Mr Green & Co

Research update


Mr Green: Growth Trajectory Intact

Mr Green’s financial performance for the quarter was somewhat below our expectations - revenue came in at SEK 201.6 million (expected: SEK 208.4 million). The Nasdaq listing proposal makes the company poised for enhanced shareholder attention. We expect more decisions in this shareholder friendly manner to close the gap between price and value including in the future. This includes but not limited to stock buybacks and the subsequent rejection of an dividend payout for 2015. Fundamentally, the company is not burdened by a revenue ceiling within the existing markets which enables the future high-growth trajectory.
Mr Green appears to be an attractive takeover prospect within the next 1-3 years, in an industry likely to become consolidated, and the difference between price and underlying value remains substantial. The DCF model indicates a continued intrinsic value of SEK 61 per share.

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