W5 Solutions AB (W5) AI Stock Analysis

W5 Solutions AB

(Nasdaq OMX AB:W5)

Select Model

Rating:46Neutral

Price Target:SEK 24.00▼(-8.75% Downside)

Action:reiterated

Date:10/02/26

The score is held back primarily by weak and inconsistent cash flow (minimal free cash flow and low debt coverage) alongside volatile, thin profitability and higher recent leverage. Technicals further weigh on the outlook, with the stock in a strong downtrend despite oversold readings. Valuation also appears stretched given a high P/E and no stated dividend support.

Positive Factors

Revenue GrowthStrong recent revenue growth indicates expanding demand for W5’s offerings and provides a larger base from which to improve profitability. If sustained, this growth can support greater scale in project delivery, integration, and lifecycle services over the coming quarters.

Negative Factors

Thin ProfitabilityVery thin net profitability leaves limited protection against cost increases, project execution issues, or weaker contract economics. The history of losses in 2023–2024 and weaker TTM earnings also indicates that revenue growth has not yet translated into consistently durable bottom-line returns.

W5 Solutions AB (W5) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 514.41M
Dividend Yield: ―
Average Volume (3M): 56.51K
Price to Earnings (P/E): 75.1
Beta (1Y): 0.90
Revenue Growth: 65.87%
EPS Growth: ―
Country: Sweden
Employees: 241
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

W5 Solutions AB Business Overview & Revenue Model

Company Description

W5 Solutions AB (publ) is a Swedish firm specializing in advanced technological systems and services for the defense and civil security sectors within Sweden. Established in 1940 and headquartered in Nacka, it functions as a subsidiary of Swedish Def...

How the Company Makes Money

W5 makes money primarily by selling defense- and security-related training and simulation solutions to institutional customers (typically government agencies and armed forces) through contracts/procurement programs. Revenue is generally generated fro...

W5 Solutions AB Financial Statement Overview

Summary

Strong TTM revenue growth (~21.8%) is offset by thin and volatile profitability (TTM net margin ~0.6%) and inconsistent earnings quality. Leverage has risen notably (debt-to-equity ~0.65 TTM) while returns remain weak (TTM ROE ~0.8%). Cash generation is the biggest concern: free cash flow is barely positive and operating cash flow covers only ~5% of total debt, indicating limited near-term self-funding capacity.

Income Statement

56Neutral

Balance Sheet

58Neutral

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	653.04M	491.65M	387.74M	393.89M	168.34M	133.74M
Gross Profit	113.70M	38.92M	226.70M	231.05M	96.84M	78.37M
EBITDA	59.17M	68.91M	28.36M	56.75M	24.51M	16.29M
Net Income	4.07M	14.69M	-18.80M	-1.04M	13.70M	13.41M
Balance Sheet
Total Assets	1.23B	698.31M	564.81M	582.36M	238.51M	144.22M
Cash, Cash Equivalents and Short-Term Investments	59.80M	57.54M	22.81M	35.22M	48.03M	53.38M
Total Debt	359.09M	65.69M	97.75M	46.13M	5.41M	4.50M
Total Liabilities	683.25M	225.75M	247.15M	277.45M	95.46M	79.46M
Stockholders Equity	550.10M	472.56M	317.66M	304.91M	143.05M	64.76M
Cash Flow
Free Cash Flow	1.88M	-13.56M	10.97M	80.11M	-49.92M	16.76M
Operating Cash Flow	17.92M	-7.44M	13.44M	89.44M	-40.88M	17.63M
Investing Cash Flow	-328.70M	-40.95M	-2.43M	-119.96M	-29.35M	-1.25M
Financing Cash Flow	362.82M	83.75M	-23.42M	17.70M	64.89M	29.20M

W5 Solutions AB Technical Analysis

Technical Analysis SentimentNeutral

Last Price26.30

Price Trends

50DMA29.09Negative

100DMA36.57Negative

200DMA45.15Negative

Market Momentum

MACD-0.84Negative

RSI47.78Neutral

STOCH58.65Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:W5, the sentiment is Neutral. The current price of 26.30 is above the 20-day moving average (MA) of 25.20, below the 50-day MA of 29.09, and below the 200-day MA of 45.15, indicating a neutral trend. The MACD of -0.84 indicates Negative momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 58.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:W5.

W5 Solutions AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

SE:W5 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SE:SAAB.B	76Outperform	SEK 364.17B	48.26	15.83%	0.36%	28.45%	44.48%
SE:MILDEF	74Outperform	SEK 12.06B	36.16	20.11%	0.29%	75.60%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SE:AAC	53Neutral	SEK 843.48M	-18.59	-5.29%	―	-12.86%	-1793.94%
SE:UNIBAP	48Neutral	SEK 662.92M	-29.23	―	―	14.10%	-29.31%
SE:GOMX	47Neutral	SEK 2.22B	82.47	18.20%	―	―	―
SE:W5	46Neutral	SEK 514.41M	75.14	―	―	65.87%	―

* General Sector Average

Performance Comparison

SE:W5 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:W5	W5 Solutions AB	26.30	-26.00	-49.71%
SE:SAAB.B	Saab AB	675.20	155.37	29.89%
SE:AAC	Aac Clyde Space Ab	103.20	7.20	7.50%
SE:MILDEF	MilDef Group AB	256.00	99.43	63.51%
SE:GOMX	GomSpace Group AB	12.80	-5.90	-31.55%
SE:UNIBAP	Unibap AB	9.17	1.01	12.38%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 02, 2026

W5 Solutions AB AI Stock Analysis