There are good things to like about Viafin:
- strong balance sheet
- double-digit growth achieved over time, even while paying out 50% of earnings as dividends
- high ROE and ROIC
- strong cash flow
- inorganic and organic growth path → two strong engines
- plenty of future growth trajectory ahead
- defensive industry
- the decentralized and independent organizational structure for operational companies has worked as an operating model, at least for many quality serial acquirers
- relatively “mission critical” operations, i.e., maintenance work is essential to handle
- not disrupted by AI
One downside is that there is competition, and according to Inderes’ analysis, entering the industry does not have particularly high barriers to entry (low capital expenditure).