Brdr. Klee is a Danish trading and agency group supplying technical components and transmission products to machine builders and manufacturers, selling direct to larger accounts and through a local-distributor network into the aftermarket. LTM revenue of DKK 366.5m grew 8.4% yoy in H1, driven by the West Electric Trading startup (Aug 2024) and higher parent-company activity, and adjusted ROIC of 11.0% against an 8% WACC generates a thin but positive DKK 4.3m of economic profit.
The economics are honest but unremarkable: a 5.7% LTM EBIT margin (H1 fell to 4.6% from 5.6% as cost growth outpaced revenue), zero adjustment items, and strong cash conversion — LTM FCF of DKK 23.0m, roughly 10% of enterprise value — against a lightly levered balance sheet.
The governing issue is earnings-quality confidence, not economics. Comparatives have been restated twice — the FY report for FY20/21–23/24 inventory write-down errors, the H1 report again for WIP and financial-depreciation errors — and the H1 report was delayed, unaudited and not auditor-reviewed. A DKK 198m market cap with a small-cap control environment and a May 2026 guidance downgrade warrants a discount the current price does not offer.
Capitalising adjusted NOPAT of DKK 15.8m at the 8% WACC gives DKK 197.5m of zero-growth enterprise value; bridging through DKK 34.1m net debt (incl. DKK 32.2m leases) leaves ~DKK 3,200 per share against the DKK 3,920 price — the market pays roughly 1% perpetual growth. Fair for a value-creating trader, but no margin of safety, and the restatement history argues the multiple should sit below fair.
Base DKK 3,800 (−3%): margins hold near 5% and the price converges on modest-growth intrinsic value. Bull DKK 4,700 (+20%): margin recovery to the FY24/25 level plus continued West Electric ramp. Bear DKK 2,900 (−26%): further margin erosion, a second guidance cut, or renewed accounting issues force a de-rate.
The market pays today’s enterprise value for roughly 3.8% NOPAT growth over 5 years. The business earns 11% on capital against a 8% cost of capital (spread +3.0 pp); the no-growth value is DKK 3,630/share (93% of price), so the rest is priced-in growth.
| Scenario | 24m target | Impl. g | Upside | Prob. | Driver |
|---|---|---|---|---|---|
| Bull | DKK 4,700 | ≥10% | +20% | 25% | Margin recovery to FY24/25 level + West Electric ramp |
| Base | DKK 3,800 | +2% | -3% | 50% | Fair: margins hold ~5%, modest growth |
| Bear | DKK 2,900 | -10% | -26% | 25% | Further margin erosion or renewed accounting issues |
| Prob-weighted | DKK 3,800 | — | -3% | 100% | Scenario-weighted expected value |
| WACC \ g | 0% | 3% | 5% | 8% | 10% | 15% |
|---|---|---|---|---|---|---|
| 6.50% | 5,133 | 5,581 | 5,896 | 6,392 | 6,740 | 7,669 |
| 7.25% | 4,264 | 4,583 | 4,803 | 5,145 | 5,380 | 5,990 |
| 8.00% (base) | 3,631 | 3,857 | 4,010 | 4,242 | 4,397 | 4,781 |
| 8.75% | 3,148 | 3,306 | 3,409 | 3,560 | 3,655 | 3,874 |
| 9.50% | 2,768 | 2,873 | 2,939 | 3,027 | 3,078 | 3,171 |
Green = fair value above the current price of DKK 3,920.00. The reverse-DCF conclusion is dominated by WACC and growth — see the whole surface, not a single fair value.
⤓ Download the full model (.xlsx) — formula-driven sheets; flex the blue input cells and the model cascades in Excel.
The Aug-2024 startup is the main revenue driver — continued scaling supports the top line.
Parent-company activity with larger direct accounts drives the core trading book.
Local distributors and electromechanical workshops give recurring aftermarket exposure.
LTM FCF DKK 23.0m (~10% of EV) funds the dividend and local bolt-on subsidiaries.
