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mttssn research · Nordic Deep Dive
Synsam (SYNSAM.ST)
Consumer Discretionary · Nordic optical retail + subscription · LTM Q1 2026
Analysis date: 2026-06-08
Price at analysis: SEK 55.40
Method: mttssn_streamlined_v1
Conviction: MEDIUM
HOLD
Conviction: MEDIUM
The Nordic optical-retail leader, whose structural edge is the Synsam Lifestyle spectacle-subscription (~53% of net sales, +10% — a recurring-revenue annuity) on a ~74-76% gross margin. FY2025 was a record (revenue SEK 7,200M, +10.4%) with EBIT margin diluted to 12.0% by a heavy greenfield store programme. Adjusted ROIC ~12.2% clears the 8% WACC (EP +SEK 234M). Fairly valued (rDCF ~−2% at 5% growth, PEBV ~1.46). HOLD with a quality/subscription bias; base SEK 56.
Adj. ROIC
12.2%
WACC 8% → spread +4.2pp
Economic Profit
+SEK 234M
+SEK 234M @ 8% WACC (~4pp spread)
FCF Yield
12.9%
FCF supports the dividend + expansion
Price / Target
SEK 55 → SEK 56
+1% base; HOLD
Revenue (LTM)
SEK 7.3B
LTM; record FY2025 +10.4%, organic +11.4%
EBIT Margin
12.0%
EBIT 12.0% (greenfield-diluted); GM ~74-76%
EV / IC
1.94×
Enterprise value / invested capital
Net Debt
n/a
IB debt SEK 2,763M (ex-leases); expansion-financed
Thesis

Synsam is the Nordic optical-retail leader (Sweden, Norway, Denmark, Finland), and its differentiator is the Synsam Lifestyle spectacle-subscription — now ~SEK 3,767M (~53% of net sales, +10.4%) with a growing active subscriber base. That converts a one-off eyewear purchase into a recurring annuity on a structurally high ~74-76% gross margin, which is the heart of the investment case. FY2025 was a record year (total revenue SEK 7,200M, +10.4%; organic +11.4%), with EBIT SEK 862M and the EBIT margin diluted to 12.0% (from 12.6%) by the heavy 2024-25 greenfield store-opening programme raising depreciation.

The APM is clean — the company's 'items affecting comparability' framework produced no EBIT adjustment in FY2025, so adjusted EBITA equals reported. The one figure we keep in opex against management's PPA treatment is SEK 100M of purchase-price-allocation amortization (mostly original-acquisition customer-relations, ~1.4% of revenue) — but that drag has only ~1.5 years left and largely rolls off by ~2027, a built-in margin tailwind. Adjusted ROIC ~12.2% on IC SEK 5,568M clears the 8% WACC for EP +SEK 234M (~4pp spread) — decent, not exceptional; the subscription annuity is the quality, not the returns.

Valuation · reverse-DCF & scenarios

On adjusted NOPAT (SEK 680M) the reverse-DCF base sits ~−2% to the SEK 55.4 price at 5% growth and +8% at 10% (PEBV ~1.46, EV/IC ~1.9x) — the market is pricing ~5-6% sustained growth, roughly fair for a high-gross-margin subscription retailer with a greenfield growth runway.

Base SEK 56 (fairly valued; subscription scaling + the ~2027 PPA roll-off the upside levers); bull SEK 64 if subscription mix and store maturation lift the EBIT margin toward ~13-14% (the 10% case); bear SEK 47 if greenfield drag persists and consumer demand softens (no-growth case).

Market-implied growth
+6.0%
NOPAT CAGR over 5y the EV already requires
No-growth value / share
SEK 47
84% of price; rest = priced-in growth
ROIC − WACC
+4.2 pp
ROIC 12.2% vs WACC 8.0% — positive = value creation
CAP (priced-in)
13.3 yrs
years of excess returns the price implies (fades to WACC)

The market pays today’s enterprise value for roughly 6.0% NOPAT growth over 5 years. The business earns 12% on capital against a 8% cost of capital (spread +4.2 pp); the no-growth value is SEK 47/share (84% of price), so the rest is priced-in growth.

