Balco Group AB (BALCO) AI Stock Analysis

• Market Cap: €633.10M
• Dividend Yield: N/A
• Average Volume (3M): 25.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -0.80%
• EPS Growth: -442.39%
• Country: SE
• Employees: 562
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Construction
• EPS (TTM): -0.23
• Shares Outstanding: 23,021,648
• 10 Day Avg. Volume: 15,400
• 30 Day Avg. Volume: 25,553
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: kr19.00 ▼(-1.55% Downside)

Balco Group AB's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant financial challenges with declining revenue, profitability, and severe cash flow issues. Technical indicators suggest bearish momentum, with the stock trading below key moving averages and an oversold RSI. The negative P/E ratio further highlights valuation concerns.

Balco Group AB Business Overview & Revenue Model

Company Description

Balco Group AB (BALCO) is a Swedish company specializing in the manufacturing and supply of balcony solutions, primarily serving the residential construction sector. The company operates in the building and construction industry, focusing on enhancing living spaces through innovative balcony systems, glass railings, and other related products. Balco's offerings cater to both new construction projects and renovation initiatives, positioning the company as a key player in improving urban living environments.

How the Company Makes Money

Balco Group AB generates revenue through the sale of its balcony solutions and related products to construction companies, property developers, and housing cooperatives. The primary revenue streams include direct sales of balcony systems, glass railings, and installation services. The company benefits from long-term contracts with developers and municipalities, which provide a stable income base. Additionally, Balco may engage in partnerships with construction firms, enhancing its market reach and enabling bundled service offerings that can drive sales volume. Factors contributing to its earnings include the demand for urban residential construction, the trend towards enhancing outdoor living spaces, and the company's reputation for quality and innovation in its product offerings.

Balco Group AB Financial Statement Overview

Summary

Balco Group AB faces financial challenges, particularly in profitability and cash flow. The income statement shows declining revenue and margins, while the balance sheet indicates increasing leverage and negative returns. Cash flow issues are pronounced, with negative free cash flow growth. The company needs to address operational inefficiencies and improve cash generation to stabilize its financial position.

Income Statement

Balco Group AB's income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative revenue growth rate of -3.05% and a net profit margin of -2.37%, reflecting operational challenges. The gross profit margin has decreased to 12.58% in TTM from 17.48% in 2024, indicating pressure on cost management. The EBIT and EBITDA margins have also declined, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.66 in TTM, up from 0.53 in 2024. The equity ratio remains stable, indicating a balanced capital structure. However, the return on equity has turned negative in TTM, highlighting profitability issues. Overall, the balance sheet shows stability but with increasing leverage and declining returns.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows in TTM. The free cash flow growth rate is -660.27%, indicating severe cash flow issues. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income to cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.42B	1.21B	1.33B	1.12B	1.20B
Gross Profit	171.70M	247.90M	245.35M	287.61M	296.21M	289.43M
EBITDA	25.90M	89.42M	118.41M	145.45M	155.75M	152.81M
Net Income	-32.30M	1.10M	45.90M	76.15M	90.24M	77.64M
Balance Sheet
Total Assets	1.65B	1.63B	1.27B	1.30B	1.25B	1.22B
Cash, Cash Equivalents and Short-Term Investments	13.80M	103.10M	2.81M	51.87M	117.50M	214.13M
Total Debt	493.10M	425.80M	244.42M	156.70M	214.50M	259.35M
Total Liabilities	899.60M	831.70M	519.25M	565.57M	553.58M	624.69M
Stockholders Equity	748.70M	796.80M	746.14M	729.79M	692.00M	598.63M
Cash Flow
Free Cash Flow	-81.80M	72.20M	-39.40M	128.88M	45.70M	96.93M
Operating Cash Flow	-60.60M	85.30M	-26.13M	153.02M	62.52M	111.74M
Investing Cash Flow	-57.80M	-95.70M	-52.90M	-52.59M	-102.11M	-14.27M
Financing Cash Flow	52.50M	113.10M	29.62M	-167.68M	-57.49M	-1.39M

Balco Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BALCO, the sentiment is Negative. The current price of 19.3 is below the 20-day moving average (MA) of 23.22, below the 50-day MA of 23.21, and below the 200-day MA of 27.78, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 32.53 is Neutral, neither overbought nor oversold. The STOCH value of 2.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:BALCO.

Balco Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMM.B	―	€2.40B	22.07	10.51%	3.95%	2.08%	-7.27%
RVRC	―	€5.92B	21.18	23.71%	1.84%	6.44%	0.49%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
INWI	―	€10.42B	18.22	9.78%	3.82%	3.41%	-1.70%
KAMBI	―	$3.19B	33.86	4.76%	―	-5.16%	-48.79%
BMAX	―	€2.76B	15.69	7.24%	1.55%	4.04%	433.33%
BALCO	―	€633.10M	-19.60	-4.80%	―	-0.80%	-442.39%

Balco Group AB Corporate Events

Balco Group AB Reports Q3 2025 Financial Results Amid Strategic Expansion Efforts

Balco Group AB’s Q3 2025 report highlights a challenging quarter with decreased net sales and order intake compared to the previous year, but an increase in order backlog. The company is focusing on profitability improvements and strategic market expansion, particularly in Germany, despite current financial setbacks. New leadership appointments aim to strengthen business development and investor relations, while ongoing structural measures target long-term growth and stability.

The most recent analyst rating on (SE:BALCO) stock is a Hold with a SEK28.00 price target. To see the full list of analyst forecasts on Balco Group AB stock, see the SE:BALCO Stock Forecast page.

Balco Group to Release Q3 2025 Interim Report

Balco Group AB has announced the release of its third-quarter interim report for 2025, scheduled for October 27, followed by a webcast conference call featuring key executives. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, reinforcing its market position in the balcony industry.

The most recent analyst rating on (SE:BALCO) stock is a Hold with a SEK24.50 price target. To see the full list of analyst forecasts on Balco Group AB stock, see the SE:BALCO Stock Forecast page.

Balco Group Appoints New CFO to Drive Strategic Growth

Balco Group has appointed Viktor Arvidsson as its new CFO and Head of Investor Relations, effective no later than Q1 2026. Arvidsson’s extensive experience in finance and leadership, particularly in listed and manufacturing companies, positions him to contribute significantly to Balco’s ongoing development and strategic initiatives.

The most recent analyst rating on (SE:BALCO) stock is a Hold with a SEK24.50 price target. To see the full list of analyst forecasts on Balco Group AB stock, see the SE:BALCO Stock Forecast page.