Article by Yippee-Ki-Yay

Meko AB, the Swedish share that will boost your income in 2025

Buy signal | Private publication | 8 Aug 2025

Meko AB: The comprehensive analysis that will shake up your portfolio!

Spoiler alert: At SEK 85 per share, this Swedish gem could well be the diamond in the rough in your portfolio!

Who is Meko AB? The Swedish automotive giant you may not know yet.

Hello, aspiring investors! Today, we're diving into the world of Meko AB, a Swedish publicly traded company that is making waves in the European automotive sector. And believe me, after poring over its accounts like an accountant on a Friday night, I have some revelations that will blow your mind!

Meko AB is THE distributor and retailer of automotive parts in Scandinavia and the Baltic countries. Imagine Amazon, but for car enthusiasts and automotive professionals. With a turnover of SEK 18,046 million in 2024, it's safe to say they're keeping busy!

The killer analysis: Meko AB under the microscope (Overall rating: 4.2/5)

1. Turnover: Growth on track! (4/5) 📈

The guys at Meko know what they're doing! Look at this progress:

  • 2024: 18,046 MSEK (+8% vs 2023)
  • 2023: 16,762 MSEK
  • 2022: 14,067 MSEK

Consistent growth that would make many tech start-ups green with envy! Management seems to have found the magic formula, with forecasts predicting 19,524 MSEK in 2025 and 20,042 MSEK in 2026. Not bad for an ‘old school’ company!
Point to note: Growth is slowing slightly, but let's be honest, in this economic climate, that's already a great achievement!

2. Net result: The cash machine purrs along (4/5) 💸

With a net profit of SEK 433 million in 2024, Meko proves that it knows how to turn sales into greenbacks (or rather bluebacks, given that we are in Sweden). EPS of SEK 7.73 remains solid, even if we have seen better in previous years.

The forecasts are quite optimistic, with an expected jump to 655 MSEK in 2025! If this is confirmed, we can expect fireworks on the share price.

3. Debt: Clean as a whistle! (5/5) 🧹

This is a real jackpot! Meko manages his debt like a pro:

  • Net debt 2024: SEK 4,671 million (steadily decreasing)
  • Forecast for 2025: 2,341 MSEK
  • Target for 2027: 655 million Swedish kronor

This company is paying off its debts at lightning speed! It's the kind of profile that sleeps well at night and weather economic crises without breaking a sweat.

4. Return on equity (ROE): Solid! (4/5) 💪

With an ROE of around 9-10%, Meko ranks in the upper middle of its sector. It's not revolutionary, but it's consistent and reliable. Shareholders can count on their capital being used efficiently.

5. Market performance: A golden opportunity! (4.5/5) 🏆

And here, my friends, we are approaching the sublime! With my estimate of 130-150 SEK and a current price of 85 SEK, we have upside potential of 53% to 76%! This is the kind of discount that makes value investors salivate.

Forecasts that inspire dreams: Destination moon? 🚀

Share price estimate:

  • End of 2025: SEK 120–140 (based on a P/E ratio of 15–17x with expected earnings)
  • 2026: 130–155 SEK
  • 2027: 140–170 SEK

What allowance for Meko AB: €1,500 out of €10,000 (15%)

With a budget of €10,000 spread across 10 stocks, I would put €1,500 into Meko AB. Why so generous?

  • Huge discount: SEK 85 vs. estimate of SEK 130–150
  • Solid fundamentals: Growth, debt reduction, positive cash flow
  • Defensive sector: The automotive industry will not disappear overnight.
  • Attractive dividend: SEK 3.9 announced, representing a yield of 4.6% at the current price

Conclusion: Meko AB, the favourite of the year?

Overall rating: 4.2/5

This Swedish company has everything going for it: sustained growth, exemplary financial management, and above all, a share price that is significantly undervalued by the market.
Investing in Meko AB is like buying a BMW for the price of a Dacia: you know you're getting a bargain, you just have to wait for the market to realise it!
Alors, prêt à embarquer dans l'aventure Meko AB ?

  • Signal : Buy
  • Budget/Investment : Medium
  • Reinforcement required : Yes (below 75 SEK)
  • Exposure : Medium
  • Horizon : 2 to 3 years
  • Potential profitability : +64% to +100%
  • Ref. ISIN code : SE0002110064

Disclaimer: This is not investment advice, just the opinion of someone who loves numbers and believes that Meko AB deserves a place in a diversified portfolio. Always invest responsibly!