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 pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

LOGI-B.ST reported revenue of SEK 848mn in the last 12 months, up 19% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 30% from FY24 to SEK 0.76. Market expects EPS to reach SEK 0.69 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 3ppts over six months and grown 3ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported very strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 90.5% in the last 12 months, up from 27.8% 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 40.2%, 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 7.2% 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 0.8 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 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 becomes extremely 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 small 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, and inadequate interest coverage. 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 volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to substantial. We would also like to highlight the substantial intraday volatility of the instrument. 

Considering past and projected metrics, the stock is 'expensive' compared to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, overpriced on P/FCF. 

Logistea AB (publ)

SEK 15.72

4

Logistea AB (publ)

SEK 15.72

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

SEK 15.72

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