Intrinsic Value Nordic Waterproofing Holding AB (publ) (0RH9.L)

• Previous Close: £182.40
• Intrinsic Value: n/a
• Upside potential: n/a%

Stock Valuation Context

Business Model And Market Position

Nordic Waterproofing Holding AB operates in the construction materials sector, specializing in waterproofing solutions for buildings and infrastructure across Northern and Western Europe. The company’s core revenue model is divided into two segments: Products & Solutions, which includes roofing, building, and geomembrane products, and Installation Services, offering design, installation, and maintenance. Its diversified product portfolio caters to installers, contractors, builders' merchants, and private customers, ensuring resilience against regional demand fluctuations. The company holds a strong market position with well-established brands like Mataki, Trebolit, and Kerabit, which are recognized for quality and reliability in waterproofing. Operating in Sweden, Finland, Denmark, and other European markets, Nordic Waterproofing benefits from regional construction activity while mitigating risks through geographic diversification. Its focus on sustainable solutions, such as green roofing and moisture-effective building products, aligns with growing environmental regulations and customer preferences. The company’s integrated approach—combining product manufacturing with service offerings—enhances customer stickiness and creates cross-selling opportunities.

Revenue Profitability And Efficiency

Nordic Waterproofing reported revenue of SEK 4.09 billion for the period, with net income of SEK 170.9 million, reflecting a net margin of approximately 4.2%. Operating cash flow stood at SEK 288 million, indicating solid cash conversion from operations. Capital expenditures of SEK 75.1 million suggest disciplined reinvestment, supporting long-term growth without overleveraging the balance sheet.

Earnings Power And Capital Efficiency

The company’s diluted EPS of SEK 7.1 demonstrates its ability to generate earnings for shareholders. With no reported total debt and SEK 222.4 million in cash and equivalents, Nordic Waterproofing maintains a conservative capital structure, prioritizing financial flexibility. Its capital efficiency is further underscored by a beta of 0.851, indicating lower volatility relative to the broader market.

Balance Sheet And Financial Health

Nordic Waterproofing’s balance sheet is robust, with no debt and a cash position of SEK 222.4 million, providing ample liquidity for operational needs and strategic initiatives. The absence of leverage reduces financial risk, while the company’s positive operating cash flow ensures sustainable self-funding capabilities.

Growth Trends And Dividend Policy

The company has demonstrated stability with a dividend per share of SEK 5, appealing to income-focused investors. Growth is supported by its diversified geographic footprint and product portfolio, though reliance on construction activity in Europe introduces cyclical exposure. The dividend payout appears sustainable given the company’s strong cash flow generation and conservative leverage.

Valuation And Market Expectations

With a market capitalization of SEK 4.38 billion, Nordic Waterproofing trades at a P/E ratio of approximately 25.6x, reflecting investor confidence in its niche market position and profitability. The valuation suggests expectations of steady growth, supported by its regional market leadership and sustainable product offerings.

Strategic Advantages And Outlook

Nordic Waterproofing’s strategic advantages include its strong brand portfolio, integrated product-service model, and focus on sustainability. The outlook remains stable, supported by demand for waterproofing solutions in both new construction and renovation. However, macroeconomic sensitivity in European construction markets warrants monitoring. The company’s debt-free position provides resilience against potential downturns.

Sources

Company description, financial data provided, and market metrics