Balco Group AB (BALCO) AI Stock Analysis

Balco Group AB

(Nasdaq OMX AB:BALCO)

Select Model

Rating:40Underperform

Price Target:SEK 13.50▲(0.75% Upside)

Action:downgraded

Date:10/29/26

The overall score is constrained primarily by weak profitability, declining free cash flow, margin pressure, and negative valuation metrics. Bearish price momentum further weighs on the score, although the moderately stable equity base, positive current cash flow, and oversold technical readings provide limited support.

Positive Factors

Strong Revenue GrowthThe sharp TTM revenue increase indicates substantial recent expansion in project activity and customer demand. If the enlarged revenue base can be executed profitably, it provides greater operating scale and a stronger platform for restoring margins over the next several quarters.

Negative Factors

Deteriorating ProfitabilityRevenue growth has not translated into sustainable profitability: margins have fallen sharply from solid levels in 2021–2022 to losses in 2025 and TTM. Continued weak gross and operating margins could limit reinvestment and make future earnings recovery dependent on execution improvements.

Balco Group AB (BALCO) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 314.25M
Dividend Yield: ―
Average Volume (3M): 13.19K
Price to Earnings (P/E): -4.0
Beta (1Y): 0.43
Revenue Growth: 1.85%
EPS Growth: -108.37%
Country: Sweden
Employees: 526
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Residential Construction

Balco Group AB Business Overview & Revenue Model

Company Description

Balco Group AB specializes in the complete lifecycle of balcony systems, from development and manufacturing to sales and installation. The company serves a diverse clientele, including tenant-owner associations, private property owners, public housin...

How the Company Makes Money

Balco makes money primarily by selling balcony-related renovation and construction projects to customers such as housing cooperatives/associations, private and institutional property owners, and public housing companies. Revenue is mainly generated o...

Balco Group AB Financial Statement Overview

Summary

Financial performance is weak overall: revenue grew 136%, but profitability deteriorated sharply, with negative EBITDA, EBIT, and net income. The balance sheet remains moderately stable, while positive cash flow is offset by a 44.4% decline in free cash flow and increased leverage.

Income Statement

25Negative

Balance Sheet

55Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.33B	1.30B	1.42B	1.21B	1.33B	1.12B
Gross Profit	121.60M	159.50M	247.90M	245.35M	287.61M	296.21M
EBITDA	130.40M	32.10M	89.42M	118.41M	145.45M	153.79M
Net Income	-77.10M	-35.80M	1.06M	45.90M	76.15M	90.24M
Balance Sheet
Total Assets	1.54B	1.72B	1.62B	1.27B	1.30B	1.25B
Cash, Cash Equivalents and Short-Term Investments	35.90M	158.10M	103.10M	2.81M	51.87M	117.50M
Total Debt	520.90M	540.15M	425.80M	244.42M	156.70M	214.50M
Total Liabilities	872.50M	986.30M	831.70M	519.25M	565.57M	553.58M
Stockholders Equity	663.90M	732.50M	788.67M	746.14M	729.79M	692.00M
Cash Flow
Free Cash Flow	22.40M	10.80M	72.20M	-39.43M	128.88M	48.95M
Operating Cash Flow	26.70M	15.00M	85.30M	-26.13M	153.02M	62.52M
Investing Cash Flow	-16.50M	-49.10M	-95.70M	-52.90M	-52.59M	-102.11M
Financing Cash Flow	-33.30M	90.80M	113.10M	29.62M	-167.68M	-57.49M

Balco Group AB Technical Analysis

Technical Analysis SentimentNegative

Last Price13.40

Price Trends

50DMA16.38Negative

100DMA15.58Negative

200DMA15.47Negative

Market Momentum

MACD-0.76Positive

RSI22.82Positive

STOCH4.31Positive

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 13.40 is below the 20-day moving average (MA) of 15.03, below the 50-day MA of 16.38, and below the 200-day MA of 15.47, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 22.82 is Positive, neither overbought nor oversold. The STOCH value of 4.31 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

SE:BALCO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SE:BMAX	74Outperform	SEK 3.76B	14.23	10.43%	2.54%	2.24%	51.71%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SE:DURC.B	55Neutral	SEK 684.45M	-6.85	-9.76%	1.97%	-8.18%	-4948.15%
SE:BULTEN	48Neutral	SEK 1.74B	-1.57	-92.45%	―	-22.17%	-19131.83%
SE:JM	45Neutral	SEK 7.91B	-128.96	-0.78%	1.62%	-14.45%	-134.64%
SE:BONAV.B	40Underperform	SEK 2.33B	-1805.00	0.01%	―	-4.88%	―
SE:BALCO	40Underperform	SEK 314.25M	-4.00	-10.77%	―	1.85%	-108.37%

* Consumer Cyclical Sector Average

Performance Comparison

SE:BALCO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:BALCO	Balco Group AB	13.40	-4.60	-25.56%
SE:JM	J.M. AB	123.80	-6.59	-5.05%
SE:BMAX	Byggmax Group AB	64.90	19.27	42.22%
SE:BONAV.B	Bonava AB Class B	7.22	-3.48	-32.52%
SE:BULTEN	Bulten AB	86.50	38.50	80.21%
SE:DURC.B	Duroc AB Class B	17.75	2.35	15.26%

Balco Group AB Corporate Events

Balco Steps Up Restructuring as Profit Hit by Heavy Write-Downs

Oct 26, 2026

Balco Group AB reported modest growth in net sales and order intake for the first nine months of 2026, with sales rising to SEK 963 million and the order backlog up 14 percent to SEK 1.57 billion, underscoring solid demand for its balcony and facade...

Balco Group Cuts Workforce and Streamlines Operations to Boost Profitability

Sep 17, 2026

Balco Group AB, a Scandinavian market leader in innovative and energy‑efficient balcony solutions for multi‑dwelling buildings, controls its full value chain from production to delivery and serves several markets across Northern Europe. T...

Balco Group Names Industry Veteran Charlotte Mattsson as New CEO

Sep 9, 2026

Balco Group AB has appointed industry veteran Charlotte Mattsson as its new Group CEO, with her taking up the role no later than the first quarter of 2027. She succeeds the acting Group CEO, Johan Dyberg, and brings over 25 years of experience in ind...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Balco Group AB AI Stock Analysis