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IAR Systems Group AB Class B (SE:IAR.B)
:IAR.B

IAR Systems Group AB (IAR.B) AI Stock Analysis

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IAR Systems Group AB

(LSE:IAR.B)

Rating:64Neutral
Price Target:
kr117.00
▲(6.75%Upside)
The overall score reflects stable financial performance and reasonable valuation, offset by bearish technical indicators. The company's strong equity position and low leverage are positives, but recent declines in profitability and cash flow growth are concerns.

IAR Systems Group AB (IAR.B) vs. iShares MSCI Sweden ETF (EWD)

IAR Systems Group AB Business Overview & Revenue Model

Company DescriptionIAR Systems Group AB (IAR.B) is a leading provider of software and services for embedded systems development. Based in Sweden, the company specializes in offering comprehensive solutions for embedded development, including its widely used IAR Embedded Workbench, which supports a broad range of microprocessors. IAR Systems' products are utilized globally across various sectors, including automotive, industrial automation, medical devices, consumer electronics, and IoT applications, enabling developers to create high-quality, efficient, and reliable software for embedded systems.
How the Company Makes MoneyIAR Systems Group AB primarily generates revenue through the sale of its software products and licensing fees. Its flagship product, the IAR Embedded Workbench, is a critical tool for developers, offering a suite of development tools and compilers that help in the creation of embedded applications. The company operates on a subscription-based model, where customers pay for licenses that allow them to use the software, receive updates, and access customer support. Additionally, IAR Systems offers professional services such as training and consulting, which provide additional revenue streams. Key partnerships with semiconductor manufacturers and technology companies also play a role in expanding the company's reach and enhancing its product offerings, further contributing to its revenue.

IAR Systems Group AB Financial Statement Overview

Summary
IAR Systems Group AB displays a stable financial position with good profitability and strong cash flow generation. While there are concerns about recent declines in net income and free cash flow growth, the company's low leverage and solid equity position provide a strong foundation for future growth.
Income Statement
70
Positive
IAR Systems Group AB shows a solid gross profit margin and a positive net profit margin in the TTM (Trailing-Twelve-Months) period, indicating profitability. However, the revenue growth rate has been modest, and there was a significant decline in net income from the previous fiscal year, which impacts the overall score.
Balance Sheet
65
Positive
The company maintains a strong equity ratio, indicating a good balance between debt and equity. The debt-to-equity ratio is low, suggesting lower financial risk. However, the return on equity has seen a decline, which slightly affects overall balance sheet performance.
Cash Flow
75
Positive
A healthy operating cash flow and a positive free cash flow to net income ratio indicate strong cash generation capabilities. However, free cash flow growth has been negative compared to the previous period, which could be a concern if this trend continues.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
491.50M487.20M458.10M419.90M355.90M372.00M
Gross Profit
200.70M232.30M202.20M457.30M343.90M357.90M
EBIT
112.50M119.10M-204.10M75.70M51.20M83.80M
EBITDA
170.90M182.40M-173.00M109.80M-40.40M105.80M
Net Income Common Stockholders
85.30M135.20M-229.00M57.80M-67.40M59.40M
Balance SheetCash, Cash Equivalents and Short-Term Investments
155.40M155.40M197.40M148.20M113.40M67.80M
Total Assets
724.20M724.20M700.00M922.20M812.80M833.50M
Total Debt
44.90M44.90M51.70M69.30M56.00M66.30M
Net Debt
-110.50M-110.50M-145.70M-78.90M-57.40M-1.50M
Total Liabilities
261.70M261.70M276.60M255.40M227.50M220.10M
Stockholders Equity
462.50M462.50M423.40M666.80M585.30M613.40M
Cash FlowFree Cash Flow
69.40M80.90M102.00M-1.70M57.50M37.00M
Operating Cash Flow
126.40M135.40M144.10M57.80M131.60M118.40M
Investing Cash Flow
-57.00M-54.50M-41.80M-59.50M-74.10M-81.40M
Financing Cash Flow
-129.30M-125.40M-49.20M-39.50M-15.10M-24.60M

IAR Systems Group AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price109.60
Price Trends
50DMA
111.14
Negative
100DMA
120.84
Negative
200DMA
129.53
Negative
Market Momentum
MACD
-0.76
Negative
RSI
49.73
Neutral
STOCH
45.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:IAR.B, the sentiment is Negative. The current price of 109.6 is below the 20-day moving average (MA) of 109.64, below the 50-day MA of 111.14, and below the 200-day MA of 129.53, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:IAR.B.

