Investment Ideas 2023-nº17: IT services and digital transformation growing at over 25% by 2022 in the Nordic region.
Company with a history of constant sales growth for more than 10 years, even in times of crisis as in 2008.
We return to the Nordic countries, this time with a Swedish company in a sector that we know well, and we like for its secular trends for the coming years; IT services and digital transformation.
Today's company is dedicated to offering digital solutions in the Nordic region, mainly in Sweden, which accounts for 52% of sales. It operates through four segments: Solutions, Experience, Connectivity and Insight. It offers its services to both the private and public sectors, 60% and 40% of revenue respectively.
We are talking about a company with a history of constant sales growth since its IPO in 2005, growing even in difficult periods such as 2008.
This growth has been accelerated in 2021, with an increase in sales of more than 40%, due to the acquisitions made.
Overall, we are talking about a company in the IT sector with a track record of more than 10 years, established, consolidated, and with a strong position in the public sector in the Nordic region.
Ingredients of the investment idea 17th:
History of steady sales growth since 2008 inclusive.
Sales growth of more than 40% and 25% in 2021 and 2022 respectively, counting acquisitions.
The share since IPO has grown by 744%, 12% compound annual growth.
Steady and stable growth in the digital transformation sector.
Consistent 15% annual growth target, with an EBITA margin of 12%.
Without further ado, we leave you with the new unknown idea, we hope you like it and that it encourages you to continue investigating it.
Keep reading with a 7-day free trial
Subscribe to Quality Value to keep reading this post and get 7 days of free access to the full post archives.