Risks

-27% stock price drop over past year – industry-wide pressure
Cyclicality – tied to industrial demand cycles
Moderate growth – not a high-growth tech stock

Assumptions

Revenue by 2029:
- Estimate: ~SEK 26–28 billion
- Current Revenue: SEK 20.44 billion
- Expected Growth: ~4.3–7.2% annually
- Growth Drivers:
  - Strong demand for polymer solutions in automotive, construction, and energy
  - Growth in engineered products and thermoplastic elastomers
  - Sustainability and recycling focus aligned with EU regulations (ESG boost)
Earnings by 2029:
- Estimate: ~SEK 3–3.5 billion
- Current Earnings: SEK 2.22 billion
- Expected Growth: ~7.2% annually
- Key Factors:
  - Stable gross margins (21–23%)
  - Facility consolidation and improved operational efficiency
  - Acquisitions (M&A) and shift toward high-margin products

Catalysts

Reliable dividend yield – 4.3%
Low debt (Debt/Equity = 18.7%)
Consistent growth through green innovation and acquisitions

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Disclaimer

The user cjimi holds no position in OM:HPOL B. 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.