| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3.50 | -97 |
| Intrinsic value (DCF) | 41.54 | -61 |
| Graham-Dodd Method | 1.00 | -99 |
| Graham Formula | 2.20 | -98 |
New Wave Group AB (publ) is a Sweden-based company specializing in the design, acquisition, and development of brands and products across corporate, sports, gifts, and home furnishings sectors. Operating through three key segments—Corporate, Sports & Leisure, and Gifts & Home Furnishings—the company serves markets in Sweden, the United States, Central Europe, and beyond. The Corporate segment focuses on promo wear, workwear, and promotional gifts under brands like D.A.D Sportswear and Jobman. The Sports & Leisure segment offers athletic and lifestyle apparel under well-known brands such as Cutter & Buck, Craft, and Speedo. Meanwhile, the Gifts & Home Furnishings segment provides premium home décor and gift items under brands like Orrefors and Kosta Boda. With a diversified portfolio and strong brand equity, New Wave Group leverages its multi-segment approach to cater to both B2B and B2C markets. The company’s strategic acquisitions and brand development initiatives position it as a key player in the European retail and promotional products industry.
New Wave Group presents a compelling investment case with its diversified brand portfolio and strong presence in corporate, sports, and home furnishings markets. The company’s SEK 9.53 billion revenue and SEK 880 million net income in the latest fiscal year reflect stable profitability. However, its high beta of 1.79 suggests elevated volatility relative to the market. The dividend yield, supported by a SEK 3.5 per share payout, adds income appeal. Risks include exposure to cyclical consumer demand and potential margin pressures from rising input costs. Investors should weigh its strong cash flow generation (SEK 1.28 billion operating cash flow) against its moderate leverage (SEK 2.36 billion total debt).
New Wave Group’s competitive advantage lies in its diversified brand portfolio and multi-segment approach, allowing it to mitigate sector-specific risks. The company’s Corporate segment benefits from long-standing B2B relationships, while its Sports & Leisure segment competes with global athletic brands through niche positioning (e.g., Craft for performance wear). The Gifts & Home Furnishings segment leverages heritage brands like Orrefors to target premium markets. However, the company faces stiff competition from larger global apparel retailers and niche players in promotional products. Its reliance on acquisitions for growth could pose integration risks. Strengths include strong cash flow and brand equity, but weaknesses include limited scale compared to multinational competitors and exposure to discretionary spending cycles.