AB Sagax (publ) (SAGA-B.ST) stock analysis

In our weekly check, AB Sagax (publ) is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 6.

About AB Sagax (publ)

AB Sagax (publ) is a Real Estate company (Real Estate - Services) based in Sweden, listed on STO as SAGA-B.ST.

What our checks show for SAGA-B.ST

Red flags

• Net debt is 5.1x a year of EBITDA (debt/equity 0.94). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 193 points over 5 years, to 121%: the company keeps less of each sale as profit.
• The gross margin fell by 11.4 points, to 81.3%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 29.1 points from today's 121%.
• The stock has fallen as much as 62% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 4.7%.

Warning signs

• Operating profit covers interest only 3.5 times: a weak year could make the payments hard.
• Operating cash flow is only 0.53x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 13.2% a year.
• The stock is still below its previous peak.
• Beta 1.4: the stock usually moves more than the market, both up and down.

Strengths

• Earnings per share grew 26.9% a year over the last 3 years.
• Net profit grew 35.6% a year over the last 3 years.
• The company keeps 121% of its revenue as net profit.
• Free cash flow is 63.8% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 23% of profit: there is a cushion.
• The price is 9.5 times earnings (P/E), reasonable for its growth.

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Questions

What grade does AB Sagax (publ) (SAGA-B.ST) have?

In our weekly check, AB Sagax (publ) is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SAGA-B.ST stock?

This week's biggest flags for AB Sagax (publ): High debt, Margins falling, Gross margin falling. In total 11 of 25 checks show a warning or a red flag.

What does AB Sagax (publ) do?

AB Sagax (publ) is a Real Estate company (Real Estate - Services) based in Sweden, listed on STO as SAGA-B.ST.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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