Ratos AB (RATO.B) AI Stock Analysis

• Market Cap: kr12.79B
• Dividend Yield: 3.48%
• Average Volume (3M): 409.16K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.30
• Revenue Growth: -22.65%
• EPS Growth: -14.05%
• Country: SE
• Employees: 10,900
• Sector: Services
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 0.48
• Shares Outstanding: 242,748,630
• 10 Day Avg. Volume: 387,906
• 30 Day Avg. Volume: 409,161
• 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: kr50.00
• Price Target Upside: 29.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: kr38.00 ▼(-1.96% Downside)

Ratos AB's overall stock score is driven primarily by its stable financial performance and positive technical indicators. The company's strong profitability metrics and solid balance sheet are offset by a decline in revenue and free cash flow growth. The technical analysis suggests a neutral to slightly positive trend, while the high P/E ratio indicates potential overvaluation. The absence of recent earnings call data and notable corporate events limits further insights.

Ratos AB Business Overview & Revenue Model

Company Description

Ratos AB (publ) is a private equity firm specializing in buyouts, turnarounds, add on acquisitions, and middle market transactions. The firm does not invest in early stages and in companies that operate in the arms industry, pornography, or are detrimental to the environment. It seeks to invest in unlisted medium sized companies. The firm invests in industry, construction and services, consumer, and technology sectors. The firm typically invests in the Nordic region, with focus on Sweden, Finland, Denmark, and Norway. It seeks to invest in companies with equity investments between SEK250 million ($29.66 million) and SEK5000 million ($762.77 million), sales value between SEK300 million ($45.77 million) and SEK5000 million (762.77 million) and EBITDA greater than SEK50 million ($5.15 million). The firm prefers minority and majority stakes. The firm prefers to be the principal owner with a minimum holding of at least 20 percent and also seeks a board seat. It prefers to hold its investment between five to ten years. It invests through its own balance sheet and bank loans. Ratos AB (publ) was founded in 1934 and is based in Stockholm, Sweden.

How the Company Makes Money

Ratos AB generates revenue primarily through the appreciation of its equity investments in portfolio companies. The company makes money by acquiring significant stakes in these companies, then working on improving their operational performance and profitability. Revenue streams include capital gains from the sale of these investments, as well as dividends received from profitable portfolio companies. Additionally, Ratos may earn management fees for providing strategic guidance and operational support to its portfolio, and it can also benefit from any exit strategies, such as initial public offerings (IPOs) or secondary sales. Key partnerships with industry leaders and financial institutions can enhance Ratos's ability to successfully navigate the market and optimize the value of its investments.

Ratos AB Financial Statement Overview

Summary

Ratos AB demonstrates stable financial performance with strong profitability metrics and a solid balance sheet. However, the decline in revenue and free cash flow growth poses potential risks. The company needs to address these challenges to sustain its financial health and growth trajectory.

Income Statement

Ratos AB's income statement shows mixed results. The company has a strong gross profit margin of 44.56% in TTM, indicating efficient cost management. However, the net profit margin is relatively low at 10.94%, and there is a concerning revenue decline of 11.06% in TTM. Despite these challenges, the EBIT and EBITDA margins are stable, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.63 in TTM, indicating manageable leverage. The return on equity is robust at 24.35%, showcasing effective use of equity to generate profits. The equity ratio stands at 48.13%, highlighting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals some weaknesses, with a decline in free cash flow growth by 12.24% in TTM. The operating cash flow to net income ratio is 0.63, indicating moderate cash generation from operations. The free cash flow to net income ratio is healthy at 0.90, suggesting good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.31B	32.12B	33.75B	29.88B	22.55B	20.94B
Gross Profit	12.62B	13.96B	14.65B	5.20B	4.25B	3.96B
EBITDA	3.30B	3.23B	3.99B	2.66B	2.45B	2.17B
Net Income	3.10B	249.00M	1.22B	879.00M	1.14B	693.00M
Balance Sheet
Total Assets	30.86B	34.54B	36.13B	37.17B	28.39B	28.64B
Cash, Cash Equivalents and Short-Term Investments	1.51B	2.19B	2.36B	2.53B	2.23B	2.83B
Total Debt	9.30B	9.00B	10.43B	13.04B	8.03B	8.33B
Total Liabilities	13.99B	19.78B	21.68B	23.39B	15.06B	17.36B
Stockholders Equity	14.85B	12.27B	12.31B	12.29B	11.94B	9.37B
Cash Flow
Free Cash Flow	2.66B	3.16B	4.04B	1.03B	1.03B	2.54B
Operating Cash Flow	2.97B	3.44B	4.28B	1.43B	1.45B	3.20B
Investing Cash Flow	-624.00M	-972.00M	-542.00M	-4.26B	-258.00M	-694.00M
Financing Cash Flow	-2.51B	-2.62B	-3.80B	2.99B	-2.23B	-2.47B

