Axfood AXFO.ST
SwedenConsumer Defensive · Grocery StoresNasdaq Estocolmo · SEK
257.86 SEK (+0.1%)
7 analysts
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Axfood AB is a Swedish food retail group operating supermarkets and convenience stores in Sweden, with brands such as Willys and Hemköp, generating revenue mainly from food retail sales.
Listed on Nasdaq Estocolmo · Symbol AXFO.ST · STO: AXFO · Currency SEK
Key points
from its scores- ✓Favourable backdrop8.1
- ✕Poor share-price trend2.4
- ✕Fragile balance sheet3.1
- ✕Weak growth4.8
AI analysis
bottom line, main risk, context and newsBusiness quality and profitability are solid, but leverage and thin margins limit appeal in the current rate environment.
Axfood shows exceptional return on equity (ROE 36.26%) and solid cash generation (free cash flow conversion of 64.59%), but its financial health is weighed down by high leverage (Debt/Equity 224%) and a thin operating margin (4.17%), in an environment of rising rates in Europe that makes its debt more expensive.
The main risk is the high leverage (Debt/Equity of 224%) with a thin operating margin (4.17%), making Axfood vulnerable to rate hikes and any pricing pressure in the competitive Swedish grocery market.
Context and risks
Axfood operates in Sweden, a market with solid governance, but the food retail sector is subject to regulatory and competitive pressure. The company shows high leverage (Debt/Equity of 224%) in a rising rate environment in Europe, which increases its debt cost and pressures its already thin operating margin (4.17%).
Is Axfood stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 21% above the Consumer Defensive median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 23.0 | 19.8 | +16% |
| EV / EBITDA | 13.7 | 10.8 | +26% |
| Price / book | 8.3 | 2.7 | +204% |
| Price / sales | 0.6 | 1.2 | −50% |
Sector: median of the 124 Consumer Defensive companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.8 out of 10 (median for Consumer Defensive: 6.3).
Average analyst target: 257.86 SEK, +0.1% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 6.4 (sector 5.7), Growth 4.8 (sector 5.3).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Defensive medianValuation
- P/E
- 23.0
- Forward P/E
- 20.6
- EV / EBITDA
- 13.7
- Price / book
- 8.3
- Price / sales
- 0.6
- PEG
- 4.89
- Market cap
- 55.6B SEK
- Enterprise value
- 71.5B SEK
Profitability
- ROE
- 36.3%
- ROA
- 6.3%
- ROIC (approx.)
- 16.6%
- Gross margin
- 14.7%
- Operating margin
- 4.2%
- Net margin
- 2.7%
- Free cash flow
- 3.4B SEK
- FCF yield
- 6.1%
- Cash conversion
- 65%
Solvency
- Total debt
- 15.9B SEK
- Net debt
- 15.5B SEK
- Cash
- 337.0M SEK
- EBITDA
- 5.2B SEK
- Net debt / EBITDA
- 2.97
- Debt / equity
- 224.45
- Current ratio
- 0.65
- Quick ratio
- 0.20
Growth
- Revenue growth
- +0.9%
- Earnings growth
- +3.5%
- EPS (TTM)
- 11.22 SEK
- EPS (forward)
- 12.50 SEK
Dividend
- Dividend yield
- 3.5%
- Payout
- 78.0%
Risk and market
- Beta
- 0.56
- Analyst consensus
- Buy (7)
- Target price
- 257.86 SEK
- 52-week range
- 226.10 – 339.00
Recent news
All AXFO.ST news →Compare it with its sector
All 124 in Consumer Defensive →Frequently asked questions about Axfood
Is Axfood stock cheap or expensive?
On P/E and EV / EBITDA, it trades 21% above the Consumer Defensive median on average. Valuation score: 5.8 out of 10 (median for Consumer Defensive: 6.3). Average analyst target: 257.86 SEK, +0.1% versus the price. This is not investment advice.
What score does Axfood get on MeridIAn Screener?
It scores 5.5 out of 10, rank 1,383 of 2,130 (better than 32% of the companies analysed). Its strongest category is Risk & Context (8.1) and its weakest, Momentum (2.4). Analysis of 08/10/2026.
What is Axfood's P/E ratio?
Its P/E is 23.0: the share price equals 23.0 times earnings per share over the last 12 months. The Consumer Defensive median is 19.8. Based on the earnings analysts expect, the forward P/E is 20.6.
How much is Axfood worth on the stock market?
Its market capitalisation is 55.6B SEK and its enterprise value, debt included, is 71.5B SEK.
How much debt does Axfood have?
Its net debt (debt minus cash) is 15.5B SEK. That is 2.97 times its EBITDA; the Consumer Defensive median is 2.38.
Does Axfood pay a dividend?
Yes: its dividend yield is 3.49% and it pays out 78% of its earnings.
How has Axfood stock performed over the last year?
It has fallen 6.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 226.10 and 339.00 SEK. Past performance does not guarantee future results.
What do analysts think of Axfood?
7 analysts cover it; their average recommendation is “Buy” and their average target is 257.86 SEK (+0.1% versus the price). It is an estimate, not market data.