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1. Company Snapshot

1.a. Company Description

Electrolux Professional AB (publ) provides food service, beverage, and laundry solutions to restaurants, hotels, healthcare, educational, and other service facilities.The company operates in two segments, Food & Beverage and Laundry.It offers slicers and food processors, vegetable washers, spin dryers, planetary mixers, vacuum packers and sealers, multi-purpose peeling machines, fryers, boiling and braising pans, grills and griddles, ventilation equipment, modular cooking ranges, fry tops, combi and convection ovens, refrigerated cabinets and counters, saladettes, cold rooms, blast chillers and freezers, portable mixers, turbo liquidizers, meat mincers, dough kneaders and sheeters, salamanders, wine cellars, ice makers and flakers, and trolleys, as well as stainless steel fabrication solutions.


The company also provides commercial dishwashers and accessories, waste management systems, and handling systems; cabinets, cupboards, worktables, and shelves; and coffee grinders and brewers, espresso coffee machines, coffee urns, hot and cold beverage dispensers, cold juice dispensers, beer dispensing systems, frozen granita and ice cream dispensers, soft serves, and soft ice cream dispensers.In addition, it offers front and side load washers, efficient dosing systems, barrier washers, wash and dry systems, tumble dryers, drying cabinets, semi-professional washers and dryers, ironers, industrial ironers, and finishing machines.The company operates in Europe, the Asia-Pacific, the Middle East, Africa, and the Americas.


The company was incorporated in 1898 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on EPRO

Electrolux Professional AB's recent performance is driven by its potential undervaluation. Despite global market declines, the company's robust GDP growth and retail sales in the US suggest underlying economic strength that could present opportunities for investors. Furthermore, the company's ability to adapt to changing conditions in the evolving investment landscape, such as tariff uncertainties and fluctuating economic indicators, makes it a promising small-cap company with strong potential.

1.c. Company Highlights

2. Electrolux Professional Group Posts Strong Q4 Results Despite Headwinds

Electrolux Professional Group reported a robust financial performance in Q4, with organic sales growth of 0.5% and an EBITDA margin expansion to 12.1% from 11.6% in the same quarter last year. The company's earnings per share (EPS) came in at SEK 0.974, beating estimates of SEK 0.74. Revenue was impacted by currency translation, which reduced the top line by roughly 7 points. However, the underlying business performance was stronger than reported, driven by positive contributions from price, lower material costs, and better productivity.

Publication Date: Mar -07

📋 Highlights
  • Profitable Growth & Margin Improvement: Organic sales improved with EBITDA margin rising to 12.1% (from 11.6%), driven by pricing, lower material costs, and productivity gains.
  • Net Debt Reduction: Net debt/EBITDA ratio declined to 1%, reflecting strong profitability and disciplined financial management.
  • Regional Performance Variance: Europe and Asia showed growth (70% of total business), offsetting declines in US and Japan food & beverage and laundry segments.
  • Strategic Investments: Acquired Royal Range in North America, launched new cooking lines in Europe, and allocated SEK 80M+170M in annual restructuring savings by 2027.
  • EPS & Dividend Growth: Earnings per share surged 30% to SEK 0.98, with a proposed improved dividend reflecting full-year performance and cash flow strength.

Segmental Performance

The company's Laundry business experienced declining organic sales, mainly in North America and Japan, but maintained market share in Japan and has a healthy business in North America. In contrast, the European business, specifically Food and Beverage and Laundry, drove the improvement in profitability. Order intake for Food and Beverage in Europe and for Laundry also improved, accounting for roughly 70% of the total business. As Alberto Zanata noted, "Despite strong headwinds, we continue to transform and bring to market new products that will generate additional sales."

Valuation and Outlook

With a P/E Ratio of 22.02 and an EV/EBITDA multiple of 11.44, the stock appears to be fairly valued. The company's dividend yield stands at 1.51%, which is a positive for income investors. Looking ahead, Electrolux Professional Group expects the trend experienced in Q4 for Food and Beverage in Europe and Laundry to continue, compensating for the relatively weak US Food and Beverage business. Analysts estimate revenue growth of 3.5% for next year, which suggests a stable outlook for the company.

Strategic Initiatives

The company is making progress in its restructuring plan, with anticipated savings of SEK 80 million for this year and SEK 170 million for 2027. Electrolux Professional Group is also investing in new products and making strategic acquisitions, such as Royal Range, to drive growth. The company's M&A pipeline includes smaller, attractive acquisitions, and it is working on several opportunities, including some larger ones.

