Munters Group AB (MTRS) AI Stock Analysis

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Munters Group AB

(OTC:MTRS)

68Neutral

Munters Group AB demonstrates strong financial health driven by robust revenue growth and efficient cash management, which is a significant factor in its overall score. However, declining net profitability and increasing debt levels introduce potential risks. The technical analysis presents mixed signals, with some indicators suggesting caution due to potential overbought conditions. The high P/E ratio suggests the stock might be overvalued, tempering the overall assessment. The absence of earnings call and corporate events data slightly limits the analysis, but the main focus remains on financial performance and market valuation.

Positive Factors

Earnings Performance

Munters' Q1 report was a positive surprise, highlighting impressive performance driven by strong momentum in DCT.

Strategic Investments

Munters announced a SEK 250m investment to expand and modernize its Tobo, Sweden facility, aiming to enhance manufacturing efficiency within the AirTech division.

Valuation

Shares are now trading at a 25% discount to its 5-year average, presenting an attractive entry point for long-term investors.

Negative Factors

Divestment Impact

The divestment expected to result in a capital loss of SEK ~0.5bn.

Geopolitical Risks

Negative estimate revisions reflect increasing complexities amid geopolitical tensions.

Order Intake Decline

Order intake was SEK 4,348m, -23% year-on-year and -29% organic.

Munters Group AB (MTRS) vs. S&P 500 (SPY)

Market Cap

$25.92B

Dividend Yield0.96%

Average Volume (3M)882.19K

Price to Earnings (P/E)42.7

Beta (1Y)1.16

Revenue Growth9.35%

EPS Growth-23.28%

CountrySE

Employees4,999

SectorIndustrials

Sector Strength89

IndustryIndustrial - Pollution & Treatment Controls

Share Statistics

EPS (TTM)3.32

Shares Outstanding184,457,810

10 Day Avg. Volume914,268

30 Day Avg. Volume882,192

Financial Highlights & Ratios

PEG Ratio-1.04

Price to Book (P/B)4.38

Price to Sales (P/S)0.00

P/FCF Ratio19.64

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$152.51

Price Target Upside7.94% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Munters Group AB Business Overview & Revenue Model

Company DescriptionMunters Group AB is a global leader in energy-efficient and sustainable climate control solutions for mission-critical processes. The company operates primarily in two sectors: AirTech and FoodTech. AirTech provides climate control solutions for industrial and commercial applications, including data centers, hospitals, and manufacturing facilities. FoodTech offers climate control and energy-efficient solutions for the agriculture and food sectors, focusing on livestock and greenhouse operations.

How the Company Makes MoneyMunters Group AB generates revenue through the sale of its climate control systems and related services. The AirTech segment contributes significantly to the company's earnings by providing customized solutions for temperature and humidity control in various industrial and commercial settings. This includes selling equipment, installation, and maintenance services. In the FoodTech sector, Munters earns revenue by offering products that enhance the climate conditions for agriculture and food production, thereby improving yield and efficiency. The company also benefits from long-term service agreements and aftermarket support, which provide a steady income stream. Key partnerships with industry leaders and a strong focus on research and development further support Munters' revenue growth by enabling the introduction of innovative and energy-efficient solutions.

Munters Group AB Financial Statement Overview

Summary

Munters Group AB exhibits strong revenue growth and operational performance, supported by efficient cost management. While the company maintains a healthy balance sheet and robust cash flows, declining net profitability and increasing debt levels pose potential risks. The overall financial health is solid, with opportunities for improvement in profitability and leverage management.

Income Statement

Very Positive

Munters Group AB has shown consistent revenue growth, with significant increases in both gross and net profit margins. The TTM (Trailing-Twelve-Months) gross profit margin is robust at 34.3%, reflecting efficient cost management. The net profit margin for TTM is 3.9%, showing a decline from the previous year's 6.3%, which suggests pressure on net profitability. Overall, the income statement indicates strong operational performance but highlights some challenges in maintaining net income levels.

Balance Sheet

Positive

The balance sheet reflects a stable financial position, with a moderate debt-to-equity ratio of 1.62 in the TTM period. Return on equity has decreased to 11.1% in TTM from 16.5% in the previous year, indicating reduced shareholder returns. The equity ratio stands at 25.3%, showing a balanced approach to funding but with room for improvement. The company maintains a solid equity base, but the increasing debt levels pose a potential risk.

Cash Flow

Very Positive

The cash flow statement indicates strong operational cash generation, with an operating cash flow to net income ratio of 3.89 in TTM. Free cash flow has decreased slightly, but it is still positive, supporting ongoing investments. The free cash flow to net income ratio is favorable at 2.00, demonstrating efficient cash conversion. Overall, cash flows remain robust, providing a strong foundation for future growth despite recent fluctuations.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
15.63B	15.45B	13.93B	10.39B	7.35B	7.01B
	Gross Profit
5.35B	5.32B	4.42B	3.02B	2.35B	2.35B
	EBIT
1.81B	1.84B	1.59B	881.00M	753.00M	707.00M
	EBITDA
2.53B	2.50B	2.11B	1.28B	1.07B	1.01B
	Net Income Common Stockholders
606.00M	973.00M	784.00M	577.00M	513.00M	420.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.44B	1.53B	1.53B	914.00M	674.00M	970.00M
	Total Assets
21.48B	21.98B	16.73B	15.42B	10.74B	9.57B
	Total Debt
8.82B	7.60B	5.85B	4.50B	2.75B	2.79B
	Net Debt
7.38B	6.07B	4.32B	3.58B	2.08B	1.82B
	Total Liabilities
16.02B	16.07B	11.47B	10.11B	6.38B	5.82B
	Stockholders Equity
5.44B	5.89B	5.26B	5.30B	4.36B	3.75B
Cash Flow		Free Cash Flow
1.21B	1.31B	396.00M	233.00M	177.00M	760.00M
	Operating Cash Flow
2.36B	2.37B	1.07B	772.00M	519.00M	977.00M
	Investing Cash Flow
-3.71B	-2.87B	-1.42B	-1.33B	-341.00M	-209.00M
	Financing Cash Flow
1.33B	467.00M	1.01B	743.00M	-503.00M	-481.00M