The Elesa agency and dealer agreements underpin the product range and gross margin.
Brdr. Klee earns above its cost of capital and converts earnings to cash, but the equity trades at fair value while the twice-restated accounts, delayed unaudited H1 and May guidance cut demand a discount. We rate it HOLD, low conviction; base target DKK 3,800 (−3%) over 24 months.
A pullback toward the zero-growth floor around DKK 3,200 — or two clean, restatement-free reporting periods — would be needed to turn constructive.
Every adjustment traces to the cited note/page in the source filing — click to open it there. Source reports archived locally.
| Adjustment / figure | Value | Source | Why mttssn treats it this way |
|---|---|---|---|
| LTM revenue components (FY 351.972) | 352 | Consolidated income statement, Aarsregnskab section | FY anchor for LTM stitch; DKK 351,972,465 consolidated net revenue FY2024/25 (Oct 2024 - Sep 2025). |
| FY EBIT (Resultat af primaer drift) | 21.869 | Consolidated income statement | Reported operating profit is our NOPAT base; no items-affecting-comparability line exists and Note 4 confirms no impairments. |
| H1 2025/26 revenue | 188 | Totalindkomstopgoerelse, p.6 | Added in LTM stitch; +8.4% yoy driven by parent and selected subsidiaries. |
| H1 2025/26 EBIT | 8.611 | Totalindkomstopgoerelse, p.6 | Added in LTM stitch; margin 4.6% vs 5.6% prior H1 — cost growth outpacing revenue. |
| H1 2024/25 EBIT (subtracted, restated) | 9.69 | Comparatives in H1 report, p.5-6 | Prior-H1 comparatives as restated for WIP and financial-depreciation errors — using restated figures keeps the LTM stitch internally consistent. |
| Total equity incl. NCI (2026-03-31) | 136 | Balance, Passiver, p.8 | IC base from latest interim snapshot; NCI 17.439 kept in IC to match consolidated NOPAT. |
| Accumulated OCI stripped | 0.904 | Egenkapitalopgoerelse, p.9 | Translation + hedge reserves are FX/actuarial movements, not operating capital decisions; positive OCI stripped lowers equity base slightly. |
| Interest-bearing debt (mortgage + bank) | 11.354 | Balance, p.8 (realkredit LT/ST + bankgaeld) | Financing-side IC component at 2026-03-31. |
| Lease liabilities excluded from IC | 32.173 | Balance, p.8 (leasingforpligtelse LT+ST) | ROU assets are premises/warehouses (14% of total assets) — peripheral to a components-trading model, so excluded per mttssn lease decision rule. |
| Cash and equivalents | 9.411 | Balance, Aktiver, p.7 | Only excess cash above 2% of LTM revenue (2.080) removed from IC. |
| PPA amortization kept in opex | 2.047 | Note: Immaterielle anlaegsaktiver (customer relations column) | Elesa customer-relations amortization DKK 2.047m/yr is a real cost of the acquired revenue stream — mttssn keeps it in NOPAT. |
| Goodwill carrying value (no impairment) | 15.424 | Note: Immaterielle anlaegsaktiver / impairment test note | Goodwill 15.424 (11% of equity) tested annually, no impairment charged FY24/25 or H1 25/26. |
| FY effective tax rate | 0.24 | Note 7 Skat af aarets resultat | Effective 24.0% (22% statutory + recurring permanent differences) applied to LTM EBIT for adjusted NOPAT. |
| H1 report announcement (source URL) | None | https://www.globenewswire.com/news-release/2026/05/29/3303571/0/da/Halv%C3%A5rsrapport-31-marts-2026.html | Official Nasdaq Copenhagen half-year announcement published 2026-05-29; PDF attachment archived to reports/KLEE-B.CO/H1_2026/report.pdf (ml-eu.globenewswire.com/Resource/Download/6970fe08-3827-4a00-8a7e-7c607a5eb3e0). |