Addtech (AO) | Buy | Q4: Mixed results; sales miss but EBITA beat

研报英文原文证据摘录

Addtech (AO) | Buy | Q4: Mixed results; sales miss but EBITA beat

Addtech Buy | Target Price: SEK375.00

Company description Management

Addtech is a Swedish industrial technology trading group specialising in value- Niklas Stenberg, President, CEO

added components and systems for niche markets. It operates through six Malin Enarson, CFO

business areas: Automation, Electrification, Energy, Industry, Process, and Key shareholders

Safety. The company follows a decentralised business model and grows via Free float 90.65%

acquisitions, focusing on high-margin, sustainable solutions while maintaining Swedbank Robur Fonder 5.77%

strong cash flow and disciplined capital allocation. SEB Funds 5.05%

BlackRock 4.71%

Investment case Valuation methodology

Addtech's diversified portfolio of more than 150 technology We value Addtech using an equally weighted average of

companies has proven its resilience regardless of the business EV/EBITA and a DCF.

cycle. Addtech appears fairly valued at a slight premium relative to

It is a frequent acquirer of small- and mid-sized companies, peers when assessing their respective growth and profitability

compounding an 8% sales CAGR from acquisitions over the past profiles.

10 years. Risks to our rating

We think the company's profitability, cash flow, and balance Upside: Higher-than-expected organic growth, positively

sheet will allow it to increase its M&A activity. surprising as Addtech is coming from a period of lower growth.

Catalysts Downside: Inability to execute M&A at favourable terms as

Organic growth recovering to levels in line with historical acquisition multiples trend higher.

performance.

Increased structural growth from larger and more frequent

acquisitions.

Structural expansion within the new Business Area Safety.

Key data charts