Last Update 09 Dec 25

Fair value Decreased 0.12%

VIMIAN: Future Leadership Will Drive Cash Flow Execution Upside Despite Sector Downgrade

Analysts have trimmed their price target on Vimian Group by SEK 10 to SEK 27. This reflects slightly higher discount rate assumptions and more conservative long term valuation multiples for the sector.

Analyst Commentary

Analyst sentiment on Vimian Group remains mixed, with the latest target cut reflecting growing scrutiny of the company’s medium term growth and margin trajectory.

While the sector backdrop and higher discount rates are weighing on valuation, investors are focused on whether management can deliver on execution and cash flow improvement to support the new target range.

Bullish Takeaways

Bullish analysts highlight that the reduced target still implies upside from current trading levels, suggesting the market may already discount a more cautious sector outlook.
The diversified portfolio across animal health niches is seen as a structural growth driver that could support above market revenue expansion over the 2026 horizon if integration and cross selling are executed well.
There is confidence that incremental operational efficiencies and disciplined capital allocation could lift margins, providing scope for multiple stabilization despite a higher discount rate environment.
Some see the lowered expectations as resetting the bar to a more achievable level, which may reduce the risk of future estimate cuts if Vimian delivers steady, albeit more modest, growth.

Bearish Takeaways

Bearish analysts view the downgrade and target reduction as a signal that sector wide growth assumptions for 2026 and beyond are being re rated, putting pressure on valuation multiples across animal health names.
There are concerns that organic growth may remain uneven and that integration of past acquisitions could continue to weigh on execution risk and near term profitability.
Higher discount rate assumptions and more conservative long term multiples suggest that even solid operational delivery may not fully offset macro and sector headwinds in the valuation framework.
Some investors worry that limited visibility on cash generation and deleveraging may cap re rating potential, especially if industry sentiment stays cautious through the 2026 outlook period.

What's in the News

Vimian Group appointed Alireza Tajbakhsh as Chief Executive Officer effective 24 November 2025, with Tajbakhsh also retaining interim operational responsibility for the MedTech segment while a permanent head is recruited (Key Developments).
Tajbakhsh, previously Head of Veterinary Services and interim Head of MedTech, brings international leadership experience from media and life science companies, reinforcing continuity within Vimian’s existing management team (Key Developments).
The board expressed thanks to Carl Johan Zetterberg Boudrie for serving as interim CEO in addition to his CFO role. He will continue as a key partner to Tajbakhsh in his position as CFO (Key Developments).
Vimian reiterated that mergers and acquisitions remain a core strategic pillar, with management actively accelerating efforts to advance a growing M&A pipeline across existing platforms and new market niches (Key Developments).
The company targets EUR 300 million in revenue by 2030 while keeping leverage below 3.0x, positioning its balance sheet to support continued disciplined deal making in animal health (Key Developments).

Valuation Changes

Fair Value: edged down slightly from 36.97 to 36.92, reflecting a marginally more conservative intrinsic valuation.
Discount Rate: decreased modestly from 6.14 percent to 6.12 percent, implying a slightly lower required return in the updated model.
Revenue Growth: effectively unchanged at around 8.87 percent, indicating stable assumptions for Vimian’s top line expansion.
Net Profit Margin: remains essentially flat at approximately 16.89 percent, signaling no material revision to long term profitability expectations.
Future P/E: increased slightly from 23.45x to 23.57x, suggesting a small uplift in the multiple applied to forward earnings.

Sustained demand for advanced veterinary care and expansion in niche, high-margin segments position Vimian for recurring revenue and profit growth.
Strategic acquisitions, digital adoption, and operational improvements support increased market share, new growth avenues, and recovery in underperforming areas.
Reliance on acquisitions, leadership instability, and margin pressure from weaker segments and accounting scrutiny threaten earnings quality, strategic execution, and sustainable profit growth.

Catalysts

About Vimian Group

Engages in the animal health business worldwide.What are the underlying business or industry changes driving this perspective?

