Alleima AB (publ) (ALLEI.ST) fair value

ACCE thesis

Alleima makes stainless and specialty steel tubes and strip, plus heating wire and sandvik-style high-performance alloys for demanding end markets such as energy, process industries and heat-treatment. The appeal is a specialty mix that earns a 14.6% operating margin on 20.5% gross margin, well above what commodity steel producers typically deliver. Revenue growth is only 2.7% and ROE is 5.5%, so this is a low-return, low-growth business that the market is pricing on earnings recovery rather than momentum. The trailing P/E of 30.8 against a forward P/E of 17.4 implies earnings are expected to rise sharply from depressed levels, which is the central question to test before going further. At a 28.1B SEK market cap and no index membership, coverage is thin enough that the gap between trailing and forward earnings deserves a direct look in the company's order book and margin guidance.