In this report, analyst Carl-Johan Imméll evaluates the growth prospects of Nederman Holding. Nederman is a global developer of products and solutions for advanced air purification in heavy process industries. Our analyst, Imméll, anticipates Nederman to gain increased market share over the next five years by organic growth, as recently integrated acquisitions enable for new trends in revenue growth through the Monitoring & Control Technology division.

Investment highlights:

  • New aftermarket opportunities provided by the Monitoring & Control Technology division will increase recurring revenue and are estimated to improve the company’s EBIT margin from 8.0% to 11.2% during 2020-2024E.
  • Nederman’s newly developed technologies create an unprecedented product offering, strengthening their position as one of the global leaders in a market with an expected CAGR of 6.0% 2019-2025E.
  • With improved margins and an estimated revenue CAGR of 9.2%, an EBIT CAGR of 16.8% is anticipated in 2020-2024E. As a result, Nederman substantially outperforms the median EBIT growth of their peers and is therefore undervalued at EV/EBIT 17.2x compared to the peer median of 17.0x.

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