Vestum AB (VESTUM) AI Stock Analysis

• Market Cap: €3.19B
• Dividend Yield: N/A
• Average Volume (3M): 378.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -25.66%
• EPS Growth: 62.75%
• Country: SE
• Employees: 1,338
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.06
• Shares Outstanding: 375,809,480
• 10 Day Avg. Volume: 488,212
• 30 Day Avg. Volume: 378,616
• 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: €9.50
• Price Target Upside: 11.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: kr9.50 ▲(11.37% Upside)

Vestum AB's overall stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The company's strong gross profit margins and cash flow generation are overshadowed by declining revenues and negative net profitability. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold signals. The negative P/E ratio and lack of dividend yield further weigh on the valuation score.

Vestum AB Business Overview & Revenue Model

Company Description

Vestum AB (publ) engages in the clothes manufacturing and sale, construction, and infrastructure businesses in Sweden. The company designs, markets, and sells clothes and accessories, including urban functional garments in the premium streetwear segment under the WeSC brand for women and men in Sweden and internationally. It also provides demolition, remediation, and drilling services with a focus on construction-related, insurance, and real estate companies; contractor services for the assembly and installation of automation and passage systems for companies, municipalities, and private individuals; construction services primarily in the areas of railway environment and public transport projects; and aluminum and glass solutions to the housing and construction markets for customers in the segments of retailers, small house manufacturers, glaziers, construction companies, and private. In addition, the company engages in renting and selling containers and road products for construction-related operations, which include refrigerated, storage, construction, and office containers, as well as drive plates; the ground, assembly, and construction works related to infrastructure, such as roads, railways, pipelines, and communications; the supply of electrical installations and designs; and the provision of works related to power and lighting in private and public environments. It offers its clothes and accessories through e-commerce and resellers. The company was formerly known as WeSC AB (publ) and changed its name to Vestum AB (publ) in June 2021. Vestum AB (publ) was incorporated in 1999 and is based in Stockholm, Sweden.

How the Company Makes Money

Vestum AB makes money primarily through the acquisition and integration of companies within the construction and infrastructure sectors. By purchasing businesses that complement its existing operations, Vestum can leverage synergies to enhance productivity and reduce costs, thereby increasing profitability. The company's revenue streams are diversified across its portfolio of acquired companies, which provide various services such as construction, maintenance, and utility services. Significant partnerships and a strategic focus on sectors with stable demand further contribute to Vestum's earnings.

Vestum AB Financial Statement Overview

Summary

Vestum AB shows strong gross profit margins and cash flow generation, but faces challenges with declining revenues and negative net profitability. The balance sheet reflects moderate leverage, but the negative return on equity highlights the need for improved profitability.

Income Statement

Vestum AB's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate of -7.68% in the TTM period. Gross profit margin remains strong at 50.02%, indicating efficient cost management. However, the net profit margin is negative at -2.70%, reflecting ongoing profitability challenges. EBIT and EBITDA margins are moderate, suggesting some operational efficiency but not translating into net profitability.

Balance Sheet

The balance sheet of Vestum AB indicates a moderate financial position. The debt-to-equity ratio is 0.47, suggesting a manageable level of leverage. However, the return on equity is negative at -3.05%, indicating that the company is not generating positive returns for shareholders. The equity ratio stands at 55.82%, showing a solid equity base relative to total assets.

Cash Flow

Vestum AB's cash flow statement reveals some positive trends. Free cash flow growth is strong at 19.34% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.42, suggesting that cash flow from operations is covering a significant portion of net income losses. The free cash flow to net income ratio is high at 0.82, reflecting effective cash management despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.34B	4.42B	5.76B	6.93B	1.05B	21.49M
Gross Profit	2.17B	2.16B	2.69B	3.17B	654.00M	6.76M
EBITDA	626.00M	674.00M	632.00M	773.00M	165.00M	1.00M
Net Income	-117.00M	-374.00M	-374.00M	141.00M	3.00M	-20.76M
Balance Sheet
Total Assets	6.69B	7.63B	8.38B	9.95B	8.32B	26.36M
Cash, Cash Equivalents and Short-Term Investments	87.00M	174.00M	345.00M	608.00M	1.52B	2.45M
Total Debt	1.77B	2.14B	2.45B	3.38B	3.00B	16.67M
Total Liabilities	2.94B	3.70B	4.32B	5.57B	4.72B	35.00M
Stockholders Equity	3.73B	3.91B	4.05B	4.37B	3.59B	-8.64M
Cash Flow
Free Cash Flow	290.00M	333.00M	566.00M	361.00M	-85.00M	-19.12M
Operating Cash Flow	354.00M	377.00M	634.00M	421.00M	-10.00M	-17.12M
Investing Cash Flow	42.00M	-275.00M	-32.00M	-1.27B	-2.58B	26.00K
Financing Cash Flow	-621.00M	-416.00M	-860.00M	-48.00M	3.78B	17.07M

Vestum AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:VESTUM, the sentiment is Neutral. The current price of 8.53 is above the 20-day moving average (MA) of 8.34, below the 50-day MA of 9.03, and below the 200-day MA of 9.98, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 56.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:VESTUM.

Vestum AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYGGP	70 Outperform	kr1.36B	16.70	15.74%	1.66%	-2.11%	74.17%
FG	62 Neutral	kr1.89B	-1,231.58	-0.13%	4.84%	3.60%	-100.91%
NORB.B	56 Neutral	kr658.24M	51.83	1.03%	―	2.41%	―
VESTUM	46 Neutral	€3.19B	―	-1.10%	―	-25.66%	62.75%
ELTEL	45 Neutral	kr1.42B	-53.04	―	―	-6.41%	90.48%
WBGR.B	41 Neutral	kr569.11M	-0.91	-51.64%	―	14.09%	-55.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Vestum AB Corporate Events

Vestum AB Reports Stable Growth Amid Strategic Acquisitions

Vestum AB’s interim report for January to June 2025 highlights a period of organic growth and stable cash flow despite a slight decline in net sales and operating profit compared to the previous year. The company completed significant divestments and acquisitions, including the purchase of Nortech Management Holding Limited, which are expected to impact its future operations and market positioning.

The most recent analyst rating on (SE:VESTUM) stock is a Buy with a SEK12.50 price target. To see the full list of analyst forecasts on Vestum AB stock, see the SE:VESTUM Stock Forecast page.

Vestum AB to Release Q2 2025 Interim Report and Host Webcast

Vestum AB announced it will release its interim report for the second quarter of 2025 on July 14, followed by a webcast conference call where the CEO and CFO will present the report and answer questions. This presentation is part of Vestum’s ongoing efforts to maintain transparency with stakeholders and provide insights into its financial performance and strategic direction.

The most recent analyst rating on (SE:VESTUM) stock is a Buy with a SEK12.50 price target. To see the full list of analyst forecasts on Vestum AB stock, see the SE:VESTUM Stock Forecast page.

Vestum AB Annual General Meeting: Key Resolutions and Strategic Authorizations

Vestum AB, during its annual general meeting, adopted the financial statements for 2024 and made key decisions regarding its board and auditor appointments. The meeting also authorized the board to issue shares and manage treasury shares to support the company’s capital needs and future acquisitions. Additionally, an incentive program was established to issue warrants to select employees, aimed at aligning their interests with the company’s growth objectives.