3. NewsRoom

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3 Undervalued Small Caps In Global With Insider Action

Feb -12

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European Market: 3 Stocks Conceivably Trading Below Estimated Value

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European Insider-Owned Growth Stocks For Your Portfolio

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European Growth Companies With High Insider Ownership December 2025

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3 European Stocks Estimated To Be Up To 47% Below Intrinsic Value

Dec -11

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3 European Stocks Estimated To Be Trading Below Intrinsic Value By Up To 39.3%

Nov -06

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Electrolux Professional AB (FRA:4KK1) Q3 2025 Earnings Call Highlights: Navigating Challenges ...

Oct -30

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Undiscovered Gems in Europe Featuring 3 Promising Small Caps

Oct -08

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.64%)

6. Segments

Catering and Drinks

Expected Growth: 3%

Electrolux Professional AB's Catering and Drinks segment growth is driven by increasing demand for commercial kitchen equipment and beverage solutions, particularly in the hospitality and foodservice industries. Additionally, the trend towards outsourcing food services and the need for energy-efficient equipment are contributing to the segment's 3% growth.

Laundry

Expected Growth: 2%

Electrolux Professional's 2% laundry segment growth is driven by increasing demand for energy-efficient and sustainable laundry solutions, particularly in the hospitality and healthcare industries. Additionally, the company's focus on innovative product design, digitalization, and customer-centric services contributes to its growth momentum.

7. Detailed Products

Cooking Ranges

Electrolux Professional's cooking ranges offer a wide range of cooking solutions for commercial kitchens, including gas, electric, and induction cooking options.

Dishwashers

Electrolux Professional's dishwashers are designed for heavy-duty use in commercial kitchens, providing fast and efficient cleaning of dishes and utensils.

Refrigeration Units

Electrolux Professional's refrigeration units offer a range of solutions for commercial kitchens, including refrigerators, freezers, and cold rooms.

Ice Machines

Electrolux Professional's ice machines provide a convenient and efficient way to produce ice for commercial kitchens and bars.

Food Preparation Equipment

Electrolux Professional's food preparation equipment includes mixers, slicers, and other appliances designed to streamline food preparation in commercial kitchens.

Washing Systems

Electrolux Professional's washing systems provide a comprehensive solution for cleaning and sanitizing utensils, equipment, and surfaces in commercial kitchens.

Beverage Equipment

Electrolux Professional's beverage equipment includes coffee machines, blenders, and other appliances designed for commercial kitchens and bars.

8. Electrolux Professional AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Electrolux Professional AB (publ) faces moderate threat from substitutes due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

Electrolux Professional AB (publ) has a high bargaining power of customers due to the presence of large and established customers in the market.

Bargaining Power Of Suppliers

Electrolux Professional AB (publ) has a low bargaining power of suppliers due to the presence of multiple suppliers in the market.

Threat Of New Entrants

Electrolux Professional AB (publ) faces a moderate threat of new entrants due to the presence of barriers to entry and the need for significant investment in the industry.

Intensity Of Rivalry

Electrolux Professional AB (publ) operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.89%
Debt Cost 10.85%
Equity Weight 70.11%
Equity Cost 10.85%
WACC 10.85%
Leverage 42.64%

11. Quality Control: Electrolux Professional AB (publ) 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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Grenergy Renovables

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Value: 3.7

Growth: 9.9

Quality: 4.6

Yield: 0.0

Momentum: 9.5

Volatility: 2.7

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Beijer Alma

A-Score: 4.9/10

Value: 2.3

Growth: 5.4

Quality: 5.1

Yield: 2.5

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Volatility: 5.0

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2G Energy

A-Score: 4.8/10

Value: 2.4

Growth: 8.1

Quality: 6.9

Yield: 1.9

Momentum: 8.0

Volatility: 1.3

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Electrolux Professional

A-Score: 4.1/10

Value: 3.5

Growth: 4.7

Quality: 5.8

Yield: 1.9

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

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Komax

A-Score: 2.6/10

Value: 6.2

Growth: 2.8

Quality: 2.6

Yield: 1.2

Momentum: 0.0

Volatility: 3.0

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Feintool

A-Score: 2.2/10

Value: 6.2

Growth: 1.1

Quality: 1.9

Yield: 1.2

Momentum: 0.0

Volatility: 3.0

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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

55.5$

Current Price

55.5$

Potential

-0.00%

Expected Cash-Flows