Rusta AB financial analysis: Should I buy this share?
Buy signal | Free publication | 18 Sep 2025
Hello investors! Today we're diving into the world of Rusta AB.
You may not be familiar with Rusta yet, but trust me, after looking at their figures, this Swedish company is worth checking out! Imagine a mix between IKEA and Action, but 100% Scandinavian. That's Rusta AB in a nutshell.
Who is Rusta AB? The Nordic success story
Rusta is THE Swedish specialist in low-cost homewares. It is a chain of stores that is hugely successful in the Nordic countries, offering decorative items, gardening products, DIY supplies and lifestyle products at prices that are hard for the competition to match. Listed on the stock exchange, the company has a solid business model based on high volumes and tight but effective margins.
The mind-blowing financial analysis (out of 5) 📊
1. Turnover: 4/5 - The cash machine is running smoothly!
Well done! Rusta has achieved impressive revenue growth:
- 2021: SEK 8.633 billion
- 2025: SEK 11.828 billion
That's +37% in four years! The company has managed to maintain robust growth even in a challenging economic environment. With forecasts of SEK 12.797 billion for 2026, the trend remains positive. The only downside is that growth is slowing slightly, but hey, we're still on solid ground!
2. Overall result: 3/5 - Adequate but could be improved
Net profit is where things get a little complicated:
- 2021: SEK 401 million
- 2025: SEK 476 million
- 2026 forecast: SEK 715 million
We have a net margin of around 4%, which is average for retail but nothing exceptional. The improvement forecast for 2026 (+50%!) suggests that management has some tricks up its sleeve.
3. Debt: 2/5 - Houston, we have a problem! 🚨
Ouch! This is Rusta's weak point. With net debt of SEK 5.556 billion in 2025 (nearly half of turnover), the situation is serious. Fortunately, forecasts show an improvement, with SEK 4.992 billion expected in 2026. The company seems to have taken the bull by the horns to reduce its debt, but this remains to be monitored closely.
4. ROE (Return on equity): 3.5/5 – Not bad at all!
With equity of SEK 1.743 billion and earnings of SEK 476 million, this gives an ROE of around 27%. That's impressive! It shows that Rusta knows how to make its shareholders' money grow, despite its debt.
5. Market performance: 3/5 - Average
At SEK 65 per share with a PE of 20.42, Rusta is within a reasonable range for the retail sector. Not cheap, but not expensive either. The price/sales ratio of 0.828 suggests a fairly balanced valuation.
Forecasts that inspire dreams 🚀
Estimated share value:
End of 2025: ~SEK 70-75
With improved results and the planned reduction in debt, an appreciation of 8-15% seems realistic.
2026: ~SEK 85-95
If Rusta delivers on its EBITDA promises (SEK 2.163 million forecast), we could see the share price soar.
2027: ~SEK 100-110
Extrapolating the trajectory of debt reduction and growth, a doubling from current levels is not unrealistic.
Overall rating: 3.2/5 - A gem with flaws 💎
Rusta is a Nordic success story with its ups and downs. Its strengths? Solid growth, a proven business model, and a dominant position in its market. Its weaknesses? Scary levels of debt and margins that could be better.
Final thoughts: Rusta AB is a bit like that chair you buy on sale without really believing in it, but which ends up lasting 10 years. Sometimes the most unexpected bets pay off the most! 😉
- Signal : Buy
- Budget/Investment : Medium-high
- Reinforcement required : No
- Exposure : Medium
- Horizon : 0 to 2 years
- Potential profitability : +55% to +69%
- Ref. ISIN code : SE0020848356