IAR Systems Group AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
€1.17B14.6525.51%5.84%1.57%-1.85%
76
Outperform
kr3.12B15.3918.16%2.01%1.45%3.17%
SEEXS
75
Outperform
€1.59B25.7613.40%1.41%9.87%-14.05%
72
Outperform
kr637.73M10.4076.35%5.61%7.78%32.85%
SEB3
69
Neutral
kr533.03M6.2842.33%5.87%6.75%119.93%
64
Neutral
kr1.42B16.8118.36%1.39%4.59%
62
Neutral
$11.75B10.58-7.10%2.91%7.47%-7.95%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:IAR.B
IAR Systems Group AB
109.60
-61.61
-35.98%
SE:B3
B3 Consulting Group AB
59.80
-16.83
-21.96%
SE:EXS
Exsitec Holding AB
120.00
-48.51
-28.79%
SE:PACT
Proact IT Group AB
118.60
-30.77
-20.60%
SE:SLEEP
Sleep Cycle AB
33.30
0.36
1.10%
SE:SOF.B
Softronic AB Class B
22.40
2.03
9.97%

IAR Systems Group AB Corporate Events

IAR Systems Completes Series B Share Buyback
Apr 28, 2025

IAR Systems Group AB has completed a repurchase of 13,852 of its Series B shares as part of a buyback program that concluded on April 27, 2025. This program, conducted in accordance with EU regulations, reflects IAR’s strategic financial management and may impact its market positioning by potentially increasing shareholder value.

IAR Systems Reports Q1 Growth and Launches New Subscription Offering
Apr 28, 2025

IAR Systems Group AB reported a 3.7% increase in sales for Q1 2025, with significant growth in the APAC region, notably a 184% increase in China. The company launched a new cloud-enabled subscription offering at Embedded World in March, expected to boost annual recurring revenue and long-term growth, despite short-term fluctuations. The adjusted EBITDA margin decreased to 33.8% due to foreign exchange losses and increased personnel costs.

IAR Systems Completes Share Buyback Program
Apr 28, 2025

IAR Systems Group AB has completed a share buyback program, repurchasing 13,852 of its Series B shares between April 22 and April 25, 2025. This initiative, conducted on Nasdaq Stockholm, aligns with the EU Market Abuse Regulation and aims to enhance shareholder value by reducing the number of outstanding shares. The buyback program, which began in September 2024, is now closed, and IAR holds a total of 922,955 Series B shares and 308,042 Series C shares. This strategic move is expected to strengthen IAR’s market position and potentially increase the value for existing shareholders.

IAR Systems Boosts Q1 Sales with New Cloud Subscription Offering
Apr 28, 2025

IAR Systems Group AB reported a 3.7% increase in sales for the first quarter of 2025, driven by the launch of a new cloud-enabled subscription offering at Embedded World in Nuremberg. This strategic move is expected to boost annual recurring revenue and foster long-term growth, despite short-term fluctuations. The company faced challenges such as higher personnel costs and foreign exchange losses, impacting its operating profit margins. However, the APAC region, particularly China, showed significant growth, contributing to the company’s overall performance.

IAR Systems Concludes Series B Share Buyback Program
Apr 28, 2025

IAR Systems Group AB has completed the repurchase of 13,852 of its own Series B shares, as part of a buyback program authorized by the Board of Directors. This program, which concluded on April 27, 2025, was conducted in accordance with the EU Market Abuse Regulation and aimed to enhance shareholder value. The repurchase reflects IAR’s strategic financial management and commitment to its stakeholders.

IAR Systems Sees Growth with New Cloud Subscription Offering in Q1 2025
Apr 28, 2025

IAR Systems Group AB reported a 3.7% increase in sales for Q1 2025, with significant growth in the APAC region, particularly China. The company launched a new cloud-enabled subscription offering at Embedded World in March, which is expected to boost annual recurring revenue and drive long-term growth, despite short-term fluctuations. The quarter saw a decrease in operating profit due to foreign exchange losses and increased personnel costs, but the new offering has been well-received in EMEA and the US.

IAR Systems Completes Share Buyback Program
Apr 28, 2025

IAR Systems Group AB announced the completion of its share buyback program, repurchasing 13,852 Series B shares between April 22 and 25, 2025. This move, conducted on Nasdaq Stockholm, aligns with the company’s strategy to manage its capital structure and reflects confidence in its market positioning. The buyback program, which concluded on April 27, 2025, was executed under the EU Market Abuse Regulation and the Safe Harbour Regulation, potentially impacting shareholder value and market perception positively.

