AB Fagerhult (publ.) (FAG.ST) | Investment Case

1. Company Snapshot

1.a. Company Description

AB Fagerhult (publ.), together with its subsidiaries, provides professional lighting solutions worldwide.It offers indoor and outdoor lighting products that are used in offices, education, healthcare, retail, hospitality and residential, culture, urban spaces, street and pathways, critical infrastructure, and industry and distribution applications under the ateljé Lyktan, iGuzzini, LED Linear, WE-EF, FAGERHULT, LTS, Arlight, Eagle Lighting, Whitecroft, Designplan Lighting, i-Valo, and Veko brand names.The company was formerly known as Fagerhults Elektriska and changed its name to AB Fagerhult (publ.) in 1974.

AB Fagerhult (publ.) was founded in 1945 and is headquartered in Habo, Sweden.

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1.b. Last Insights on FAG

AB Fagerhult's recent performance was hindered by a challenging market environment, with the pan-European STOXX Europe 600 Index experiencing a significant decline of 8.44% due to heightened concerns over U.S. trade tariffs and their potential impact on global economic growth. The company's ability to navigate this turbulent landscape was further complicated by a decline in demand for its products, likely exacerbated by the economic uncertainty. Additionally, the company's focus on product innovation and strategic pricing may not be enough to offset the current market headwinds.

1.c. Company Highlights

Last Price	40.65
Change Percentage	0.12%
Open	40.55
Previous Close	40.6
Market Cap ( Millions)	7168
Volume	16192
Year High	59.7
Year Low	36.85
M A 50	41.86
M A 200	41.71

FCF Yield	5.34%
Dividend Yield	3.44%
ROE	3.57%
Debt / Equity	61.90%
Net Debt / EBIDTA	323.09%
Price To Book	1.01
Price Earnings Ratio	27.84
Price To FCF	18.72
Price To sales	0.91
EV / EBITDA	10.42

2. Transcript Summary

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3. NewsRoom

European Small Caps With Insider Buying That Are Undervalued

Nov -27

Source:

Fagerhult Group AB (FRA:2F0) Q3 2025 Earnings Call Highlights: Navigating Challenges with ...

Oct -29

Source:

Fagerhult Group (OM:FAG) Margin Miss Reinforces Profitability Concerns Despite Strong Growth Outlook

Oct -28

Source:

European Small Caps With Insider Buying To Consider

Oct -27

Source:

October 2025 European Stocks Priced Below Estimated Value

Oct -14

Source:

[Latest] Global Fluorescent Lighting Market Size/Share Worth USD 19.48 Billion by 2034 at a 9.6% CAGR: Custom Market Insights (Analysis, Outlook, Leaders, Report, Trends, Forecast, Segmentation, Growth Rate, Value, SWOT Analysis)

Oct -14

Source:

Acerinox And 2 Other European Stocks That May Be Priced Below Intrinsic Value

Sep -08

Source:

Insider Action In European Undervalued Small Caps For September 2025

Sep -02

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.78%)

6. Segments

Collection

Expected Growth: 4.5%

The 4.5% growth in collections from AB Fagerhult (publ.) is driven by increasing demand for energy-efficient lighting solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation and product development has led to a broader product portfolio, attracting a wider customer base and contributing to revenue growth.

Premium

Expected Growth: 5.5%

The 5.5% growth in premium from AB Fagerhult (publ.) is driven by increasing demand for energy-efficient lighting solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation, strong brand recognition, and growing presence in the digital lighting market also contribute to this growth.

Professional

Expected Growth: 4.8%

AB Fagerhult's 4.8% growth is driven by increasing demand for energy-efficient lighting solutions, strategic acquisitions, and expansion into emerging markets. The company's focus on innovative products and sustainable solutions resonates with environmentally conscious customers, contributing to its growth momentum.

Infrastructure

Expected Growth: 5.2%

AB Fagerhult's 5.2% growth in Infrastructure is driven by increasing demand for energy-efficient lighting solutions, government initiatives promoting sustainable infrastructure development, and rising investments in smart city projects. Additionally, the company's strategic expansion into emerging markets and innovative product offerings have contributed to its growth momentum.

Eliminations

Expected Growth: 0.0%

With 0.0% growth, eliminations from AB Fagerhult (publ.) are likely driven by stagnant market conditions, lack of innovation, and intense competition. The company's failure to adapt to changing customer needs and preferences, combined with inefficient cost structures, may have contributed to the flat growth.

7. Detailed Products

Luminaires

A wide range of luminaires for various applications, including indoor, outdoor, and industrial lighting.

Lighting Controls

Advanced lighting control systems for energy-efficient and flexible lighting management.

Emergency Lighting

Reliable and efficient emergency lighting solutions for safety and compliance.

Indoor Lighting

A variety of indoor lighting products, including downlights, spotlights, and linear lighting.

Outdoor Lighting

Durable and energy-efficient outdoor lighting solutions for streets, roads, and public spaces.

Industrial Lighting

Specialized lighting solutions for industrial applications, including warehouses, factories, and manufacturing facilities.

Smart Lighting

Innovative smart lighting systems for energy efficiency, comfort, and convenience.

8. AB Fagerhult (publ.)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for AB Fagerhult (publ.) is medium due to the presence of alternative lighting solutions, but the company's strong brand reputation and product quality help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong relationships with its customers and the lack of concentration in the customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large suppliers, but the company's strong relationships with its suppliers help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the lighting industry, including the need for significant capital investment and the complexity of the technology.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the lighting industry, leading to a highly competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	29.15%
Debt Cost	6.58%
Equity Weight	70.85%
Equity Cost	9.97%
WACC	8.98%
Leverage	41.15%

11. Quality Control: AB Fagerhult (publ.) passed 4 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

AQ Group

A-Score: 5.4/10

Value: 2.9

Growth: 8.1

Quality: 6.9

Yield: 1.2

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

FW Thorpe

A-Score: 5.3/10

Value: 5.9

Growth: 7.2

Quality: 8.0

Yield: 2.5

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

Zumtobel

A-Score: 4.6/10

Value: 9.5

Growth: 2.8

Quality: 2.7

Yield: 3.8

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

Volex

A-Score: 4.4/10

Value: 4.6

Growth: 6.9

Quality: 4.8

Yield: 1.2

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

Fagerhult

A-Score: 3.5/10

Value: 4.7

Growth: 3.4

Quality: 4.1

Yield: 3.8

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

LEM Holding

A-Score: 1.9/10

Value: 1.6

Growth: 1.4

Quality: 3.0

Yield: 3.1

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.40%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.98%

AB Fagerhult (publ.) - SE0010048884

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FAG

1.c. Company Highlights

Fairly Valued

Medium Volatility

Average Growth

Earnings Miss

Revenues Beats

Stable Momentum

Revenues Miss

Average Yield

Weak Momentum

Average Quality

Lower Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.78%)

6. Segments

Collection

Expected Growth: 4.5%

Premium

Expected Growth: 5.5%

Professional

Expected Growth: 4.8%

Infrastructure

Expected Growth: 5.2%

Eliminations

Expected Growth: 0.0%

7. Detailed Products

Luminaires

Lighting Controls

Emergency Lighting

Indoor Lighting

Outdoor Lighting

Industrial Lighting

Smart Lighting

8. AB Fagerhult (publ.)'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: AB Fagerhult (publ.) passed 4 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

40.65$

Current Price

40.65$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA