In this financial analysis report, analysts Benjamin Middleton and Gustav Sillerström take a closer look at the Swedish-based pool accessories company Gullberg & Jansson AB (GJAB). The analysts estimate a revenue CAGR of 31.6% in 2020A-2023E and a projected EBIT margin of 18.6% in 2023E. Based on a relative valuation, an applied EV/EBIT multiple of 10.8x yields a potential fair value of SEK 112.8 per share and an upside of 37.6%.
Investment highlights:
- Large aftermarket opportunities and the ability to penetrate both the new built market as well as already existing swimming pools.
- Strong balance sheet with a large net cash position, combined with no interest-bearing debt, enables new investments and acquisitions.
- The underlying pool market has seen great growth as an effect of the Covid-19 Pandemic. The analysts projects continued momentum for the market and a CAGR of 7.0% in 2021E and onwards.
