In this equity research report, analyst Alia Rezai examines Loomis AB (LOOMIS), a global leader in cash handling and secure logistics. The company is undergoing a strategic transformation through the rollout of its digital payments platform, Loomis Pay, while maintaining the stability of its core cash logistics operations. This hybrid model positions Loomis to benefit from both steady cash flows and scalable digital growth.
Loomis Pay grew revenues by 71.2% in 2024, supporting long-term expansion potential in Southern Europe’s transitioning payment markets. The analysts forecast a gradual increase in EBITA margins from 11.5% in 2024, supported by automation and route optimization, and estimate a fair value share price range of SEK 550–620, implying a 50–70% upside. A DCF midpoint of SEK 290.94 and peer multiples from Brink’s and Prosegur suggest Loomis is undervalued relative to its global competitors.
Investment highlights:
- Digital transformation underway: Loomis Pay’s rapid growth complements the core cash business, positioning the company to capture value in a hybrid cash-digital economy.
- Margin expansion through operational efficiency: Automation, route optimization, and scale effects are expected to improve profitability over time.
- Attractive valuation vs. peers: Currently trading at a discount to Brink’s and Prosegur, despite a stronger balance sheet and similar or better operating metrics.
The Analyst’s Draft 
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