investorscraft@gmail.com

Stock Analysis & ValuationAlligo AB (publ) (0RTK.L)

Professional Stock Screener
Previous Close
£127.80
Sector Valuation Confidence Level
Moderate
Valuation methodValue, £Upside, %
Artificial intelligence (AI)3.90-97
Intrinsic value (DCF)43.76-66
Graham-Dodd Method4.60-96
Graham Formula12.40-90

Strategic Investment Analysis

Company Overview

Alligo AB (publ) is a leading Nordic distributor of workwear, personal protective equipment (PPE), and industrial tools, serving a diverse clientele that includes small, medium, and large enterprises as well as the public sector. Headquartered in Stockholm, Sweden, the company operates across key industries such as manufacturing, construction, transport, warehousing, and energy (oil & gas). Formerly known as Momentum Group AB, Alligo rebranded in December 2021 to reflect its expanded focus on safety and productivity solutions. With a revenue of SEK 9.21 billion in FY 2022, Alligo combines product distribution with value-added services like maintenance and spare parts, positioning itself as a one-stop shop for industrial and safety needs. Its strong Nordic presence and diversified customer base make it a resilient player in the industrial distribution sector.

Investment Summary

Alligo presents a stable investment opportunity within the industrial distribution space, supported by its SEK 9.21 billion revenue and SEK 481 million net income in FY 2022. The company’s beta of 1.134 suggests moderate market sensitivity, aligning with broader industrial trends. Strengths include a diversified customer base across critical sectors and a solid dividend yield (SEK 2 per share). However, high total debt (SEK 2.76 billion) and reliance on Nordic market cyclicality pose risks. Operating cash flow (SEK 507 million) and disciplined capex (SEK -146 million) indicate efficient liquidity management. Investors should weigh its regional dominance against limited global diversification.

Competitive Analysis

Alligo’s competitive advantage lies in its Nordic-focused distribution network, offering integrated solutions combining tools, PPE, and maintenance services—a sticky model for B2B clients. Its rebranding to Alligo emphasizes safety and productivity, differentiating it from pure-play tool distributors. The company’s scale in Sweden and neighboring markets provides logistical efficiencies, while its multi-sector exposure (e.g., construction, energy) mitigates industry-specific downturns. However, its regional concentration limits growth compared to global peers. Margins are pressured by the low-maturity nature of distribution, though value-added services like repair help retain customers. Competitors with broader European or global footprints may outperform in scalability, but Alligo’s deep local relationships and specialized offerings solidify its niche dominance.

Major Competitors

  • Beijer Alma AB (BELE.ST): Beijer Alma is a Swedish industrial conglomerate with a distribution arm (Lesjöfors) competing in tools and components. Its diversified business (including engineering) provides stability but lacks Alligo’s PPE focus. Strong in manufacturing but less specialized in safety solutions.
  • DSV Panalpina A/S (DSV.CO): A global logistics and distribution giant, DSV competes indirectly via industrial supply chain services. Far larger scale and international reach but lacks Alligo’s niche expertise in Nordic PPE and tools. Higher margins from freight operations dilute comparability.
  • Ahlsell AB (AHNR.ST): Ahlsell is a direct Nordic competitor in industrial supplies and tools, with similar revenue (SEK 32.6 billion in 2022) but lower profitability. Broader product range but less emphasis on PPE. Stronger in Sweden but faces overlap with Alligo’s core markets.
  • Ferguson plc (FERG.L): Ferguson dominates HVAC and plumbing distribution globally, with limited Nordic presence. Higher revenue (USD $29.7 billion in 2022) and margins but operates in different verticals. Alligo’s PPE specialization offers differentiation.
HomeMenuAccount