Enrad AB

### Capital Structure and Liquidity Enrad's liquidity position is characterized by a current ratio of 2.01, indicating sufficient short-term assets to cover liabilities. However, the company's operating cash flow of -3.46 million SEK and negative net cash position after subtracting total debt raise concerns about its ability to fund operations without external financing. The debt-to-equity ratio of 0.4 suggests a relatively conservative capital structure, with long-term debt accounting for 40% of total equity.

### Profitability and Returns Enrad's return on equity (ROE) of 3.18% and return on assets (ROA) of 1.95% are below the industry median for electrical components and equipment, indicating subpar capital efficiency. The company's operating margin of 6.44% (814,000 SEK operating income on 12.63 million SEK revenue) is also below the sector average, suggesting cost management or pricing pressures.

### Segments and Geographic Exposure Enrad's revenue is concentrated in a single disclosed segment, with no geographic breakdown provided in the latest financials. This lack of diversification increases exposure to regional economic shocks and regulatory changes.

### Growth Trajectory Enrad's revenue growth is mixed. While the company reported 12.63 million SEK in revenue for the latest period, this represents a decline from the 55.86 million SEK actual revenue in the prior period. Analysts expect revenue to contract further to 66.6 million SEK in the next period, a 55.8% decline from the prior year. The negative EPS trend, with a last actual EPS of -0.11 SEK and a mean estimate of -0.19 SEK, suggests ongoing profitability challenges.

### Risk Factors Enrad faces medium liquidity risk due to negative operating cash flow and net cash position. The company's dilution risk is currently low, with no near-term pressure from share issuance or convertible debt. However, the negative cash flow and declining revenue raise concerns about the sustainability of operations without external financing.

### Recent Events Recent filings show a consistent pattern of negative cash flow and declining revenue, with no material events disclosed in the latest 10-K or earnings transcripts. Analysts have issued a uniform price target of 11.40 SEK, reflecting limited upside potential in the current market environment.

Revenue surged 48.7% year-over-year to SEK 55.9 million, demonstrating strong top-line growth momentum.

Analysts project 21.3% upside to a target price of SEK 11.4, suggesting undervaluation at current levels.

Debt-to-equity ratio of 0.4 is below the 0.24 cohort median, reflecting a conservative leverage profile.

The company faces high credit risk, signaling significant potential for financial distress or default issues.

Free cash flow deteriorated to negative SEK 6.9 million, worsening from negative SEK 1.9 million previously.

Net income swung to a loss of SEK 8.1 million, reversing previous profitability trends sharply.

Cash conversion ratio of -4.33 ranks in the bottom quartile, indicating poor cash generation efficiency.

Revenue kr 7.1M, −56,1% YoY; Operating income −22 545,2% YoY.

• ▍Revenue kr 7.1M, −56,1% YoY
• ▍Operating income −22 545,2% YoY
• ▍Net income −3 943,4% YoY
• ▍Net margin -99.5%

Revenue kr 11.8M, −20,1% YoY; Operating income −384,1% YoY.

• ▍Revenue kr 11.8M, −20,1% YoY
• ▍Operating income −384,1% YoY
• ▍Net income −322,1% YoY
• ▍Net margin -26.3%

Revenue kr 12.6M, +57,0% YoY; Operating income −976,2% YoY.

• ▍Revenue kr 12.6M, +57,0% YoY
• ▍Operating income −976,2% YoY
• ▍Net income −444,8% YoY
• ▍Net margin -11.3%

Revenue kr 15.2M, +20,6% YoY; Operating income −507,5% YoY.

• ▍Revenue kr 15.2M, +20,6% YoY
• ▍Operating income −507,5% YoY
• ▍Net income −523,3% YoY
• ▍Net margin -22.2%

Revenue kr 16.2M; Operating income -kr 31.0k.

• ▍Revenue kr 16.2M
• ▍Operating income -kr 31.0k
• ▍Net margin -1.1%

Revenue kr 14.8M; Operating income -kr 637.0k.

• ▍Revenue kr 14.8M
• ▍Operating income -kr 637.0k
• ▍Net margin -5.0%

Revenue kr 8.0M; Operating income -kr 126.0k.

• ▍Revenue kr 8.0M
• ▍Operating income -kr 126.0k
• ▍Net margin -3.3%

Revenue kr 12.6M; Operating income kr 814.0k.

• ▍Revenue kr 12.6M
• ▍Operating income kr 814.0k
• ▍Net margin 6.3%

Revenue kr 55.9M, +29,6% YoY; Operating income −596,6% YoY.

• ▍Revenue kr 55.9M, +29,6% YoY
• ▍Operating income −596,6% YoY
• ▍Net income −462,2% YoY
• ▍Free cash flow −271,6% YoY
• ▍Net margin -14.5%

Revenue kr 43.1M, +45,6% YoY; Operating income −716,1% YoY.

• ▍Revenue kr 43.1M, +45,6% YoY
• ▍Operating income −716,1% YoY
• ▍Net income −2 581,0% YoY
• ▍Free cash flow −1 441,3% YoY
• ▍Net margin -3.3%