Scenario24m targetImpl. gUpsideProb.Driver
BullSEK 64+12%+16%30%Subscription mix + store maturation lift EBIT margin to ~13-14%
BaseSEK 56+6%+1%45%Fairly valued; ~5-6% growth priced
BearSEK 47+0%-15%25%Greenfield drag persists + consumer softness
Prob-weightedSEK 56+1%100%Scenario-weighted expected value

Sensitivity — fair value / share at WACC × growth

WACC \ g0%3%5%8%10%15%
6.50%7078839298115
7.25%576266737789
8.00% (base)475154586270
8.75%394245485055
9.50%333637394144

Green = fair value above the current price of SEK 55.40. The reverse-DCF conclusion is dominated by WACC and growth — see the whole surface, not a single fair value.

Method & data. NOPAT SEK 680, invested capital and ROIC 12.2% are observed (adjustments.json); WACC 8.0% and terminal g 2.5% are assumptions. EV→equity uses net debt SEK 2,864. The model holds ROIC constant (no fade) over the explicit horizon; the CAP figure instead fades excess returns to WACC.

⤓ Download the full model (.xlsx) — formula-driven sheets; flex the blue input cells and the model cascades in Excel.

Key drivers

1. Subscription annuity

Synsam Lifestyle ~53% of net sales (+10%) — recurring revenue on a ~74-76% gross margin.

2. Store-network maturation

The 2024-25 greenfield programme depresses margin now; maturing stores lift it later.

3. PPA roll-off ~2027

~SEK 100M (~1.4% of revenue) customer-relations amortization largely ends by ~2027 — a margin tailwind.

4. Above-WACC returns

Adjusted ROIC ~12.2% > 8% WACC, EP +SEK 234M.

Key risks
Conclusion

Synsam is a quality Nordic optical-retailer whose spectacle-subscription annuity (~53% of net sales) and high gross margin underpin above-WACC returns (ROIC ~12.2%, EP +SEK 234M), fairly valued at PEBV ~1.46. HOLD with a quality/subscription bias; base SEK 56.

Accumulate on consumer-driven weakness; the subscription scaling plus the ~2027 PPA-amortization roll-off are the levers that move it from fair to cheap.

Footnote evidence & sources

Every adjustment traces to the cited note/page in the source filing — click to open it there. Annual report / 10-K: 📄 open  ·  Latest interim: 📄 open

