GARO AB (GARO) AI Stock Analysis

GARO AB

(Nasdaq OMX AB:GARO)

Select Model

Rating:52Neutral

Price Target:SEK 13.00▲(7.79% Upside)

Action:reiterated

Date:10/07/26

The overall score sits in the lower-middle range because persistent losses and materially compressed margins weigh heavily on the assessment despite a recent rebound in revenue and a strong improvement in free cash flow from previously volatile levels. Supporting factors include a resilient balance sheet with a sizeable equity buffer and moderate leverage, along with a mildly bullish technical picture where the share trades above short- and medium-term averages and shows constructive but not overstretched momentum. Valuation contributes modestly to the score, as negative earnings limit the usefulness of the P/E ratio and the absence of dividend yield data prevents income metrics from offsetting the fundamental risks.

Positive Factors

Manageable leverageManageable leverage and a substantial equity base provide GARO with financial resilience while it works through weaker profitability. This supports continued investment in electrical installation and EV-charging products and reduces the immediate risk that debt service will restrict strategic flexibility.

Negative Factors

Persistent lossesPersistent operating and net losses indicate that GARO's current revenue base is not producing adequate earnings. Continued losses can reduce retained capital, limit self-funded growth, and make financial performance more dependent on a successful recovery in operating profitability.

GARO AB (GARO) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 603.00M
Dividend Yield: ―
Average Volume (3M): 39.77K
Price to Earnings (P/E): -13.0
Beta (1Y): 0.30
Revenue Growth: -4.95%
EPS Growth: 10.31%
Country: Sweden
Employees: 346
Sector: Industrials
Sector Strength: 63
Industry: Electrical Equipment & Parts

GARO AB Business Overview & Revenue Model

Company Description

Garo Aktiebolag (publ) and its subsidiaries are engaged in the development, manufacturing, and distribution of electrical installation solutions and systems. Their market presence extends across Sweden, Norway, Finland, Poland, Ireland, and the Unite...

How the Company Makes Money

GARO makes money primarily by selling electrical products and electrification solutions to business customers, with revenue largely coming from (1) electrical installation products and (2) EV charging products and related solutions. In its installati...

GARO AB Financial Statement Overview

Summary

Financial performance is weak but stabilizing: profitability has shifted from strong to sustained losses with clearly negative margins, yet revenue is now rebounding and free cash flow has turned decisively positive on top of a still-solid equity cushion and moderate debt.

Income Statement

35Negative

Balance Sheet

60Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.03B	1.04B	1.15B	1.37B	1.39B	1.30B
Gross Profit	188.60M	478.90M	481.50M	60.60M	668.50M	650.20M
EBITDA	8.70M	43.70M	500.00K	109.40M	192.00M	248.10M
Net Income	-46.10M	-17.50M	-60.10M	31.30M	120.50M	166.70M
Balance Sheet
Total Assets	1.02B	1.00B	1.11B	1.20B	1.15B	936.90M
Cash, Cash Equivalents and Short-Term Investments	6.30M	17.00M	16.50M	50.00M	29.50M	81.60M
Total Debt	217.00M	256.80M	298.10M	272.10M	173.20M	72.20M
Total Liabilities	523.10M	475.60M	556.60M	589.10M	539.40M	385.40M
Stockholders Equity	495.80M	529.40M	555.50M	609.50M	614.10M	551.50M
Cash Flow
Free Cash Flow	43.50M	46.30M	-55.40M	-82.60M	-30.90M	76.40M
Operating Cash Flow	54.00M	57.90M	-35.80M	25.60M	89.20M	121.70M
Investing Cash Flow	-22.60M	-11.60M	-17.10M	-51.00M	-119.10M	-44.30M
Financing Cash Flow	-36.30M	-44.90M	18.10M	45.00M	-22.40M	-65.40M

GARO AB Technical Analysis

Technical Analysis SentimentPositive

Last Price12.06

Price Trends

50DMA11.41Positive

100DMA11.48Positive

200DMA12.31Negative

Market Momentum

MACD0.09Negative

RSI56.53Neutral

STOCH69.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:GARO, the sentiment is Positive. The current price of 12.06 is above the 20-day moving average (MA) of 11.77, above the 50-day MA of 11.41, and below the 200-day MA of 12.31, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 69.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:GARO.

GARO AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

SE:GARO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SE:CTEK	63Neutral	SEK 995.06M	19.75	6.89%	―	-13.52%	―
SE:ADDT.B	61Neutral	SEK 83.84B	36.28	28.37%	1.16%	4.32%	15.23%
SE:BERG.B	61Neutral	SEK 6.95B	26.38	13.53%	1.60%	1.00%	―
SE:GARO	52Neutral	SEK 603.00M	-12.99	-8.87%	―	-4.95%	10.31%
SE:CCC	49Neutral	SEK 1.13B	-14.29	―	―	-4.02%	-623.62%
SE:FERRO	41Neutral	SEK 322.07M	-9.20	―	―	80.80%	92.27%

* Industrials Sector Average

Performance Comparison

SE:GARO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:GARO	GARO AB	12.06	-4.96	-29.14%
SE:ADDT.B	Addtech AB Class B	310.60	-2.47	-0.79%
SE:BERG.B	Bergman & Beving AB Class B	262.00	-66.95	-20.35%
SE:CTEK	CTEK AB	14.22	1.36	10.58%
SE:FERRO	Ferroamp AB	2.98	1.25	72.54%
SE:CCC	Cavotec Group AB	10.60	-5.05	-32.27%

GARO AB Corporate Events

GARO Shuts Down Entity Charger Line to Refocus on Core Electrification Business

Oct 1, 2026

GARO AB is refocusing its E-mobility operations by discontinuing sales of the proprietary GARO Entity vehicle charger and reallocating resources to its broader Electrification portfolio. The move follows a strategic review after several years of unsu...

GARO Steps Up Restructuring as Profitability Slides in First Half 2026

Aug 14, 2026

GARO AB reported modest net sales growth of 2% in the second quarter to MSEK 272.3, but swung to an operating loss with an EBIT margin of -6.3%, contributing to a first-half net loss of MSEK 37.4 and negative earnings per share. Despite weaker profit...

GARO to Present Second-Quarter 2026 Interim Report on August 14

Aug 7, 2026

GARO AB will publish its interim report for the second quarter of 2026 on August 14 at 08:30 CEST, providing investors and stakeholders with updated insight into the company’s financial and operational performance for the January–June per...

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 07, 2026

GARO AB AI Stock Analysis