Dometic Group AB (publ) (DOM.ST) | Investment Case

1. Company Snapshot

1.a. Company Description

Dometic Group AB (publ), together with its subsidiaries, provides solutions for mobile living in the areas of food and beverage, climate, power and control, safety and security, and hygiene and sanitation in the Americas, Germany, Australia, the United Kingdom, France, Italy, Sweden, the Netherlands, Canada, and internationally.The company offers climate control products, such as air conditioners, awnings, blinds, windows and doors, ventilation products, heaters, furnaces, and patio rooms and tents; food and beverage products, including refrigerators, cool boxes, cooking products, and accessories; and safety and security products comprising carbon monoxide detectors, security locks, safety handrails, safes, alarm systems, and gas detectors, as well as driving support accessories.It also provides power and control solutions, which include energy and lighting, marine control, and marine steering systems products, and control devices, as well as related accessories; and hygiene and sanitation products, such as toilets, pumps, hoses, bio-degradable cleaners, and smart electronic controls, as well as related accessories.

In addition, the company offers vessel controls, and fuel and system integration systems to the leisure marine industry; and marine blinds, screens, and soft furnishings for the leisure marine and yacht segments.Dometic Group AB (publ) provides its products for use in recreational vehicles, pleasure boats, workboats, trucks, cars, and others.The company was founded in 1922 and is headquartered in Solna, Sweden.

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1.b. Last Insights on DOM

Dometic Group AB's recent performance was negatively driven by declining sales, despite robust cash flow. The company's Q4 2024 earnings call highlighted a challenging environment, with sales declining due to decreased demand in the automotive segment. Additionally, the company's focus on product innovation and strategic cost-saving measures may not be sufficient to offset the decline in sales. A share buyback program was announced, which could potentially boost shareholder value.

1.c. Company Highlights

Last Price	43.76
Change Percentage	0.74%
Open	43.48
Previous Close	43.44
Market Cap ( Millions)	13981
Volume	127563
Year High	61
Year Low	31.24
M A 50	49.08
M A 200	45.45

FCF Yield	21.95%
Dividend Yield	2.96%
ROE	-10.47%
Debt / Equity	76.84%
Net Debt / EBIDTA	562.18%
Price To Book	0.64
Price Earnings Ratio	-5.64
Price To FCF	4.56
Price To sales	0.62
EV / EBITDA	12.02

2. Transcript Summary

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3. NewsRoom

How Dometic Group's (OM:DOM) Cloud-Based Marine HVAC Launch Shapes Its Connected Boat Investment Story

Oct -10

Source:

Siren Marine Collaborates with Dometic to Introduce Connected Boat® Cloud-Based HVAC Control

Oct -07

Source:

BNP Paribas Primary New Issues: STAB Notice - No Stab - Dometic Group AB

Sep -05

Source:

Stabilization Notice: Pre Stab Notice - Dometic Group AB

Sep -04

Source:

MeatEater Hits the Road for Second Annual College Football Tailgate Tour

Aug -21

Source:

Minibar Refrigerator Market Forecast Report 2025-2030, with Profiles of Dometic, Haier, Electrolux, Summit Appliance, Whirlpool, Minibar Systems, HISENSE, Royal Minibars, Bartech, Koolatron, & More

Jun -30

Source:

Dometic Group AB (FRA:D00) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strong ...

Jan -31

Source:

Spotlight On Undervalued Small Caps With Insider Activity In November 2024

Nov -11

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.70%)

6. Segments

Food & Beverage

Expected Growth: 3.5%

Dometic Group AB's Food & Beverage segment growth of 3.5% is driven by increasing demand for outdoor recreational activities, rising popularity of RV and camping lifestyles, and growing need for premium food and beverage solutions in the marine industry. Additionally, the segment benefits from the company's strategic acquisitions and investments in product innovation, expanding its market share and customer base.

Climate

Expected Growth: 3.8%

Dometic Group AB's 3.8% growth in the Climate segment is driven by increasing demand for energy-efficient and eco-friendly solutions, expansion in emerging markets, and growing adoption of electric and hybrid vehicles. Additionally, the company's focus on innovation, strategic acquisitions, and partnerships have contributed to its growth in the climate control market.

