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AFRY AB Class B (SE:AFRY)
:AFRY
Top Page
AFRY AB Class B
(OTC:AFRY)
66Neutral
Positive Factors
Green Transition
AFRY aims to strengthen its global position in the green transition by building on its strengths in energy, industry, and infrastructure.
Leadership
Linda Pålsson has been appointed as the new President and CEO, effective immediately, bringing strong leadership and experience from the Energy Division.
Profitability
Profitability was somewhat better than expected, thanks to margin improvements in Infrastructure and Energy.
Negative Factors
Earnings
AFRY's 1Q25 was weaker-than-expected, with net sales falling short of expectations and a noticeable drop in adjusted EBITA.
Industrial Segments
There is growing uncertainty in the industrial segments, with particularly weak demand in telecom and IT consulting, as well as real estate.
Market Demand
The market shows varied demand, with strong areas like energy and transport infrastructure being offset by weaker areas such as pulp and paper, real estate, and parts of the industrial portfolio.
AFRY AB Class B (AFRY) vs. S&P 500 (SPY)
Market Cap
$19.94B
Dividend Yield2.67%
Average Volume (3M)171.79K
Price to Earnings (P/E)16.3
Beta (1Y)1.09
Revenue Growth0.24%
EPS Growth10.30%
CountrySE
Employees18,091
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)3.12
Shares Outstanding108,961,400
10 Day Avg. Volume178,745
30 Day Avg. Volume171,788
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$241.52Price Target Upside50.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
AFRY AB Class B Business Overview & Revenue Model
Company DescriptionAFRY AB Class B is a Swedish-based engineering, design, and consulting company that operates globally in the fields of infrastructure, industry, energy, and digitalization. The company provides a wide range of services including engineering, project management, and IT solutions, catering to public and private sector clients. AFRY is known for its expertise in sustainable solutions, focusing on advancing the transition towards a more sustainable society.
How the Company Makes MoneyAFRY makes money through its comprehensive service offerings in engineering, consulting, and design across various sectors. The company's revenue model is primarily based on project-based contracts and consultancy fees. Key revenue streams include infrastructure development projects, industrial engineering services, energy solutions, and IT and digitalization services. AFRY partners with government bodies, industrial corporations, and other enterprises to deliver tailored solutions that meet sustainability and efficiency goals. Additionally, the company's strategic focus on long-term client relationships and involvement in large-scale projects significantly contributes to its earnings.
AFRY AB Class B Financial Statement Overview
Summary
AFRY AB Class B exhibits strong financial health across all verticals. Consistent revenue growth, robust profitability, and efficient cash flow management highlight the company's financial stability. An absence of debt further enhances its position.Income Statement
AFRY AB Class B has shown consistent revenue growth over the years, with a revenue growth rate of 0.67% from 2023 to 2024. The company maintains strong gross and net profit margins at 79.00% and 4.53% respectively for 2024, indicating robust profitability. EBIT and EBITDA margins are also healthy at 7.15% and 10.96% respectively, reflecting good operational efficiency.85
Very Positive
Balance Sheet
The balance sheet of AFRY AB Class B is strong, with a debt-to-equity ratio of 0.00 in 2024, highlighting a solid equity base and no reliance on debt. The return on equity is relatively high at 9.36%, and the equity ratio is 46.39%, indicating solid financial stability and a strong capital structure.90
Very Positive
Cash Flow
AFRY AB Class B demonstrates excellent cash flow management, with a substantial free cash flow growth rate of 23.20% from 2023 to 2024. The operating cash flow to net income ratio is 1.62, and the free cash flow to net income ratio is also high at 1.62, suggesting efficient conversion of income into cash and strong liquidity.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 27.16B | 26.98B | 23.55B | 20.10B | 18.99B | Gross Profit |
| 21.46B | 5.08B | 18.66B | 16.19B | 15.18B | EBIT |
| 1.94B | 1.78B | 1.44B | 1.52B | 1.46B | EBITDA |
| 2.98B | 2.79B | 2.28B | 2.40B | 2.23B | Net Income Common Stockholders |
| 1.23B | 1.10B | 974.00M | 1.13B | 933.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.27B | 1.17B | 1.09B | 2.11B | 1.93B | Total Assets |
| 28.30B | 28.17B | 28.00B | 25.91B | 23.61B | Total Debt |
| 0.00 | 7.86B | 7.80B | 7.65B | 6.80B | Net Debt |
| -1.27B | 6.69B | 6.71B | 5.54B | 4.87B | Total Liabilities |
| 15.15B | 15.72B | 15.82B | 14.92B | 13.51B | Stockholders Equity |
| 13.13B | 12.45B | 12.18B | 10.99B | 10.10B |
| Cash Flow | Free Cash Flow | |||
| 1.99B | 1.62B | 891.00M | 1.38B | 1.90B | Operating Cash Flow |
| 1.99B | 1.79B | 1.04B | 1.50B | 2.08B | Investing Cash Flow |
| -383.00M | -756.00M | -873.00M | -1.21B | -345.00M | Financing Cash Flow |
| -1.47B | -942.00M | -1.01B | -12.00M | -987.00M |
AFRY AB Class B Technical Analysis
Negative
160.00
Price Trends
181.18
Negative
169.87
Negative
169.86
Negative
Market Momentum
-4.01
Positive
38.48
Neutral
25.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AFRY, the sentiment is Negative. The current price of 160 is below the 20-day moving average (MA) of 174.08, below the 50-day MA of 181.18, and below the 200-day MA of 169.86, indicating a bearish trend. The MACD of -4.01 indicates Positive momentum. The RSI at 38.48 is Neutral, neither overbought nor oversold. The STOCH value of 25.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:AFRY.
