Electrolux ELUX-B.ST
Electrolux shows very weak financial health (ND/EBITDA 5.85) and negative margins (operating margin -3.19%), making it a company in the midst of restructuring with an apparently cheap valuation (P/E 2.68) that is actually a value trap. Revenue growth is almost nil (0.90%) and there is no dividend.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Electrolux shows very weak financial health (ND/EBITDA 5.85) and negative margins (operating margin -3.19%), making it a company in the midst of restructuring with an apparently cheap valuation (P/E 2.68) that is actually a value trap. Revenue growth is almost nil (0.90%) and there is no dividend.
Score by category
| Category | Score |
|---|---|
| Financial health | 1.7 |
| Quality / Moat | 0.6 |
| Valuation | 4.5 |
| Growth | 4.3 |
| Dividend | 1.5 |
| Momentum | 0.7 |
| Risk & Context | 5.8 |
OVERALL SCORE: 2.9/10
Context and risks
Execution risk in the restructuring plan to return to positive margins, with a current operating margin of -3.19% and net debt/EBITDA of 5.85. High exposure to interest rates in Sweden and Europe, with the ECB raising rates, increases the cost of servicing high debt.
News considered in the analysis
- HBB Outperforms Peers: Is This Cheaper Consumer Stock Worth Buying? — Listículo comparativo sin información nueva sobre Electrolux.
- AB Electrolux (OM:ELUX B) On Mobile Payments Deal And A Valuation Question — Acuerdo de pagos móviles podría abrir nuevas fuentes de ingresos o eficiencias, pero es de alcance limitado y no está confirmado su impacto.
- Can AB Electrolux (OM:ELUX B) Stay Reasonable If Earnings Remain Weak? — Refleja la preocupación por la debilidad de beneficios, ya evidente en los resultados y en el precio de la acción.
- Electrolux AB (ELRXF) Q2 2026 Earnings Call Highlights: Strategic Moves and Financial ... — Resultados del Q2 ya publicados y descontados; los movimientos estratégicos no alteran el panorama de márgenes negativos.
- Electrolux Professional AB (FRA:4KK1) Q2 2026 Earnings Call Highlights: Navigating Challenges ... — Noticia sobre una entidad separada (Electrolux Professional), no sobre la empresa analizada.
Verdict: Avoid. The combination of high leverage, negative margins, and lack of clear catalysts makes the risk outweigh any potential short-term reward.
Main risk: The main risk is the high net debt (5.85x EBITDA) with a negative operating margin, which calls into question the company's ability to finance its restructuring and meet its obligations if the high-interest-rate environment persists.
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