Axfood AB (AXFO) AI Stock Analysis

• Market Cap: kr57.15B
• Dividend Yield: 3.32%
• Average Volume (3M): 357.64K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.17
• Revenue Growth: 3.33%
• EPS Growth: -14.82%
• Country: SE
• Employees: 15,000
• Sector: Consumer Defensive
• Sector Strength: 67
• Industry: Grocery Stores
• EPS (TTM): 2.23
• Shares Outstanding: 216,843,250
• 10 Day Avg. Volume: 240,067
• 30 Day Avg. Volume: 357,641
• PEG Ratio: -5.58
• Price to Book (P/B): 10.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.38
• 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: kr290.00
• Price Target Upside: 9.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Axfood AB's overall stock score reflects its stable financial performance and strong cash generation capabilities, despite high leverage risks. Technical analysis suggests cautious optimism due to potential overbought conditions. Valuation appears high, indicating expectations of growth. Investors should be mindful of financial leverage and market momentum.

Axfood AB Business Overview & Revenue Model

Company Description

Axfood AB is a leading food retail and wholesale company based in Sweden. The company operates in the retail and wholesale sectors, offering a wide range of grocery products and services. Axfood owns and operates several well-known retail brands, including Willys and Hemköp, and provides a comprehensive assortment of products ranging from fresh produce and perishable goods to packaged and non-perishable items. The company is committed to delivering high-quality products and services to its customers while promoting sustainable practices across its operations.

How the Company Makes Money

Axfood AB generates revenue primarily through its retail and wholesale operations. The company earns income from the sale of grocery products and related services through its chain of retail stores, including Willys and Hemköp, which cater to both budget-conscious and more premium market segments. Additionally, Axfood supplies products to independent retailers via its wholesale division, Dagab, which acts as a distribution hub. Key revenue streams include in-store sales, online sales, and distribution services. Significant partnerships with suppliers and strategic acquisitions also contribute to Axfood's earnings, enabling the company to expand its product offerings and operational footprint effectively.

Axfood AB Financial Statement Overview

Summary

Axfood AB demonstrates strong revenue growth and operational efficiency. The company has a healthy profit margin and strong cash flow generation. However, increasing debt levels pose a leverage risk, and there is a slight decline in operating cash flow.

Income Statement

Axfood AB shows a strong revenue growth with a steady increase over the years, reaching a substantial 3.6% growth in the latest year. The gross profit margin is healthy at approximately 14.5%, with a consistent net profit margin around 2.6%. EBIT and EBITDA margins indicate efficient core operations, showing stability. However, there was a slight decline in EBIT margin from the previous period.

Balance Sheet

The company's balance sheet reflects a solid equity ratio of around 19.9%, indicating a stable financial structure. However, the debt-to-equity ratio increased, highlighting a higher leverage risk. Return on equity remains strong at approximately 31.1%, suggesting effective utilization of shareholder funds despite increasing debt levels.

Cash Flow

Axfood AB demonstrates strong cash flow generation, with a free cash flow growth rate of 1.5% and robust operating cash flow to net income ratio. The free cash flow to net income ratio is healthy, indicating efficient cash conversion. However, a decrease in operating cash flow compared to the previous year poses a potential concern.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
84.85B	84.06B	81.11B	73.47B	57.89B	53.70B
	Gross Profit
12.37B	12.23B	11.33B	10.08B	8.95B	8.55B
	EBIT
3.19B	3.29B	3.35B	3.10B	2.70B	2.51B
	EBITDA
6.82B	6.68B	6.47B	5.78B	5.16B	4.82B
	Net Income Common Stockholders
2.08B	2.19B	2.36B	2.36B	2.15B	1.91B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
335.00M	735.00M	688.00M	559.00M	734.00M	-5.71B
	Total Assets
35.48B	35.43B	30.02B	28.62B	23.73B	18.81B
	Total Debt
15.84B	15.30B	9.76B	9.25B	8.00B	5.71B
	Net Debt
15.51B	14.56B	9.08B	8.69B	7.27B	11.42B
	Total Liabilities
29.52B	28.04B	22.83B	21.72B	18.55B	14.25B
	Stockholders Equity
5.62B	7.05B	6.88B	6.61B	4.95B	4.33B
Cash Flow		Free Cash Flow
3.56B	3.92B	3.86B	3.33B	2.77B	3.82B
	Operating Cash Flow
5.00B	5.46B	5.81B	5.93B	4.59B	4.85B
	Investing Cash Flow
-3.23B	-3.18B	-2.21B	-2.78B	-3.84B	-1.08B
	Financing Cash Flow
-2.25B	-2.23B	-3.47B	-3.32B	-1.55B	-3.04B

Axfood AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 264.50
• 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:AXFO, the sentiment is Positive. The current price of 264.5 is above the 20-day moving average (MA) of 261.86, above the 50-day MA of 242.64, and above the 200-day MA of 244.41, indicating a bullish trend. The MACD of 7.84 indicates Positive momentum. The RSI at 68.35 is Neutral, neither overbought nor oversold. The STOCH value of 45.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:AXFO.

Axfood AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLA.B	74 Outperform	kr9.48B	15.04	11.12%	3.32%	1.61%	30.09%
DUNI	71 Outperform	€4.69B	19.36	6.76%	4.80%	1.68%	-38.11%
HUMBLE	67 Neutral	kr3.67B	33.33	2.22%	―	7.36%	―
AXFO	66 Neutral	kr57.15B	27.41	36.99%	3.32%	3.33%	-14.82%
Sector *	64 Neutral	$8.59B	14.59	4.82%	173.89%	3.27%	2.73%
MSON.B	62 Neutral	kr1.29B	33.68	1.23%	―	-0.35%	―