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1. Company Snapshot

1.a. Company Description

SEB SA designs, manufactures, and markets small household appliances worldwide.It provides electrical cooking, food preparation, and beverage preparation products, including electrical cooking products comprising deep fryers, rice cookers, electric pressure cookers, informal meal appliances, waffle makers, grills, toasters, multicookers, coffee makers, espresso machines, electric kettles, home beer-taps, soy-milk makers, blenders, cooking food processors, kitchen machines, mixers, beaters, etc.The company also offers linen, home, and personal care products, such as irons and steam generators, garment steamers, canister vacuum cleaners with or without dust bag, steam and upright vacuum cleaners, vacuum weepers, versatile vacuums, robots, fans, heaters, air treatment appliances, hair care appliances, depilators, electrical beard trimmers, hair clippers, and bathroom scales.


In addition, it provides cookware products, such as frying pans, saucepans pots, pressure cookers, bakeware, kitchen utensils, food storage containers, vacuum flasks, thermo mugs, cutlery, and other products.Further, the company offers hotel equipment, crepe and waffle makers, planchas, and grills for professionals.It provides its products under various brands that primarily include Calor, Rowenta, Moulinex, Seb, Tefal, Krups, Lagostina, WMF, Schaerer, Wilbur Curtis, Hepp, Krampouz, Arno, Supor, Imusa, All-Clad, and Silit.


The company was founded in 1857 and is headquartered in Écully, France.

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1.b. Last Insights on SK

SEB's recent performance was negatively impacted by a guidance cut, citing softer sales in Europe and a challenging US market. The company revised its full-year outlook, projecting stable to slightly positive organic sales growth and reducing its operating result forecast to €550 million-€600 million. Analyst downgrades and tariff pressures have also tempered expectations for growth potential. Sustained competition and weaker consumer demand in Europe and the US have not been offset by sales improvements in Asia and South America.

1.c. Company Highlights

2. SEB Reports Steady Financial Performance with Strategic Initiatives

SEB reported a solid financial performance in 2024, with operating income reaching SEK81.9 billion, reflecting a 2% decrease in operating profit excluding AirPlus integration effects. The net profit was SEK35.9 billion, down 3% year-over-year, with EPS showing a 1% decline. However, the return on equity remained robust at 16.2%, demonstrating strong profitability despite external pressures. Asset quality stayed strong, with net expected credit losses at 3 basis points, indicating prudent risk management.

Publication Date: Feb -28

📋 Highlights
  • Strong Corporate and Investment Banking Activity:: SEB reported increased customer activity in corporate and investment banking, particularly in the Baltics, with 4% growth in corporate lending and 6% growth in mortgages year-over-year. This highlights robust performance in key markets despite broader macroeconomic challenges.
  • Cost Management and 2025 Targets:: The bank reaffirmed its 2025 cost target of SEK33 billion, balancing integration costs from AirPlus, reinvestments, inflation, and efficiency gains. This demonstrates a disciplined approach to managing expenses while investing for future growth.
  • Profitability and Asset Quality:: Full-year operating profit was SEK46 billion, down 2% excluding AirPlus, with net profit at SEK35.9 billion, down 3%. Despite this, asset quality remained strong, with net ECLs at 3 basis points, indicating a stable balance sheet.
  • Strategic Expansion and Modernization:: SEB is expanding its corporate banking presence in Northern Europe, growing its retail banking through digital channels, and strengthening its wealth and asset management division. The integration of AirPlus and investments in digital infrastructure underscore its commitment to modernization and efficiency.
  • Capital Management and Dividend Strategy:: The board proposed an ordinary dividend of SEK8.50 per share, a special dividend of SEK3 per share, and a SEK10 billion share buyback program for 2025. SEB aims to maintain its capital buffer within a 100-300 basis point range, reflecting prudent capital management and a focus on shareholder returns.

Q4 Highlights and Strategic Expansion

In the fourth quarter, operating income was SEK20 billion, driven by a 7% increase in fees and commissions, particularly in corporate and investment banking. Net interest income saw a slight decline due to yield curve effects, while net financial income was impacted by mark-to-market losses, notably from Euroclear. Expenses for the quarter were SEK8.7 billion, including SEK500 million allocated to AirPlus integration costs. SEB has expanded its corporate banking presence in Europe, adding the Netherlands, Austria, and Switzerland as home markets, while the AirPlus acquisition strengthens its position in corporate payments, creating a European leader.

Valuation and Strategic Outlook

Christoffer Malmer noted, "The 2025 cost target is ambitious but achievable through restructuring efforts." This statement reinforces SEB's disciplined approach to cost management and strategic execution, positioning it favorably for sustained profitability and shareholder value creation.

