In this equity research report, analysts Jesper Hansén and Rebecka Grapenmyr take a closer look at
SKAKO, a Danish company that designs, develops, and sells industrial vibratory equipment in three
different segments: recycling, fasteners, and mining. In Q4 2023, SKAKO divested SKAKO Concrete to
focus on their more sustainable and profitable segment, SKAKO Vibrations. The Company is set to
capitalize on the EU’s more stringent sustainability regulations due to the superior nature of SKAKO
equipment, driving a revenue CAGR of 9.3% until 2028E and an EBIT margin expansion from 9.9% in
2023A to 13.0% in 2028E through increased employee efficiency. The target price of SEK 115.0 is based
on an equally weighted average between a DCF and a peer valuation, implying an upside of 54.2%.
Investment highlights
● SKAKO has become a quality and more profitable business post-divestment of SKAKO Concrete
● Superior equipment strengthens the competitive moat, and higher revenue creates operational
leverage, expanding EBIT margins to 13.0% by 2028
● SKAKO is well-positioned to capitalize on the structural shift in the fasteners industry due to the
strong OEM and ODM network