Embellence Group AB (EMBELL) AI Stock Analysis

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Embellence Group AB

(Nasdaq OMX AB:EMBELL)

Select Model

Rating:70Outperform

Price Target:SEK 35.00▲(7.36% Upside)

Action:upgraded

Date:10/23/26

The score is driven primarily by solid financial performance, especially strong profitability and a conservatively levered balance sheet. Valuation is also favorable with a moderate P/E and high dividend yield. These positives are tempered by weak technical momentum, with the stock trading below key moving averages and showing oversold/downtrend signals.

Positive Factors

Strong profitabilityThe combination of a high gross margin and healthy operating margins indicates that Embellence retains meaningful economics in its design-led product portfolio. This profitability provides capacity to fund brand activity, product launches and distribution while preserving resilience if demand remains uneven.

Negative Factors

Revenue contractionThe lower trailing revenue base signals that Embellence has not yet returned to consistent top-line expansion after earlier growth years. Continued softness could limit operating leverage, reduce the benefits of scale across its brands, and make future profit improvement more dependent on efficiency.

Embellence Group AB (EMBELL) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 767.36M
Dividend Yield: 4.60%
Average Volume (3M): 8,606
Price to Earnings (P/E): 12.4
Beta (1Y): 0.29
Revenue Growth: -2.09%
EPS Growth: -8.24%
Country: Sweden
Employees: 228
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Furnishings, Fixtures & Appliances

Embellence Group AB Business Overview & Revenue Model

Company Description

Embellence Group AB (publ) focuses on the acquisition, ownership, and development of a diverse range of brands specializing in home decor products. Its extensive portfolio includes items such as wallpapers, textiles, rugs, and various other interior...

How the Company Makes Money

Embellence Group makes money primarily by selling interior design products—most notably wallpaper—through its brand portfolio. Revenue is generated from (1) product sales to retailers and distributors (wholesale), where Embellence supplies branded co...

Embellence Group AB Financial Statement Overview

Summary

Fundamentals are solid: strong gross margin (~62%) and healthy operating profitability (EBIT ~11%, EBITDA ~17%) support earnings quality. Balance sheet strength is a key positive with low and improving leverage (debt-to-equity ~0.18). Offsetting this are a mild TTM revenue decline (751m vs 765m prior) and some net margin softening (~8% vs ~9%), plus less-consistent cash conversion (OCF ~0.61x EBITDA) despite positive and improving free cash flow.

Income Statement

74Positive

Balance Sheet

82Very Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	751.00M	765.00M	778.00M	740.47M	720.10M	646.88M
Gross Profit	466.00M	472.00M	466.00M	432.47M	423.24M	359.05M
EBITDA	126.00M	132.00M	132.26M	119.00M	124.61M	109.55M
Net Income	62.00M	69.00M	57.00M	39.29M	57.40M	59.31M
Balance Sheet
Total Assets	797.00M	762.00M	830.00M	801.76M	853.18M	623.46M
Cash, Cash Equivalents and Short-Term Investments	42.00M	38.00M	40.57M	37.90M	66.23M	57.99M
Total Debt	129.00M	106.00M	139.00M	242.25M	277.72M	183.03M
Total Liabilities	268.00M	248.00M	292.00M	386.89M	454.12M	330.09M
Stockholders Equity	529.00M	513.00M	538.00M	414.88M	399.06M	293.37M
Cash Flow
Free Cash Flow	77.00M	69.00M	99.94M	48.92M	93.07M	43.56M
Operating Cash Flow	104.00M	91.00M	113.00M	64.53M	107.94M	62.10M
Investing Cash Flow	-28.00M	-22.00M	-13.55M	-16.19M	-156.41M	-53.23M
Financing Cash Flow	-73.00M	-68.00M	-98.58M	-77.80M	54.21M	-2.31M

Embellence Group AB Technical Analysis

Technical Analysis SentimentNeutral

Last Price32.60

Price Trends

50DMA32.80Negative

100DMA32.82Negative

200DMA33.37Negative

Market Momentum

MACD-0.36Negative

RSI53.43Neutral

STOCH83.84Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EMBELL, the sentiment is Neutral. The current price of 32.60 is above the 20-day moving average (MA) of 32.04, below the 50-day MA of 32.80, and below the 200-day MA of 33.37, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 53.43 is Neutral, neither overbought nor oversold. The STOCH value of 83.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:EMBELL.

Embellence Group AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

SE:EMBELL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SE:NELLY	77Outperform	SEK 1.08B	8.65	29.18%	―	5.08%	-15.03%
SE:SODER	72Outperform	SEK 170.86M	15.66	12.07%	3.96%	7.93%	94.40%
SE:EMBELL	70Outperform	SEK 767.36M	12.44	11.87%	4.60%	-2.09%	-8.24%
SE:RUG	69Neutral	SEK 1.45B	21.12	11.99%	2.15%	11.47%	15.20%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SE:DSNO	59Neutral	SEK 125.19M	-43.97	-2.54%	―	-8.90%	67.39%
SE:USWE	55Neutral	SEK 44.60M	-13.62	-4.87%	―	-9.26%	72.39%

* Consumer Cyclical Sector Average

Performance Comparison

SE:EMBELL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:EMBELL	Embellence Group AB	32.60	-7.18	-18.06%
SE:USWE	USWE Sports AB	6.25	-9.55	-60.44%
SE:SODER	Soder Sportfiske AB	20.20	-0.80	-3.83%
SE:DSNO	Desenio Group AB	0.13	0.05	67.11%
SE:RUG	RugVista Group AB	69.90	-1.01	-1.42%
SE:NELLY	Nelly Group AB	35.82	-54.88	-60.51%

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 22, 2026

Embellence Group AB AI Stock Analysis

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