Ambea AB (AMBEA) AI Stock Analysis

• Market Cap: €10.07B
• Dividend Yield: 1.79%
• Average Volume (3M): 135.59K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.65
• Revenue Growth: 8.38%
• EPS Growth: 21.07%
• Country: SE
• Employees: 38,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 1.54
• Shares Outstanding: 84,101,290
• 10 Day Avg. Volume: 127,005
• 30 Day Avg. Volume: 135,589
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €129.43
• Price Target Upside: 5.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: kr129.00 ▲(5.13% Upside)

Ambea AB's overall stock score is primarily influenced by its solid financial performance, despite high leverage and declining free cash flow growth. The bearish technical indicators and reasonable valuation suggest caution. Investors should monitor leverage and cash flow trends closely.

Ambea AB Business Overview & Revenue Model

Company Description

Ambea AB is a leading provider of care services in Sweden specializing in healthcare and social services for individuals with disabilities, the elderly, and those requiring special assistance. The company operates in various sectors, including elderly care, disability care, and supported living, delivering tailored services through its network of care homes and community-based programs. Ambea focuses on providing high-quality care and support while promoting independence and well-being among its clients.

How the Company Makes Money

Ambea AB generates revenue primarily through government contracts and funding for its care services. The company receives payments from municipal and regional authorities for the provision of healthcare and social services, which form the bulk of its revenue stream. Additionally, Ambea may generate income through private pay clients who choose to utilize its services outside of government funding. The company also benefits from economies of scale by operating multiple care facilities, which allows it to optimize costs and improve service delivery. Significant partnerships with local governments and healthcare organizations enhance its ability to secure contracts and expand its service offerings, further contributing to its earnings.

Ambea AB Financial Statement Overview

Summary

Ambea AB demonstrates solid revenue growth and profitability, with stable net profit margins. However, high leverage and a decline in free cash flow growth are potential concerns.

Income Statement

Ambea AB shows consistent revenue growth with a TTM growth rate of 3.96%. Gross profit margins are strong, although they have decreased from previous years. Net profit margins are stable, indicating efficient cost management. However, the slight decline in EBIT and EBITDA margins suggests potential cost pressures.

Balance Sheet

The company maintains a high debt-to-equity ratio, indicating significant leverage, which could pose risks in a rising interest rate environment. However, the return on equity is healthy at 12.91%, reflecting effective use of equity capital. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Operating cash flow is robust, but there is a negative growth in free cash flow, which could impact future investments. The free cash flow to net income ratio remains strong, indicating good cash generation relative to earnings. However, the operating cash flow to net income ratio is relatively low, suggesting potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.92B	14.20B	13.31B	12.63B	11.48B	11.08B
Gross Profit	11.71B	13.70B	3.44B	12.19B	11.06B	10.72B
EBITDA	2.72B	2.64B	2.28B	2.04B	1.61B	1.61B
Net Income	624.00M	620.00M	455.00M	366.00M	237.00M	359.00M
Balance Sheet
Total Assets	21.34B	18.48B	17.89B	17.88B	16.67B	14.72B
Cash, Cash Equivalents and Short-Term Investments	247.00M	28.00M	6.00M	259.00M	86.00M	25.00M
Total Debt	13.68B	11.05B	10.74B	10.96B	9.89B	8.40B
Total Liabilities	16.32B	13.49B	12.97B	13.19B	12.14B	10.39B
Stockholders Equity	5.02B	4.99B	4.92B	4.68B	4.53B	4.33B
Cash Flow
Free Cash Flow	1.77B	1.95B	1.62B	1.33B	1.11B	1.27B
Operating Cash Flow	1.91B	2.07B	1.71B	1.44B	1.21B	1.39B
Investing Cash Flow	-1.49B	-358.00M	-93.00M	-214.00M	-258.00M	-226.00M
Financing Cash Flow	-213.00M	-1.69B	-1.88B	-1.04B	-882.00M	-1.18B

Ambea AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AMBEA, the sentiment is Negative. The current price of 122.7 is below the 20-day moving average (MA) of 128.78, below the 50-day MA of 128.95, and above the 200-day MA of 112.84, indicating a neutral trend. The MACD of -1.53 indicates Positive momentum. The RSI at 37.03 is Neutral, neither overbought nor oversold. The STOCH value of 17.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:AMBEA.

Ambea AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	73 Outperform	€10.04B	12.46	12.81%	1.70%	10.27%	33.48%
ATT	65 Neutral	kr10.48B	18.97	―	1.72%	5.75%	48.97%
HUM	64 Neutral	kr2.15B	10.08	6.86%	2.46%	6.74%	75.70%
AMBEA	60 Neutral	€10.07B	17.10	12.76%	1.79%	8.38%	21.07%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Ambea AB Corporate Events

Ambea AB to Announce Q2 2025 Financial Results

Ambea AB is set to release its second quarter 2025 financial results on August 19th, with a subsequent telephone conference hosted by CEO Mark Jensen and CFO Benno Eliasson. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor confidence.

Ambea AB Announces Changes in Share Structure

Ambea AB has announced changes in its number of shares and votes due to the exercise of warrants by senior executives and key employees, as well as the cancellation of 6,000,000 shares. This adjustment results in a total of 84,101,290 shares and votes, with a registered share capital of SEK 2,376,632.862076. These changes reflect Ambea’s ongoing financial restructuring efforts and could impact its market positioning and shareholder value.

Ambea AB Annual General Meeting Approves Key Proposals and Dividend

Ambea AB’s Annual General Meeting approved several key proposals, including a dividend of SEK 2.20 per share, re-election of board members, and authorization for share repurchase and issuance. The meeting also noted the failure to pass a long-term incentive program for executives, highlighting strategic decisions impacting the company’s governance and financial strategies.

Ambea AB Expands Nordic Presence with Finnish Acquisition

Ambea AB reported a 5% increase in net sales for the first quarter of 2025, driven by organic growth and strategic acquisitions, including the entry into the Finnish market through the acquisition of Validia. This expansion is expected to enhance Ambea’s Nordic growth and strengthen its position in the healthcare sector, particularly in residential care and support services for people with disabilities.