Bjorn Borg AB (BORG) AI Stock Analysis

Bjorn Borg AB

(Nasdaq OMX AB:BORG)

Select Model

Rating:70Outperform

Price Target:SEK 60.00▲(4.17% Upside)

Action:upgraded

Date:10/27/26

Bjorn Borg scores above average, driven primarily by healthy fundamentals: steady revenue growth toward SEK 1bn, record trailing earnings with an expanding 12.0% operating margin, a lightly leveraged balance sheet and a strong 27.5% return on equity, supported by robust free cash flow and minimal capital intensity. Valuation adds further support, with a modest 13.2x P/E and an unusually generous 8.3% dividend yield backed by solid cash conversion. The main drag is the technical picture: the shares trade below all key moving averages with a negative MACD, indicating a persistent downtrend. Secondary risks include volatile, inventory-driven cash flows, inconsistent gross margin reporting, and borrowings that have nearly tripled over two years, albeit from a low base.

Positive Factors

Strong profitability and returnsStrong profitability and a high return on equity indicate that Björn Borg is converting its brand, products, and invested capital into meaningful earnings. If maintained, this provides internal funding for marketing, product development, and channel growth while reinforcing resilience over the next several quarters.

Negative Factors

Significant gross-margin compressionThe substantial decline in gross margin signals pressure on product economics, whether from mix, pricing, or costs. Even with improved operating margins, sustained compression could reduce the earnings benefit of revenue growth and limit the resources available for brand investment.

Bjorn Borg AB (BORG) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 1.48B
Dividend Yield: 7.65%
Average Volume (3M): 30.93K
Price to Earnings (P/E): 14.3
Beta (1Y): 0.41
Revenue Growth: 0.49%
EPS Growth: 18.73%
Country: Sweden
Employees: 146
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Bjorn Borg AB Business Overview & Revenue Model

Company Description

Björn Borg AB (publ) oversees the full lifecycle of its branded goods, encompassing design, development, manufacturing, wholesale distribution, and direct retail sales. The company offers a diverse product range, including underwear, athletic apparel...

How the Company Makes Money

Björn Borg AB makes money primarily by monetizing the Björn Borg brand through product sales across several channels. A major revenue stream is wholesale, where the company sells Björn Borg-branded products (notably underwear, and also other apparel...

Bjorn Borg AB Financial Statement Overview

Summary

Fundamentals are solid and improving. Revenue has grown from roughly SEK 796m in 2021 to about SEK 1,045m on a trailing-twelve-month basis, while operating margin expanded to 12.0% and net income reached a record SEK 103m (9.9% net margin). The balance sheet is conservatively financed with equity funding about half of total assets, debt-to-equity of 0.41, and a best-in-period 27.5% return on equity. Cash generation rebounded sharply, with SEK 181m operating cash flow and SEK 168m free cash flow on very light capital spending. Offsetting these strengths are lumpy, working-capital-driven cash flows, an inconsistent gross margin presentation that clouds underlying profitability, and borrowings that have nearly tripled in two years from a low base.

Income Statement

74Positive

Balance Sheet

77Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.05B	1.04B	989.70M	872.26M	835.17M	796.10M
Gross Profit	362.12M	352.48M	520.65M	294.81M	424.51M	444.43M
EBITDA	154.76M	131.53M	133.98M	136.83M	109.45M	147.37M
Net Income	103.08M	92.06M	72.67M	75.97M	50.87M	86.03M
Balance Sheet
Total Assets	772.56M	719.23M	708.87M	631.52M	653.39M	680.67M
Cash, Cash Equivalents and Short-Term Investments	13.64M	13.54M	8.77M	26.65M	16.03M	96.74M
Total Debt	157.11M	92.78M	58.94M	42.85M	81.65M	135.95M
Total Liabilities	393.20M	358.21M	356.39M	280.71M	328.58M	346.45M
Stockholders Equity	385.71M	366.84M	359.36M	357.12M	331.41M	340.08M
Cash Flow
Free Cash Flow	167.79M	45.11M	61.99M	110.14M	52.18M	103.42M
Operating Cash Flow	180.97M	55.27M	76.04M	121.28M	60.50M	113.93M
Investing Cash Flow	-14.77M	-12.40M	-14.05M	-11.14M	-8.32M	-10.51M
Financing Cash Flow	-166.11M	-47.29M	-77.86M	-101.55M	-135.94M	-80.12M

Bjorn Borg AB Technical Analysis

Technical Analysis SentimentPositive

Last Price57.60

Price Trends

50DMA55.96Positive

100DMA59.68Negative

200DMA61.42Negative

Market Momentum

MACD0.45Negative

RSI65.57Neutral

STOCH86.35Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BORG, the sentiment is Positive. The current price of 57.60 is above the 20-day moving average (MA) of 54.77, above the 50-day MA of 55.96, and below the 200-day MA of 61.42, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 65.57 is Neutral, neither overbought nor oversold. The STOCH value of 86.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:BORG.

Bjorn Borg AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

SE:BORG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SE:BORG	70Outperform	SEK 1.48B	14.34	27.55%	7.65%	0.49%	18.73%
SE:HM.B	65Neutral	SEK 284.07B	21.57	33.45%	3.91%	-4.50%	21.73%
SE:BBROOM	58Neutral	SEK 157.54M	56.11	―	―	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SE:NEWA.B	42Neutral	SEK 13.48B	16.79	11.65%	3.20%	8.88%	-6.70%
SE:BOHO	41Neutral	SEK 391.19M	-14.97	―	―	-15.73%	26.82%

* General Sector Average

Performance Comparison

SE:BORG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:BORG	Bjorn Borg AB	58.80	-0.10	-0.16%
SE:HM.B	H&M Hennes & Mauritz AB Class B	177.95	13.59	8.27%
SE:NEWA.B	New Wave Group AB Class B	101.60	-6.11	-5.68%
SE:BOHO	Boho Group AB (publ)	6.78	-0.92	-11.95%
SE:BBROOM	New Bubbleroom Sweden AB	10.10	5.60	124.44%
SE:WSG	WS WeSports Group AB	73.58	1.14	1.57%

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 27, 2026

Bjorn Borg AB AI Stock Analysis