Storskogen Group (OM:STOR B) Stock Can Q3 Results Unlock More Deal Capacity

Storskogen Group closed the day at SEK10.98 after its Q3 2026 report, with the share drifting over the past week despite a solid print. The quarter delivered SEK8.33b in net sales and adjusted earnings before interest, tax and amortisation of SEK806m, a reminder that this is now a scale industrial compounder, not a small roll up experiment.

Short term moves fixate on the headline. Longer term investors are more likely watching one thing: a balance sheet that now sits at 2.5x net debt to EBITDA and is edging closer to freeing up more cash for future deals.

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Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs Q3 2025): SEK 8,330m vs. SEK 7,982m (up 4.4%)
• Net Income, Excl. Extra Items (Q3 2026 vs Q3 2025): SEK 306m vs. SEK 316m (down 3.2%)
• Basic EPS (Q3 2026 vs Q3 2025): SEK 0.18 vs. SEK 0.19 (down 3.9%)
• Adjusted EBITA Margin (Q3 2026 vs Q3 2025): 9.7% vs. 9.5% (up 0.2 percentage points)

Ask Charlie what unlocks Storskogen’s cash for growth from 2027.

Storskogen’s Bull Case: Cash, Margins And M&A Tested

"Strengthened balance sheet, reduced net interest costs and no debt maturities until 2027 enable more aggressive capital allocation toward growth acquisitions and share buybacks, directly enhancing EPS and supporting a rerating as financial risk declines."

Storskogen Group is ticking several boxes here. Net debt sits at 2.5x EBITDA, within its 2 to 3x target, and liquidity of about SEK 4b supports ongoing deal activity. Management spent roughly SEK 730m on minority buyouts in Q3 and still executed on higher margin acquisitions with around 20% EBITA, keeping leverage stable. That mix of steady operating cash flow, 80% cash conversion in the quarter and completed minority clean up moves the group closer to the bull case of cash funded, accretive M&A from 2027.

The price and this Narrative do not agree. → Uncover what this Narrative says Storskogen Group is actually worth.

Storskogen Bear Case: Integration Risk Still Unresolved

The worry is clear. Storskogen Group keeps buying while critics question whether the machine can actually absorb what it eats.

"Although acquisitions like LEP, Carry Gently, Frameda and industrial add ons come with high adjusted EBITA margins and exposure to health and well being and energy and infrastructure themes, integrating these platforms and realizing synergies across 114 business units is complex. This could dilute group margins and earnings if efficiency gains take longer than expected."

Q3 shows group adjusted EBITA margin only slightly higher at 9.7% with organic EBITA up 2% in the quarter yet down 2% year to date. Acquired units bring roughly 20% EBITA margins, so the limited uplift at group level suggests integration and synergy extraction are not yet a clear win. The portfolio is getting bigger. It is not yet obviously more profitable.

Hunt For Quiet Fundamental Shifts

Storskogen Group just reminded investors that share prices do not always track operating progress in a straight line. The real opportunity is spotting companies that could be undervalued before the gap between price and fundamentals closes.

• Company 1 - 37% below our estimate - focus on folding recent design and engineering acquisitions into a higher margin consulting mix tied to long duration infrastructure programs.
• Company 2 - 42% below our estimate - grow by turning a solar tracking hardware base into recurring software and storage revenue as developers seek more yield from existing projects.
• Company 3 - 33% below our estimate - shift its loan book toward secured retail, agriculture and MSME borrowers while opening new branches to deepen low cost deposit funding.

That is three of the list. See every one of the 192 undervalued companies on it →

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