Heimstaden AB (publ) logo

Heimstaden AB (publ)

HEIM-PREF.ST
42
Real Estate - Services · Real Estate
Price
kr 21.20
+0.20 (+0.95%)
Market Cap
kr 4.04B
Exchange
Stockholm Stock Exchange
Winston Score
42
Winston looking serious
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Winston Score between 40 and 70. The stock passes some quality checks but not all.

Heimstaden AB is a Swedish real estate company that owns and rents out residential apartments. Its customers are everyday people looking for a place to live, primarily across Northern and Central Europe. The company is one of the largest private residential landlords in the Nordic region, with a large portfolio of tens of thousands of apartments.

Heimstaden makes money by collecting rent from tenants each month, which creates a steady and predictable stream of income. It operates mainly in Sweden, Denmark, Norway, the Netherlands, Germany, Poland, and the Czech Republic, and its scale gives it an advantage in managing properties efficiently. However, the company carries a significant amount of debt used to finance its property purchases, and rising interest rates have put pressure on its finances — making debt management one of the key risks investors watch closely.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-70.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

0.1%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$3.7B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Winston looking concerned
Revenue declining

Heimstaden AB (publ)'s revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
60.6%
Premium pricing power — 60.6% gross margin
Operating Margin
56.0%
Excellent — 56.0% operating margin
ROCE
1.1%
Weak — 1.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+0.5%
Nearly flat sales (0.5% YoY)
EPS YoY
-34.0%
Earnings shrinking (-34.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
100%
Turns 100% of profit into real cash
FCF Margin
17.7%
Converts sales into free cash efficiently (17.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
8.35
Heavy debt load (8.35)
Interest Cover
4.84x
Adequate interest coverage (4.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio
0.6x
Attractive valuation — P/E 0.6

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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