Tamtron - Weighing Solutions Provider

Stocks
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Pauli made a new company report after Tamtron’s Czech acquisition. (to CEO Škoda)

Tamtron continues to implement its acquisition-driven growth strategy by acquiring complementary business from the Czech Republic alongside the company’s current operations. We see synergy potential in the acquisition in terms of service network and cross-selling. We cautiously raised our forecasts, taking into account, for example, increased uncertainty related to trade war risks, which may affect Tamtron’s target markets, even though the company does not have direct sales to the USA. We reiterate our “add” recommendation and a target price of 6.2 euros.

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136

Today, Tamtron released an excavator scale, and from the presentation, I got the impression that there aren’t many similar ones on the market. It’s quite accurate (I think it was 1-2%), and the measurement of each bucket load also goes in real-time via the cloud to systems.
The Tenzona acquisition and this, so quite positive momentum.

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I have been in touch with Tamtron over the spring and now wrote an update on the company’s growth prospects. Growth efforts seem to be progressing on several fronts, even though market demand is still not particularly active. At the same time, the stock seems to be flying under the radar and the valuation is moderate.

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Pauli has provided his preliminary comments as Tamtron will publish its H1 half-year review on Thursday. :slight_smile:

Analyst Pauli Lohi will comment on the earnings release in a live broadcast starting at 8:55 AM. We expect Tamtron’s demand environment to have brightened, but it is unclear whether this will be significantly reflected in H1 revenue or only later in the year. Our forecasts include a moderate pick-up in growth already for H1, but our earnings forecasts are stable relative to the strong comparison period.

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LIVE CANCELED. The earnings release was published this time already at 8:30 AM, so I will now focus on writing about the results and the simultaneously announced acquisition for the morning review.

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Here’s a quick comment from Paul on Tamtron’s results. :slight_smile:

Tamtron published its H1 half-year review this morning, which was weaker than our expectations in terms of revenue and profit. The company anticipates large deliveries to be weighted towards the end of the year and describes the outlook for the end of the year as very positive, supported by strong order growth. The guidance remained unchanged, although the company also announced a small acquisition on the results day, which partly helps in reaching the guided revenue. The overall picture of the report, with a soft H1, is in our opinion slightly subdued, even though the improving outlook alleviates this. The company’s information session can be viewed via this link starting at 1 p.m.

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Pauli interviewed Tamtron’s CEO Mikko Keskinen. :slight_smile:

Topics:

00:00 Introduction
00:15 Factors behind the result falling short of expectations
02:18 Growth in order intake
03:58 Market situation in the Industrial segment
05:50 Sales of dosing systems in new markets
07:43 Outlook for the Onboard segment
10:47 Development of mScales
13:02 Effects of tariffs on Tamtron
14:44 Current guidance

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Pauli has made a new company report after Tamtron’s H1. :slight_smile:

The timing of larger deliveries weighed on the first half’s result and led to moderate forecast cuts, which slightly increased uncertainty about achieving the current year’s guidance. However, stable revenue streams continued to grow, and the business’s margin profile continued to strengthen, supported by digital services, among other things. A growth turnaround is expected for the end of the year, for which H1’s strong order intake and small acquisitions provide good prerequisites. International, capital-light growth efforts continue, which we believe could be more strongly reflected in the results if the industrial cycle strengthens. The valuation is reasonable even with this year’s results, so we reiterate our Add recommendation and a target price of 6.2 euros (unchanged).

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Here is Paul’s comment regarding the private placement to the seller related to the Polish acquisition. :slight_smile:

*Tamtron announced on Tuesday that it had completed the acquisition of Polish MASA and decided on a private placement to the seller, which will cover part of the purchase price. The new shares represent 0.59% of

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145

Here are Pauli Lohi’s comments on how Tamtron’s forest machine scale received an important certification. :slight_smile:

The MID certificate enables more versatile use possibilities for Tamtron’s One Timber timber scale, especially in the Central European market. Obtaining the certificate for a work machine scale in mobile use is not self-evident, and competing scales with the same certificate are rare. The certification supports the growth of the Onboard segment in the medium term, but according to our assessment, it does not cause a significant need for forecast changes.

