Husqvarna AB (publ) (HUSQ-A.ST) fair value

ACCE thesis

Husqvarna makes outdoor power equipment (chainsaws, robotic lawn mowers, trimmers) and cutting tools for forestry and construction, sold under its own brand and through dealers in Europe and North America. The structural case rests on its brand and dealer network in professional forestry and garden care, which keeps gross margin near 31% even as volumes soften. The obvious near-term driver is a demand recovery in consumer outdoor power and the inventory destocking that followed the post-pandemic channel glut; revenue is still shrinking at 5.9%, so the recovery is not yet visible in the top line. The stock trades at 17.6 times trailing earnings on a 13.6% operating margin and a 5.7% return on equity, a multiple that already prices in a good deal of cyclical pain. The question for a deeper look is whether margins hold while volumes bottom out, and that is worth checking against the next two quarters of order intake and dealer inventory commentary.