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1. Company Snapshot

1.a. Company Description

Loomis AB (publ) provides solutions for the distribution, handling, storage, and recycling of cash and other valuables in Sweden and internationally.The company offers a range of solutions for cash in transit, cash management services, physical foreign currency, ATMs, and international valuables logistics, as well as operates Loomis Pay, an end-to-end payment platform for merchants.It serves banks, retailers, and other operators.


As of February 3, 2022, the company operated through a network of approximately 400 branches.Loomis AB (publ) was founded in 1852 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on LOOMIS

Loomis AB's recent performance was driven by solid financial results in Q3, with revenue exceeding SEK 7.6 billion and double-digit organic growth for Automated Solutions in both regions. The company's CIMA performance also contributed positively to the results. Additionally, Loomis completed its share repurchase program, buying back 590,100 shares, reducing the number of outstanding shares and benefiting shareholders. The company's strategic priorities and targets for 2025-2027, presented at its Capital Markets Day, are expected to drive future growth.

1.c. Company Highlights

2. Loomis' Q3 2025 Earnings: A Solid Performance

Loomis reported a strong third quarter with revenues reaching SEK 7.6 billion, representing a currency-adjusted growth of 7.1%. The operating margin expanded to 13.2%, up from 12.9% last year, driven by efficiency initiatives and operational discipline. Earnings per share (EPS) came in at SEK 7.77, slightly below analyst estimates of SEK 8.41. The company's cash conversion remained robust, with a rolling 12-month cash conversion of 95%. The return on capital employed also improved, exceeding 16% in the quarter.

Publication Date: Nov -18

📋 Highlights
  • Revenue Growth: Achieved SEK 7.6 billion in Q3, with currency-adjusted growth of 7.1%.
  • Operating Margin Improvement: Margin rose to 13.2% (up from 12.9% in 2024) despite no headcount increase.
  • Cash Flow Efficiency: 95% rolling 12-month cash conversion, with ROCE exceeding 16%.
  • Acquisition Activity: Completed 4 acquisitions and signed a fifth, including Burroughs, which contributed meaningfully to U.S. growth.
  • SME Pay Expansion: Segment revenue reached SEK 65 million, with 40% driven by new small- and medium-sized customers.

M&A Activity and Segment Performance

Loomis continued to drive growth through acquisitions, completing four deals and signing an agreement for a fifth during the quarter. The acquisition of Burroughs contributed significantly to the company's growth and strengthened its position in the U.S. market. The European and Latin America segment delivered a solid performance, with revenues reaching SEK 3.7 billion and organic growth of 2.3%. The U.S. segment reported record-high revenues and operating profit. As Aritz Larrea, CEO, noted, "We've successfully grown the business without increasing our headcount, further driving margin improvement and demonstrating the impact of our ongoing operational discipline."

Valuation and Outlook

Given the current valuation metrics, Loomis trades at a P/E Ratio of 13.99, P/B Ratio of 2.01, and EV/EBITDA of 4.73. The Dividend Yield stands at 3.91%. Analysts estimate revenue growth of 3.1% for the next year. With a strong track record of cash generation and a commitment to optimizing capital allocation, Loomis is well-positioned to drive returns and create value for shareholders. The company's focus on digital payments and SME customers is expected to drive future growth.

Segment Growth Drivers

The SME Pay segment reported significant revenue growth, with nearly 40% of the revenue coming from new small- and medium-sized customers. Loomis Pay continues to scale and broaden the company's payments offering, strengthening customer loyalty. The Automated Solutions segment delivered a 31% organic growth, driven in part by the Burroughs revenue. The underlying organic trend is estimated to be in the mid-teens, indicating a strong growth trajectory.

3. NewsRoom

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3 European Dividend Stocks Yielding Up To 6.2%

Nov -28

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TranscendAP Secures Venture Funding to Accelerate AI-Driven AP Automation Growth

Nov -03

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Loomis (OM:LOOMIS) Delivers 17.2% Annual Earnings Growth, Reinforcing Profit Momentum Narrative

Nov -01

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How Loomis’ Rising Earnings and Sales Momentum Will Impact Loomis (OM:LOOMIS) Investors

Oct -31

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Loomis Interim Report January - September 2025

Oct -31

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The Board of Loomis has resolved to repurchase shares during the fourth quarter 2025

Oct -30

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Loomis will publish Interim report on October 31, 2025

Oct -24

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Repurchase of Loomis' shares during the third quarter 2025 completed

Sep -30

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.39%)

6. Segments

Cash in Transit

Expected Growth: 4.8%

Growing demand for cash management services, increasing adoption of cashless payment systems, and rising need for secure logistics solutions drive the Cash in Transit market growth.

