Logistea AB (publ) engages in the real estate business in Sweden. It acquires, operates, and rents warehousing and logistics properties. The company was formerly known as Odd Molly International AB (publ) and changed its name to Logistea AB (publ) in October 2021. Logistea AB (publ) was incorporated in 2002 and is headquartered in Stockholm, Sweden.

Sweden

Logistea AB (publ)

Real Estate

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

LOGI-B.ST reported revenue of SEK 711mn in the last 12 months, up 99% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 1 463% from FY23 to SEK 1.07. Market expects EPS to reach SEK 0.69 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 3ppts and its growth accelerated by 21ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported very strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 79.5% in the last 12 months, up from 27.7% in FY23. 

Historically, LOGI-B.ST has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 46.4%, a growth from -2.2% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 3.8%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to 3.2% in the last 12 months, an increase from -0.2% in FY23. 

Logistea AB (publ) reported a return on equity (RoE) of 6.9% in the last 12 months, up from -0.4% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.0 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

LOGI-B.ST has very poor trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is very unstable and is somewhat unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, excessive margin volatility, poor working capital management, weak debt servicing capacity, inadequate interest coverage, and poor cash flow generation. We note resilient historical revenue growth, robust profitability, and solid return on capital, among the positive credit factors. 

In highly turbulent market conditions, LOGI-B.ST is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, LOGI-B.ST is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from large to substantial. We would also like to highlight the substantial intraday volatility of the instrument. 

From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, underpriced on P/FCF. 

Logistea AB (publ)

SEK 14.64

3

Logistea AB (publ)

SEK 14.64

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

SEK 14.64

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