3. NewsRoom

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Groupe SEB: Monthly Disclosure of the Total Number of Shares and Voting Rights – 30.11.2025

Dec -04

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Groupe SEB: Monthly Disclosure of the Total Number of Shares and Voting Rights – 31.10.2025

Nov -06

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GROUPE SEB: 9-Month 2025 Sales and Financial Data

Oct -23

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A Look at SEB (ENXTPA:SK) Valuation Following Guidance Cut and Share Price Drop

Oct -09

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Looking at the Narrative for SEB After Analyst Downgrades and Tariff Pressures

Oct -09

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SEB (ENXTPA:SK) Cuts Outlook After Persistent Europe and US Weakness Is the Growth Story Intact?

Oct -09

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Groupe SEB Shares Fall on Profit Warning, Guidance Cut

Oct -06

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Groupe SEB: Revision of 2025 Financial Outlook

Oct -06

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.39%)

6. Segments

Consumer

Expected Growth: 7%

SEB SA's 7% growth in the Consumer segment is driven by increasing demand for home appliances, particularly in emerging markets. Strong brand recognition, innovative products, and strategic partnerships contribute to market share gains. Additionally, expanding e-commerce channels and targeted marketing efforts enhance customer reach and loyalty.

Intra-group Transactions

Expected Growth: 9%

SEB SA's 9% growth in intra-group transactions is driven by increased cross-border trade, strategic partnerships, and optimized treasury management. Additionally, the group's expansion into new markets, improved supply chain efficiency, and effective risk management practices have contributed to this growth.

Professional

Expected Growth: 8%

SEB SA's 8% growth is driven by increasing demand for premium home appliances, successful product innovations, and strategic expansion into emerging markets. Additionally, the company's focus on sustainability and digitalization, as well as its strong brand recognition, contribute to its growth momentum.

7. Detailed Products

Cooking Appliances

SEB SA offers a wide range of cooking appliances, including cookware, kitchen utensils, and electrical appliances, designed to make cooking easier and more efficient.

Home and Personal Care

SEB SA's home and personal care products include a range of items, such as hair care appliances, beauty tools, and home cleaning solutions, designed to make daily life easier and more convenient.

Coffee Machines and Accessories

SEB SA offers a range of coffee machines and accessories, including espresso machines, coffee grinders, and coffee makers, designed to provide the perfect cup of coffee every time.

Small Domestic Appliances

SEB SA's small domestic appliances include a range of products, such as toasters, kettles, and blenders, designed to make everyday tasks easier and more efficient.

Ironing and Laundry

SEB SA's ironing and laundry products include a range of items, such as irons, steam generators, and laundry dryers, designed to make ironing and laundry tasks easier and more efficient.

8. SEB SA's Porter Forces

Forces Ranking

Threat Of Substitutes

SEB SA operates in a highly competitive market, and there are many substitutes available to customers. However, the company's strong brand reputation and customer loyalty help to mitigate the threat of substitutes.

Bargaining Power Of Customers

SEB SA's customers have a high bargaining power due to the availability of substitutes and the company's dependence on a few large customers. This gives customers the power to negotiate prices and terms.

Bargaining Power Of Suppliers

SEB SA has a diverse supplier base, and the company is not heavily dependent on a few suppliers. This reduces the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the high capital requirements and regulatory barriers to entry in the banking industry. However, new fintech companies are emerging, which could potentially disrupt the market.

Intensity Of Rivalry

The banking industry is highly competitive, and SEB SA faces intense rivalry from other banks and fintech companies. This competition leads to high marketing and advertising expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.53%
Debt Cost 3.95%
Equity Weight 51.47%
Equity Cost 8.28%
WACC 6.17%
Leverage 94.28%

11. Quality Control: SEB SA passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
De'Longhi

A-Score: 6.2/10

Value: 5.4

Growth: 5.7

Quality: 6.8

Yield: 6.9

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
DS Smith

A-Score: 5.7/10

Value: 8.3

Growth: 3.7

Quality: 3.8

Yield: 4.4

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
NEXT

A-Score: 5.6/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Howden Joinery

A-Score: 5.4/10

Value: 4.6

Growth: 5.7

Quality: 6.9

Yield: 4.4

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Redrow

A-Score: 4.9/10

Value: 6.7

Growth: 3.8

Quality: 7.4

Yield: 4.4

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
SEB

A-Score: 3.6/10

Value: 5.8

Growth: 3.3

Quality: 2.3

Yield: 6.9

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.2$

Current Price

49.2$

Potential

-0.00%

Expected Cash-Flows