Arla Plast AB (ARPL) AI Stock Analysis

• Market Cap: kr1.07B
• Dividend Yield: 2.93%
• Average Volume (3M): 6.88K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.37
• Revenue Growth: 52.42%
• EPS Growth: 10.23%
• Country: SE
• Employees: 350
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals
• EPS (TTM): 0.98
• Shares Outstanding: 20,980,000
• 10 Day Avg. Volume: 7,488
• 30 Day Avg. Volume: 6,878
• PEG Ratio: -0.42
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.36
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: kr55.00 ▲(10.89%Upside)

Arla Plast AB's strong financial performance, reasonable valuation, and neutral technical indicators contribute to a solid overall score. The robust balance sheet and cash flow management underpin financial stability, while the stock's valuation and dividend yield add appeal.

Arla Plast AB Business Overview & Revenue Model

Company Description

Arla Plast AB, through its subsidiary, Arla Plast s.r.o., produces and supplies extruded plastic sheets in Sweden, Germany, the Czech Republic, Poland, rest of Europe, and internationally. It offers transparent polycarbonate for use in safety glasses, vehicle windows, and ice hockey rinks, as well as for machine glazing, sound walls, protective barriers, and pool covers; opaque polycarbonate for use in suitcases, wall cladding, packaging, and vehicles; and multiwall polycarbonate sheets for use in greenhouses, verandas, pool covers, roof lights, and various other construction-related products. The company was incorporated in 1969 and is headquartered in Borensberg, Sweden.

How the Company Makes Money

Arla Plast AB generates revenue through the manufacture and sale of extruded plastic sheets. The company's key revenue streams include the sale of polycarbonate sheets, which are used extensively in the construction and automotive industries for their durability and versatility, and other specialized plastic sheets such as ABS and PETG. Arla Plast's earnings are significantly influenced by its ability to maintain strong relationships with industrial clients and distributors across Europe. The company also benefits from its strategic partnerships and continuous investment in research and development, which enable it to offer innovative products that meet evolving market demands.

Arla Plast AB Financial Statement Overview

Summary

Arla Plast AB shows robust financial performance with consistent revenue growth and strong profitability margins. The balance sheet indicates a solid financial position with low leverage risk and positive cash flow management.

Income Statement

Arla Plast AB showcases a robust financial performance with a strong upward trajectory in revenue growth, evidenced by a consistent increase from SEK 884.68 million in 2020 to SEK 1,542.3 million in TTM. Gross profit margin has slightly fluctuated but remains healthy with the most recent TTM margin at 21.05%. Net profit margin is stable at 5.91% for TTM, showing consistent profitability. The EBIT and EBITDA margins also indicate solid operational efficiency, maintaining healthy levels of 7.11% and 8.21% respectively in TTM. The company's growth and stability in profitability demonstrate strong fundamentals.

Balance Sheet

The balance sheet reflects a solid financial position with an improving equity ratio of 64.07% as of TTM, indicating strong owner financing. The debt-to-equity ratio has decreased over time, reaching a low of 0.19 in TTM, highlighting reduced leverage risk. Return on equity remains positive at 14.12%, suggesting effective use of equity to generate profits. The company maintains a prudent approach with sufficient cash reserves, although the slight decrease in cash might need monitoring.

Cash Flow

Arla Plast AB demonstrates robust cash flow management. The operating cash flow to net income ratio is significant at 1.70, indicating strong cash generation relative to net income. Free cash flow has grown consistently, with a notable increase in TTM, supporting the company's growth initiatives and shareholder value. The free cash flow to net income ratio of 1.70 further underscores efficient cash utilization. Overall, cash flow stability supports a positive outlook.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.54B	1.40B	1.02B	957.75M	927.49M	884.68M
	Gross Profit
324.70M	299.50M	219.30M	148.71M	180.51M	209.05M
	EBIT
109.70M	116.70M	91.60M	47.05M	86.22M	105.92M
	EBITDA
126.70M	182.80M	133.80M	88.68M	124.72M	141.14M
	Net Income Common Stockholders
91.20M	97.90M	66.90M	34.40M	68.11M	80.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
145.10M	162.30M	176.10M	47.94M	18.57M	23.81M
	Total Assets
1.01B	982.80M	785.20M	735.98M	646.64M	576.03M
	Total Debt
120.60M	145.00M	94.70M	124.67M	63.08M	60.85M
	Net Debt
-24.50M	-17.30M	-81.40M	76.74M	44.51M	37.04M
	Total Liabilities
361.90M	338.10M	216.80M	235.98M	176.85M	186.58M
	Stockholders Equity
645.60M	644.70M	568.40M	500.00M	469.79M	389.45M
Cash Flow		Free Cash Flow
155.20M	149.30M	159.10M	69.30M	13.10M	107.34M
	Operating Cash Flow
155.20M	166.00M	165.50M	86.73M	47.69M	148.84M
	Investing Cash Flow
-109.50M	-108.70M	-6.40M	-63.51M	-34.59M	-38.37M
	Financing Cash Flow
-96.20M	-76.40M	-24.00M	3.75M	-19.15M	-157.88M

Arla Plast AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ARPL, the sentiment is Positive. The current price of 49.6 is above the 20-day moving average (MA) of 48.38, above the 50-day MA of 47.81, and above the 200-day MA of 47.49, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 66.22 is Neutral, neither overbought nor oversold. The STOCH value of 82.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ARPL.

Arla Plast AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARPL	78 Outperform	kr1.07B	11.78	14.31%	2.93%	52.42%	10.23%
SCA.B	69 Neutral	kr90.00B	24.66	3.50%	2.36%	16.88%	12.52%
SCA.A	69 Neutral	kr90.00B	24.63		2.34%	16.88%	12.52%
BEGR	60 Neutral	€525.17M	―	-3.65%	―	-11.98%	14.76%
TRIBO.B	54 Neutral	€52.88M	―	-30.99%	―	31.73%	54.36%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%

Arla Plast AB Corporate Events

Arla Plast AB Approves Key Resolutions at Annual General Meeting

At its Annual General Meeting, Arla Plast AB approved several resolutions, including the adoption of the 2024 financial statements and a dividend distribution of SEK 1.50 per share. The meeting also re-elected board members and auditors, approved remuneration guidelines, and authorized the board to issue new shares, potentially to finance acquisitions. These decisions are aimed at strengthening Arla Plast’s financial position and strategic capabilities, potentially impacting its market positioning and stakeholder interests.