IAR Systems Reports Q1 2025 Growth and Launches New Cloud Offering
Apr 28, 2025

IAR Systems Group AB reported a modest growth in sales for the first quarter of 2025, with a 3.7% increase compared to the previous year. The company launched a new cloud-enabled subscription offering at Embedded World in Nuremberg, which is expected to boost annual recurring revenue and long-term growth. However, the company’s operating margins and EBITDA showed a decline due to foreign exchange losses and increased personnel costs. The strongest growth was observed in the APAC region, particularly in China, which saw a 184% increase.

IAR Systems Completes Share Buyback Program
Apr 28, 2025

IAR Systems Group AB announced the completion of its share buyback program, repurchasing 13,852 Series B shares between April 22 and April 25, 2025. This strategic move, conducted in compliance with EU regulations, enhances shareholder value and reflects the company’s robust financial health, potentially strengthening its market position.

IAR Systems Completes Series B Share Buyback Program
Apr 28, 2025

IAR Systems Group AB has completed the repurchase of 13,852 Series B shares as part of its buyback program, which concluded on April 27, 2025. This initiative, conducted on Nasdaq Stockholm by Danske Bank, aligns with the EU Market Abuse Regulation and enhances the company’s shareholding structure, potentially impacting its market positioning and shareholder value.

IAR Systems Concludes Share Buyback Program
Apr 28, 2025

IAR Systems Group AB has completed a share buyback program, repurchasing 13,852 Series B shares during the week of April 22-25, 2025, as part of a program that commenced in September 2024. This buyback, conducted on Nasdaq Stockholm, aligns with EU regulations and reflects IAR’s strategic financial management, potentially impacting shareholder value and market perception.

IAR Systems Concludes Series B Share Buyback Program
Apr 28, 2025

IAR Systems Group AB has completed a buyback of 13,852 Series B shares as part of its authorized share repurchase program, which concluded on April 27, 2025. The buyback, conducted on Nasdaq Stockholm, aligns with EU regulations and reflects the company’s strategic financial management, potentially impacting shareholder value and market perception.

IAR Systems Concludes Share Buyback Program
Apr 28, 2025

IAR Systems Group AB concluded its share buyback program, repurchasing 13,852 Series B shares in April 2025, as part of a strategy to enhance shareholder value. The buyback, conducted on Nasdaq Stockholm, aligns with EU regulations and reflects IAR’s commitment to optimizing its capital structure, potentially impacting its market positioning positively.

IAR Systems Completes Series B Share Buyback Program
Apr 28, 2025

IAR Systems Group AB has completed a share buyback program, repurchasing 13,852 of its own Series B shares between April 22 and April 25, 2025. This buyback, conducted on Nasdaq Stockholm by Danske Bank, concludes a program initiated in September 2024, aligning with EU regulations. The repurchase reflects IAR’s strategic financial management, potentially enhancing shareholder value and reinforcing market confidence.

IAR Systems Completes Series B Share Buyback Program
Apr 28, 2025

IAR Systems Group AB has completed a share buyback program, repurchasing 13,852 of its Series B shares between April 22 and April 25, 2025. This buyback, conducted on Nasdaq Stockholm by Danske Bank, is part of a program announced in September 2024 and is now closed. The program was carried out in compliance with EU regulations, and following these transactions, IAR holds 922,955 Series B shares and 308,042 Series C shares. The buyback reflects IAR’s strategic financial management, potentially enhancing shareholder value and signaling confidence in the company’s future prospects.

IAR Systems Completes Share Buyback Program
Apr 28, 2025

IAR Systems Group AB has completed a repurchase of 13,852 Series B shares as part of its buyback program, which concluded on April 27, 2025. This strategic move, conducted in compliance with EU regulations, enhances IAR’s financial positioning and reflects its commitment to shareholder value, impacting its stock holdings and market perception.

IAR Systems Completes Share Buyback Program
Apr 28, 2025

IAR Systems Group AB has completed a share buyback program, repurchasing 13,852 of its own Series B shares between April 22-25, 2025. This buyback, conducted on Nasdaq Stockholm, aligns with the company’s strategic financial management and complies with EU regulations, potentially impacting shareholder value and market perception.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.