AFRY AB Class B Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | kr88.85B | 15.98 | 9.36% | 2.56% | 5.57% | 11.02% | |
68 Neutral | kr22.93B | 9.34 | 15.46% | 1.93% | -0.51% | 20.32% | |
66 Neutral | $19.94B | 16.33 | 9.57% | 2.67% | 0.24% | 10.30% | |
66 Neutral | kr63.08B | 30.18 | 18.40% | 1.68% | 7.55% | 23.97% | |
66 Neutral | kr14.96B | 46.90 | 4.32% | 2.77% | 1.59% | -62.94% | |
63 Neutral | $4.27B | 11.40 | 5.38% | 214.63% | 4.11% | -8.98% |
* Industrials Sector Average
Performance Comparison
SE:AFRY
AFRY AB Class B
160.00
-5.46
-3.30%
SE:SKA.B
Skanska AB
215.90
31.42
17.03%
SE:SWEC.B
Sweco AB
176.60
58.60
49.66%
SE:PEAB.B
Peab AB
77.75
12.14
18.51%
SE:LIAB
Lindab International AB
195.60
-17.71
-8.30%
AFRY AB Class B Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q3-2024)
| % Change Since: -11.20%|
Next Earnings Date:Jul 15, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment. While there were significant achievements in profitability improvement and growth in the Energy sector, challenges in Process Industries and weak demand in IT, Telecom, and Real Estate sectors posed considerable hurdles. The market overall showed flat growth with notable segment-specific variances.Q3-2024 Updates
Positive Updates
Improved Profitability
EBITA improved to 6.1% from 5.4% despite a mixed market, driven by strong performance in the Energy and Infrastructure divisions.
Strong Performance in the Energy Segment
The Energy division reported close to double-digit organic growth and a stable margin, with a continued strong demand across all markets.
Significant Project Wins
AFRY was selected as the main partner for SSAB's steel decarbonization project in Lulea and secured a pump storage solution project in Australia, highlighting strong capabilities in energy projects.
Stable Order Stock
Order stock remained stable at SEK 20 billion, with the Energy division continuing to report the largest increase over the previous year.
Negative Updates
Negative Growth in Process Industries
Process Industries reported a negative growth of 8.5% and a decline in order stock, attributed to a weaker market driven by the Pulp and Paper segment.
Flat Overall Growth
Total group growth was flat, with organic growth at only 0.1%, and a negative FX effect being the largest growth adjustment item.
Weak Demand in IT and Telecom
The demand for IT and telecom consultants remained weak, contributing to the mixed market performance.
Sluggish Real Estate Market
Real estate continued to operate at low levels, impacting the Infrastructure division's performance.
Company Guidance
During AFRY's Q3 2024 earnings call, the company provided detailed guidance on various performance metrics. The company reported net sales of SEK 6 billion, with an EBITDA of SEK 365 million and an EBITA margin of 6.1%, up from 5.4% the previous year. Organic growth was marginally positive at 0.1%, with the Energy division showing close to double-digit growth, while Process Industries experienced a negative growth of 8.5%. The order stock remained stable at SEK 20 billion, though 3% lower year-over-year, with notable strength in the Energy sector. AFRY emphasized maintaining strong profitability, acknowledging the mixed market conditions, with segments like Energy performing well and Process Industries facing challenges. The company highlighted ongoing strategic initiatives to capitalize on strong sectors and manage weaker ones, such as the Infrastructure improvement program and expanding in the Energy segment. Despite mixed market conditions, AFRY expressed satisfaction with its profitability improvements and outlined plans to navigate the current economic landscape.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.