Ongoing growth in global pet ownership and the continued humanization and aging of companion animals are driving sustained, resilient demand for advanced veterinary healthcare services and products, supporting Vimian's long-term opportunity for organic and recurring revenue growth.
Expansion in high-margin, niche segments such as veterinary dental products and specialty pharmaceuticals-including recent bolt-on acquisitions like AllAccem-enables Vimian to improve product mix, drive top-line growth, and support EBITDA/net margin expansion as distribution and operational synergies are realized.
Acceleration of digitalization and new technology adoption in animal health (e.g., diagnostics, data-driven platforms) opens new product and service categories for Vimian, enhancing customer engagement, differentiation, and the long-term growth trajectory of the Diagnostics and Veterinary Services segments, which reported robust double-digit organic growth.
Continued consolidation in the veterinary healthcare sector, combined with Vimian's proven global M&A integration model and healthy M&A pipeline, provides multiple catalysts for inorganic revenue expansion and increased market share, with recent strategic acquisitions showing limited near-term profit impact but strong potential to boost future earnings.
Recent leadership changes and a renewed focus on commercial execution-especially in underperforming MedTech Orthopedics-target an operational turnaround that, if successful, could restore growth and margin improvements in this previously higher-margin segment, positively impacting earnings and restoring investor confidence.

Vimian Group Earnings and Revenue Growth

Vimian Group Future Earnings and Revenue Growth

Assumptions

How have these above catalysts been quantified?

Analysts are assuming Vimian Group's revenue will grow by 9.7% annually over the next 3 years.
Analysts assume that profit margins will increase from 5.6% today to 17.6% in 3 years time.
Analysts expect earnings to reach €93.9 million (and earnings per share of €0.14) by about September 2028, up from €22.8 million today.
In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 23.9x on those 2028 earnings, down from 63.0x today. This future PE is lower than the current PE for the SE Medical Equipment industry at 49.4x.
Analysts expect the number of shares outstanding to grow by 0.8% per year for the next 3 years.
To value all of this in today's terms, we will use a discount rate of 5.96%, as per the Simply Wall St company report.

Vimian Group Future Earnings Per Share Growth

Risks

What could happen that would invalidate this narrative?

The company is experiencing sustained weakness in its MedTech Orthopedics segment, particularly in the U.S., driven by a soft market for high-cost elective procedures, customers working through inventories, and tighter clinic budgets; management does not expect immediate improvement, which could negatively impact revenue and margin recovery over the next several quarters.
There have been significant leadership transitions, including the abrupt CEO departure and change in MedTech segment leadership, with an interim CEO and newly recruited commercial leaders; these disruptions could prolong operational uncertainty, limit strategic execution, and introduce organizational risk, pressuring earnings and investor confidence.
Vimian's growth remains heavily reliant on acquisitions (M&A), with 12% of Q2 growth coming from acquisitions versus 5% organic growth; this strategy, coupled with rising net debt and leverage (2.1x post-acquisition), increases financial risk, interest expenses, and could threaten net margins and longer-term earnings if organic growth remains subdued.
Margin compression is a growing concern, as the addition of lower-margin dental businesses (iM3, AllAccem) and weak Orthopedics hit overall margins (group margin at 24.3%, down year-on-year); a continued revenue mix shift toward lower-margin businesses could suppress sustainable EBITDA and profit growth.
There is growing scrutiny on adjusting out costs related to long-term incentive (LTI) plans, an accounting approach questioned by analysts as unusual in the sector, raising concerns about earnings quality and the true cost structure, potentially affecting perceptions of net income and recurring profitability.

Valuation

How have all the factors above been brought together to estimate a fair value?

The analysts have a consensus price target of SEK38.904 for Vimian Group based on their expectations of its future earnings growth, profit margins and other risk factors.
In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be €533.3 million, earnings will come to €93.9 million, and it would be trading on a PE ratio of 23.9x, assuming you use a discount rate of 6.0%.
Given the current share price of SEK30.24, the analyst price target of SEK38.9 is 22.3% higher.
We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.

Have other thoughts on Vimian Group?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

How well do narratives help inform your perspective?

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) 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 price targets and estimates used are consensus data, and do 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 AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Digital Adoption And Niche Expansion Will Empower Veterinary Healthcare