In this equity report, analyst Kristian Norén maps out the main value drivers of Boule Diagnostics AB and highlights the secure business model. Boule develops and sells instruments and complementary consumables used in blood diagnostics, working on the decentralized hematology market. Our analyst believes that Boule is being traded at a size premium, which is not motivated based upon the reliable cash flow and stability of the company. This generates an investment opportunity not to be missed, with a potential upside of 56.4%.
- The Razor-razorblade business model generates a reliable cash flow with a CCR average of 1.1, accompanied by an estimated CAGR of 12.9% by 2022 in the consumables segment
- Bright outlook as the decentralized hematology market is estimated to grow by 7.0% CAGR, which paves the way for a strong organic growth
- With a net debt-to-EBITDA ratio of 0.1, Boule is set to further expand its product portfolio through acquisitions and thereby increasing their market share.
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