4.28B | -4.36B | -6.96B | -6.82B | -5.12B |
| Financing Cash Flow | -1.61B | 1.27B | -1.55B | 15.60B | -9.79B | 2.02B |
Electrolux AB Technical Analysis
Negative
10.81
Price Trends
12.16
Negative
12.90
Negative
14.84
Negative
Market Momentum
-0.31
Positive
35.03
Neutral
39.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELUXY, the sentiment is Negative. The current price of 10.81 is below the 20-day moving average (MA) of 11.58, below the 50-day MA of 12.16, and below the 200-day MA of 14.84, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 35.03 is Neutral, neither overbought nor oversold. The STOCH value of 39.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELUXY.
Electrolux AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 1.73B | 18.99 | 6.88% | ― | 4.05% | -47.49% | |
71 Outperform | 3.45B | 27.69 | 11.03% | 1.54% | 6.09% | -18.29% | |
69 Neutral | 7.99B | 17.09 | 5.71% | ― | -1.61% | ― | |
64 Neutral | 1.43B | 15.55 | 9.01% | 2.53% | 2.18% | -22.35% | |
49 Neutral | 4.33B | -28.83 | -6.38% | 7.94% | -16.05% | -127.65% | |
44 Neutral | $1.52B | 106.59 | 1.52% | ― | 3.34% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
ELUXY
Electrolux AB
10.84
-9.05
-45.50%
MLKN
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17.98
-5.55
-23.59%
MHK
Mohawk
125.55
-33.26
-20.94%
WHR
Whirlpool
77.47
-23.58
-23.33%
HBB
Hamilton Beach Brands Holding Company
14.42
-14.76
-50.58%
SN
SharkNinja, Inc.
106.07
0.07
0.07%
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.