investorscraft@gmail.com

Stock Analysis & ValuationNordic Waterproofing Holding AB (publ) (0RH9.L)

Professional Stock Screener
Previous Close
£182.40
Sector Valuation Confidence Level
Moderate
Valuation methodValue, £Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Methodn/a
Graham Formula0.10-100

Strategic Investment Analysis

Company Overview

Nordic Waterproofing Holding AB (publ) is a leading provider of waterproofing solutions for buildings and infrastructure across Northern and Central Europe. Headquartered in Helsingborg, Sweden, the company operates through two key segments: Products & Solutions and Installation Services. With a history dating back to 1889, Nordic Waterproofing offers a comprehensive portfolio including roofing products, building membranes, EPDM waterproofing solutions, prefabricated construction elements, and green roofing materials. The company serves a diverse clientele including installers, contractors, builders' merchants, and private customers through well-established brands like Mataki, Trebolit, and Kerabit. Operating in nine European countries, Nordic Waterproofing combines product innovation with installation expertise to address critical construction needs in waterproofing and moisture protection. As sustainability becomes increasingly important in construction, the company's offerings in green roofing and energy-efficient building solutions position it well in the evolving construction materials sector.

Investment Summary

Nordic Waterproofing presents a stable investment opportunity in the construction materials sector, with consistent revenue streams from its diversified product portfolio and service offerings. The company's pan-European presence provides geographic diversification, while its focus on waterproofing - a critical building component - offers resilience against construction cyclicality. With a market cap of approximately SEK 4.38 billion and a dividend yield supported by SEK 5 per share payout, the company may appeal to income-focused investors. However, investors should note the relatively low net margin (4.2% in last reporting period) and exposure to construction industry fluctuations. The zero-debt balance sheet is a positive factor, providing financial flexibility. The beta of 0.851 suggests lower volatility than the broader market, potentially making it suitable for conservative portfolios.

Competitive Analysis

Nordic Waterproofing competes in the specialized waterproofing segment of construction materials, differentiating itself through a combination of product breadth and installation services. The company's competitive advantage stems from its strong regional brands across Northern Europe, technical expertise in waterproofing solutions, and vertically integrated service model. Unlike many competitors focused solely on product manufacturing, Nordic's installation services create additional revenue streams and customer stickiness. The company's multi-brand strategy allows it to maintain strong local market positions while benefiting from group-wide R&D and purchasing synergies. However, the waterproofing market remains fragmented with competition from both large multinational building materials companies and local specialists. Nordic's focus on Northern Europe provides depth in these markets but limits exposure to faster-growing regions. The company's sustainability-focused products like green roofing solutions help differentiate its offering in an increasingly environmentally conscious construction market. Maintaining technical leadership while expanding service capabilities will be key to defending its market position against larger competitors with greater resources.

Major Competitors

  • Skanska AB (SKA-B.ST): Skanska is a much larger Swedish construction company with broader operations including building and infrastructure projects. While Skanska offers some competing waterproofing solutions, its focus is more on general construction rather than specialized waterproofing products. Skanska's greater scale provides procurement advantages but Nordic Waterproofing's specialized focus allows for deeper technical expertise in waterproofing applications.
  • Rocada AB (ROCK-B.ST): Rocada specializes in textile-based construction materials including some waterproofing solutions. While smaller than Nordic Waterproofing, Rocada competes in certain niche waterproofing applications with innovative textile-based products. Nordic's broader product range and installation services give it an advantage in comprehensive waterproofing solutions.
  • Compagnie de Saint-Gobain S.A. (FP.PA): Saint-Gobain is a global building materials giant with significant resources and R&D capabilities. Its waterproofing division competes with Nordic in some product categories, particularly in Western Europe. While Saint-Gobain has greater scale, Nordic's regional focus in Northern Europe and specialized installation services provide competitive differentiation in its core markets.
  • Symrise AG (SY1.DE): Symrise's construction chemicals division competes with Nordic in some waterproofing membrane products. The German company has strong technical capabilities but Nordic's broader range of waterproofing solutions and installation services give it an edge in complete system offerings. Symrise's primary focus remains on flavors and fragrances rather than construction materials.
  • Granite Construction Incorporated (GVA): Granite Construction offers some competing infrastructure waterproofing solutions, primarily in the U.S. market. While larger in scale, Granite's focus on heavy civil infrastructure limits direct competition with Nordic's building-focused waterproofing business. The companies operate in largely different geographic markets with minimal overlap.
HomeMenuAccount