Reflecting the median consensus estimates, Securitas’ P/E ratios for the coming years at approximately 88.22 would seem to be:
-23 11.1
-24 8.6
-25 7.7
Nordea states that the valuation is somewhat on the low side relative to peers: “The share trades at 8.8x 2024E EV/EBITA, and we argue that the valuation gap to peers (23% discount to the peer median) is likely to shrink when investors begin to look at 2024 numbers.” https://research.nordea.com/Company/List#
With the STANLEY acquisition, the company is inching toward higher margins as higher-margin technology solutions increasingly appear alongside traditional services, such as security guards stationed in shops or at airports. The company still has debt following the acquisition (Net debt/EBITDA 3.8x), but the weak Swedish krona and reasonable valuation make Securitas’ solid market position and stable business look relatively attractive already.