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1. Company Snapshot

1.a. Company Description

Ambu A/S develops, produces, and sells medical devices to hospitals, clinics, and rescue services worldwide.It provides healthcare solutions in the fields of visualization, anesthesia, and patient monitoring and diagnostics.The company offers endoscopy products, such as bronchoscopes and monitors; and neurology products, including EEG and EMG electrodes, EMG guided injections, and intraoperative monitoring products.


It also provides cardiology products consisting of ECG electrodes; and airway management and anaesthesia products, such as bronchoscopes, video laryngoscopes, double and single lumen tubes, endobronchial blockers, laryngeal and face masks, breathing bags, and resuscitators.In addition, the company offers extrication collars, CPR breathing barriers, video laryngoscopes, and training manikins.Ambu A/S was founded in 1937 and is headquartered in Ballerup, Denmark.

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1.b. Last Insights on AMBU

Ambu A/S faces challenges in the short term, driven by broader European market uncertainties, including Middle Eastern tensions and economic concerns. Despite growth prospects in the Brazil airway management devices market, where Ambu operates, the company's performance is impacted by easing trade tensions and potential U.S. interest rate cuts, which may not directly benefit its business. With European markets experiencing a boost, Ambu's stock may be trading at a discount, estimated to be around 11.4% to 32.3% below intrinsic value. Recent earnings releases and insider ownership have not provided significant positive momentum.

1.c. Company Highlights

2. Ambu's Strong FY2024/25 Results: A Leap Towards Global Endoscopy Leadership

Ambu delivered a robust organic revenue growth of 13.1% for FY2024/25, driven by a 15.4% growth in its endoscopy business. The company's EBIT margin stood at 13.0%, positively impacted by operational leverage. Despite negative impacts from FX and tariffs, Ambu ended the year with a cash flow of DKK 407 million. The actual EPS came in at '0.43', lower than estimates of '0.525'.

Publication Date: Nov -10

📋 Highlights
  • Organic Revenue Growth:: Ambu achieved 13.1% organic growth in FY2024/25, with endoscopy up 15.4% and urology/ENT/GI surging ~20% year-over-year.
  • EBIT Margin Expansion:: Full-year EBIT margin reached 13.0%, driven by operational leverage, and adjusted Q4 margin hit 13.4% despite FX/tariff impacts.
  • Single-Use Endoscopy Market:: Market expected to grow >20% CAGR through 2029/30, aligning with Ambu’s 11-13% CAGR long-term growth target.
  • Cash Flow Resilience:: Generated DKK 407 million cash flow in FY2024/25 despite FX/tariff headwinds, with dividend proposal of DKK 110 million and DKK 150 million buyback.
  • Strategic Focus Areas:: ZOOM AHEAD strategy prioritizes respiratory (11.4% growth) and urology (20%+ organic growth), with EBIT margin aiming for 20% by 2027-2028.

Segmental Performance

The endoscopy solutions revenue saw a solid double-digit growth in the respiratory segment of 11.4% for the year and 8.8% for Q4. Urology, ENT, and GI segments had a higher organic revenue for the year of almost 20%, 19.6%. Anesthesia and patient monitoring grew 9.9% for the full year, driven by price increases and volume growth.

Guidance and Outlook

For 2025 and 2026, the company guides for 10-13% organic growth, with endoscopy solutions growing more than 15%, and anesthesia and patient monitoring growing mid-single digits. The EBIT margin guidance is 12-14%, including a 2 percentage point negative impact from tariffs. The company expects to deliver around 20% EBIT margin by 2027-2028 and more than 40% cash conversion over the period.

Valuation Metrics

With a P/E Ratio of 60.89, P/B Ratio of 3.7, and EV/EBITDA of 18.42, the market seems to have priced in significant growth expectations. Analysts estimate next year's revenue growth at 9.3%, indicating a slight slowdown. The current valuation multiples suggest that the market is expecting strong growth and profitability from Ambu, driven by its endoscopy solutions business and strategic initiatives.

Strategic Initiatives and Market Outlook

Ambu launched its next-era strategy, ZOOM AHEAD, with ambitions to achieve global endoscopy leadership. The single-use endoscopy market is expected to grow over 20% CAGR until 2029/30, driven by the transition from reusable to single-use endoscopes and underlying procedure growth. The company is confident about delivering on its long-term guidance of 11-13% CAGR growth and sees a clear path to solid double-digit organic revenue growth and margin expansion towards 2030.

3. NewsRoom

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3 European Stocks Estimated To Be Undervalued By Up To 47.6%

Nov -18

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European Growth Companies With Up To 34% Insider Ownership

Nov -14

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Did Strong Results and New Guidance Just Shift Ambu's (CPSE:AMBU B) Investment Narrative?