Munters Group AB Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price141.30

Price Trends

50DMA

117.63

Positive

100DMA

144.30

Negative

200DMA

171.49

Negative

Market Momentum

MACD

7.47

Negative

RSI

71.11

Negative

STOCH

87.47

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MTRS, the sentiment is Neutral. The current price of 141.3 is above the 20-day moving average (MA) of 120.10, above the 50-day MA of 117.63, and below the 200-day MA of 171.49, indicating a neutral trend. The MACD of 7.47 indicates Negative momentum. The RSI at 71.11 is Negative, neither overbought nor oversold. The STOCH value of 87.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:MTRS.

Munters Group AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYSR	74 Outperform	kr18.97B	24.95	13.35%	1.27%	0.42%	-29.62%
ALIG	74 Outperform	€14.53B	21.20	9.04%	1.82%	0.13%	29.88%
AQ	74 Outperform	kr15.66B	24.20	15.07%	0.91%	-3.59%	-1.67%
LIAB	69 Neutral	kr17.05B	49.98	4.65%	2.41%	2.71%	-56.45%
MTRS	68 Neutral	$25.92B	42.74	16.98%	0.96%	9.35%	-23.28%
Sector *	64 Neutral	$4.40B	12.09	5.26%	250.03%	4.08%	-11.05%

* Industrials Sector Average

Performance Comparison

SE:MTRS

Munters Group AB

141.30

-93.22

-39.75%

SE:LIAB

Lindab International AB

221.00

5.27

2.44%

SE:ALIG

Alimak Group AB

136.00

26.36

24.05%

SE:AQ

AQ Group AB

167.80

25.36

17.80%

SE:SYSR

Systemair AB

89.50

8.64

10.69%

Munters Group AB Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2024)

% Change Since: 28.11%|

Next Earnings Date:Jul 18, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong growth in order intake, significant improvements in EBITDA margin, and positive developments in the Data Center and FoodTech segments. However, challenges in the APAC region and AirTech segment, along with items affecting comparability, presented some areas of concern. Overall, the highlights outweighed the lowlights, suggesting a positive outlook.

Q1-2024 Updates

Positive Updates

Strong Order Intake

Order intake increased by 32%, with 29% being organic growth, showcasing robust demand across all business areas, particularly in AirTech and FoodTech.

Impressive EBITDA Margin

Achieved an adjusted EBITDA margin of 14.1%, driven by strong volume increases in Data Center and FoodTech, high factory utilization, and operational excellence initiatives.

Data Center Segment Performance

Data Center segment reached a 19% EBITDA margin, attributed to strong volume increases, net price increases, and high utilization rates in production.

Growth in Software-as-a-Service

Software-as-a-Service in FoodTech grew by 68%, contributing to high gross margins and supporting the company's digital solutions growth strategy.

Sustainability Achievements

Renewable electricity usage in factories reached 80%, and there was a significant improvement in health and safety metrics, with accident rates reduced to 1.4.

Negative Updates

Weaker Performance in APAC

APAC region showed continued weak development, particularly in the Battery market and FoodTech in China, although signs of bottoming out were noted.

Challenges in AirTech

AirTech segment experienced a 1% decrease in net sales, with a lowered margin of 14.9%, reflecting challenges in EMEA and APAC.

Items Affecting Comparability

Recorded items affecting comparability related to FoodTech strategic review, M&A activities, and exit from the Marine business, impacting net income.

Company Guidance

In the Q1 2024 earnings call for MTRS.ST, the executives presented a strong quarter characterized by stable growth, robust operational achievements, and strategic investments aimed at sustainable future growth. The highlights included a 32% increase in order intake with 29% of it being organic, an 11% growth in net sales with 7% organic growth, and an adjusted EBITDA margin improvement to about 14%. The company noted significant contributions from the Data Center Technology (DCT) sector, which showcased a 19% EBITDA margin, and strong growth in the FoodTech segment, particularly in the Americas and EMEA regions. The order backlog increased by 10%, supporting projections into 2025, while leverage decreased to a ratio of 2.0 due to improved profitability. The call also addressed the ongoing strategic review of the FoodTech segment, with a decision expected by the end of H1 2024, and discussed ongoing investments in expanding manufacturing capabilities, particularly in Cork, Ireland. The session concluded with the company expressing optimism about continued growth and profitability across its segments.

Munters Group AB Corporate Events

Munters Group AB Annual General Meeting Resolutions

May 14, 2025

At the annual general meeting of Munters Group AB, key resolutions included the adoption of the 2024 financial statements, approval of a SEK 1.60 per share dividend, and re-election of board members and auditors. The meeting also authorized the Board to issue new shares and manage the company’s own shares, reflecting strategic flexibility for future growth.

The most recent analyst rating on (SE:MTRS) stock is a Buy with a SEK210.00 price target. To see the full list of analyst forecasts on Munters Group AB stock, see the SE:MTRS Stock Forecast page.

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.