(BEIJ-B) Beijer Ref (publ) - Ratings and Ratios

Beijer Ref AB (publ) is a leading global provider of commercial and industrial refrigeration, heating, and air conditioning products, serving a diverse range of industries, including food retail, hospitality, and manufacturing. The companys comprehensive product portfolio includes refrigeration components, air conditioning units, heat pumps, and HVAC systems, designed to meet the specific needs of various applications, from small refrigerated warehouses to large-scale industrial processes.

The companys extensive distribution network, spanning across EMEA, APAC, and North America, enables it to effectively serve customers worldwide. Beijer Refs commitment to innovation is reflected in its production of chillers and heat pumps based on natural refrigerants, such as carbon dioxide, ammonia, and propane, which are gaining traction due to their environmental benefits.

With a rich history dating back to 1866, Beijer Ref has established itself as a reputable player in the industry, with a strong presence in Europe and a growing footprint in other regions. The companys headquarters in Malmö, Sweden, serves as a hub for its global operations, which are supported by a network of branch offices and logistics centers.

Analyzing the companys technical data, we observe that the stock has experienced a decline from its 52-week high of 188.76 SEK, currently trading at 141.50 SEK. The SMA20 and SMA50 indicators suggest a short-term bearish trend, while the SMA200 indicates a longer-term downtrend. However, the ATR of 4.12 SEK (2.91%) implies a relatively moderate level of volatility. Based on these technical indicators, we can forecast a potential short-term trading range between 138-145 SEK, with a possible breakout above 147 SEK, indicating a reversal of the current downtrend.

From a fundamental perspective, Beijer Refs market capitalization stands at 76.26 billion SEK, with a P/E ratio of 33.14, indicating a relatively high valuation compared to its earnings. The RoE of 10.11% suggests a decent return on equity, although this could be improved upon. Considering the companys strong industry position, diversified product portfolio, and commitment to innovation, we forecast a potential long-term earnings growth rate of 8-10%, driven by increasing demand for energy-efficient HVAC and refrigeration solutions. This growth could lead to a re-rating of the stock, potentially driving the price towards 170-180 SEK in the next 12-18 months.