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The main owner appears to have made quite substantial purchases. Already owns almost 60% of the company again. Tamtron Group Oyj - Johdon liiketoimet - Inderes

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Tamtron’s CEO Mikko Keskinen spoke about his company as an investment target at the Investor 2025 event. :slight_smile: \n\n\nTamtron sijoituskohteena | Sijoittaja 2025 - Inderes

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Pauli Lohi has completed a new company report on Tamtron in his spare time. :slight_smile:

We see Tamtron as an attractively valued and competitive company that could soon receive a boost to its earnings growth from, among other things, the revitalization of European industrial activity. In addition, the company has expanded the sales of its Finnish-origin products to new markets, which in turn supports growth regardless of economic cycles. The moderately developed share price combined with an upward cyclical timing, in our opinion, opens up an even more attractive buying opportunity for the stock than usual. This year’s guidance still includes a small risk due to deliveries being exceptionally heavily weighted towards the end of the year, which is, however, compensated by the attractive valuation. We raise our recommendation to buy (previously add) and the target price to 6.4 euros (previously 6.2 €).

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We made a video. :smiley:

Tamtron, which supplies weighing solutions for industries such as manufacturing and construction, has been underperforming on the stock market, but the stock has potential. Analyst Pauli Lohi comments.

Tamtron analyses can be found here Tamtron - Inderes

00:00 Why buy
01:25 Market turnaround
02:25 Software
03:30 Stock valuation
04:48 Software development
05:50 Lahti Precision
07:38 Why you might be wrong

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Many features praised by Lynch are certainly met in Tamtron:

  1. Boring industry
  2. Insiders are buying
  3. Institutions haven’t found the company yet

I still need to get to know the company’s business better for it to end up in my portfolio, but it seems like a promising case.

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One individual holds an excessively large ownership stake; decision-making power is overly concentrated, and minority shareholders have no real influence over the company’s direction.
High majority ownership weakens the stock’s liquidity, as only a small portion of the shares is freely tradable on the market.
Because of this, both retail and large investors perceive the risk as greater, and interest in acquiring the stock remains low.

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Unfortunately, from my perspective, Tamtron almost invariably results in nothing but negative experiences. Furthermore, MScales as software is unimpressive, and I know that the company’s policies, for instance regarding their own scale integrations, have caused enough of a stir in many companies that in the future, many of them will surely look for weighing solutions from outside of Finland.

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In addition to that, I stopped investing in the company because of their reluctance to disclose the share of SaaS services in their revenue. That growth must be weak or negative since it is not being reported. I can’t think of any other reason.

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Tamtron seems interesting, although I think many have raised quite good risk factors and other points that will likely have a negative impact on the company’s valuation. :slightly_smiling_face:

The company seems to be performing relatively well even in a more challenging economic situation, at least in terms of what’s left on the bottom line. The company’s situation is positively stable, meaning a fairly diverse customer base, and geographically the situation isn’t bad either, although there would certainly be some room for improvement there, as the company is currently “concentrated” in the Nordic countries. Of course, the company’s performance and survival in different conditions prove something, along with the “security-providing” maintenance side (From the extensive report: We estimate that Tamtron services about 80% of its sold equipment fleet itself). And well, I suppose the economic cycle will turn eventually, so won’t that have a big impact on Tamtron too.

SaaS would of course be a great plus if it was running smoothly, but there’s no evidence of this yet, or at least not enough proof. Or well… a quote from the latest company report:

A significant recycling industry operator, FCC Environment, signed an agreement to implement a SaaS solution for over 80 truck scales in Central Europe in 2024, and the rollouts will take place gradually in the coming years, supporting SaaS growth.

In my opinion, the company looks like an interesting investment; as long as the company makes more noise about itself more often, “ownership diversifies,” and the economic cycle turns, the stock would be a real treat… and boom-shakalaka, if SaaS still proves itself. The industry is also on a growth trend and the company has good products… and yeah, if it were to expand its geographical reach even further.

There is some wishful thinking and general “if” stuff involved, and I see the company partly as a bit of a diamond in the rough, meaning there could be potential for even more, but it’s another matter whether that potential is realized.

Looks pretty good:
image

I’m asking myself:

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