contentSlug

type

ContentSlug_ContentQuery

slug

ContentPageContentQuery

content

trendingContent

query ContentSlug_ContentQuery(
  $contentSlug: String!
  $type: [ContentType!]
) {
  ...ContentPageContentQuery_13QmVO
}

fragment CompanyDetails_Content on Content {
  __isContent: __typename
  companies {
    name
    description
    pageUrl
    id
  }
}

fragment ContentBasicInfo on Content {
  __isContent: __typename
  id
  type
  title
  lang
  companies {
    viewerIsFollowing
    id
    name
    pageUrl
  }
  tags {
    viewerIsFollowing
    id
    name
    pageUrl
  }
  ...PublishingDetails
  ...Reactions
}

fragment ContentMetadata on Content {
  __isContent: __typename
  type
  title
  lang
  pageUrl
  alternatePageUrls: translations {
    __typename
    pageUrl
    lang
  }
  imgUrl
  description
  ... on Video {
    liveTime
    videoUrl
  }
  ... on Webcast {
    liveTime
    videoUrl
  }
}

fragment ContentPageContentQuery_13QmVO on Query {
  content(slug: $contentSlug, type: $type) {
    __typename
    id
    type
    title
    isPremium
    lang
    htmlBody
    summary
    companies {
      forum {
        latestPosts {
          ...ForumPosts
        }
      }
      name
      id
      viewerIsFollowing
      pageUrl
      defaultInstrument {
        isin
        id
        marketOpen
        marketClose
        marketplace {
          region
        }
        returns {
          total
        }
      }
    }
    tags {
      viewerIsFollowing
      id
      name
      pageUrl
    }
    createdAt
    ... on Video {
      liveTime
    }
    ... on Webcast {
      liveTime
    }
    slug
    ... on CompanyReport {
      reportUrl
      researchContentUrl
    }
    ... on ThirdPartyCompanyReport {
      reportUrl
    }
    ... on StockExchangeRelease {
      reportUrl
    }
    ...ContentBasicInfo
    ...ContentMetadata
    ...PriceAndRecommendation_Content
    ...CompanyDetails_Content
    ...ReportLink_Content
    ...KeyFigures_Content
  }
  ...TrendingContent_1jQ2Cn
}

fragment ForumPosts on ForumPost {
  text
  likesCount
  url
  author
  postedAt
  authorImgUrl
}

fragment KeyFigures_Content on Content {
  __isContent: __typename
  companies {
    defaultInstrument {
      estimateData {
        modelType
        reportingCurrency
      }
      snapshot {
        transaction {
          date
          actualized {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
            nav
            navPerShare
            opexOfNav
            quarterlySharePrice
          }
          estimates {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
            nav
            navPerShare
            opexOfNav
            quarterlySharePrice
          }
        }
      }
      id
    }
    id
  }
}

fragment PriceAndRecommendation_Content on Content {
  __isContent: __typename
  createdAt
  companies {
    name
    pageUrl
    defaultInstrument {
      priceData {
        tradeCurrency
      }
      snapshot {
        priceData {
          date
          lastPrice
          tradeCurrency
        }
        transaction {
          date
          recommendation
          targetPrice
        }
        prevTransaction {
          recommendation
        }
      }
      id
    }
    id
  }
}

fragment PublishingDetails on Content {
  __isContent: __typename
  createdAt
  publishers {
    name
    imgUrl
  }
  authors {
    __typename
    id
    name
    slug
    imgUrl
    jobTitle
  }
  ... on Video {
    liveTime
  }
  ... on Webcast {
    liveTime
  }
}

fragment Reactions on Content {
  __isContent: __typename
  id
  reactionGroups {
    reactionType
    reactionsCount
    viewerReacted
  }
}

fragment ReportLink_Content on Content {
  __isContent: __typename
  type
  isPremium
  ... on CompanyReport {
    reportUrl
  }
  ... on ThirdPartyCompanyReport {
    reportUrl
  }
  ... on StockExchangeRelease {
    reportUrl
  }
}

fragment TrendingContent_1jQ2Cn on Query {
  trendingContent(type: ARTICLE) {
    __typename
    id
    title
    lang
    pageUrl
    createdAt
    type
    imgUrl
    companies {
      squareLogoUrl
      name
      id
    }
    authors {
      __typename
      imgUrl
      id
    }
    publishers {
      imgUrl
    }
  }
}


__typename

title

isPremium

lang

htmlBody

summary

companies

createdAt

publishers

authors

reactionGroups

pageUrl

translations

imgUrl

description

Analyst

Joonas Korkiakoski

Boreo creates value by owning, acquiring and developing small and medium-sized companies in the long-term. Boreo's business operations are organized into two business areas: Electronics and Technical Trade. Boreo's primary objective is sustainable long-term profit generation. The business model is based on the acquisition and ownership of entrepreneurial companies. The profits generated are re-invested back to operations or to acquisitions with attractive expected returns on capital.

