(RATO-A) Ratos (publ) - Ratings and Ratios

Ratos AB (publ) is a seasoned private equity player with a sharp focus on buyouts, turnarounds, and add-on acquisitions, primarily targeting the middle market. They steer clear of early-stage investments and sectors like arms, pornography, or environmentally harmful industries, reflecting a clear ethical stance. Their sweet spot is unlisted medium-sized companies, where they can leverage their expertise to unlock value.

Their investment universe spans industries like industrials, construction, services, consumer goods, and technology. Geographically, they concentrate on the Nordic region, with a strong emphasis on Sweden, Finland, Denmark, and Norway—markets they know intimately. When it comes to numbers, they look for companies with equity investments ranging from SEK 250 million to SEK 5 billion, sales between SEK 300 million and SEK 5 billion, and an EBITDA exceeding SEK 50 million.

Ratos isn’t afraid to take both minority and majority stakes, but they prefer to be the principal owner, typically holding at least 20% and securing a seat on the board. Their investment horizon is patient, aiming to hold companies for five to ten years, which gives them the runway to implement meaningful changes. Founded in 1934 and headquartered in Stockholm, Sweden, Ratos brings a legacy of experience to the table.

From a financial standpoint, Ratos currently boasts a market cap of 11,569.53M SEK. The stock trades at a P/E of 12.71, with a forward P/E of 9.61, indicating expectations of future growth. The price-to-book ratio is a modest 0.99, and the price-to-sales ratio is 0.36, suggesting a valuation that is relatively in line with its peers. For investors and fund managers, Ratos offers a blend of stability, regional expertise, and a disciplined investment approach that has been refined over nearly a century.