Storskogen Group AB (publ) (STOR-B.ST) fair value

ACCE thesis

Storskogen is a Swedish holding company that acquires and runs small and mid-sized industrial and service businesses, from building products and lighting to property and kitchen and bath fittings, with its own forestry and property holdings alongside. Its edge is an acquire-and-hold model built around decentralised management, which lets it buy cash-generative niche operators at reasonable multiples and keep them running with little central overhead. Revenue growth of 4.8% is modest, but the forward P/E of 10.0 against a trailing 16.2 implies earnings are expected to rise sharply, and the operating margin of 7.4% sits well above what a typical diversified conglomerate posts. The thesis rests on whether recent acquisitions integrate and lift returns, and on a forward multiple that prices in that improvement; a return on equity of 6.1% says the capital base is still earning below what the balance sheet should support, so the next few reporting periods will show whether the gap closes. Worth a deeper look to test the earnings step-up against the acquisition pipeline and the debt used to fund it.