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1. Company Snapshot

1.a. Company Description

Marel hf.develops, manufactures, sells, and distributes processing equipment, systems, software, and services for poultry, meat, and fish industries.The company's Poultry Processing segment offers integrated systems, software, and services for processing broilers, turkeys, and ducks.


Its Meat Processing segment provides processing equipment, systems, software, and services of pork, beef, veal, and sheep.The company's Fish Processing segment offers equipment, systems, software, and services for farmed and wild salmon and whitefish processing.It sells in Europe, the Middle East, Africa, the Americas, Asia, and Oceania.


The company was founded in 1977 and is based in Garðabær, Iceland.

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1.b. Last Insights on MAREL

Marel hf.'s recent momentum is driven by the impending completion of its acquisition by John Bean Technologies (JBT), expected by January 2025. Regulatory clearances have been secured, paving the way for the deal's closure. This strategic combination is anticipated to boost Marel's growth prospects, enhancing its competitive position in the food processing industry.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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John Bean's Stock Price Hits 52-Week High: What's Aiding It?

Dec -12

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John Bean Receives Regulatory Clearances for Marel Acquisition

Nov -28

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John Bean (JBT) Inks Definitive Transaction Agreement With Marel

Apr -08

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JBT (JBT) Up 2.6% Since Last Earnings Report: Can It Continue?

Mar -21

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John Bean (JBT) Submits Revised Proposal to Acquire Marel

Dec -14

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John Bean (JBT) Submits Non-Binding Proposal to Buy Marel

Nov -27

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.63%)

6. Segments

Poultry

Expected Growth: 4.5%

Marel hf.'s poultry segment growth of 4.5% is driven by increasing demand for protein-rich food, rising adoption of automated poultry processing solutions, and growing focus on food safety and sustainability. Additionally, expansion into emerging markets, innovative product offerings, and strategic acquisitions are contributing to the segment's growth.

Meat

Expected Growth: 4.8%

Marel hf.'s meat segment growth of 4.8% is driven by increasing demand for automated food processing, rising adoption of robotics and digitalization in the meat industry, and growing focus on food safety and sustainability. Additionally, expanding global meat production and consumption, particularly in emerging markets, contribute to the segment's growth.

Plant, Pet and Feed

Expected Growth: 5.2%

Marel hf's 5.2% growth in Plant, Pet and Feed segments is driven by increasing demand for automated food processing, pet owners' willingness to pay for premium pet food, and rising global meat consumption. Additionally, the company's strategic acquisitions, innovative product offerings, and expanding presence in emerging markets contribute to its growth momentum.

Fish

Expected Growth: 4.2%

Marel hf.'s 4.2% growth in Fish segment is driven by increasing demand for sustainable and automated aquaculture solutions, expansion in emerging markets, and strategic acquisitions. Additionally, growing consumer preference for healthy and protein-rich food, coupled with government initiatives to promote sustainable fishing practices, contribute to the segment's growth.

Other

Expected Growth: 4.0%

Marel hf's 4.0% growth is driven by increasing demand for automated food processing solutions, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, digitalization, and sustainability initiatives has contributed to its growth. Furthermore, the rising need for efficient and safe food production, coupled with government initiatives to modernize the food industry, has also fueled Marel's growth.

7. Detailed Products

Poultry Processing Systems

Marel's poultry processing systems provide innovative solutions for poultry processing, from live bird handling to packaging and labeling.

Meat Processing Systems

Marel's meat processing systems offer advanced solutions for meat processing, from cutting and deboning to packaging and labeling.

Fish Processing Systems

Marel's fish processing systems provide innovative solutions for fish processing, from filleting and portioning to packaging and labeling.

Further Processing Systems

Marel's further processing systems offer advanced solutions for value-added products, from burgers to sausages and ready-to-eat meals.

Software Solutions

Marel's software solutions provide data-driven insights and automation for the food processing industry.

Service and Maintenance

Marel's service and maintenance solutions provide support and maintenance for food processing equipment and systems.

8. Marel hf.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Marel hf. operates in the food processing industry, where substitutes are available, but the company's focus on innovation and quality helps to mitigate the threat.

Bargaining Power Of Customers

Marel hf.'s customers, such as food processing companies, have significant bargaining power due to their large scale of operations and ability to switch suppliers.

Bargaining Power Of Suppliers

Marel hf. has a diversified supplier base, which reduces the bargaining power of individual suppliers, and the company's strong relationships with suppliers also help to mitigate the threat.

Threat Of New Entrants

The food processing industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which makes it difficult for new entrants to enter the market.

Intensity Of Rivalry

The food processing industry is moderately competitive, with several established players, but Marel hf.'s focus on innovation and quality helps the company to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.25%
Debt Cost 5.91%
Equity Weight 54.75%
Equity Cost 5.91%
WACC 5.91%
Leverage 82.64%

11. Quality Control: Marel hf. passed 1 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

Stock-Card
Melrose

A-Score: 4.7/10

Value: 4.8

Growth: 2.1

Quality: 6.0

Yield: 2.5

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Beijer Ref

A-Score: 4.4/10

Value: 2.4

Growth: 8.7

Quality: 5.5

Yield: 1.2

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
FLSmidth

A-Score: 4.3/10

Value: 2.7

Growth: 2.7

Quality: 4.7

Yield: 2.5

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Interroll

A-Score: 4.0/10

Value: 2.0

Growth: 4.7

Quality: 7.4

Yield: 2.5

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Marel

A-Score: 3.9/10

Value: 3.2

Growth: 4.0

Quality: 2.2

Yield: 0.6

Momentum: 8.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Nordex

A-Score: 3.9/10

Value: 3.5

Growth: 5.1

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

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

4.55$

Current Price

4.55$

Potential

-0.00%

Expected Cash-Flows