OEM International AB (publ) (OEM-B.ST) fair value

ACCE thesis

OEM International is a Swedish distributor of tools, consumables and industrial supplies, and its business is built on high-frequency replenishment for trade customers rather than one-off project sales. The company's edge is in its distribution network and catalogue breadth, which make it the default supplier for repeat purchases by workshops and industrial buyers, a position that is hard to replicate quickly. The near-term driver is volume and share gain from that installed base, with revenue growing 23.6% over the period in the data. With a 37.1% gross margin and a 14.7% operating margin, the business is converting that growth into profit, and a 24.7% return on equity suggests capital is being used efficiently. At a trailing P/E of 32.6 the stock is priced for that growth continuing, so the question for a deeper look is whether margins hold as volumes scale.