In this financial analysis, analyst Lykke Nyberg and Filippa Lövgren take a deep-dive into Thule Group AB. Thule have a business idea to develop and sell sustainable products to make living an active lifestyle easier. Thule is a premium brand, which will affect its revenue negatively during the economic crisis due to COVID-19. With a WACC of 9.2%, the estimated fair value of equity is 150.1 SEK, the current share price of 220.6 indicates a downside of -32.0%.

Investment highlights:

  • The sport and outdoor market are growing due to several positive trends in the world. However, this will not be enough to save Thule from the economic crisis, lowering the CAGR to 9.5% for 2020E-2024E. 
  • Thule has a history of not lowering prices, which could hurt their business if competitors such as Yakima chooses to do so.  
  • Thule is dependent on external suppliers, due to the crisis, leading to lower supply when factories are closing, could lead to higher COGS. 

To get the analyst’s full view, please see the report below: