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Garo Aktiebolag (publ)

Industrials
GARO.ST: 

Research

  • Author: Alpha
    • 20.55 -16.97% (04/07/2025)
    • SHORT-LIST (SELL)

    GARO produces electrical system in two segments; e-Mobility (30%) and Electrification (70%). Earnings declined in 2022 and 2023 due to exposure to the construction industry. This resulted in a 85% decline in the stock price.

    The earnings in 2023 are disappointing with 0.6kr/share (after adjustment for one-off items). Given the slow-down in BEV-sales and construction the 2024 outlook is all but promising.

    At the moment the company is not invest-able with negative cash-flow, rising debt and dropping margins. The CEO and management need to present a valid turn-around strategy. Negative sentiment will prevail until actual improvements are visible in the results.

    07/08/2024| Analyses:3
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