Nov -13

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Ambu (CPSE:AMBU B) Valuation: How Improved Results and Guidance Shape Investor Sentiment

Nov -13

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Europe Integrated LED Light Source Endoscope Market Research Report 2025-2035 Featuring Prominent Players - Ambu, Flexicare, KARL STORZ, and Richard Wolf

Nov -11

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Ambu AS (AMBFF) Q4 2025 Earnings Call Highlights: Strong Organic Growth Amid Tariff Challenges

Nov -08

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Colon Screening: Global Market Size, Growth Trends and Forecast Report (2025-2033) Featuring Analysis of Olympus, FUJIFILM, Medtronic, Ambu A/S, Bracco and Other Key Players

Nov -06

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Novo Holdings to make changes to its Board of Directors

Oct -21

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.85%)

6. Segments

Endoscopy Solutions

Expected Growth: 10%

Ambu A/S's Endoscopy Solutions segment growth is driven by increasing demand for minimally invasive procedures, advancements in visualization technology, and expanding applications in gastroenterology and pulmonology. Additionally, growing awareness of early disease detection and prevention, as well as increasing healthcare expenditure in emerging markets, contribute to the 10% growth rate.

Anaesthesia

Expected Growth: 11%

Ambu A/S's Anaesthesia segment growth of 11% is driven by increasing demand for single-use anaesthesia devices, expansion into emerging markets, and growing adoption of ambulatory surgery centers. Additionally, advancements in anaesthesia technology, such as video laryngoscopy, and rising focus on patient safety and comfort also contribute to the growth.

Patient Monitoring

Expected Growth: 13%

Ambu A/S's Patient Monitoring segment growth of 13% is driven by increasing demand for remote patient monitoring, advancements in wireless and wearable technologies, and growing need for real-time patient data. Additionally, the COVID-19 pandemic has accelerated the adoption of remote monitoring solutions, further fueling growth.

7. Detailed Products

Single-use Bronchoscopes

Ambu's single-use bronchoscopes are designed for bronchoscopy procedures, offering a sterile and convenient solution for healthcare professionals.

Endoscopes

Ambu's endoscopes are designed for a range of procedures, including gastroscopy, colonoscopy, and ENT procedures.

Anesthesia Systems

Ambu's anesthesia systems are designed for safe and efficient anesthesia delivery, offering a range of solutions for anesthesia providers.

Patient Monitoring Systems

Ambu's patient monitoring systems provide real-time vital sign monitoring, offering a range of solutions for hospitals and healthcare facilities.

Neonatal Care Solutions

Ambu's neonatal care solutions are designed for the care and treatment of newborns, offering a range of solutions for neonatal intensive care units.

8. Ambu A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

Ambu A/S faces moderate threat from substitutes due to the presence of alternative medical devices and equipment in the market.

Bargaining Power Of Customers

Ambu A/S has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Ambu A/S relies on a few key suppliers for critical components, giving them some bargaining power, but the company's size and reputation help mitigate this risk.

Threat Of New Entrants

The medical device industry has high barriers to entry, including regulatory hurdles and significant R&D investments, making it difficult for new entrants to compete with Ambu A/S.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share, which increases the intensity of rivalry for Ambu A/S.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.77%
Debt Cost 8.30%
Equity Weight 90.23%
Equity Cost 8.30%
WACC 8.30%
Leverage 10.83%

11. Quality Control: Ambu A/S passed 6 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

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Sectra

A-Score: 4.8/10

Value: 0.0

Growth: 8.3

Quality: 8.9

Yield: 0.6

Momentum: 5.5

Volatility: 5.3

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Medacta

A-Score: 4.8/10

Value: 0.9

Growth: 6.6

Quality: 6.8

Yield: 0.6

Momentum: 7.0

Volatility: 6.7

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Getinge

A-Score: 4.3/10

Value: 3.4

Growth: 3.8

Quality: 5.2

Yield: 3.1

Momentum: 4.0

Volatility: 6.0

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Demant

A-Score: 4.0/10

Value: 3.6

Growth: 6.8

Quality: 6.4

Yield: 0.0

Momentum: 2.0

Volatility: 5.3

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LivaNova

A-Score: 3.8/10

Value: 6.2

Growth: 5.8

Quality: 4.0

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

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Ambu

A-Score: 3.0/10

Value: 0.8

Growth: 5.9

Quality: 6.2

Yield: 0.0

Momentum: 2.0

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

87.25$

Current Price

87.25$

Potential

-0.00%

Expected Cash-Flows