OEM International AB (OEM B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Christian Berner Tech Trade AB

OEM International AB

Bufab AB

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Beijer Ref AB

Momentum Group AB

Haypp Group AB

Teqnion AB

MEKO AB

Electrolux Professional AB

BE Group AB

Why is OEM International AB ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 38.69%

Healthy long term growth as Operating profit has grown by an annual rate 15.45%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 78.85

Flat results in Jun 25

INTEREST(9M) At SEK 7 MM has Grown at 133.33%
ROCE(HY) Lowest at 26.62%
RAW MATERIAL COST(Y) Grown by 6.01% (YoY)

With ROE of 24.78%, it has a fair valuation with a 7.81 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 36.85%, its profits have risen by 4.2% ; the PEG ratio of the company is 7.5

Consistent Returns over the last 3 years

Along with generating 36.85% returns in the last 1 year, the stock has outperformed OMX Stockholm 30 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to OEM International AB should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is OEM International AB for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

OEM International AB

-100.0%

0.95

30.93%

OMX Stockholm 30

8.45%

0.44

18.11%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.51%

EBIT Growth (5y)

15.45%

EBIT to Interest (avg)

78.85

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

2.24

Tax Ratio

20.79%

Dividend Payout Ratio

40.04%

Pledged Shares

Institutional Holding

ROCE (avg)

38.69%

ROE (avg)

28.07%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.81

EV to EBIT

24.54

EV to EBITDA

21.45

EV to Capital Employed

9.04

EV to Sales

3.49

PEG Ratio

7.51

Dividend Yield

1.03%

ROCE (Latest)

36.83%

ROE (Latest)

24.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

CASH AND EQV(HY)

Highest at SEK 1,112 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.46%

-11What is not working for the Company

INTEREST(9M)

At SEK 7 MM has Grown at 133.33%

ROCE(HY)

Lowest at 26.62%

RAW MATERIAL COST(Y)

Grown by 6.01% (YoY

OPERATING PROFIT(Q)

Lowest at SEK 194 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.51 %

PRE-TAX PROFIT(Q)

Lowest at SEK 168 MM

NET PROFIT(Q)

Lowest at SEK 133 MM

EPS(Q)

Lowest at SEK 0.96

Here's what is working for OEM International AB

Cash and Eqv

Highest at SEK 1,112 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.46%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for OEM International AB

Interest

At SEK 7 MM has Grown at 133.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Operating Profit

Lowest at SEK 194 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 14.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK 168 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK 133 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK 0.96

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Raw Material Cost

Grown by 6.01% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales