Teqnion AB (TEQ) AI Stock Analysis

• Market Cap: kr2.66B
• Dividend Yield: N/A
• Average Volume (3M): 14.26K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.34
• Revenue Growth: 9.55%
• EPS Growth: -3.47%
• Country: SE
• Employees: 506
• Sector: Technology
• Sector Strength: 88
• Industry: Industrial - Distribution
• EPS (TTM): 2.24
• Shares Outstanding: 17,165,756
• 10 Day Avg. Volume: 9,181
• 30 Day Avg. Volume: 14,258
• 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: kr169.00
• Price Target Upside: 9.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: kr185.00 ▲(19.35% Upside)

Teqnion AB's stock score is driven by strong technical indicators and solid financial performance, despite challenges in cash flow and valuation concerns. The stock's upward momentum and consistent revenue growth are significant positives, while the lack of dividend yield and increased leverage are areas to watch.

Teqnion AB Business Overview & Revenue Model

Company Description

Teqnion AB (TEQ) is a Swedish industrial group engaged in the acquisition, development, and management of niche companies across various sectors. The company focuses on providing specialized products and solutions in areas such as industry, infrastructure, and technology. Teqnion's core strategy involves fostering growth and profitability within its subsidiaries by leveraging synergies, operational efficiencies, and strategic market positioning.

How the Company Makes Money

Teqnion AB generates revenue primarily through its diverse portfolio of subsidiary companies. Each subsidiary operates in distinct industries and markets, contributing to the group's overall earnings. The company makes money by acquiring businesses with strong market positions and potential for growth, then supporting these businesses with resources and strategic guidance to enhance their operational performance. Key revenue streams include sales of specialized industrial products, technical solutions, and services across various sectors. Teqnion's profitability is further enhanced through strategic partnerships, economies of scale, and continuous investments in innovation and market expansion.

Teqnion AB Financial Statement Overview

Summary

Teqnion AB shows solid revenue growth and profitability, but faces challenges with declining gross margins and increased leverage. Cash flow generation is moderate, with a notable decline in free cash flow growth. The company should focus on managing costs and leverage to maintain financial stability.

Income Statement

Teqnion AB has demonstrated consistent revenue growth, with a TTM growth rate of 4.7%. The company maintains a healthy EBIT margin of 10.69% and a net profit margin of 6.91% in the TTM. However, there has been a decline in gross profit margin from 45.47% in 2023 to 35.35% in the TTM, indicating potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.62 in the TTM, reflecting higher leverage. Return on equity remains strong at 13.43%, though it has decreased from previous years. The equity ratio is stable, indicating a balanced capital structure but with increased debt levels.

Cash Flow

Teqnion AB's free cash flow growth has declined by 24.24% in the TTM, which is a concern. The operating cash flow to net income ratio is 0.25, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is healthy at 83.24%, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67B	1.57B	1.48B	1.32B	920.20M	659.09M
Gross Profit	589.10M	704.50M	670.90M	565.40M	399.60M	259.25M
EBITDA	248.60M	222.40M	229.60M	186.30M	143.18M	85.33M
Net Income	115.20M	95.80M	125.00M	110.30M	79.50M	43.59M
Balance Sheet
Total Assets	1.94B	1.72B	1.49B	1.07B	799.14M	534.30M
Cash, Cash Equivalents and Short-Term Investments	137.40M	196.00M	199.80M	47.30M	85.79M	120.34M
Total Debt	550.00M	466.20M	360.80M	261.50M	176.92M	116.16M
Total Liabilities	1.04B	862.50M	752.60M	626.30M	460.52M	275.20M
Stockholders Equity	892.30M	858.00M	734.00M	443.00M	336.85M	256.85M
Cash Flow
Free Cash Flow	86.90M	77.70M	117.90M	97.40M	114.53M	111.31M
Operating Cash Flow	104.40M	96.20M	125.20M	104.90M	120.66M	114.83M
Investing Cash Flow	-232.80M	-139.10M	-159.00M	-139.80M	-165.32M	-62.80M
Financing Cash Flow	91.30M	30.80M	185.90M	-4.30M	10.10M	-20.46M

Teqnion AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 155.00
• 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:TEQ, the sentiment is Positive. The current price of 155 is above the 20-day moving average (MA) of 153.26, above the 50-day MA of 149.50, and below the 200-day MA of 156.85, indicating a bullish trend. The MACD of 2.77 indicates Negative momentum. The RSI at 65.61 is Neutral, neither overbought nor oversold. The STOCH value of 65.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:TEQ.

Teqnion AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEQ	72 Outperform	kr2.66B	24.80	―	―	9.55%	-3.47%
OEM.B	70 Outperform	€19.91B	34.23	26.55%	1.23%	2.54%	4.25%
HTRO	69 Neutral	€4.04B	11.27	9.42%	―	18.80%	-31.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LIME	61 Neutral	€4.38B	42.59	33.21%	1.14%	12.88%	16.11%
BUFAB	55 Neutral	kr17.28B	29.11	15.89%	1.16%	-4.08%	27.56%