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1. Company Snapshot

1.a. Company Description

Addtech AB (publ.) operates as a technology trading company in Sweden, Denmark, Finland, Norway, rest of Europe, and internationally.The company operates through Automation, Electrification, Energy, Industrial Solutions, and Process Technology segments.It markets and sells intelligent solutions, subsystems, and components to industrial automation and infrastructure sector, including solutions for robotics, control systems, sensors, and industrial and communication networks.


The company also offers battery systems; connectivity solutions; and intelligent power products, electronics, motors, and powertrain solutions.In addition, it produces and sells products for electricity transmission and electrical installation, as well as safety products for traffic and the home environment; and electricity distribution and communication network products to electricity network operators, contractors, wholesalers, railway companies, industrial customers, and hospitals.Further, the company produces and sells solutions and systems primarily for the forest, special vehicles, mechanical, and waste/recycling industries, as well as provides hydraulic solutions.


Additionally, it provides process components, equipment, and systems for creating and processing flows; provides emission control products; and markets and sells instruments and valves for regulating and monitoring pressure, levels, flows, and energy.The company was founded in 1906 and is based in Stockholm, Sweden.

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1.b. Last Insights on ADDT

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1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.91%)

6. Segments

Energy

Expected Growth: 5%

Addtech AB's Energy segment growth is driven by increasing demand for renewable energy solutions, electrification of transportation, and industrial automation. Strong order intake from wind power and grid infrastructure projects, coupled with strategic acquisitions, contribute to the 5% growth rate. Additionally, the company's focus on R&D and innovative product offerings in energy storage and smart grids further supports its growth momentum.

Electrification

Expected Growth: 6%

Electrification growth driven by increasing demand for sustainable energy solutions, government incentives for green technologies, and rising adoption of electric vehicles. Addtech AB's strategic acquisitions and partnerships in the electrification segment have also contributed to the 6% growth, enabling the company to capitalize on emerging trends and expand its market share.

Industrial Solutions

Expected Growth: 5%

Addtech AB's Industrial Solutions segment growth is driven by increasing demand for industrial automation, electrification, and digitalization. Strong order intake from OEM customers, expansion into new markets, and strategic acquisitions also contribute to growth. Furthermore, the segment benefits from a strong aftermarket business, providing recurring revenue streams.

Automation

Expected Growth: 8%

Addtech AB's Automation segment growth is driven by increasing demand for industrial automation, digitalization, and Industry 4.0 solutions. The company's strong market position, strategic acquisitions, and investments in R&D have enabled it to capitalize on this trend. Additionally, the growing need for process optimization, efficiency, and cost savings in industries such as manufacturing, oil and gas, and energy have contributed to the segment's 8% growth.

Process Technology

Expected Growth: 6%

Addtech AB's Process Technology segment growth is driven by increasing demand for efficient production and automation solutions, particularly in the food and pharmaceutical industries. The company's strong product portfolio, strategic acquisitions, and expanding presence in high-growth markets also contribute to its 6% growth rate.

7. Detailed Products

Power Solutions

Addtech's Power Solutions segment offers power supplies, DC/DC converters, and other power-related products for industrial, medical, and transportation applications.

Industrial Process

The Industrial Process segment provides products and solutions for industrial automation, process control, and measurement applications.

Machine and Component

This segment offers mechanical and electromechanical components, such as gears, motors, and pumps, for industrial and automotive applications.

Automation Solutions

Addtech's Automation Solutions segment provides products and solutions for industrial automation, robotics, and machine vision applications.

Electronics

The Electronics segment offers electronic components, such as connectors, cables, and sensors, for industrial, automotive, and consumer electronics applications.

Consulting and Engineering

This segment provides consulting and engineering services for industrial automation, process control, and product development.

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

Forces Ranking

Threat Of Substitutes

Addtech AB (publ.) operates in a niche market with specialized products, making it difficult for substitutes to emerge. However, the company's products are not entirely unique, and some customers may find alternative solutions.

Bargaining Power Of Customers

Addtech AB (publ.) has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to its customers' operations, making it difficult for them to switch suppliers.

Bargaining Power Of Suppliers

Addtech AB (publ.) relies on a few key suppliers for its products, which gives them some bargaining power. However, the company's strong relationships with its suppliers and its ability to negotiate prices mitigate this risk.

Threat Of New Entrants

The industry in which Addtech AB (publ.) operates has high barriers to entry, including significant capital requirements and the need for specialized expertise. This makes it difficult for new entrants to join the market.

Intensity Of Rivalry

Addtech AB (publ.) operates in a competitive market with several established players. The company's focus on innovation and customer service helps it to differentiate itself, but the rivalry remains intense.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.66%
Debt Cost 4.24%
Equity Weight 53.34%
Equity Cost 10.01%
WACC 7.32%
Leverage 87.46%

11. Quality Control: Addtech AB (publ.) 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

Stock-Card
Andritz

A-Score: 5.9/10

Value: 5.8

Growth: 5.4

Quality: 6.2

Yield: 7.5

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Grafton

A-Score: 5.6/10

Value: 6.9

Growth: 4.1

Quality: 5.2

Yield: 6.9

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

Stock-Card
Diploma

A-Score: 5.2/10

Value: 0.2

Growth: 7.8

Quality: 6.7

Yield: 2.5

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
RS Group

A-Score: 5.0/10

Value: 5.6

Growth: 5.1

Quality: 6.1

Yield: 5.6

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Addtech

A-Score: 4.6/10

Value: 0.9

Growth: 8.2

Quality: 6.4

Yield: 1.2

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Indutrade

A-Score: 4.0/10

Value: 1.8

Growth: 7.4

Quality: 6.2

Yield: 1.2

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

331.8$

Current Price

331.8$

Potential

-0.00%

Expected Cash-Flows