MedCap AB (MCAP) AI Stock Analysis

MedCap AB

(Nasdaq OMX AB:MCAP)

Select Model

Rating:75Outperform

Price Target:SEK 635.00▲(14.83% Upside)

Action:reiterated

Date:10/27/26

MedCap earns a solid score driven primarily by its strong financial profile: durable double-digit revenue growth, five straight years of rising profits, expanding EBITDA margins, a conservatively financed balance sheet (debt-to-equity 0.26) and free cash flow now covering nearly 90% of earnings. Technicals reinforce the case, with the shares trading above all key moving averages and a positive MACD, though the stochastic reading points to possible short-term consolidation. The main constraint on the score is valuation — a P/E near 31 with no dividend leaves little margin for error — alongside goodwill and integration risk from the serial-acquirer model and inconsistent gross margin reporting.

Positive Factors

Profitable revenue growthPositive revenue expansion alongside healthy EBIT, EBITDA, and net margins indicates that MedCap’s portfolio companies are converting growth into substantial operating profitability. This supports reinvestment, strengthens the earnings base, and suggests the group has durable economic value beyond short-term sales fluctuations.

Negative Factors

Uneven operating cash conversionAlthough free cash flow is generally good, weaker and uneven operating cash conversion means earnings may not consistently arrive as cash within the same periods. This can create working-capital volatility, complicate portfolio funding decisions, and reduce flexibility during periods of faster investment or weaker trading.

MedCap AB (MCAP) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 8.34B
Dividend Yield: ―
Average Volume (3M): 19.55K
Price to Earnings (P/E): 30.3
Beta (1Y): 0.46
Revenue Growth: 16.54%
EPS Growth: 39.10%
Country: Sweden
Employees: 647
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Devices

MedCap AB Business Overview & Revenue Model

Company Description

MedCap AB (publ) operates as a private equity firm, employing a diverse array of investment strategies including secondary direct deals, later-stage funding, industry consolidation, growth capital provision, engagement with middle-market and mature b...

How the Company Makes Money

MedCap makes money primarily through the operating earnings of its consolidated portfolio companies and the value creation of those businesses over time. The core revenue engine sits in the subsidiaries/portfolio companies, which generate sales by pr...

MedCap AB Financial Statement Overview

Summary

MedCap scores well across all three statements (Income 79, Balance Sheet 82, Cash Flow 78). Revenue has more than doubled in five years to SEK 2,321M TTM, with net income rising every year to SEK 274M and EBITDA margin expanding from 20.9% to 24.0%. The balance sheet is conservative — equity funds 61% of assets, debt-to-equity is just 0.26, and total debt sits below one year of EBITDA — while ROE has improved to 17.5%. Cash conversion has strengthened markedly, with free cash flow now near 90% of net income. Offsetting this are inconsistent gross margin reporting across periods, a choppy free cash flow history, growth moderating from the 2023 peak, and goodwill/integration risk inherent in an acquisition-led model.

Income Statement

79Positive

Balance Sheet

82Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.32B	2.11B	1.81B	1.59B	1.11B	916.30M
Gross Profit	882.00M	321.00M	1.06B	926.40M	462.40M	369.80M
EBITDA	557.90M	473.80M	396.00M	341.90M	256.20M	201.90M
Net Income	274.40M	219.80M	207.40M	172.20M	117.60M	96.50M
Balance Sheet
Total Assets	2.80B	2.61B	1.99B	1.66B	1.43B	1.17B
Cash, Cash Equivalents and Short-Term Investments	272.80M	370.40M	370.10M	188.20M	236.20M	139.70M
Total Debt	437.70M	482.90M	358.00M	261.20M	340.00M	256.90M
Total Liabilities	1.09B	1.15B	703.20M	635.10M	570.60M	471.80M
Stockholders Equity	1.71B	1.45B	1.28B	1.02B	856.30M	696.00M
Cash Flow
Free Cash Flow	374.60M	280.50M	293.80M	188.70M	41.20M	55.40M
Operating Cash Flow	422.00M	342.70M	360.00M	228.00M	85.50M	116.30M
Investing Cash Flow	-305.90M	-391.30M	-128.80M	-152.30M	-56.10M	-64.80M
Financing Cash Flow	-215.70M	52.20M	-46.10M	-119.70M	61.20M	-64.10M

MedCap AB Technical Analysis

Technical Analysis SentimentPositive

Last Price553.00

Price Trends

50DMA538.26Positive

100DMA533.00Positive

200DMA515.36Positive

Market Momentum

MACD5.71Negative

RSI54.76Neutral

STOCH19.11Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MCAP, the sentiment is Positive. The current price of 553.00 is above the 20-day moving average (MA) of 536.10, above the 50-day MA of 538.26, and above the 200-day MA of 515.36, indicating a bullish trend. The MACD of 5.71 indicates Negative momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 19.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:MCAP.

MedCap AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

SE:MCAP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SE:MCAP	75Outperform	SEK 8.34B	30.25	17.50%	―	16.54%	39.10%
SE:SECT.B	74Outperform	SEK 67.51B	105.81	30.26%	0.38%	13.94%	5.70%
SE:GETI.B	67Neutral	SEK 75.64B	26.73	9.13%	1.71%	-3.90%	37.73%
SE:XVIVO	64Neutral	SEK 6.46B	50.12	5.89%	―	17.83%	330.94%
SE:VITR	61Neutral	SEK 15.64B	-3.15	-61.57%	0.95%	-1.94%	-1223.74%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SE:SEDANA	49Neutral	SEK 926.81M	-26.86	-3.88%	―	0.42%	15.03%

* Healthcare Sector Average

Performance Comparison

SE:MCAP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:MCAP	MedCap AB	553.00	-39.00	-6.59%
SE:GETI.B	Getinge AB (UK)	277.70	60.83	28.05%
SE:VITR	Vitrolife AB	115.50	-26.84	-18.85%
SE:XVIVO	Xvivo Perfusion AB	205.00	22.50	12.33%
SE:SECT.B	Sectra AB Class B	346.00	49.17	16.56%
SE:SEDANA	Sedana Medical AB	9.33	-0.83	-8.17%

MedCap AB Corporate Events

MedCap Delivers Strong Margin Expansion and Earnings Growth in Third Quarter

Oct 23, 2026

MedCap AB reported strong third-quarter performance, with net sales rising 13 percent to SEK 566.7 million and EBITA surging 72 percent to SEK 154.7 million, driven partly by adjustments to contingent consideration liabilities. Even excluding items a...

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

MedCap AB AI Stock Analysis