In this equity research report, analysts Edvin Asplund and Hannes Östlund takes a closer look at
Envirologic, the market leading manufacturer of automatic pig barn cleaning robots. Envirologic is set
to capitalize on increasing demand driven by an accelerating supply shortage in the agriculture labor
market, with an estimated revenue CAGR of 17.0% until 2026. Through an equally weighted DCF and
peer valuation, a target price of SEK 27.0 is implied, indicating a potential upside of 3.1%.
Investment highlights
• Increasing demand for automatic cleaning robots supports further top-line growth driven by
accelerating labor shortage in agriculture
• A strategic shift, initiated in 2022, supports bottom-line capitalization of the expected increasing
demand for the product
• Currently operating on 52.3% production capacity makes room for an EBIT margin expansion from
21.0% in 2023A to 24.6% in 2026E as factory utilization increases to 84.8% by 2026.