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Scanfil: Revenue growth could be close to 20% y/y in 2026 - Nordea

SCANFLThird party research2025-10-27 09:32
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This is a third party research report and does not necessarily reflect our views or values

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Organic growth returned in Q3 y/y after some challenging years, but net sales and EBIT were slightly below LSEG Data & Analytics consensus in Q3. The near-term outlook seems promising, because the company was able to gain sizeable new customers during Q3. Moreover, the two latest acquisitions may offer close to 20% revenue growth next year. The financial position is also strong, and we find it hard to find any weak spots in Scanfil. Its increasing exposure to the defence sector is also supportive of valuation multiples. We derive a higher fair value range of EUR 9.8-12.0 (8.8-10.8), based on three equally-weighted valuation approaches (DCF, EV/EBITDA and P/E). With our estimates, Scanfil's P/E and EV/EBITDA multiples for 2025E-26E are now 13% below those of the peer group, but the EMS sector as a whole has 30% higher valuation multiples than in 2010-24.