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Stock Analysis & ValuationCapMan Oyj (0E1L.L)

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£1.91
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)28.901413
Intrinsic value (DCF)1.20-37
Graham-Dodd Method0.90-53
Graham Formula1.80-6

Strategic Investment Analysis

Company Overview

CapMan Oyj is a leading Nordic private assets management and investment firm specializing in private equity, venture capital, real estate, and infrastructure investments. Founded in 1989 and headquartered in Helsinki, Finland, CapMan operates across the Nordic region with offices in Stockholm, Copenhagen, Oslo, Luxembourg, and London. The firm manages closed-end and open-ended funds, focusing on value creation through growth capital, buyouts, recapitalizations, and mezzanine financing in unquoted companies. CapMan's diversified portfolio spans industries such as energy, transportation, and telecommunications, with a strong emphasis on responsible investing as a signatory of the UN Principles for Responsible Investment (PRI) since 2012. Listed on Nasdaq Helsinki since 2001, CapMan leverages its deep regional expertise and active management approach to deliver strong returns for investors. The firm's strategic focus on the Nordic middle market and infrastructure sectors positions it as a key player in the region's private equity landscape.

Investment Summary

CapMan Oyj presents a compelling investment opportunity due to its strong foothold in the Nordic private equity and asset management markets, supported by a diversified portfolio and a disciplined investment approach. The firm's solid financial performance, with a net income of €68.57 million in the latest fiscal year and a healthy cash position of €90.14 million, underscores its stability. However, investors should consider the inherent risks of private equity investments, including market volatility and illiquidity. CapMan's low beta of 0.517 suggests lower market risk compared to peers, but its reliance on fund performance fees and carried interest could lead to earnings variability. The dividend yield of €0.11 per share provides income appeal, though the firm's growth prospects are closely tied to the Nordic economic environment and its ability to execute successful exits.

Competitive Analysis

CapMan Oyj's competitive advantage lies in its deep regional expertise and strong network across the Nordic private equity and infrastructure markets. The firm's active management approach and focus on middle-market buyouts and growth capital investments differentiate it from larger global players. CapMan's ability to identify and nurture undervalued assets in the Nordics, combined with its sector-specific funds, enhances its value proposition. However, the firm faces competition from both local and international private equity firms, which may have greater resources or broader geographic reach. CapMan's commitment to responsible investing (PRI signatory) also strengthens its brand among ESG-focused investors. The firm's relatively small market cap (€321 million) limits its ability to compete for mega-deals, but its niche focus on the Nordic middle market allows for specialized due diligence and value creation. CapMan's real estate and infrastructure segments provide diversification, though these areas are also highly competitive. The firm's performance will depend on its ability to maintain strong fund returns and secure high-quality exit opportunities in a challenging macroeconomic environment.

Major Competitors

  • EQT AB (EQT.ST): EQT AB is a global private equity firm with a strong presence in the Nordic region, competing directly with CapMan in middle-market buyouts and growth capital. EQT's larger scale (market cap ~€30 billion) and global reach give it an advantage in fundraising and deal sourcing, but CapMan's deeper regional focus may allow for more specialized investments. EQT's diversified platform includes infrastructure and real estate, similar to CapMan, but its broader geographic footprint reduces reliance on the Nordic market.
  • Nordea Bank Abp (NDA.ST): Nordea's private equity arm competes with CapMan in the Nordic mid-market space, leveraging its extensive banking network for deal flow and financing. While Nordea has stronger balance sheet resources, CapMan's independence and pure-play private equity focus may provide more agility. Nordea's broader financial services offering could create conflicts of interest in certain transactions.
  • Altor Equity Partners (ALIV-SDB.ST): Altor is a leading Nordic private equity firm with a similar focus on middle-market buyouts and growth investments. As a privately held firm, Altor does not face the same public market pressures as CapMan but may have less transparency. Altor's strong track record in industrial and consumer sectors makes it a formidable competitor for deals in these areas.
  • Ratios Group (RATO-A.ST): Ratios Group is a Finnish investment company with private equity and real estate operations that overlap with CapMan's activities. Ratios' smaller size and more concentrated portfolio make it less diversified than CapMan, but its local expertise in Finland is a strength. CapMan's broader Nordic presence and institutional fund structure provide scalability advantages.
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