Thule Group AB Unsponsored ADR (THUPY) AI Stock Analysis

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Thule Group AB Unsponsored ADR

(OTC:THUPY)

66Neutral

Thule Group AB demonstrates strong financial performance and positive earnings call highlights, driving a favorable outlook. However, technical indicators suggest bearish momentum, and the valuation appears high, which tempers the overall score. The company's focus on innovation and strategic acquisitions, combined with its financial stability, positions it well for future growth despite current market challenges.

Thule Group AB Unsponsored ADR (THUPY) vs. S&P 500 (SPY)

Market Cap

$2.58B

Dividend Yield2.07%

Average Volume (3M)120.00

Price to Earnings (P/E)23.3

Beta (1Y)1.35

Revenue Growth4.89%

EPS Growth1.76%

CountryUS

Employees2,808

SectorConsumer Cyclical

Sector Strength55

IndustryLeisure

Share Statistics

EPS (TTM)0.50

Shares Outstanding215,676,330

10 Day Avg. Volume361

30 Day Avg. Volume120

Financial Highlights & Ratios

PEG Ratio13.27

Price to Book (P/B)N/A

Price to Sales (P/S)2.79

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Thule Group AB Unsponsored ADR Business Overview & Revenue Model

Company DescriptionThule Group AB Unsponsored ADR (THUPY) is a Swedish company that specializes in products designed to facilitate an active lifestyle. The company operates primarily in the sports and outdoor segments, offering a wide range of products such as bike racks, roof racks, roof boxes, and other transportation accessories for outdoor enthusiasts. Thule aims to provide innovative and high-quality solutions to help people transport their gear safely and easily, enhancing their outdoor activities and adventures.

How the Company Makes MoneyThule Group AB generates revenue primarily through the sale of its wide array of transportation and outdoor products. The company's key revenue streams include the sale of bike racks, roof boxes, and other vehicle-related accessories, as well as products for carrying children and pets. Thule has a strong presence in both retail and online channels, catering to a diverse customer base that includes outdoor enthusiasts, sports professionals, and families. Significant partnerships with automotive manufacturers, retailers, and distributors help expand Thule's market reach and enhance its brand visibility. The company's earnings are also influenced by seasonal demand patterns, with sales often peaking during warmer months when outdoor activities are more popular.

Thule Group AB Unsponsored ADR Financial Statement Overview

Summary

Thule Group AB exhibits solid financial health across all statements, with strong profitability, efficient operations, and a stable balance sheet. The company showcases growth in cash flow generation, although slight revenue fluctuations and high capital expenditures warrant attention. Overall, Thule Group AB is well-positioned in the market with a balanced approach to growth and stability.

Income Statement

Positive

Thule Group AB demonstrates solid profitability with a consistent gross profit margin of approximately 42.7% for 2024. The net profit margin is strong at 11.8%, indicating effective cost management. Revenue growth rate from 2023 to 2024 is 4.48%, which is modest but stable. EBIT and EBITDA margins remain robust at 15.95% and 15.95%, respectively, showing operational efficiency. However, a slight decline in revenue from 2022 to 2023 suggests potential market challenges.

Balance Sheet

Very Positive

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.53, indicating a conservative leverage profile. Return on equity is strong at 13.86%, reflecting effective use of shareholder funds. The equity ratio is 54.15%, suggesting a solid capital structure with more than half of the assets financed by equity. These metrics point to financial stability and prudent management.

Cash Flow

Positive

Free cash flow growth rate from 2023 to 2024 is 28.03%, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 2.06, indicating efficient cash conversion from profits. Free cash flow to net income ratio stands at 1.82, highlighting the company's ability to generate free cash flow relative to net income. However, high capital expenditures and fluctuations in investing cash flow may pose challenges.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
9.54B	9.13B	10.14B	10.39B	7.83B
	Gross Profit
4.07B	3.74B	3.86B	4.16B	3.23B
	EBIT
1.52B	1.50B	1.71B	2.34B	1.59B
	EBITDA
1.52B	1.88B	1.94B	2.50B	1.81B
	Net Income Common Stockholders
1.12B	1.10B	1.27B	1.79B	1.17B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
405.00M	94.00M	176.00M	149.00M	706.00M
	Total Assets
14.96B	10.97B	11.68B	10.19B	8.45B
	Total Debt
4.29B	2.17B	3.06B	1.62B	1.10B
	Net Debt
3.89B	2.08B	2.88B	1.47B	390.00M
	Total Liabilities
6.86B	4.12B	5.13B	4.38B	3.19B
	Stockholders Equity
8.10B	6.85B	6.55B	5.82B	5.25B
Cash Flow		Free Cash Flow
2.05B	1.60B	172.00M	621.00M	1.44B
	Operating Cash Flow
2.31B	1.85B	616.00M	1.13B	1.61B
	Investing Cash Flow
-3.10B	-251.00M	-464.00M	-503.00M	-170.00M
	Financing Cash Flow
1.10B	-1.68B	-136.00M	-1.19B	-1.00B

