Pandox AB (publ) (PNDX-B.ST) | Investment Case

1. Company Snapshot

1.a. Company Description

Pandox AB (publ) owns, operates, and leases hotel properties.The company operates through Property Management and Operator Activities segments.As of March 11, 2022, it operated 157 hotels with approximately 35,500 hotel rooms in 15 countries.

The company was founded in 1932 and is based in Stockholm, Sweden.

Show Full description

1.b. Last Insights on PNDX

Pandox AB's recent performance was driven by a stable European market, with the STOXX Europe 600 Index remaining relatively flat. The company's strong insider ownership, with insiders holding a significant stake, indicates confidence from those closest to the business. This alignment of interests between insiders and shareholders can be particularly appealing in fluctuating markets. Additionally, the company's recent news highlights its resilience in the face of economic uncertainties, with investors often seeking growth companies with high insider ownership.

1.c. Company Highlights

Last Price	190.2
Change Percentage	0.96%
Open	189
Previous Close	188.4
Market Cap ( Millions)	37013
Volume	7788
Year High	207
Year Low	145.2
M A 50	186.43
M A 200	173.47

FCF Yield	1.71%
Dividend Yield	2.23%
ROE	6.20%
Debt / Equity	135.61%
Net Debt / EBIDTA	951.78%
Price To Book	1.13
Price Earnings Ratio	18.25
Price To FCF	58.38
Price To sales	5.08
EV / EBITDA	18.07

2. Pandox's Q3 2025 Earnings: A Strong Performance Amidst a Recovering Hotel Market

Pandox reported a 5% increase in total revenues, driven by a strong performance in both Lease and Own Operations business segments. Net operating income rose by 8%, while cash earnings grew by 6%. Cash earnings per share increased by 1%, or 7% adjusted for the financial net related to the acquisition of Dalata Hotel Group. The actual EPS came in at 3.17, slightly below estimates of 3.32.

Publication Date: Oct -26

                                    📋 Highlights
                                    Revenue and Profit Growth::
                                                Q3 2025 total revenues rose 5%, net operating income increased 8%, and cash earnings grew 6%.
Dalata Acquisition Impact::
                                                Expected to add 63 UK/Ireland hotels, contributing to Q4 2025 revenue and full 2026 cash earnings boost.
Financial Strength::
                                                Loan-to-value ratio at 46.4% (post-Dalata, 52% initially), with SEK 2.5 billion cash reserves and SEK 900 billion unencumbered assets.
RevPAR Growth Drivers::
                                                International demand and events fueled Nordic recovery, with Stockholm, Oslo, and Copenhagen showing 13-20% future booking increases YoY.

                                

Business Segment Performance

The company's diversified hotel property portfolio, comprising 162 hotels across 11 countries, performed well in Q3. The acquisition of Dalata Hotel Group, expected to be finalized in early November 2025, is anticipated to contribute substantially to revenue and net operating income in Q4 2025 and have a full effect in 2026. Liia Nou, Pandox's executive, noted that the U.K. and Ireland markets are expected to drive stable growth, particularly in Dublin and London.

European Hotel Market Outlook

The European hotel market has shown signs of recovery, driven by international demand and events. RevPAR growth has been positive in Southern Europe, while the U.K. has also seen positive results in Q3. Pandox expects a stable hotel market in Q4 2025, with normal seasonality, and a positive contribution from completed acquisitions and repositionings.

Valuation Metrics

With a P/E Ratio of 27.76 and an EV/EBITDA of 20.4, the market appears to have priced in a certain level of growth. The company's ROE stands at 4.18%, while the ROIC is 3.47%. The Net Debt / EBITDA ratio is 10.3, indicating a relatively high level of debt. However, Pandox expects to reduce its LTV ratio to around 50% through divestments.

Future Prospects

Pandox is excited about the Dalata acquisition and is looking to make further value-accretive acquisitions. The company's strong financial position, with SEK 2.5 billion in cash and credit facilities, is expected to support its growth plans. Analysts estimate revenue growth of 2.7% for next year, indicating a relatively stable outlook.

