OEM International AB Class B (OEM.B) AI Stock Analysis

• Market Cap: €20.08B
• Dividend Yield: 1.22%
• Average Volume (3M): 71.05K
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.83
• Revenue Growth: 2.54%
• EPS Growth: 4.25%
• Country: SE
• Employees: 1,056
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.01
• Shares Outstanding: 111,151,680
• 10 Day Avg. Volume: 110,864
• 30 Day Avg. Volume: 71,053
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €147.88
• Price Target Upside: 2.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: kr148.00 ▲(3.06% Upside)

OEM International AB Class B has strong financial performance with solid revenue growth and profitability, which is the most significant factor. However, technical indicators suggest mixed momentum, and the valuation appears high, which impacts the overall score.

OEM International AB Class B Business Overview & Revenue Model

Company Description

OEM International AB (publ), together with its subsidiaries, provides products and systems for industrial applications. The company offers a range of industrial automation components in the areas of electrical components, flow technology, motors, transmissions and brakes, ball bearings and seals, appliance components, and installation components, as well as machine components and cables, engines, and pressure and flow components. It sells its products in Sweden, Finland, the Baltic States, China, Denmark, Norway, the United Kingdom, and East Central Europe. The company was incorporated in 1973 and is based in Tranås, Sweden.

How the Company Makes Money

OEM International generates revenue through the distribution and sales of a diverse portfolio of industrial components and systems. Key revenue streams include the sale of automation equipment, hydraulic components, and electrical systems, which are sourced from well-known manufacturers and brands. The company often operates on a B2B model, supplying products to businesses and industrial clients. Furthermore, OEM International benefits from strategic partnerships with leading suppliers, which enhance its product offerings and market reach. Additional revenue may also stem from value-added services, such as technical support and customized solutions tailored to meet specific customer needs.

OEM International AB Class B Financial Statement Overview

Summary

OEM International AB Class B shows strong revenue growth and profitability with healthy margins. The balance sheet is robust with low leverage and high return on equity. However, the decline in free cash flow growth needs attention.

Income Statement

OEM International AB Class B demonstrates strong revenue growth with a TTM growth rate of 11.4%. The company maintains healthy margins, with a gross profit margin of 31% and a net profit margin of 11.27%. EBIT and EBITDA margins are also robust at 14.28% and 16.32%, respectively. However, there is a slight decline in gross profit margin compared to previous periods, indicating potential cost pressures.

Balance Sheet

The company exhibits a solid balance sheet with a low debt-to-equity ratio of 0.046, indicating minimal leverage. Return on equity is strong at 25.09%, reflecting efficient use of equity capital. The equity ratio is also favorable, suggesting a stable financial position with significant equity backing.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth by 6.05% in the TTM period, which could be a concern. However, the operating cash flow to net income ratio is healthy at 0.93, and the free cash flow to net income ratio is strong at 0.94, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.29B	5.24B	5.14B	4.73B	3.77B	3.28B
Gross Profit	1.64B	1.88B	1.84B	1.71B	1.37B	1.14B
EBITDA	863.00M	870.00M	875.00M	828.70M	647.90M	482.90M
Net Income	596.00M	606.00M	607.20M	575.70M	457.00M	317.30M
Balance Sheet
Total Assets	3.29B	3.33B	2.93B	2.80B	2.05B	1.99B
Cash, Cash Equivalents and Short-Term Investments	477.00M	557.00M	232.50M	108.90M	144.80M	376.10M
Total Debt	111.00M	140.10M	147.40M	377.20M	90.80M	103.50M
Total Liabilities	881.00M	943.00M	940.80M	1.21B	680.00M	625.80M
Stockholders Equity	2.40B	2.39B	1.99B	1.59B	1.37B	1.37B
Cash Flow
Free Cash Flow	575.00M	657.00M	736.40M	241.10M	265.60M	459.70M
Operating Cash Flow	612.00M	692.00M	790.70M	262.50M	319.30M	468.80M
Investing Cash Flow	-143.00M	-68.00M	-149.00M	-152.70M	-54.30M	-34.30M
Financing Cash Flow	-299.00M	-307.00M	-515.50M	-152.60M	-498.40M	-97.10M

OEM International AB Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 143.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:OEM.B, the sentiment is Positive. The current price of 143.6 is above the 20-day moving average (MA) of 132.60, above the 50-day MA of 134.93, and above the 200-day MA of 130.84, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 65.71 is Neutral, neither overbought nor oversold. The STOCH value of 95.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:OEM.B.

OEM International AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALIG	76 Outperform	16.86B	23.79	9.97%	1.91%	-0.39%	34.10%
AQ	73 Outperform	18.32B	28.57	14.73%	0.80%	-1.58%	-1.95%
OEM.B	70 Outperform	€20.08B	33.43	26.55%	1.22%	2.54%	4.25%
BUFAB	55 Neutral	17.33B	30.83	15.39%	1.15%	-4.08%	27.56%
STOR.B	55 Neutral	15.66B	16.81	4.76%	1.07%	-5.60%	―
BERG.B	54 Neutral	8.98B	-188.85	-2.78%	1.18%	6.11%	-124.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

OEM International AB Class B Corporate Events

OEM International AB Announces 2025 Incentive Scheme Results

OEM International AB has announced the results of its 2025 share-related incentive scheme, where 95,000 out of a possible 200,000 call options were subscribed by approximately 60 senior executives. These options, priced at SEK 17.30 each, allow for the acquisition of series B shares at an exercise price of SEK 166.70, reflecting 120% of the average share price during a specified period. This scheme is part of the company’s strategy to align executive interests with shareholder value and could potentially impact the company’s market positioning by incentivizing leadership to drive growth.