Power & Control

Expected Growth: 4.2%

Dometic Group AB's Power & Control segment growth of 4.2% is driven by increasing demand for electrification in the marine and mobile living industries, coupled with the company's strategic acquisitions and investments in digitalization and connectivity. Additionally, the segment benefits from the growing trend towards sustainable and energy-efficient solutions.

Other Applications

Expected Growth: 3.2%

Dometic Group AB's 3.2% growth in Other Applications is driven by increasing demand for outdoor and recreational products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, product diversification, and operational efficiency have contributed to its growth momentum.

7. Detailed Products

Climate Solutions

Dometic's climate solutions provide comfortable and efficient temperature control for recreational vehicles, trucks, and specialty vehicles.

Hygiene and Sanitation

Dometic's hygiene and sanitation products include toilets, showers, and sinks designed for recreational vehicles and specialty vehicles.

Power and Control

Dometic's power and control products include power converters, inverters, and electrical distribution systems for recreational vehicles and specialty vehicles.

Safety and Security

Dometic's safety and security products include alarm systems, cameras, and sensors designed for recreational vehicles and specialty vehicles.

Seating and Interior

Dometic's seating and interior products include seats, tables, and interior components designed for recreational vehicles and specialty vehicles.

Windows and Doors

Dometic's windows and doors products include windows, doors, and roof hatches designed for recreational vehicles and specialty vehicles.

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

Forces Ranking

Threat Of Substitutes

Dometic Group AB (publ) operates in the recreational vehicle industry, which has a moderate threat of substitutes. While there are some alternatives to RVs, such as camping or staying in hotels, they are not always suitable substitutes, especially for those who enjoy the RV lifestyle.

Bargaining Power Of Customers

Dometic Group AB (publ) has a diverse customer base, including OEMs, dealers, and end-consumers. While some customers may have bargaining power, the company's large customer base and diversified revenue streams mitigate this risk.

Bargaining Power Of Suppliers

Dometic Group AB (publ) relies on a network of suppliers for components and materials. While some suppliers may have bargaining power, the company's large scale and diversified supply chain mitigate this risk.

Threat Of New Entrants

The recreational vehicle industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The recreational vehicle industry is highly competitive, with several established players competing for market share. Dometic Group AB (publ) faces intense competition from companies such as Thetford, Norcold, and others.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	39.15%
Debt Cost	7.83%
Equity Weight	60.85%
Equity Cost	12.45%
WACC	10.64%
Leverage	64.34%

11. Quality Control: Dometic Group AB (publ) passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

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

Games Workshop

A-Score: 6.7/10

Value: 1.4

Growth: 8.6

Quality: 9.0

Yield: 6.2

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

DS Smith

A-Score: 5.7/10

Value: 8.3

Growth: 3.7

Quality: 3.8

Yield: 4.4

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

A-Score: 5.6/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

Redrow

A-Score: 4.9/10

Value: 6.7

Growth: 3.8

Quality: 7.4

Yield: 4.4

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

Thule

A-Score: 3.9/10

Value: 2.7

Growth: 6.1

Quality: 6.2

Yield: 3.1

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

Dometic

A-Score: 3.9/10

Value: 7.8

Growth: 3.9

Quality: 2.0

Yield: 5.0

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.56%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.64%

Dometic Group AB (publ) - SE0007691613

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DOM

1.c. Company Highlights

Average Growth

Stable Momentum

Fairly Valued

Earnings Miss

Revenues Miss

Average Quality

Earnings Beats

Revenues Beats

Lower Quality

Weak Momentum

Cheaper

More Volatile

Medium Volatility

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.70%)

6. Segments

Food & Beverage

Expected Growth: 3.5%

Climate

Expected Growth: 3.8%

Power & Control

Expected Growth: 4.2%

Other Applications

Expected Growth: 3.2%

7. Detailed Products

Climate Solutions

Hygiene and Sanitation

Power and Control

Safety and Security

Seating and Interior

Windows and Doors

8. Dometic Group 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: Dometic Group AB (publ) passed 4 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

43.76$

Current Price

43.76$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA