Download PDF

1. Company Snapshot

1.a. Company Description

Intrum AB (publ), together with its subsidiaries, provides credit management and financial services in Europe and internationally.The company offers credit optimization services, including credit monitoring, credit decision, factoring, and credit information services; and debt collection comprising surveillance and purchase services.It also provides payment services, such as reminder, payment guarantee, and VAT services; e-commerce services comprising credit management, payment solutions, and collection services; accounts receivables services that include invoicing, payment booking, monitoring of due dates, reminder, and collection services; and financing and portfolio investment services.


Intrum AB (publ) was founded in 1923 and is headquartered in Stockholm, Sweden.

Show Full description

1.b. Last Insights on INTRUM

Intrum AB's recent performance was driven by a 26% increase in EBIT and improved servicing margins in Q4 2024, despite structural challenges. The company's debt restructuring plan in the US was confirmed by a judge, clearing a major obstacle. Additionally, Intrum discontinued its holdout noteholder deal, allowing it to proceed with its pre-packaged Chapter 11 filing. These developments indicate a positive trajectory for the company, potentially leading to improved financial stability and reduced debt burden.

1.c. Company Highlights

2. Intrum's Q3 2025 Earnings: A Mixed Bag

Intrum's Q3 2025 financial performance was a mixed bag, with revenues declining by 3% year-on-year, mainly due to FX, while adjusted EBIT increased by 30%. The EPS came in at 3.01, missing analyst estimates of 3.49. The adjusted EBIT margin for the servicing business stood at 25% on a rolling 12-month basis, a "tick in the box" as per Johan Akerblom, President and CEO. The company's net income to shareholders was impacted by a gain on recapitalization and one-off tax items.

Publication Date: Nov -04

📋 Highlights
  • Adjusted EBIT Growth: 30% year-on-year increase in adjusted EBIT, driven by improved operating performance.
  • Net Profitability: Third consecutive quarter of net profits, despite a reported EBIT of nearly -SEK 600 million due to one-offs.
  • Servicing Margin Milestone: Achieved 25% adjusted EBIT margin over rolling 12 months, aligning with strategic goals.
  • Debt Profile: Net debt at SEK 45 billion with SEK 12 billion in maturities due in 2027, highlighting refinancing focus.
  • Cost Efficiency: 10% reduction in costs year-on-year, contributing to margin stability despite income declines.

Segmental Performance

The servicing business saw a flat income, but organic growth was 3%, and adjusted EBIT was up 27%. The investing business had a decline in cash EBITDA due to a smaller book value. Johan Akerblom emphasized that servicing top-line growth is a slow-moving business, but the ambition is to keep it growing, with a focus on becoming more efficient, automated, and scalable.

Leverage and Capital Structure

The company's leverage ratio has been restated, and it is moving in the right direction. Masih Yazdi, CFO, noted that a sustainable balance sheet is one that is in better shape than the current balance sheet. The company will take into account the composition of the business and the riskiness of the servicing and investing businesses when setting new leverage targets. The net debt stood at SEK 45 billion, with about SEK 12 billion of maturities in 2027.

Valuation Metrics

Intrum's current valuation metrics indicate that the stock is trading at a P/E Ratio of -2.87, P/B Ratio of 0.38, and EV/EBITDA of 7.98. The Net Debt / EBITDA ratio stands at 7.22, indicating a relatively high level of debt. Analysts estimate next year's revenue growth at 1.8%. The current valuation multiples suggest that the market is pricing in a challenging financial situation, and the stock may be undervalued given the company's efforts to improve its financials and reduce debt.

Outlook

Johan Akerblom stated that the quarter is a positive one for the underlying business, and the company aims to reach a SEK 2 billion investment target. The company is capitalizing on its presence in every country and its ability to meet different market dynamics. The focus is on becoming more efficient, automated, and scalable to drive income growth without increasing costs in the short term.

3. NewsRoom

Card image cap

Intrum (OM:INTRUM) Losses Widen at 43.3% Rate, Spotlighting Financial Health Concerns

Oct -31

Source:

Card image cap

Does Heineken’s Slump Signal Opportunity After Record Low US Alcohol Consumption?

Sep -09

Source:

Card image cap

Enel (BIT:ENEL): Is the Current Valuation Overlooking Subtle Shifts in Performance?

Sep -09

Source:

Card image cap

Telecom Italia (BIT:TIT): Fresh Valuation Perspectives After Strong Share Price Momentum

Sep -09

Source:

Card image cap

Alfa Laval (OM:ALFA): Evaluating the Company’s Valuation as Investors Weigh Recent Modest Share Price Movements

Sep -09

Source:

Card image cap

Porsche SE (XTRA:PAH3): Assessing Value Potential Following Recent Share Price Stability

Sep -09

Source:

Card image cap

GL Events Valuation in Focus After Strong 61.7% Year-to-Date Rally

Sep -09

Source:

Card image cap

How Does Nexans Stack Up After Its Recent 22% Year to Date Surge?

Sep -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.74%)

6. Segments

Servicing

Expected Growth: 8.95%

Intrum AB's 8.95% growth is driven by increasing demand for debt collection services, expansion into new markets, and strategic acquisitions. The company's expertise in digitalization and analytics enables efficient servicing, attracting clients seeking to optimize their credit management processes. Additionally, Intrum's strong brand reputation and compliance with regulatory requirements contribute to its growth momentum.

Investing

Expected Growth: 8.5%

Intrum AB's 8.5% growth is driven by increasing demand for debt collection services, expansion into new markets, and strategic acquisitions. The company's focus on digitalization and process efficiency also contributes to growth. Additionally, a rising trend of outsourcing debt collection by businesses and governments supports Intrum's growth momentum.

Eliminations

Expected Growth: 8.5%

Intrum AB's 8.5% growth is driven by strategic acquisitions, expanding market share in credit management services, and increased demand for debt collection solutions. Additionally, the company's digital transformation efforts, cost savings initiatives, and favorable interest rates contribute to its growth momentum.

Head Office Adjustment

Expected Growth: 8.5%

Intrum AB's 8.5% Head Office Adjustment growth is driven by efficient cost management, strategic investments in digital transformation, and a strong focus on operational excellence. Additionally, the company's solid financial position and effective working capital management have enabled it to capitalize on market opportunities, further contributing to its growth.

Discontinued Operations

Expected Growth: 7.95%

Intrum AB's 7.95% growth in Discontinued Operations is driven by strategic divestments, improved operational efficiency, and a favorable debt restructuring. The company's focus on core businesses and cost savings initiatives have also contributed to this growth. Additionally, the divested units' improved performance prior to sale and a benign macroeconomic environment have supported this growth momentum.

7. Detailed Products

Credit Management

Intrum's Credit Management services help businesses manage their accounts receivable and improve cash flow by providing credit checks, credit reports, and debt collection services.

Debt Collection

Intrum's Debt Collection services help businesses recover outstanding debts and improve their cash flow by providing amicable and legal debt collection services.

Invoice Management

Intrum's Invoice Management services help businesses streamline their invoicing and payment processes, reducing administrative burdens and improving cash flow.

Risk Management

Intrum's Risk Management services help businesses identify and mitigate credit risks by providing credit ratings, credit limits, and risk assessments.

Business Information

Intrum's Business Information services provide businesses with access to company data, credit reports, and industry insights to support informed decision-making.

8. Intrum AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Intrum AB (publ) operates in the debt collection industry, which has a moderate threat of substitutes. While there are alternative debt collection methods, such as in-house collections, the industry is dominated by specialized debt collection agencies like Intrum.

Bargaining Power Of Customers

Intrum AB (publ) has a large customer base, including banks, financial institutions, and other organizations. However, the bargaining power of customers is relatively low due to the specialized nature of debt collection services.

Bargaining Power Of Suppliers

Intrum AB (publ) has a diverse supplier base, including IT service providers, consultants, and other vendors. The bargaining power of suppliers is relatively low due to the company's large scale and diversified supply chain.

Threat Of New Entrants

The debt collection industry has moderate barriers to entry, including regulatory requirements and the need for specialized expertise. While new entrants can still enter the market, the threat of new entrants is relatively low due to these barriers.

Intensity Of Rivalry

The debt collection industry is highly competitive, with several large players competing for market share. Intrum AB (publ) faces intense rivalry from competitors, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.37%
Debt Cost 9.86%
Equity Weight 21.63%
Equity Cost 9.86%
WACC 9.86%
Leverage 362.24%

11. Quality Control: Intrum AB (publ) 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

Stock-Card
BFF Bank

A-Score: 5.9/10

Value: 6.0

Growth: 4.8

Quality: 7.1

Yield: 5.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Resurs Holding

A-Score: 5.4/10

Value: 5.5

Growth: 5.2

Quality: 3.9

Yield: 5.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
MutuiOnline

A-Score: 4.8/10

Value: 3.5

Growth: 8.3

Quality: 5.8

Yield: 0.6

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Intrum

A-Score: 4.4/10

Value: 9.1

Growth: 2.1

Quality: 2.8

Yield: 5.0

Momentum: 7.5

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Grenke

A-Score: 4.0/10

Value: 7.1

Growth: 5.7

Quality: 3.5

Yield: 3.8

Momentum: 1.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Funding Circle

A-Score: 2.9/10

Value: 4.8

Growth: 2.1

Quality: 6.7

Yield: 0.0

Momentum: 2.5

Volatility: 1.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.28$

Current Price

37.28$

Potential

-0.00%

Expected Cash-Flows