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Stock Analysis & ValuationInvestment AB Öresund (publ) (0RGB.L)

Professional Stock Screener
Previous Close
£120.00
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)4.00-97
Intrinsic value (DCF)45.00-62
Graham-Dodd Method2.10-98
Graham Formula2.00-98

Strategic Investment Analysis

Company Overview

Investment AB Öresund (publ) is a well-established Swedish investment manager with a rich history dating back to 1890. Headquartered in Stockholm, the company operates in the financial services sector, specifically within diversified financial investments. Listed on the London Stock Exchange, Investment AB Öresund focuses on long-term capital growth through strategic equity investments, primarily in Nordic companies. The firm's portfolio spans various industries, leveraging its deep regional expertise to identify high-potential opportunities. With a market capitalization of approximately SEK 5.12 billion, the company maintains a conservative financial strategy, reflected in its zero-debt position and strong cash reserves. Investment AB Öresund is known for its disciplined investment approach and consistent dividend payouts, making it an attractive option for income-focused investors seeking exposure to Nordic markets.

Investment Summary

Investment AB Öresund presents a stable investment opportunity with its conservative financial management, zero debt, and consistent dividend yield. The company's diversified portfolio in Nordic equities provides regional exposure with lower volatility (beta of 0.848). However, its revenue and net income figures (SEK 246.6M and SEK 246.5M, respectively) suggest limited growth momentum, potentially making it less attractive for growth-oriented investors. The firm's strong cash position (SEK 329.2M) and disciplined capital allocation (minimal capital expenditures) underscore its risk-averse strategy. While the dividend per share (SEK 7.1) is appealing, investors should weigh the trade-off between income stability and growth potential in a low-interest-rate environment.

Competitive Analysis

Investment AB Öresund competes in the Nordic investment management space, where its long-standing presence and regional expertise provide a competitive edge. Unlike global asset managers, Öresund's focused Nordic portfolio allows for deeper local market insights and relationships, which can lead to superior stock selection. However, its small scale (SEK 5.12B market cap) limits its ability to compete with larger, diversified asset managers in terms of resources and global reach. The company's zero-debt position and conservative strategy differentiate it from leveraged investment firms, reducing downside risk but potentially capping returns. Its lack of significant capital expenditures suggests a passive investment style, contrasting with more active, high-growth competitors. While Öresund's dividend stability is a strength, its reliance on Nordic markets exposes it to regional economic fluctuations, unlike globally diversified peers.

Major Competitors

  • Investor AB (INVE-B.ST): Investor AB, a larger Swedish investment firm, boasts a diversified portfolio including global giants like Ericsson and ABB. Its scale and international holdings provide broader diversification than Öresund, but its complexity may deter some investors. Investor AB's higher liquidity and brand recognition give it an edge, though Öresund's niche Nordic focus allows for more concentrated regional expertise.
  • Latour AB (LATO-B.ST): Latour AB combines industrial holdings with financial investments, offering a unique hybrid model. Its industrial assets provide stable cash flows, unlike Öresund's pure financial focus. However, Öresund's simpler structure and higher dividend yield may appeal to income investors, while Latour's operational complexity could deter those seeking transparency.
  • Kinnevik AB (KINV-B.ST): Kinnevik AB focuses on growth investments in digital businesses, contrasting sharply with Öresund's value-oriented approach. Kinnevik's higher-risk, higher-reward strategy attracts growth investors, while Öresund's stability suits conservative portfolios. Kinnevik's tech exposure offers diversification but comes with greater volatility compared to Öresund's traditional holdings.
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