| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1.10 | -99 |
| Intrinsic value (DCF) | 8.42 | -95 |
| Graham-Dodd Method | 0.30 | -100 |
| Graham Formula | 0.70 | -100 |
Garo Aktiebolag (publ) is a Sweden-based industrial company specializing in electrical installation products and systems. Founded in 1939 and headquartered in Gnosjö, Sweden, Garo operates across multiple European markets, including Sweden, Norway, Finland, Poland, Ireland, and the UK. The company offers a diverse portfolio of electrical products, including plugs, sockets, switches, lightning cabinets, switchboard systems, and EV charging solutions. Garo serves both residential and commercial markets, with additional offerings in temporary power products and customized electrical solutions. As a key player in the Electrical Equipment & Parts industry, Garo combines decades of expertise with a focus on innovation, particularly in sustainable energy solutions like EV charging infrastructure. The company's multinational presence positions it as a regional leader in electrical installation systems, though recent financial performance reflects challenges in profitability and cash flow.
Garo presents a mixed investment profile with both opportunities and significant risks. The company operates in essential electrical infrastructure markets with growth potential, particularly in EV charging solutions. However, investors should note concerning financial metrics: negative net income (-SEK 60.1M), negative operating cash flow (-SEK 35.8M), and a high beta (1.432) indicating above-market volatility. The SEK 989M market cap suggests modest valuation, but the lack of dividends and recent unprofitability may deter income-focused investors. The company's multinational operations provide geographic diversification but also expose it to European economic fluctuations. Garo's investment case hinges on its ability to capitalize on Europe's electrification trends while improving operational efficiency and returning to profitability.
Garo competes in the fragmented electrical equipment market with a focus on installation systems and emerging EV charging products. The company's competitive advantages include its long-established brand (founded 1939), comprehensive product portfolio covering both traditional and innovative electrical solutions, and multinational distribution across Northern Europe. Garo's specialization in electrical installation systems differentiates it from broader electrical equipment manufacturers. However, the company faces intense competition from larger multinationals with greater scale advantages and smaller local players with lower cost structures. Garo's recent financial struggles (-SEK 60.1M net income) suggest potential competitive pressures in pricing or operational efficiency. The company's move into EV charging infrastructure represents a strategic growth area but brings it into competition with both established electrical giants and specialized charging startups. Garo's Nordic market position provides regional strength but may limit growth compared to competitors with global footprints. The competitive landscape requires Garo to balance investment in innovation with financial discipline to maintain its market position.