Thule Group AB Unsponsored ADR Technical Analysis

Technical Analysis Sentiment

Negative

Last Price12.35

Price Trends

50DMA

15.81

Negative

100DMA

15.79

Negative

200DMA

15.09

Negative

Market Momentum

MACD

-0.47

Positive

RSI

26.54

Positive

STOCH

0.15

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THUPY, the sentiment is Negative. The current price of 12.35 is below the 20-day moving average (MA) of 14.68, below the 50-day MA of 15.81, and below the 200-day MA of 15.09, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 26.54 is Positive, neither overbought nor oversold. The STOCH value of 0.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THUPY.

Thule Group AB Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YETI	78 Outperform	$2.56B	14.13	24.01%	―	10.32%	6.05%
GOLF	70 Outperform	$3.72B	18.41	26.30%	1.42%	3.15%	15.44%
THUPY	66 Neutral	$2.58B	23.31	15.08%	2.07%	4.89%	1.76%
PRKS	63 Neutral	$2.44B	10.74	-52.57%	―	-0.07%	6.29%
Sector *	59 Neutral	$11.76B	10.11	-0.70%	3.92%	1.27%	-16.30%
JOUT	48 Neutral	$241.18M	―	-9.70%	5.59%	-9.98%	-348.96%
MODG	46 Neutral	$1.16B	―	-46.06%	―	-1.06%	-1641.55%

* Consumer Cyclical Sector Average

Performance Comparison

THUPY

Thule Group AB Unsponsored ADR

12.35

-1.32

-9.66%

MODG

Topgolf Callaway Brands

6.27

-9.73

-60.81%

GOLF

Acushnet Holdings

60.86

-0.31

-0.51%

JOUT

Johnson Outdoors

22.62

-18.49

-44.98%

PRKS

United Parks & Resorts

41.84

-11.13

-21.01%

YETI

Yeti Holdings

29.12

-8.74

-23.09%

Thule Group AB Unsponsored ADR Earnings Call Summary

Earnings Call Date: Feb 7, 2025 | % Change Since: -24.42% | Next Earnings Date: Apr 29, 2025

Earnings Call Sentiment Positive

The earnings call highlighted Thule's strong product development and launch strategy, successful acquisition of Quad Lock, and recognition for sustainability efforts, while also acknowledging challenges in the North American market and RV segment. Overall, positive developments in product innovation and strategic acquisitions outweigh the challenges faced in certain market segments.

Highlights

Record Product Launch Year

2024 was the biggest product launch year in Thule's history, entering three new product categories and launching more new products than ever.

Strong Recognition and Awards

Thule received more international design awards than ever before and was ranked number one in the world among consumer durable companies by Sustainalytics for sustainability.

Revenue and EBIT Growth

Thule reported a 5% growth in revenue and an EBIT margin increase to 17% for the full year, with an all-time high gross margin of 42.7%.

Successful Acquisitions and Partnerships

The acquisition of Quad Lock, a market leader in performance phone mounts, was successfully completed, contributing to growth.

Juvenile & Pet Segment Growth

This segment grew by 14% in Q4 and 10% for the full year, driven by new product launches such as the Thule Urban Glide 3 stroller and Thule Allax dog crate.

Strong Cash Flow and Dividend Proposal

Strong cash flow from operations with a reduction in inventory by SEK500 million, surpassing the target, and a proposed dividend of SEK8.30 per share.

Lowlights

Challenging Market Conditions

The market remains challenging, particularly in North America and the RV OE segment, which saw production slowdowns to manage high inventory levels.

Decline in Packs, Bags & Luggage

Net sales decreased by 7% in Q4 and 2% for the full year, mainly due to the winding down of legacy products.

Flat Organic Growth in Q4

Organic growth was flat or slightly down in Q4, impacted by seasonal weakness in bike-related products and the RV segment.

Company Guidance

During the Thule Group's Q4 and End Year Report 2024 Call, CEO and President Mattias Ankarberg, alongside CFO Toby Lawton, provided comprehensive guidance on the company's performance and future strategies. The Thule Group ended 2024 with a 5% growth in sales and an EBIT of SEK1.6 billion, achieving an all-time high gross margin of 42.7%. The company's focus on product innovation led to a record number of product launches, including new categories like dog transportation and child car seats, contributing to a 10% growth in the Juvenile & Pet category. Thule's acquisition of Quad Lock also bolstered growth, particularly in the smallest quarter due to seasonality, with a 7% increase in Q4 sales. The Board proposed a dividend of SEK8.30 per share, aligning with the target of distributing 75% of net income. Looking ahead to 2025, Thule plans to maintain its product launch momentum, invest in product development, and reduce inventory by an additional SEK200 million, while navigating a challenging market, especially in North America and the RV sector.

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.