3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.92%)

6. Segments

Rental Agreement

Expected Growth: 12%

Pandox AB's 12% growth in Rental Agreement is driven by increasing demand for hotel rooms, strategic acquisitions, and effective yield management. Additionally, the company's focus on rebranding and refurbishing existing hotels, as well as expanding into new markets, contributes to the growth. Furthermore, Pandox's strong relationships with hotel operators and efficient cost management also support the segment's growth.

Own Operations

Expected Growth: 14%

Pandox AB's 14% growth in Own Operations is driven by strategic acquisitions, increasing RevPAR (Revenue per Available Room) through effective yield management, and cost savings from operational efficiencies. Additionally, the company's focus on rebranding and refurbishing its hotel portfolio has enhanced customer experience, leading to higher occupancy rates and revenue growth.

7. Detailed Products

Hotel Properties

Pandox owns and operates a portfolio of hotel properties across Europe, offering a range of accommodation options to guests.

Leisure Properties

Pandox owns and operates a portfolio of leisure properties, including restaurants, bars, and nightclubs, offering entertainment and dining options to guests.

Conference and Meeting Facilities

Pandox offers conference and meeting facilities, providing a range of event spaces and services for corporate and social events.

Food and Beverage Services

Pandox offers a range of food and beverage services, including restaurants, bars, and room service, catering to guests' culinary needs.

Hotel Management Services

Pandox provides hotel management services, including operational management, marketing, and revenue management, to hotel owners and investors.

8. Pandox AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Pandox has a diversified portfolio of hotels, which reduces the threat of substitutes. However, the hotel industry is highly competitive, and customers may choose alternative accommodations.

Bargaining Power Of Customers

Pandox's customers have a high bargaining power due to the competitive nature of the hotel industry. Customers have many options to choose from, which gives them the power to negotiate prices.

Bargaining Power Of Suppliers

Pandox has a strong negotiating position with its suppliers due to its large portfolio of hotels. This gives the company bargaining power to negotiate better prices and terms.

Threat Of New Entrants

The hotel industry has moderate barriers to entry, and new entrants may face challenges in terms of financing, regulations, and brand recognition. However, the industry is not immune to new entrants, and Pandox must remain competitive to maintain its market share.

Intensity Of Rivalry

The hotel industry is highly competitive, with many established players and new entrants vying for market share. Pandox must differentiate itself through its brand, service, and amenities to maintain its competitive edge.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	52.59%
Debt Cost	3.95%
Equity Weight	47.41%
Equity Cost	14.69%
WACC	9.04%
Leverage	110.91%

11. Quality Control: Pandox AB (publ) passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Pirelli

A-Score: 6.4/10

Value: 7.6

Growth: 3.8

Quality: 5.5

Yield: 6.9

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

InterContinental Hotels

A-Score: 5.4/10

Value: 3.8

Growth: 6.2

Quality: 6.3

Yield: 1.9

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

Whitbread

A-Score: 5.2/10

Value: 4.4

Growth: 5.9

Quality: 3.8

Yield: 4.4

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

Accor

A-Score: 4.8/10

Value: 3.6

Growth: 6.2

Quality: 5.3

Yield: 3.1

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

Barratt Developments

A-Score: 4.5/10

Value: 3.1

Growth: 1.3

Quality: 5.0

Yield: 7.5

Momentum: 3.5

Volatility: 6.3

1-Year Total Return ->

Pandox

A-Score: 4.4/10

Value: 4.3

Growth: 5.4

Quality: 3.9

Yield: 2.5

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

24.29%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.04%

Pandox AB (publ) - SE0007100359

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PNDX

1.c. Company Highlights

Expensive

Strong Momentum

Average Quality

Earnings Miss

Medium Volatility

Revenues Miss

Average Yield

Fairly Valued

Stable Momentum

Revenues Beats

Earnings Beats

2. Pandox's Q3 2025 Earnings: A Strong Performance Amidst a Recovering Hotel Market

Business Segment Performance

European Hotel Market Outlook

Valuation Metrics

Future Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.92%)

6. Segments

Rental Agreement

Expected Growth: 12%

Own Operations

Expected Growth: 14%

7. Detailed Products

Hotel Properties

Leisure Properties

Conference and Meeting Facilities

Food and Beverage Services

Hotel Management Services

8. Pandox AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Pandox AB (publ) passed 2 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

190.2$

Current Price

190.2$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA