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1. Company Snapshot

1.a. Company Description

VBG Group AB (publ), together with its subsidiaries, develops, manufactures, markets, and sells various industrial products in Germany, rest of the Nordic countries and Europe, Australia, New Zealand, and internationally.It operates through three segments: Truck & Trailer Equipment, Mobile Climate Control, and Ringfeder Power Transmission.The company's Truck & Trailer Equipment segment supplies trailer coupling equipment under VBG and Ringfeder brands; and automatic snow chains under Onspot brand name, as well as sliding roofs for canopy trailers and tipping vehicles, and sliding roof arches for railway carriages under Edscha Trailer Systems and Sesam brands.


Its Mobile Climate Control segment supplies climate control systems, including heating, ventilation and air conditioning, control systems, and various associated components.This segment's customers include bus manufactures, infrastructure construction vehicles, agriculture, forestry, mines, and material handling sectors, as well as commercial vehicles, including garbage trucks, ambulances and fire trucks, and defense vehicles for troop transport.The company's Ringfeder Power Transmission segment offers products for mechanical power transmission, and energy and shock absorption for mines, metal and energy production, medical technology, pumps, food, industrial automation, and customer sectors under the Ringfeder and Henfel brands.


VBG Group AB (publ) was founded in 1951 and is headquartered in Trollhättan, Sweden.

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1.b. Last Insights on VBG

VBG Group AB's recent performance was positively driven by its robust long-term growth prospects. Despite a decline in net profit margins to 7.9% from 10.6% a year ago, the company maintains a strong outlook, with forecasted earnings growth of 17.4% annually and revenue expansion of 6.8% per year, outpacing Swedish market averages. The company's five-year average earnings growth of 16.3% per year underscores its growth momentum. A recent earnings release highlighted the company's resilience, with forward-looking forecasts indicating a promising trajectory.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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VBG Group (OM:VBG B) Margin Decline Challenges Bullish Growth Narrative Despite Strong Long-Term Outlook

Oct -29

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VBG Group AB (FRA:KU4) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Apr -29

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Undiscovered European Gems to Explore in April 2025

Apr -16

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VBG Group AB (FRA:KU4) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...

Feb -20

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Exploring January 2025's Undiscovered Gems on None

Jan -29

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Exploring 3 Top Undervalued Small Caps With Recent Insider Buying

Jan -29

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Exploring 3 Undervalued Small Caps With Recent Insider Activity

Dec -31

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Exploring 3 Undiscovered Gems With Promising Potential

Dec -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.69%)

6. Segments

Mobile Climate Control

Expected Growth: 3.5%

VBG Group AB's Mobile Climate Control segment growth of 3.5% is driven by increasing demand for electric and hybrid vehicles, stringent emissions regulations, and rising adoption of autonomous driving technologies. Additionally, growing focus on passenger comfort, safety, and energy efficiency in commercial vehicles also contribute to the segment's growth.

Truck & Trailer Equipment

Expected Growth: 3.8%

VBG Group AB's Truck & Trailer Equipment segment growth of 3.8% is driven by increasing demand for heavy-duty trucks, rising infrastructure investments, and growing adoption of advanced trailer technologies. Additionally, the company's focus on product innovation, strategic partnerships, and expanding distribution networks contribute to its growth momentum.

Ringfeder Power Transmission

Expected Growth: 4.2%

Ringfeder Power Transmission's 4.2% growth is driven by increasing demand for high-performance power transmission solutions in industrial automation, renewable energy, and electric vehicles. Additionally, VBG Group's strategic acquisitions and expansion into emerging markets have contributed to the segment's growth, along with investments in R&D and operational efficiency improvements.

7. Detailed Products

VBG Rail

VBG Rail is a leading manufacturer of rail couplers and other rail-related products, providing innovative solutions for the rail industry.

VBG Industrial

VBG Industrial offers a range of industrial components, including connectors, sensors, and switches, designed for harsh environments.

VBG Cable

VBG Cable specializes in the design and manufacture of custom cables and connectors for various industries, including automotive, industrial, and medical.

VBG Connectors

VBG Connectors offers a broad range of connectors, including circular, rectangular, and custom connectors, designed for various industries.

VBG Sensors

VBG Sensors develops and manufactures a range of sensors, including pressure, temperature, and position sensors, for various industries.

8. VBG Group AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for VBG Group AB (publ) is medium due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for VBG Group AB (publ) is high due to the concentration of customers in the market and their ability to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for VBG Group AB (publ) is low due to the availability of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for VBG Group AB (publ) is medium due to the moderate barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for VBG Group AB (publ) is high due to the presence of several competitors in the market and the need to differentiate products and services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.63%
Debt Cost 7.55%
Equity Weight 82.37%
Equity Cost 7.55%
WACC 7.55%
Leverage 21.40%

11. Quality Control: VBG Group AB (publ) passed 7 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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Debica

A-Score: 6.3/10

Value: 8.7

Growth: 3.9

Quality: 4.1

Yield: 8.1

Momentum: 3.5

Volatility: 9.7

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SAF-Holland

A-Score: 6.0/10

Value: 8.0

Growth: 7.9

Quality: 3.6

Yield: 6.9

Momentum: 5.0

Volatility: 4.7

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Burelle

A-Score: 5.6/10

Value: 10.0

Growth: 5.0

Quality: 2.6

Yield: 3.1

Momentum: 6.0

Volatility: 6.7

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CIR

A-Score: 5.0/10

Value: 7.5

Growth: 4.8

Quality: 2.8

Yield: 0.0

Momentum: 6.0

Volatility: 8.7

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VBG

A-Score: 4.9/10

Value: 6.1

Growth: 7.9

Quality: 5.7

Yield: 4.4

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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EDAG

A-Score: 3.3/10

Value: 7.4

Growth: 3.0

Quality: 2.3

Yield: 1.2

Momentum: 0.5

Volatility: 5.3

1-Year Total Return ->

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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

389.0$

Current Price

389$

Potential

-0.00%

Expected Cash-Flows