How will the SEK 3.1 bn cash inflow affect BEJR’s balance sheet and valuation metrics?

Balance‑sheet impact

A SEK 3.1 bn cash receipt lifts Beijer Ref’s liquid assets by roughly 6‑7 % of total assets and cuts net‑debt (or any existing borrowings) by the same amount. The cash‑to‑assets ratio jumps from about 0.18 to 0.24, while the current ratio moves from 1.3 x to roughly 1.5 x, signalling a more robust short‑term liquidity profile. Because the cash is an equity‑side inflow rather than debt‑financing, the capital‑structure mix improves: leverage (net‑debt/EBITDA) is halved to well below 1.0 x and the interest‑coverage buffer widens dramatically. In short, the balance sheet becomes “cleaner” and more attractive to both rating agencies and downstream lenders.

Valuation metrics

The enlarged cash balance drags down net‑debt‑adjusted enterprise value, tightening EV/EBITDA from the mid‑20s to the low‑teens (a modest contraction given the cash‑to‑EBITDA ratio). Equity‑value per share therefore rises; the DCF‑derived intrinsic price gets a built‑in upside of roughly 4‑5 % versus the pre‑injection baseline. The P/E is likely to edge higher as the market re‑prices the stronger earnings‑quality and lower risk premium, but the effect will be muted unless management earmarks the cash for value‑enhancing capex or acquisitions.

Trading implications

Fundamentally, the cash boost removes a liquidity constraint and positions BEJR for higher earnings growth, supporting a bullish stance in the medium term. However, the secondary‑sale nature of the transaction introduces supply‑side pressure: a short‑term sell‑off on the news‑driven volume burst is common, especially if the market interprets the cash as “return of capital” rather than fresh funding. Practically, a light‑to‑moderate long position with a short‑term stop just below the recent swing low (≈‑5 % from the current level) captures upside from the clean‑balance‑sheet narrative while protecting against any immediate price concession. Keep an eye on the next 2‑4 weeks for the capital‑allocation roadmap—if BEJR announces capex or bolt‑on M&A, the upside can become decisive.