Automated Teller Machine

Expected Growth: 4.8%

The growth of Loomis AB's Automated Teller Machine is driven by increasing demand for cash management solutions, rising adoption of digital payments, and growing need for secure and efficient cash handling services among businesses.

Cash Management Services

Expected Growth: 4.8%

Growing demand for cashless societies, increasing adoption of digital payments, and rising need for secure cash handling solutions drive the growth of Loomis AB's Cash Management Services, with a forecast CAGR of 4.8%.

SafePoint

Expected Growth: 8.5%

Increasing adoption of cashless payment systems and growing demand for efficient cash management solutions drive the growth of SafePoint, a secure and efficient cash handling solution from Loomis AB (publ).

International

Expected Growth: 4.5%

Growing demand for cash management services, increasing adoption of digital payments, and expansion into emerging markets drive Loomis AB's growth, with a forecast CAGR of 4.5% from 2023 to 2028.

FXGS

Expected Growth: 7.2%

Growing demand for cashless transactions, increasing adoption of digital payments, and need for efficient cash handling services drive the growth of FXGS from Loomis AB (publ).

Other

Expected Growth: 4.5%

The 'Other' segment's growth is driven by increasing demand for cash handling services, expansion into new markets, and strategic partnerships. Additionally, the rise of cashless payments and digital transactions is expected to boost the segment's growth.

Loomis Pay

Expected Growth: 8.5%

Increasing adoption of cashless payments and digitalization in the financial sector, coupled with the need for efficient cash flow management, drive the growth of Loomis Pay's cash management solution.

7. Detailed Products

Cash Management

Loomis AB provides cash management services, including cash handling, transportation, and storage, to financial institutions, retailers, and other businesses.

Cash Recycling

Loomis offers cash recycling solutions, enabling businesses to deposit and withdraw cash efficiently, reducing the need for cash handling and minimizing the risk of cash losses.

ATM Services

Loomis provides ATM services, including cash loading, replenishment, and maintenance, to ensure that ATMs are always stocked and functioning properly.

Precious Metals Management

Loomis offers secure storage, transportation, and management of precious metals, including gold, silver, and other valuable commodities.

Security Services

Loomis provides security services, including event security, executive protection, and secure transportation, to protect people, assets, and data.

8. Loomis AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Loomis AB (publ) is medium due to the presence of alternative services and products in the cash handling and security solutions industry.

Bargaining Power Of Customers

The bargaining power of customers for Loomis AB (publ) is low due to the company's strong market position and limited buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Loomis AB (publ) is medium due to the presence of multiple suppliers and moderate switching costs.

Threat Of New Entrants

The threat of new entrants for Loomis AB (publ) is low due to the high barriers to entry and significant capital requirements in the cash handling and security solutions industry.

Intensity Of Rivalry

The intensity of rivalry for Loomis AB (publ) is high due to the presence of several competitors and the need to maintain market share in the cash handling and security solutions industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.13%
Debt Cost 6.74%
Equity Weight 59.87%
Equity Cost 8.76%
WACC 7.95%
Leverage 67.03%

11. Quality Control: Loomis AB (publ) passed 5 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

Stock-Card
Marlowe

A-Score: 7.1/10

Value: 6.1

Growth: 7.9

Quality: 7.5

Yield: 5.0

Momentum: 9.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Odfjell

A-Score: 6.8/10

Value: 8.5

Growth: 7.7

Quality: 6.2

Yield: 9.4

Momentum: 6.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Loomis

A-Score: 6.7/10

Value: 6.7

Growth: 6.9

Quality: 5.1

Yield: 6.2

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Prosegur

A-Score: 6.4/10

Value: 6.8

Growth: 4.4

Quality: 3.3

Yield: 8.8

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Clarkson

A-Score: 6.2/10

Value: 5.2

Growth: 7.3

Quality: 8.2

Yield: 5.6

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Belships

A-Score: 5.9/10

Value: 6.8

Growth: 6.0

Quality: 6.2

Yield: 7.5

Momentum: 6.0

Volatility: 3.0

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

374.6$

Current Price

374.6$

Potential

-0.00%

Expected Cash-Flows