Yes. However, it must be taken into account that Auroora’s stabilization period, according to its anti-press release, hinders efficient price formation for 30 days. Only after that (and even better after 1-2 quarterly reports) will it be seen what the market thinks of the relative market valuation of domestic peers operating with a similar business model: Auroora: Market value €155M (reported EBIT €5.7M) Boreo: Market value €45M (reported EBIT €6.7M), I estimate interest expenses on loans to be €2.5M, so profit after debt servicing is €4.2M So the ratio between earnings (5.7/4.2) = 1.35 and the ratio between market values (155/45) = 3.4 Different timings regarding the dilution of old owners’ holdings: Auroora issued new shares corresponding to 26% of the total share capital. Boreo has avoided dilution in the weak domestic stock market of recent years. If Boreo’s hybrid directed at Protector 2025 were eventually converted into shares (by June 2029), it would result in approximately 16% dilution.  Stock price developments will be interesting once Auroora’s offering stabilization period ends and efficient stock market price formation begins. I believe that both companies will benefit as the serial acquirer model becomes more common in Finland, especially towards entrepreneurs. On the other hand, their mutual competition will increase, but so will the retirement of aging entrepreneurs.

Tomorrow, when trading begins on Aurora, I will be interested to see if there is any impact on Boreo’s trading volumes/share price. It may be that things remain as calm as they have been so far.

Not much is happening on Boreon’s ownership list. Kari Lehtomaa, with a Pronius background, slightly reduced his ownership, being practically the only trader on the entire list:  A few more shares also flowed into SEB’s nominee register:

I am a Boreo shareholder and also participated in Aurora’s share issue. In my opinion, comparing these two is quite sensible, but one essential thing seems to be forgotten in the discussion: Boreo hit a wall almost 5 years ago, and at its worst, the share price dropped 90% from its peaks. The company is now on the verge of a turnaround, but a higher valuation still requires more proof. I personally believe that it is coming. In addition, Boreo is still burdened by indebtedness – both real and, probably above all, in perception. An over-indebted serial acquirer is a crippled serial acquirer. Aurora’s journey so far is what is expected from a listed company: beautiful development and curves only moving in the right direction. Of course, based on these, the company is entitled to higher multiples. Even though Boreo has seen rapid ups and downs, I strongly believe in the concept of serial acquirers. Finland is a country where a large generation of SME entrepreneurs will be retiring, and there is no really sensible place for businesses to be invested if the offspring are not continuing. I wish both companies well.

I looked at some business cycle statistics for the concrete industry, mainly from the perspective of Tornokone and Muottikolmio. Ready-mix concrete is probably the most relevant category for them: Order backlog perhaps a slight pick-up in Q4:  It has been weak:  Tornokone practically lost €10 million in revenue:  Residential construction has not picked up, but other construction has been a bit livelier, driven by infrastructure.

Based on this analysis, Boreo is indeed clearly undervalued in relation to Auroora: "The most sensible comparison for Auroora is its only listed peer, Boreo. Boreo is slightly less than half its size. And its operating profit is also a little less than half of Auroora’s. But despite this, Auroora is actually valued over 3 times more valuable than Boreo after its listing. Of course, Auroora will receive approximately 35 million euros in additional capital for the company’s business, which justifiably increases its market value, but the difference is too large to be explained solely by this. In fact, one could argue for directly 30% lower valuation multiples for Auroora, and even then, there wouldn’t be much margin of safety left. Nor can the quality of the businesses owned by the companies justify this, as I, for one, cannot identify a significant quality difference between Boreo’s and Auroora’s portfolio companies."                   Omavaraisuushaaste - Tienaa enemmän. Kuluta vähemmän. Sijoita säännöllisesti. – 28 Mar 26              Auroora yhtiöt listautumisanti-analyysi - Omavaraisuushaaste    Aurooran listautuminen on mielenkiintoinen, koska se ajoittuu erittäin huonoon aikaan - keskellä massiivista taloudellista ja pörssien epävarmuutta USA:n Iranin hyökkäyksen takia. Aurooran olikin myös itselleni ennen listautumista täysin uusi yritys...

Kari was asked if he finally sees the headwind in the Finnish economy turning, and Kari replied that a month ago the answer would have been an emphatic yes, but now the situation in the Middle East brings uncertainty. In the same context, he mentions that the order book at the turn of the year was almost 50% ahead of last year. Of course, he also reminds that there will be costs for H1, e.g., from ERP (Enterprise Resource Planning) reforms, which means that the beginning of the year is not a so-called “home run”.

Boreo

Boreo published its Q2 report on Thursday that operatively was nearly fully in line with our expectations. The company's businesses were in good shape and despite external challenges, financial...

<p>Boreo published its Q2 report on Thursday that operatively was nearly fully in line with our expectations. The company's businesses were in good shape and despite external challenges, financial performance is solid. The share’s valuation has risen but relative to the convincingly progressing acquisition strategy and the longer-term value creation potential it includes we do not consider the price to be too high. Thus, we consider the annual risk adjusted return expectation to still be sufficient. </p> 

	2020	21e	22e
Revenue	97.6	138.2	155.1
growth-%	63.0 %	41.6 %	12.2 %
EBIT (adj.)	5.9	9.7	12.4
EBIT-% (adj.)	6.0 %	7.0 %	8.0 %
EPS (adj.)	1.50	2.45	3.28
Dividend	0.40	0.44	0.48
Dividend %	1.4 %	2.5 %	2.7 %
P/E (adj.)	19.6	7.2	5.4
EV/EBITDA	15.1	5.4	4.1

Boreo: Solid attacking game

Key Estimate Figures2021-08-06

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