Investment AB Oresund is a publicly owned investment manager. Investment AB Oresund was founded in 1890 and is based in Stockholm, Sweden.

Sweden

Investment AB Öresund (publ)

Financial Services

The company has a track record of regular dividend payments. It has paid dividends in each of 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 been good and slightly above its peers. At the same time, the average five-year yield has been significantly higher and exceeded most of its peers. On average, the company pays dividends twice a year. 

ORES.ST reported revenue of SEK 125mn in the last 12 months, up 142% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 21% from FY24 to SEK 7.58.

The stock has been growing steadily in the past six months, adding 4% in total. The stock has outperformed its global peers from the same sector and industry (as shown above), surpassing them by 8ppts in total. 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.

Investment AB Öresund (publ) reported a return on equity (RoE) of 7.1% in the last 12 months, up from 5.3% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 7.1% in the last 12 months, an increase from 5.3% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 7.1%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.1 in the past several years. This ratio implies a weak 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.

ORES.ST has below average trading liquidity. It will take at least a day or two for the average private investor to sell a common position under normal market conditions. Liquidity is usually stable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. 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 moderate. We note robust profitability, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, and excessive margin volatility.

In highly turbulent market conditions, ORES.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, ORES.ST is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

From both historical and forecast perspectives, the stock is overpriced compared to similar stocks. Specifically, the stock is fairly valued on P/E, overvalued on EV/EBITDA, overpriced on P/FCF. 

Investment AB Öresund (publ)

SEK 119.52

4

Investment AB Öresund (publ)

SEK 119.52

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

SEK 119.52

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