Adjustment / figureValueSourceWhy mttssn treats it this way
Revenue (total, LTM Q1 2026)7,266Condensed consolidated income statement 📄 p.18LTM = FY2025 total revenue 7,200 - Q1 2025 1,735 + Q1 2026 1,801. Total revenue = net sales 1,773 + other operating income 28 for Q1 2026; 1,708 + 27 for Q1 2025; FY2025 net sales 7,065 + 135. All three columns read from the Q1 2026 income statement (Q1 p.18); the FY column cross-checks the AR consolidated income statement (AR p.94).
Revenue (FY2025 anchor)7,200Consolidated statement of income 📄 p.94Net sales 7,065 + other operating income 135 = total revenue 7,200 (AR p.94).
EBIT (LTM Q1 2026)874Income statement (EBIT line) 📄 p.18LTM = FY2025 862 - Q1 2025 174 + Q1 2026 186 (Q1 p.18). FY EBIT cross-checked at AR p.94.
EBIT (FY2025 anchor)862Operating profit (EBIT) 📄 p.94Reported operating profit 862 (819 prior year), EBIT margin 12.0% (AR p.94, p.34).
Goodwill2,566Note 8 Intangible non-current assets 📄 p.116Goodwill carrying amount 2,566 @ 31 Dec 2025 (2,645 prior year), allocated Sweden 1,262 / Denmark 881 / Norway 367 / Finland 56; mostly from the acquisition of the Synsam Nordic A/S Group (Notes 8-9, AR p.116-117).
PPA amortisation (FY2025)100Note 8 — amortisation for the year 📄 p.116Customer-relations amortisation 94 + finite-life trademark amortisation 6 = 100 (purchase-price-allocation amortisation from the CVC buyout). Software & licences amortisation 29 is ordinary and excluded from PPA. Total intangible amortisation FY2025 = 128 (Note 8, AR p.116). We KEEP PPA in opex.
Subscription / contract liabilities (advances from customers + deferred income)62Note 23 Accrued expenses and deferred income 📄 p.127Advances from customers 54 + deferred income 8 = 62 @ 31 Dec 2025. Deliberately small: the Synsam Lifestyle subscription is structured as customer FINANCING (interest received +275 / credit costs -396 attributable to Lifestyle leases run through net financial items, Note 24), NOT as a large deferred-revenue liability (AR p.127).
Lease liability (total, Q1 2026)867Condensed BS / net-debt table (Q1 p.30) 📄 p.19Current lease liabilities 385 + non-current lease liabilities 482 = 867 @ 31 Mar 2026 (796 @ 31 Dec 2025: 379 current + 417 non-current, AR p.95). ROU assets are overwhelmingly store premises (Note 11). Included in IC.
Interest-bearing debt (Q1 2026)2,763Condensed consolidated BS 📄 p.19Non-current loans from financial institutions 2,728 + other non-current interest-bearing liabilities 34 + other current interest-bearing 1 = 2,763 @ 31 Mar 2026 (excludes lease liabilities, tracked separately). Loans cross-checked in the Q1 net-debt table (Q1 p.30).
Cash and cash equivalents (Q1 2026)736Condensed consolidated BS 📄 p.19Cash 736 @ 31 Mar 2026 (533 prior year; 600 @ 31 Dec 2025). SEK 5m pledged for the buyback programme (Q1 p.9, p.30).
Equity (Q1 2026)2,606Condensed statement of changes in equity 📄 p.19Equity at end of period 2,606 @ 31 Mar 2026: opening 2,436 + comprehensive income 216 + share savings 9 - buybacks 56. Translation reserve +82, retained -1,783; share capital 1, other paid-in 4,306. All attributable to Parent Company shareholders, NCI = 0 (Q1 p.19).
Income tax (LTM Q1 2026)-142Income tax line 📄 p.18LTM = FY2025 -136 - Q1 2025 -28 + Q1 2026 -34 = -142 on PBT 639 -> effective tax rate 22.2% used for NOPAT. FY2025 effective rate 23%, Q1 2026 20%; non-capitalised Finnish loss carryforwards keep the rate above the 20.6% Swedish statutory (Note 7, AR p.115; Q1 p.7).
Analysis history

How the mttssn view has evolved — each prior dated note is preserved.

Quality · Buffett tenets10 / 15
Understandable business
Nordic optical retail leader (Synsam, Profil Optik) — eyewear sales + a spectacle-subscription model; legible, ~74-76% gross margin.
Durable moat
Narrow-to-moderate: the Synsam Lifestyle spectacle-subscription (now ~53% of net sales, a growing recurring-revenue annuity) differentiates an otherwise competitive optical-retail market.
Able & honest management
Clean APM (zero 'items affecting comparability' adjustment in FY2025), disciplined post-CVC; heavy 2024-25 greenfield store programme is a deliberate growth investment diluting near-term margin.
Financial strength
Adjusted ROIC ~12.2% clears the 8% WACC (EP +SEK 234M, ~4pp spread); lease- and debt-financed expansion (IB debt SEK 2,763M) tempers it.
Margin of safety
Limited: reverse-DCF ~−2% at 5% growth, PEBV ~1.46 — fairly valued; the PPA-amortization roll-off (~2027) is the main self-help margin lever.