Ratos AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:RATO.B, the sentiment is Positive. The current price of 38.76 is above the 20-day moving average (MA) of 38.26, above the 50-day MA of 36.61, and above the 200-day MA of 35.58, indicating a bullish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 57.63 is Neutral, neither overbought nor oversold. The STOCH value of 71.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:RATO.B.

Ratos AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRED.A	76 Outperform	kr10.56B	8.05	12.47%	2.03%	4.72%	-38.28%
ORES	74 Outperform	kr5.26B	13.30	―	5.91%	-0.22%	-58.80%
MCAP	68 Neutral	€8.35B	41.68	15.16%	―	11.30%	-14.49%
SVOL.B	64 Neutral	€5.67B	645.24	0.16%	3.00%	-96.46%	-99.03%
RATO.B	62 Neutral	kr12.79B	15.36	6.59%	3.48%	-22.65%	-14.05%
BURE	60 Neutral	€20.38B	―	-13.33%	0.97%	22.27%	-145.59%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Ratos AB Corporate Events

HL Display CEO Björn Borgman to Depart for ITAB

Ratos announced that Björn Borgman, CEO of its subsidiary HL Display, will be leaving to become President and CEO of ITAB. Borgman, who has been with HL Display for ten years and CEO for the past five, will remain until a successor is appointed by April. The departure marks a significant leadership change for HL Display, a company known for its extensive global reach and innovative solutions in the retail sector.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK38.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos AB to Release January-September 2025 Interim Report

Ratos AB announced the release of its interim report for January-September 2025, scheduled for 21 October. The report will be presented by CEO Jonas Wiström and CFO Anna Vilogorac, with a live presentation available on YouTube. This announcement reflects Ratos’s commitment to transparency and engagement with stakeholders, potentially impacting investor relations and market perception.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK38.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos AB Releases Comparative Figures Reflecting Structural Changes

Ratos AB has released comparative figures ahead of its third-quarter interim report for 2025, reflecting structural changes including the divestment of airteam and the listing of Sentia on the Oslo Børs. The figures for continuing operations exclude Sentia and airteam, with Ratos retaining a 40% minority stake in Sentia. This stake is expected to contribute significantly to EBITA moving forward, despite a negligible impact in the second quarter of 2025 due to the timing of Sentia’s listing.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK38.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos AB Announces Nomination Committee for 2026 AGM

Ratos AB has announced the formation of its Nomination Committee in preparation for the 2026 Annual General Meeting (AGM), scheduled for March 25, 2026, in Stockholm, Sweden. The committee, which includes representatives from major shareholders, is tasked with evaluating the Board of Directors’ composition and drafting proposals for board elections, auditor appointments, and remuneration. This move underscores Ratos’s commitment to transparent governance and stakeholder engagement, potentially influencing its strategic direction and reinforcing its market position.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK37.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Streamlines Business Segments and Restructures Management

Ratos has announced a strategic realignment, focusing on streamlining its business segments, which includes the divestment of its Construction Services segment. This move has led to the departure of Christian Johansson Gebauer, the Head of the Construction & Services business area. Under his leadership, the segment developed well, contributing to Ratos’ profitability and cohesion. The management team has been restructured following his departure, with Jonas Wiström continuing as President and CEO.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK37.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.

Ratos Announces CEO Retirement and Successor Search

Ratos has announced the retirement of its CEO, Jonas Wiström, after nearly eight years of service. The company is initiating a search for his successor, with the Chairman of the Board leading the recruitment process. Wiström will remain in his role until a new CEO is appointed, ensuring a smooth transition. This leadership change is significant for Ratos as it may impact its strategic direction and operations, given the CEO’s role in steering the company’s growth and maintaining its market position.

The most recent analyst rating on ($SE:RATO.B) stock is a Hold with a SEK37.00 price target. To see the full list of analyst forecasts on Ratos AB stock, see the SE:RATO.B Stock Forecast page.