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1. Company Snapshot

1.a. Company Description

GN Store Nord A/S develops, manufactures, and markets audio and video communications solutions for medical, professional, and consumer technology solutions in Denmark, rest of Europe, North America, and internationally.It operates in two segments, GN Hearing and GN Audio.The GN Hearing segment produces and sells hearing instruments and products.


The GN Audio segment supplies headsets, video cameras, and speakerphones for professional use and consumer products.It offers its products under the ReSound, Beltone, Interton, Jabra, BlueParrott, FalCom, and Audigy brands.GN Store Nord A/S was founded in 1869 and is based in Ballerup, Denmark.

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1.b. Last Insights on GN

GN Store Nord's recent performance faces challenges due to intense competition in the hearing aid market. Despite regulatory changes allowing over-the-counter devices, which should boost accessibility and growth, the company must navigate technological advancements like AI-driven sound enhancements. These innovations could pressure GN Store Nord's market share. Additionally, any delays in adapting to new technologies or integrating them into their products might hinder growth. With no recent earnings release or share buyback news, investors watch how GN Store Nord executes on its strategic plans.

1.c. Company Highlights

2. Disappointing Earnings Report Despite Revenue Growth

The company's Q3 earnings report presented a mixed bag, with 1% organic revenue growth driven by market share gains and strong performance across divisions, particularly in Hearing, which saw 7% organic growth. However, the reported EPS of 0.76 was significantly lower than the estimated 3.05. The gross margin remained strong at 54.4%, attributed to effective price mitigating initiatives, strong pricing discipline, positive business mix, and group-wide synergies. The EBITA margin came in at 11%, 2 percentage points below last year, reflecting revenue development and provision release in gaming. As Soren Jelert, Group CFO, stated, "the company's gross margin remained strong at 54.4%," despite the direct impact from tariffs in 2 out of 3 divisions.

Publication Date: Nov -14

📋 Highlights
  • Organic Revenue Growth:: 1% overall with Hearing division leading at 7% organic growth driven by ReSound Vivia.
  • Enterprise Division Challenges:: -4% organic revenue decline due to EMEA uncertainty, offset by North America and APAC sell-out growth.
  • Gross Margin Resilience:: Maintained at 54.4% despite tariffs through pricing discipline and business mix optimization.
  • Cash Flow Strength:: DKK 410 million positive cash flow this quarter, supporting full-year DKK 800 million target guidance.
  • Jabra Enhance Headwinds:: Declining business impacting growth; potential divestiture under consideration amid margin pressures.

Segment Performance

The Hearing division's strong momentum continued with ReSound Vivia driving growth through broad-based market share gains, resulting in 7% organic growth. In contrast, the Enterprise division faced challenges due to market uncertainty in EMEA, leading to negative 4% organic revenue growth. However, the division's sell-out growth trend continued positively in North America and APAC.

Valuation Metrics

With the current 'P/E Ratio' at 17.53 and 'P/S Ratio' at 0.88, the market seems to be pricing in a certain level of growth. Analysts estimate next year's revenue growth at 4.8%, which may justify the current valuation to some extent. However, the 'ROE (%)' of 8.28 and 'ROIC (%)' of 5.73 suggest that the company's profitability is not exceptionally high. The 'Free Cash Flow Yield (%)' of 6.23 is relatively attractive, indicating a potential buying opportunity.

Outlook and Guidance

The company reconfirmed its guidance for the year, expecting an organic revenue growth of -2% to 2%, EBITA margin of 11% to 13%, and cash flow, excluding M&A, of around DKK 800 million. Soren Jelert mentioned that the company typically sees a positive cash flow in the second half of the year, and the recent quarter's cash flow was driven by the release of working capital.

Future Prospects

The company's upcoming product launches, including the next-generation hearing aid, are expected to drive growth in the coming quarters. However, the decline in Jabra Enhance business is a headwind for growth and profitability. The company's patience with Jabra Enhance and exploration of options to improve performance or create value will be crucial in determining its future prospects.

3. NewsRoom

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Changes to Tecan’s Board of Directors proposed to shareholders at the upcoming Annual General Meeting 2026

Dec -04

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European Stocks That May Be Trading Below Their Estimated Value

Nov -27

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European Stocks Estimated To Be Trading Below Intrinsic Value By Up To 37.5%

Nov -19

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3 Global Stocks Estimated To Be Trading At Discounts Of Up To 44.7%

Nov -19

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3 European Stocks Estimated To Be Up To 42.4% Below Intrinsic Value

Nov -19

Source:

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Interim Report Q3 2025: Solid quarter with 1% organic growth, 11% EBITA margin and DKK 410 million cash flow

Nov -06

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Jabra and Huddly® Partner to Bring Plug-and-Play Simplicity to Large Meeting Rooms

Sep -25

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LVMH: Share transactions disclosure

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.88%)

6. Segments

GN Audio

Expected Growth: 5.5%

GN Audio's 5.5% growth is driven by increasing demand for wireless headsets, particularly in the gaming and music markets. The company's Jabra brand benefits from its strong market position, innovative products, and strategic partnerships. Additionally, the growing trend of remote work and virtual meetings fuels demand for high-quality audio solutions, contributing to GN Audio's growth.

GN Hearing

Expected Growth: 6.5%

GN Hearing's 6.5% growth driven by increasing demand for hearing aids, particularly in emerging markets, and a growing trend towards online sales. Additionally, the company's focus on innovation, such as its ReSound ONE hearing aid, and strategic partnerships have contributed to its growth momentum.

7. Detailed Products

Hearing Aids

GN Store Nord A/S offers a wide range of hearing aids designed to improve communication and quality of life for individuals with hearing loss.

Cochlear Implants

GN Store Nord A/S provides cochlear implants that restore hearing for individuals with severe to profound sensorineural hearing loss.

Bone Anchored Hearing Systems

GN Store Nord A/S offers bone anchored hearing systems that provide sound conduction through the skull, bypassing the outer ear and middle ear.

Diagnostic Equipment

GN Store Nord A/S provides diagnostic equipment for hearing healthcare professionals to assess and diagnose hearing loss.

Auditory Accessories

GN Store Nord A/S offers a range of auditory accessories, including hearing aid batteries, cleaning tools, and drying systems.

8. GN Store Nord A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

GN Store Nord A/S operates in the hearing aid industry, where there are limited substitutes for hearing aids. However, there are alternative solutions such as cochlear implants and bone-anchored hearing aids, which could pose a threat to the company's sales.

Bargaining Power Of Customers

GN Store Nord A/S sells its products to a large number of customers, which reduces the bargaining power of individual customers. Additionally, the company's products are specialized, making it difficult for customers to switch to alternative products.

Bargaining Power Of Suppliers

GN Store Nord A/S relies on a few large suppliers for its components, which gives these suppliers some bargaining power. However, the company's large size and global presence also give it some negotiating power.

Threat Of New Entrants

The hearing aid industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise. This makes it difficult for new entrants to enter the market.

Intensity Of Rivalry

The hearing aid industry is highly competitive, with several large players competing for market share. GN Store Nord A/S faces intense competition from companies such as Sonova, Cochlear, and Oticon.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.47%
Debt Cost 3.95%
Equity Weight 41.53%
Equity Cost 10.62%
WACC 6.72%
Leverage 140.81%

11. Quality Control: GN Store Nord A/S passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Medacta

A-Score: 4.8/10

Value: 0.9

Growth: 6.6

Quality: 6.8

Yield: 0.6

Momentum: 7.0

Volatility: 6.7

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Getinge

A-Score: 4.3/10

Value: 3.4

Growth: 3.8

Quality: 5.2

Yield: 3.1

Momentum: 4.0

Volatility: 6.0

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A-Score: 3.8/10

Value: 6.2

Growth: 5.8

Quality: 4.0

Yield: 0.0

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Vitrolife

A-Score: 3.5/10

Value: 2.1

Growth: 7.4

Quality: 6.9

Yield: 0.6

Momentum: 1.0

Volatility: 3.0

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Ambu

A-Score: 3.0/10

Value: 0.8

Growth: 5.9

Quality: 6.2

Yield: 0.0

Momentum: 2.0

Volatility: 3.0

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GN Store Nord

A-Score: 2.8/10

Value: 5.5

Growth: 4.2

Quality: 4.1

Yield: 0.0

Momentum: 2.0

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

106.65$

Current Price

106.65$

Potential

-0.00%

Expected Cash-Flows