AB Sagax (publ) (SAGA-B.ST) fair value

ACCE thesis

AB Sagax owns and manages a portfolio of commercial and residential property in the Nordics, with rental income as nearly all of its revenue, which explains the 81.2% gross margin and 78.5% operating margin. Its edge is scale and a disciplined acquisition-and-refurbishment model in a market where many listed landlords are shrinking or stuck with high leverage, and the 4.6% revenue growth reflects that steady rent-roll expansion rather than rent inflation alone. Trading at 11.1 times earnings with a 12.5% return on equity, the stock is priced for a company that compounds through acquisitions, so the thesis depends on whether it can keep buying at yields above its cost of debt. Worth a deeper look to test that spread, the refinancing schedule and how much of the recent growth came from property sales versus rent increases. Forward earnings multiple is not available in the data, so the valuation case rests on current-year figures alone.