ISS A/S (ISS.CO) | Investment Case

1. Company Snapshot

1.a. Company Description

ISS A/S provides workplace management and facility services.It offers office, hospital, laboratory, food hygiene, hospitality and events cleaning services; and hospitality, catering, fine dining and event catering, and micro-kitchens and vending services, as well as operates restaurants, pop-up or high street concept stores, coffee bars, and power plants.The company also provides security services comprising security awareness training, surveillance, workplace safety and emergency management, consulting, security risk management, and technical installation services.

In addition, it offers support services, which include front desk and reception, meeting and conference management, switchboards and service desk, concierge, mail and courier, document, executive and administrative support, and experience curation and management services.Further, the company provides energy management, asset management, building structure and fabric, critical environments, property maintenance, and waste management services.Additionally, it designs and delivers workplace strategies and solutions, such as portfolio strategy, curated experience and workplace strategy, workplace design, service design, relocation strategy, capital projects, mental rebuild, and co-working services.

ISS A/S was founded in 1901 and is headquartered in Søborg, Denmark.

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1.b. Last Insights on ISS

ISS A/S's recent performance has been driven by a series of positive developments. The company's share price has shown significant momentum, with a 30-day return of 9.52% and a 1-year total shareholder return of 79.28%. This surge in value is attributed to the company's strong recent shareholder returns, with investors taking notice of its valuation. Additionally, a major shareholder announcement revealed that Société Générale has increased its stake in the company, further boosting investor confidence. The company's share buyback programme, initiated in February 2025, has also contributed to the positive sentiment, as it reduces the number of outstanding shares and benefits shareholders.

1.c. Company Highlights

Last Price	233.6
Change Percentage	-1.27%
Open	236.6
Previous Close	236.6
Market Cap ( Millions)	37399
Volume	116892
Year High	262.6
Year Low	131.3
M A 50	233.36
M A 200	202.69

FCF Yield	9.47%
Dividend Yield	1.33%
ROE	26.23%
Debt / Equity	224.33%
Net Debt / EBIDTA	261.62%
Price To Book	4.15
Price Earnings Ratio	14.72
Price To FCF	10.56
Price To sales	0.44
EV / EBITDA	9.44

2. Transcript Summary

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3. NewsRoom

Facility Management Services Industry Report 2026-2035: A $3.55 Trillion Market by 2030 with ISS A/S, Sodexo S.A., Aramark, ABM Industries Leading

Feb -20

Source:

ISS Buyback, New Contracts And Acquisitions Shape Valuation Debate

Feb -19

Source:

ISS AS (STU:QJQ) Full Year 2025 Earnings Call Highlights: Strong Financial Performance Amidst ...

Feb -19

Source:

ISS initiates DKK 2.5 billion share buyback programme

Feb -19

Source:

Robust financial performance in 2025 in line with expectations. ISS initiates a new share buyback programme of DKK 2.5 billion

Feb -19

Source:

Transactions in connection with share buyback programme – program completed

Feb -16

Source:

Transactions in connection with share buyback programme

Feb -09

Source:

Assessing ISS (CPSE:ISS) Valuation After Strong Recent Shareholder Returns

Feb -07

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.60%)

6. Segments

Office-based

Expected Growth: 3.5%

ISS A/S's 3.5% office-based segment growth is driven by increasing demand for outsourced facility management services, cost savings from bundled services, and a growing need for companies to focus on their core business. Additionally, ISS's expertise in sustainability and energy efficiency solutions resonates with environmentally conscious clients, contributing to the segment's growth.

Production-based

Expected Growth: 3.8%

ISS A/S's 3.8% growth in production-based segment is driven by increasing demand for facility management services, expansion into emerging markets, and strategic acquisitions. Additionally, investments in digitalization and process optimization have improved operational efficiency, enabling the company to capitalize on growing outsourcing trends in the industry.

Other

Expected Growth: 3.2%

ISS A/S's 3.2% growth is driven by increasing demand for facility management services, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on sustainability and energy-efficient solutions resonates with environmentally conscious clients, contributing to its growth momentum.

Healthcare

Expected Growth: 4.2%

Healthcare segment growth of 4.2% driven by increasing demand for hygiene and sanitation products, aging population, and rising healthcare expenditure. Additionally, ISS A/S's focus on innovation, digitalization, and sustainability initiatives contribute to the growth. The company's ability to provide integrated facility services, including healthcare support services, also supports the growth momentum.

7. Detailed Products

Facility Management

ISS A/S provides facility management services that include maintenance, repairs, and operations of buildings and facilities.

Cleaning Services

ISS A/S offers cleaning services for offices, hospitals, schools, and other institutions, ensuring a clean and healthy environment.

Catering Services

ISS A/S provides catering services, including food preparation and delivery, for various institutions and events.

Security Services

ISS A/S offers security services, including manned guarding, event security, and security consulting.

Property Services

ISS A/S provides property services, including property management, maintenance, and repairs.

Support Services

ISS A/S offers support services, including reception, mailroom, and helpdesk services.

Technical Services

ISS A/S provides technical services, including HVAC, electrical, and plumbing maintenance and repairs.

8. ISS A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ISS A/S is medium, as there are some alternatives to the company's services, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for ISS A/S is low, as the company has a diverse customer base and no single customer has significant bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ISS A/S is medium, as the company relies on a few large suppliers for some of its inputs, but has some flexibility to switch suppliers if needed.

Threat Of New Entrants

The threat of new entrants for ISS A/S is low, as the company has significant barriers to entry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for ISS A/S is high, as the company operates in a highly competitive industry with many established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	62.83%
Debt Cost	4.38%
Equity Weight	37.17%
Equity Cost	10.91%
WACC	6.81%
Leverage	169.00%

11. Quality Control: ISS A/S passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Elis

A-Score: 6.1/10

Value: 6.8

Growth: 5.9

Quality: 5.0

Yield: 3.8

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

ISS

A-Score: 6.0/10

Value: 6.1

Growth: 5.4

Quality: 5.3

Yield: 1.9

Momentum: 9.5

Volatility: 8.0

1-Year Total Return ->

Intertek

A-Score: 5.5/10

Value: 3.8

Growth: 4.4

Quality: 5.9

Yield: 5.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

Sodexo

A-Score: 4.7/10

Value: 7.6

Growth: 3.9

Quality: 3.7

Yield: 7.5

Momentum: 0.0

Volatility: 5.3

1-Year Total Return ->

ID Logistics

A-Score: 4.2/10

Value: 3.4

Growth: 7.9

Quality: 2.5

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

InPost

A-Score: 3.5/10

Value: 4.0

Growth: 8.0

Quality: 5.1

Yield: 0.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.46%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.81%

ISS A/S - DK0060542181

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ISS

1.c. Company Highlights

Lower Growth

Fairly Valued

Average Quality

Earnings Beats

Revenues Beats

Average Yield

Medium Volatility

Average Growth

Earnings Miss

Less Volatile

Strong Momentum

Stable Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.60%)

6. Segments

Office-based

Expected Growth: 3.5%

Production-based

Expected Growth: 3.8%

Other

Expected Growth: 3.2%

Healthcare

Expected Growth: 4.2%

7. Detailed Products

Facility Management

Cleaning Services

Catering Services

Security Services

Property Services

Support Services

Technical Services

8. ISS A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: ISS A/S passed 2 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

233.6$

Current Price

233.6$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA