SCTBY - Securitas: A Turnaround May Finally Be Here

2024-04-27 07:51:13 ET

Summary

• Securitas AB has consistently underperformed the market due to operational issues, making options plays a favorable strategy.
• The company's profitability has been affected, but gross and operating margins are slowly improving.
• Securitas has made progress on digitalization, optimizing the value chain, and exiting non-core low-performing markets. I view the company as a "BUY" here, though not a cheap one.

Dear readers/followers,

I've been covering the company Securitas AB (SCTBF) (SCTBY) for a number of years, and maintain as of today a continued position in the business that I believe may generate a solid sort of return - at some point. The company's profitability has been affected, but gross and operating margins are slowly improving. That's been the trend at least for the past few quarters - and we have some trends and updates which the company reported recently, has seen this improve even further.

In this article, I seek to deconstruct the latest set of news and trends and look at what could be seen from Securitas over the period of the next 3-4 or so years....

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