Catalysts
- Almost 90% of sales come from electronic shelf labels.
- For the digitalization of supermarkets, solutions such as digital shelf monitoring or price automation are needed.
- IoT solutions for supermarkets are a strong growth market and are expected to experience a strong increase in demand by 2030.
- Strategic alliance with NielsenIQ to bring AI-powered solutions to supermarkets.
Assumptions
- We expect Vusiongroup's revenue to grow to EUR€2.3B by 2028.
- We expect earnings to reach approximately EUR€230m in 3 years.
Risks
- Walmart could have a sales share of up to 40%, which is not specified by VusionGroup and leads to potenzial concentration risk.
- The valuation of VusionGroup is quite high, which could lead to volatile company value if expectations are not met.
- Cheaper competitors from China, for example, could play a role in the future.
- Oversaturation of the IoT market for supermarkets could lead to sharp growth slumps.
Valuation
- Using a optimistic 2-stage DCF model, we were able to forecast a company value (including cash) around EUR€6.3B.
- The net margin is expected to increase to 10% by 2028.
- The sector average P/E is 22.24
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Disclaimer
The user IndusyHoldings holds no position in ENXTPA:VU. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
