In this financial analysis report, analysts Filip Ledin Nilsson and Jaqueline Westerlund take a closer look at Admicom, the market-leading SaaS provider company serving the Finnish construction industry. With a 9.0% market share and planned international expansion, there is room for penetrating the EUR 323m market in Finland and selected overseas markets that are up to 10.0x the size of the Finnish market. The analysts estimate a revenue CAGR of 18.1% from 2022A until 2027E by improving the platform during 2023E- 2024E and implementing an accelerated growth strategy from 2024E with a focus on select overseas markets and further acquisitions. Thus, Admicom is estimated to grow substantially in both the Finnish market and overseas. By an equally weighted DCF and peer valuation, a target price of EUR 58.2 is motivated, implying an upside of 51.7%.
Investment highlights:
- Well positioned to continue penetrating the Finnish market and overseas markets
- Secular tailwinds driving topline growth as it’s estimated to grow with a CAGR of 18.1% from 2022A until 2027E
- A Scalable business model will improve EBITA margin from 43.4% 2022AC to 47.5% 2025E