Bilia AB (publ) (BILI-A.ST) fair value

ACCE thesis

Bilia runs a Nordic network of car dealerships and workshops, selling new and used vehicles across brands including Volvo, Volkswagen and Audi, with after-sales service and parts making up the steadier part of the business. Its edge is scale in a fragmented regional market plus a service book that tends to hold up better than new-car volumes when demand softens. Revenue is growing 3.4 percent, but the business runs on thin economics: a 17.2 percent gross margin and a 3.3 percent operating margin leave little room for error, so the investment case rests on margin recovery rather than top-line growth. At a trailing P/E of 15.8 and a forward P/E of 12.2, the market is pricing in earnings improvement, and a 17.4 percent ROE shows the equity is being used reasonably well even on those slim margins. The name is worth a deeper look if you can get comfortable with dealer-level margin cyclicality and want to test whether service mix and cost discipline can lift operating margins.