Troax Group AB (publ) (TROAX.ST) fair value

ACCE thesis

Troax makes modular perimeter security systems, mainly steel mesh fencing, gates and enclosures for warehouses, data centres, prisons and critical infrastructure, sold largely through installer and distributor networks across Europe and beyond. The moat is switching cost and specification: once a fence or cell system is written into a site plan and certified for a customer's security standard, replacing it is expensive, and the company's 36% gross margin reflects that pricing power. Revenue growth of 22.6% points to demand from the logistics build-out and security upgrades that the data does not itemise, so the key question is how much of that is organic volume versus acquisitions. The stock trades on a trailing P/E of 330 and a forward P/E of 210, which prices in a sharp earnings recovery, since the 9.2% operating margin and 1.5% ROE leave little earnings base to grow from. This is a name worth a deeper look only if the margin path toward a higher operating level can be underwritten, and the thesis rests on that more than on top-line growth.