Article by Yippee-Ki-Yay

Yubico: Should you invest in the king of cybersecurity?

Buy signal | Private publication | 24 Oct 2025

Yubico AB: The company that secures your passwords (and your wallet?)

Hello, everyone! Today, we're going to take a closer look at Yubico AB, the Swedish company that makes the famous YubiKey security keys. You know, those little USB things that make your passwords look like child's play? Yeah, that's them. Listed on the stock exchange, the share price is currently around SEK 87. But is it worth investing in? Spoiler alert: it's pretty good, but let's take a look together!

Who is Yubico, again?

Yubico is THE global leader in strong authentication. Their flagship product, the YubiKey, is a physical key that secures your online accounts with multi-factor authentication (MFA). Basically, even if a hacker got hold of your password, without your YubiKey, they couldn't do anything. Nice, right?

The company is a hit with businesses, governments and even slightly paranoid individuals (like me). And given the explosion of cyberattacks in recent years, their business model is more relevant than ever.

The numbers that stand out (or not)

Right, now let's get down to business. I've pored over their financial statements and here's what I think.

1. Turnover: Growth that makes you dream! 4/5 🚀

Honestly, hats off to them! In 2024, Yubico's turnover skyrocketed to SEK 2,326 million, compared to SEK 1,827 million in 2023. That's a growth of +27% in one year. And the forecasts? They continue to climb: SEK 2,752 million in 2026, and a whopping SEK 3,324 million in 2027.

That's solid, but beware, growth is slowing down a bit (which is normal, as they can't double every year). I give them a 4/5 because it's clearly a growing company, but we'll have to see if this continues in the long term.

2. Net profit: Finally in the green! 4.5/5 💰

This is one of Yubico's most attractive features. Net profit for 2024 is SEK 371.7 million, compared to only SEK 130.6 million in 2023. That's an explosion of +185%! And guess what? The forecasts are even crazier: SEK 350 million in 2026 and SEK 484 million in 2027.

So yes, 2025 looks set to be a year of consolidation (186.5 million expected, perhaps due to strategic investments or expenditure), but the overall trajectory is extremely positive. I'm giving them 4.5/5 because this level of profitability is a joy to behold.

3. Debt: Good health! 5/5 🎉

This is where they hit the jackpot. Yubico has NEGATIVE net debt. Yes, you read that right. In 2024, they will have SEK -777.8 million, which means they will have more cash than debt. And the forecasts? It continues: -1,009 million in 2025, -1,384 million in 2026, and a whopping -1,717 million in 2027.

Basically, Yubico is swimming in cash and doesn't need to borrow. This is extremely reassuring for an investor. 5/5, without hesitation.

4. Return on equity (ROE): A Bit of Work to Do 3.5/5 📊

Here, the picture is a little more mixed. The ROE for 2024 is 20.19%, which is already quite good. But forecasts show a decline: 10.7% in 2025, then a gradual rise to 16.8% in 2026 and 17.4% in 2027.

An ROE of around 15-20% is acceptable, but not exceptional either. This means that Yubico is using its equity capital fairly well, but that there may be room for improvement. I give them 3.5/5.

5. Market performance: A Rising Star 4.5/5 📈

Yubico AB is rapidly rising in the cybersecurity market. With growing demand for secure authentication solutions, the company is well positioned to capitalise on this trend. The outlook for the coming years is very optimistic, and Yubico AB could well become a global leader in its field.

Overall rating: 4.4/5 🌟

On average, I give Yubico a rating of 4.4/5. It is a solid, fast-growing company with no debt and a promising future. However, the ROE could be better and the stock is a little overvalued at the moment.

Share value estimate

So, how much could the share be worth in the coming years? Based on earnings forecasts (EPS of SEK 4.04 in 2026 and SEK 5.57 in 2027) and applying a reasonable multiple (around 25-30x, given the tech sector and growth), I would say:

  • 2026: around SEK 100-120 (slightly down or stable compared to today, given the possible correction after the overheating of 2024-2025)
  • 2027: around SEK 140-170 (return to growth with confirmation of growth)

Please note that these are only estimates! The market can be unpredictable.

How much should you invest in Yubico AB?

Now for the $10,000 question: if you spread your budget across 10 companies, how much should you put into Yubico?

Given the quality of the company (rated 4.4/5), I would say it deserves a place in your portfolio. But it's not the ultimate rare gem either. I would lean towards $900 to $1,300 on Yubico, or about 13% of your budget.

Why? Because it's a solid growth stock, but with a bit of risk linked to its current valuation and competition in the cybersecurity sector.

Conclusion

Yubico is a company that has everything going for it: explosive growth, no debt, and a product at the heart of today's challenges (cybersecurity). On the other hand, the stock is a bit expensive at the moment, and we will have to see if growth continues.

Investing in a company that protects your data is pretty cool, isn't it?
See you next time for more analysis! 🚀

  • Signal : Buy
  • Budget/Investment : Medium
  • Reinforcement required : Yes, under SEK 80
  • Exposure : Low/Medium
  • Horizon : 1 to 3 years
  • Potential profitability : +61% to +95%
  • Ref. ISIN code : SE0015657788