In this equity research report, analysts Daniel Frändegård and Simon Malmgren takes a deep-dive into Nobina AB. Nobina is the leading public transport company in the Nordics, providing busses and chauffeurs through deals that extend 5-12 years. With a target EV/EBIT ratio of 17,4x in 2023, a potential return of 15,3% over two years in motivated.
Investment highlights:
- Nobina is expected to outgrow the market by double at 6.0% CAGR. The company is well prepared to profit from the increased demand for renewable energy with a market growing at 3.0% CAGR and increase of busses in Europe has three-folded in 2019 compared to 2018. Furthermore, Nordic countries are stating goals to implement fossil free solutions routinely and Nobina, with their 82.0% renewable energy bus-fleet has a goal of being fossil free before 2030 which puts them ahead of competitors.
- Nobina has high win rate at 25.5% in the Nordics. This is a result of Nobina, being able to, tailor contracts better than competitors based on their experience and expertise from hundreds of signed contracts through the years. With 97.4% of Nobina’s revenue coming from contracts with traffic authorities averaging 8 years, Nobina is the leading player on the Nordic market.
To get the analyst’s full view, please see the report below:
