Green Landscaping: Resilient and stable, but too much debt – SEB


We update our mid-point DCF fair value to SEK 83 (98) per share after raising both the cost of debt and cost of equity. Both assumption changes are based on the large debt currently held on the balance sheet, of which most will have to be refinanced in 2-5 years. The likely increase in interest expenses and a high leverage ratio of almost 3x ND/EBITDA (2022E) pro-forma should raise concerns for shareholders, in our view, resulting in a higher risk premium.

SEB Research

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