Lagercrantz Group: Initiation of Coverage- Crushing Overheads, Seizing Niches—Is This the Market’s Best-Kept Secret? 

Lagercrantz Group’s latest reported results highlight both strengths and challenges within their business operations, offering a balanced perspective on their performance and future outlook. Positively, Lagercrantz demonstrated robust financial metrics over the past year. Net revenues increased by 16%, buoyed by a strong acquisition strategy that contributed 14% to growth, while organic growth, though moderate, stood at 2%. Their EBITA, a measure of operational profitability, increased by 16% year-over-year, with the margin holding a solid ground at 17.5%. This financial health was reflected in a 16% increase in profit after tax, while earnings per share rose to SEK 4.93. The return on equity was 28%, significantly above their 25% target, reflecting the effective utilization of shareholder funds.