Teqnion AB (TEQ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Christian Berner Tech Trade AB

Electrolux Professional AB

Momentum Group AB

Alligo AB

OEM International AB

Teqnion AB

Bufab AB

Beijer Ref AB

Haypp Group AB

MEKO AB

BE Group AB

Why is Teqnion AB ?

High Management Efficiency with a high ROCE of 19.08%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.97

Healthy long term growth as Net Sales has grown by an annual rate of 22.25% and Operating profit at 9.23%

The company declared positive results in Mar'25 after very negative results in Dec'24

OPERATING CASH FLOW(Y) Highest at SEK 184.6 MM
RAW MATERIAL COST(Y) Fallen by -61.44% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 6.21 times

With ROE of 12.91%, it has a expensive valuation with a 2.84 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 -12.86%, its profits have fallen by -3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.86% returns in the last 1 year, the stock has also underperformed 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 Teqnion 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 Teqnion AB for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Teqnion AB

-12.86%

-0.73

45.12%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.25%

EBIT Growth (5y)

9.23%

EBIT to Interest (avg)

10.97

Debt to EBITDA (avg)

0.74

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

1.35

Tax Ratio

20.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

19.08%

ROE (avg)

19.21%

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

2.84

EV to EBIT

24.47

EV to EBITDA

15.22

EV to Capital Employed

2.37

EV to Sales

1.70

PEG Ratio

Dividend Yield

ROCE (Latest)

9.67%

ROE (Latest)

12.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 184.6 MM

RAW MATERIAL COST(Y)

Fallen by -61.44% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.21 times

PRE-TAX PROFIT(Q)

Highest at SEK 49.3 MM

NET PROFIT(Q)

Highest at SEK 45.9 MM

EPS(Q)

Highest at SEK 2.67

-9What is not working for the Company

NET PROFIT(HY)

At SEK 23.4 MM has Grown at -41.79%

ROCE(HY)

Lowest at 11.36%

DEBT-EQUITY RATIO (HY)

Highest at 49.54 %

INTEREST(Q)

At SEK 10.5 MM has Grown at 36.36%

Here's what is working for Teqnion AB

Pre-Tax Profit

At SEK 49.3 MM has Grown at 167.93%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 45.9 MM has Grown at 261.42%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SEK MM)

Operating Cash Flow

Highest at SEK 184.6 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Pre-Tax Profit

Highest at SEK 49.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Net Profit

Highest at SEK 45.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

EPS

Highest at SEK 2.67

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SEK)

Inventory Turnover Ratio

Highest at 6.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -61.44% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Teqnion AB

Interest

At SEK 10.5 MM has Grown at 36.36%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Debt-Equity Ratio

Highest at 49.54 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio