Vimian Group AB (publ) (VIMIAN.ST) fair value

ACCE thesis

Vimian Group makes veterinary diagnostic and software products, including lab analyzers, reference laboratory services and practice management software sold to animal clinics across Europe and beyond. Its advantage is recurring consumables and service revenue tied to installed clinic equipment, which gives it a 68.8% gross margin and an 18.4% operating margin. Revenue growth of 16.6% is the number to test, since the sustainability of that pace depends on whether the software-and-lab mix keeps expanding faster than the hardware it supports. At 30.1 times forward earnings against a trailing 60.7, the market is pricing in a sharp earnings recovery, so the investment case rests on margin delivery rather than on the top line alone. Return on equity of 5.3% is thin for a business this profitable, which points to a balance sheet carrying acquisition goodwill and deserves a closer look at how that capital was deployed.