Company DescriptionRatos AB (publ) is a private equity firm specializing in buyouts, turnarounds, add on acquisitions, and middle market transactions. The firm does not invest in early stages and in companies that operate in the arms industry, pornography, or are detrimental to the environment. It seeks to invest in unlisted medium sized companies. The firm invests in industry, construction and services, consumer, and technology sectors. The firm typically invests in the Nordic region, with focus on Sweden, Finland, Denmark, and Norway. It seeks to invest in companies with equity investments between SEK250 million ($29.66 million) and SEK5000 million ($762.77 million), sales value between SEK300 million ($45.77 million) and SEK5000 million (762.77 million) and EBITDA greater than SEK50 million ($5.15 million). The firm prefers minority and majority stakes. The firm prefers to be the principal owner with a minimum holding of at least 20 percent and also seeks a board seat. It prefers to hold its investment between five to ten years. It invests through its own balance sheet and bank loans. Ratos AB (publ) was founded in 1934 and is based in Stockholm, Sweden.

How the Company Makes Money

Ratos AB Financial Statement Overview

Summary

Ratos AB exhibits solid financial performance with strong operational margins, a healthy balance sheet, and robust cash flow generation. Despite a decline in net income in 2024, the company significantly reduced its debt, enhancing its financial position.

Income Statement

Positive

Ratos AB has demonstrated consistent growth in its revenue over the years, with a significant rebound in 2023. Gross profit margin and net profit margin are stable, though net income declined in 2024 due to increased expenses impacting net profit margin. EBIT and EBITDA margins remain strong, indicating robust operational performance.

Balance Sheet

Positive

The company's balance sheet is strong, with a notable reduction in total debt leading to a zero debt-to-equity ratio in 2024, indicating a healthy financial structure. Return on equity has decreased due to a decline in net income, but the equity ratio remains stable, suggesting good asset management and financial stability.

Cash Flow

Very Positive

Ratos AB maintains a strong cash flow position with positive free cash flow growth. The operating cash flow to net income ratio is high, reflecting efficient cash generation relative to net income. The free cash flow to net income ratio is also robust, demonstrating the company's ability to generate cash beyond its net earnings.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
31.83B	32.12B	33.75B	29.88B	22.55B	20.94B
	Gross Profit
10.46B	13.96B	14.65B	5.20B	4.25B	3.96B
	EBIT
1.83B	1.67B	3.01B	1.62B	1.66B	1.46B
	EBITDA
3.50B	3.44B	3.99B	2.66B	2.45B	2.17B
	Net Income Common Stockholders
476.00M	249.00M	1.22B	879.00M	1.14B	693.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.34B	2.19B	2.36B	2.53B	2.23B	2.83B
	Total Assets
33.24B	34.54B	36.13B	37.17B	28.39B	28.64B
	Total Debt
0.00	9.00B	10.43B	13.04B	8.03B	8.33B
	Net Debt
-1.34B	6.82B	8.07B	10.50B	5.80B	5.50B
	Total Liabilities
19.41B	19.78B	21.68B	23.39B	15.06B	17.36B
	Stockholders Equity
11.53B	12.27B	12.31B	12.29B	11.94B	9.37B
Cash Flow		Free Cash Flow
3.03B	3.16B	4.04B	1.50B	1.03B	2.54B
	Operating Cash Flow
3.30B	3.44B	4.28B	1.91B	1.45B	3.20B
	Investing Cash Flow
-1.59B	-1.86B	-542.00M	-4.24B	-258.00M	-694.00M
	Financing Cash Flow
-2.54B	-2.62B	-3.80B	2.99B	-2.23B	-2.47B

Ratos AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0KBQ		kr13.27B	27.54	4.06%	3.37%	―	―
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
IV62		€2.08B	―		―	―	―
1W6		€366.39M	105.00	7.13%	0.28%	―	―
BLZ		€1.97B	360.93	0.27%	0.91%	―	―
SKD		€566.89M	14.51	7.27%	2.80%	―	―
61MA		€600.76M	33.51	16.42%	―	―	―

* Industrials Sector Average

Performance Comparison

GB:0KBQ

Ratos AB

40.04

3.05

8.25%

DE:IV62

Kinnevik AB Class A

8.63

-0.69

-7.40%

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:SKD

Svolder AB Class B

5.32

-0.25

-4.49%

DE:61MA

MedCap AB

39.85

-8.65

-17.84%

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

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.