Railcare Group AB (RAIL) AI Stock Analysis

• Market Cap: kr639.29M
• Dividend Yield: 2.67%
• Average Volume (3M): 10.34K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.26
• Revenue Growth: 1.54%
• EPS Growth: -36.43%
• Country: SE
• Employees: 187
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.33
• Shares Outstanding: 24,124,168
• 10 Day Avg. Volume: 6,142
• 30 Day Avg. Volume: 10,341
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: kr29.00 ▲(6.62% Upside)

Railcare Group AB's overall stock score reflects a combination of mixed financial performance, neutral technical indicators, and moderate valuation. The company's strong cash flow management is a positive factor, but challenges in revenue growth and high leverage pose risks. The technical outlook is stable, and valuation metrics suggest limited upside potential.

Railcare Group AB Business Overview & Revenue Model

Company Description

Railcare Group AB (publ) provides railway maintenance services primarily in the Nordic region and the United Kingdom. The company offers maintenance services for railway re-ballasting beneath tracks and switches; special transport services, including locomotive and wagon rentals, and temporary personnel; and workshop services, such as repairs, upgrades, and regular maintenance. It also conducts construction and project transports, heavy transports, and special transports that require traffic permits; supplies personnel, locomotives, wagons, and machines; installs radio control systems and safety systems; and renovates and modifies railway vehicles. In addition, the company produces, markets, and sells engineered machines, including ballast feeder systems, multi-purpose vehicles for railway maintenance, high-volume vacuum excavator machines, vacuum suction machines, and snow clearing machines. Railcare Group AB (publ) was founded in 1992 and is headquartered in Skelleftehamn, Sweden.

How the Company Makes Money

Railcare Group AB generates revenue through multiple streams tied to its core operations in the railway sector. The primary revenue sources include fees for rail transport services, which involve the movement of goods and materials across the rail network. Additionally, the company earns income from leasing rail vehicles to customers, providing a steady cash flow from long-term contracts. Railcare also derives revenue from maintenance and repair services for railway infrastructure, including track inspections and upgrades. Strategic partnerships with various railway operators and government agencies enhance its market position and lead to recurring contracts, contributing significantly to its financial performance.

Railcare Group AB Financial Statement Overview

Summary

Railcare Group AB's financial performance is mixed. The income statement shows declining revenue and profit margins, indicating challenges in revenue growth and cost management. The balance sheet highlights high leverage, which could pose financial risks if not managed properly. However, the cash flow statement is strong, with significant free cash flow growth, suggesting effective cash management.

Income Statement

Railcare Group AB's income statement shows mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is at 21.83%, which is a decline from previous years, indicating pressure on cost management. The net profit margin is relatively low at 4.45%, reflecting challenges in converting revenue into profit. Revenue growth has been negative recently, with a decline of 26.6% in the TTM period, which is concerning. However, the company maintains a positive EBIT and EBITDA margin, suggesting operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.15 in the TTM period, indicating significant leverage which could pose financial risk. Return on equity has decreased to 9.70%, showing reduced profitability for shareholders. The equity ratio stands at 26.09%, suggesting a moderate level of financial stability. Overall, the balance sheet reflects a leveraged position with potential risks if not managed carefully.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 35.81% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.40, which is lower than previous years, suggesting a need for better cash conversion. The free cash flow to net income ratio is healthy at 0.56, demonstrating effective cash management relative to net income. Overall, cash flow performance is robust, with positive growth trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	627.25M	635.30M	564.22M	497.04M	437.94M	401.30M
Gross Profit	136.95M	71.10M	154.81M	126.87M	114.25M	117.94M
EBITDA	83.71M	66.28M	112.01M	93.56M	107.51M	112.79M
Net Income	27.88M	30.39M	43.62M	36.78M	40.51M	43.77M
Balance Sheet
Total Assets	1.08B	1.04B	643.02M	592.87M	557.97M	521.39M
Cash, Cash Equivalents and Short-Term Investments	2.35M	61.69M	39.43M	31.98M	38.56M	24.79M
Total Debt	607.39M	591.82M	208.07M	218.06M	217.72M	226.85M
Total Liabilities	800.95M	757.30M	368.90M	348.78M	336.81M	326.53M
Stockholders Equity	282.80M	286.47M	274.12M	244.09M	221.15M	194.86M
Cash Flow
Free Cash Flow	78.09M	85.44M	41.91M	14.12M	57.06M	28.98M
Operating Cash Flow	139.54M	151.72M	102.28M	67.40M	100.24M	82.85M
Investing Cash Flow	-86.23M	-87.48M	-60.72M	-53.16M	-38.88M	-54.14M
Financing Cash Flow	-60.41M	-42.10M	-34.26M	-21.21M	-47.90M	-25.82M

Railcare Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:RAIL, the sentiment is Positive. The current price of 27.2 is above the 20-day moving average (MA) of 26.78, above the 50-day MA of 26.61, and above the 200-day MA of 26.21, indicating a bullish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 60.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:RAIL.

Railcare Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RAIL	60 Neutral	kr639.29M	22.67	―	2.67%	1.54%	-36.43%
NORB.B	58 Neutral	€681.13M	53.63	1.08%	―	2.41%	―
TRANS	56 Neutral	kr513.70M	29.53	3.44%	―	8.67%	-49.01%
GREEN	53 Neutral	€2.72B	16.82	8.53%	―	-0.37%	-39.70%
ELTEL	44 Neutral	€1.37B	―	-1.65%	―	-6.41%	90.48%
WBGR.B	41 Neutral	€546.05M	-0.88	-44.27%	―	14.09%	-55.78%

Railcare Group AB Corporate Events

Railcare Group AB Forms Nomination Committee for 2026 AGM

Railcare Group AB has established a Nomination Committee for its 2026 Annual General Meeting, consisting of representatives from major shareholders who collectively hold 40.1% of the company’s shares. The committee, chaired by Jonas Holmqvist, is tasked with proposing board members, fees, and auditors for the upcoming meeting, reflecting Railcare’s strategic governance efforts to align with shareholder interests.

The most recent analyst rating on (SE:RAIL) stock is a Hold with a SEK27.00 price target. To see the full list of analyst forecasts on Railcare Group AB stock, see the SE:RAIL Stock Forecast page.

Railcare Group AB Restructures to Drive Growth and Meet Financial Targets

Railcare Group AB has restructured its organization into three business areas: Contracting, Transport, and Technology, appointing new managers to drive growth and achieve its 2027 financial targets. This strategic reorganization aims to enhance collaboration and meet the increasing demand for comprehensive railway solutions, positioning Railcare strongly for future development.

The most recent analyst rating on (SE:RAIL) stock is a Hold with a SEK28.00 price target. To see the full list of analyst forecasts on Railcare Group AB stock, see the SE:RAIL Stock Forecast page.

Railcare Group AB Releases Interim Report for First Half of 2025

Railcare Group AB has released its interim report for January to June 2025, presented by CEO Mattias Remahl. This report highlights the company’s ongoing commitment to sustainable railway solutions amid a growing industry with increasing traffic volumes and investment programs. The announcement underscores Railcare’s strategic positioning in the railway sector, emphasizing its role in delivering cost-effective freight and passenger transport solutions.

Railcare Group AB Expands Operations with New Locomotives Amid Mixed Financial Results

Railcare Group AB reported a slight decrease in net sales for the second quarter of 2025 compared to the previous year, but saw an increase in operating profit. The company has expanded its operations by deploying new clearance locomotives in Gävle and Ånge, which are part of an expanded standby assignment for the Swedish Transport Administration. This strategic move is expected to strengthen Railcare’s operational capabilities and market positioning.