In this equity analysis report, analysts David Fremle and Franz Bamberg take a closer look at Waystream Holding, a hardware networking company based in Sweden. Waystream is discounted to peers by 45.0% despite the highest EBIT margin LTM and significantly higher ROIC 20A. Applying an EV/EBIT multiple of 10.9x for 2023E implies an upside of 32.1%.
Investment highlights:
- After a period of product development, Waystream can now focus on increasing sales with a strong product portfolio for the European market.
- Well-positioned to capitalize on the projected 730.0% growth in the number of homes passed by fibre in Germany 2019-2026.
- Improved gross profit margin of 59.5% as a result of an updated product portfolio.
