In this equity report, analysts Peter Handrup and Sam Jonsson Åslund take a deep-dive into Railcare Group AB (or “Railcare”), a leading niche actor in the railway maintenance industry in Sweden and the UK. Our analysts estimate revenue growth of 14.7% CAGR 19A-21E. With estimates outperforming comparable companies and accounting for the historical valuation, a potential upside of 26.4% is implied.
Investment highlights:
- Looking forward, the company is rolling out an all-electric maintenance vehicle developed in collaboration with Epiroc and Northvolt.
- A better than market growth of 9.2% from 2019A to 2025E.
- Traded at a discount, compared to historical valuation estimates both outperform historical growth and comparable companies.
