Arla Plast AB (ARPL) AI Stock Analysis

• Market Cap: €1.27B
• Dividend Yield: 2.48%
• Average Volume (3M): 27.71K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.38
• Revenue Growth: 36.15%
• EPS Growth: 42.52%
• Country: SE
• Employees: 350
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 1.49
• Shares Outstanding: 20,980,000
• 10 Day Avg. Volume: 20,574
• 30 Day Avg. Volume: 27,711
• 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: €66.04
• Price Target Upside: 9.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: kr66.00 ▲(9.27% Upside)

Arla Plast AB's strong financial performance, characterized by consistent revenue growth and robust cash flow management, is the primary driver of its high score. The technical analysis indicates positive momentum, though caution is advised due to potential overbought conditions. The valuation is reasonable, offering a balanced risk-reward profile.

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 primary revenue streams include the sale of polycarbonate sheets, which are widely used in applications requiring durability and transparency, such as in the automotive and construction industries. Additionally, Arla Plast sells acrylic and PETG sheets, catering to both standard and specialized customer requirements. The company benefits from long-standing relationships with key clients and distributors across various industries, and its earnings are also supported by its capability to innovate and adapt to market demands, ensuring a steady flow of business from both existing and new customers.

Arla Plast AB Financial Statement Overview

Summary

Arla Plast AB presents a strong financial outlook with consistent revenue growth, robust profitability margins, and effective leverage management. The balance sheet strength and cash flow efficiency underscore financial resilience, positioning the company well for future growth and operational stability.

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	338.00M	299.50M	219.30M	148.71M	180.51M	209.05M
EBITDA	123.50M	166.30M	133.80M	88.68M	124.72M	141.14M
Net Income	106.00M	97.90M	66.90M	34.40M	68.11M	80.16M
Balance Sheet
Total Assets	1.02B	982.80M	785.20M	735.98M	646.64M	576.03M
Cash, Cash Equivalents and Short-Term Investments	153.10M	162.30M	176.10M	47.94M	18.57M	23.81M
Total Debt	112.30M	145.00M	94.70M	124.67M	63.08M	60.85M
Total Liabilities	363.90M	338.10M	216.80M	235.98M	176.85M	186.58M
Stockholders Equity	657.90M	644.70M	568.40M	500.00M	469.79M	389.45M
Cash Flow
Free Cash Flow	117.20M	149.30M	159.10M	69.30M	13.10M	107.34M
Operating Cash Flow	175.20M	166.00M	165.50M	86.73M	47.69M	148.84M
Investing Cash Flow	-19.70M	-108.70M	-6.40M	-63.51M	-34.59M	-38.37M
Financing Cash Flow	-112.90M	-76.40M	-24.00M	3.75M	-19.15M	-157.88M

Arla Plast AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 60.4 is above the 20-day moving average (MA) of 59.96, above the 50-day MA of 56.63, and above the 200-day MA of 50.08, indicating a bullish trend. The MACD of 0.79 indicates Positive momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 34.56 is Neutral, 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	77 Outperform	€1.27B	11.95	16.99%	2.48%	36.15%	42.52%
NPAPER	61 Neutral	kr3.18B	8.47	24.15%	8.40%	3.95%	-10.26%
NEXAM	50 Neutral	kr310.72M	-23.57	-4.91%	―	-3.42%	-31.37%
BEGR	47 Neutral	kr506.34M	-0.74	-3.02%	―	-14.19%	-546.84%
ORGC	42 Neutral	kr201.86M	-7.90	-112.08%	―	-16.35%	-33.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Arla Plast AB Corporate Events

Arla Plast to Announce Q2 2025 Financial Results

Arla Plast AB announced that it will release its second-quarter 2025 financial report on August 15, with a digital conference to follow, led by CEO Christian Krichau. This announcement is part of the company’s regular financial disclosure practices, providing stakeholders with insights into its financial performance and potentially impacting its market positioning and investor relations.