(ELON) Elon (publ) - Ratings and Ratios

Elon AB (publ) is a Swedish retail company specializing in consumer electronics and telecom products, operating through three distinct business segments: Business to Consumer (B2C), Elon Business, and Logistics & Services. The company serves a diverse customer base, including individual consumers, professional players in various industries, and businesses of all sizes.

The B2C segment leverages a robust online platform and an extensive Nordic store network to cater to individual customers, while the Elon Business segment acts as a strategic partner and distributor for a broad range of consumer electronics, SDA, and white goods to e-commerce players, companies, and organizations. Additionally, this segment supplies appliances and kitchens to construction and property businesses. The Logistics & Services segment offers a comprehensive suite of services, including warehousing, logistics, website development, repackaging, bundling, freight agreements, and payment solutions, to support businesses in their e-commerce endeavors.

By developing innovative store concepts, technical solutions, and customer services, as well as enhancing purchasing, marketing, and branding capabilities, Elon AB (publ) has established a strong presence in the consumer electronics and telecom industries. The companys operations span across Sweden, Norway, Iceland, Finland, and Denmark, with multiple brand names, including Elon, Elon Ljud&Bild, Nordanro, RingUp, Elvita, and Canvac. Notably, Elon AB (publ) operates some of its stores through local entrepreneurs and business owners, demonstrating a commitment to collaborative business practices.

From a technical analysis perspective, the stocks current price is 24.20 SEK, slightly above its 20-day and 50-day simple moving averages (SMA20: 23.06, SMA50: 22.97), indicating a potential bullish trend. The 200-day simple moving average (SMA200: 24.04) is almost at par with the current price, suggesting a stable long-term outlook. The Average True Range (ATR: 1.43 = 5.91%) indicates moderate volatility. Given the stocks 52-week high and low (27.03 and 20.46, respectively), it appears to be trading within a reasonable range.

Combining the technical analysis with fundamental data, we observe that Elon AB (publ) has a market capitalization of 365.86M SEK and a P/E ratio of 111.91, indicating a relatively high valuation. The return on equity (RoE) stands at 0.59, suggesting that the companys profitability could be improved. Based on these insights, a forecast for Elon AB (publ) could be constructed by analyzing the interplay between its technical and fundamental data. Assuming the company can maintain its current operational momentum and improve its profitability, a potential price target could be estimated. If the P/E ratio were to normalize to a more reasonable level (e.g., around 20-25), and considering the current earnings, the stock price could potentially adjust accordingly. However, this would require significant improvements in profitability. Conversely, if the technical trend continues, with the stock price maintaining its position above the 20-day and 50-day SMAs, it could potentially test the 52-week high in the near term. A forecast price could be around 26-28 SEK, representing a 7-15% increase from the current price, assuming a combination of improved profitability and a continued bullish technical trend.