Idea note
This is an Idea note; It’s a collection of early signals – companies mentioned in fund letters, blogs, or by sharp investors online. Not a full pitch, just a starting point for ideas that might be worth a more in-depth look.
Quality Windows Company Priced for Perfection
Idea source: Kavaljer
Price: 207.8 SEK (2025-07-10)
Inwido AB - Europe’s leading window and door manufacturer with 35 business units across 12 countries, operating in the building materials sector on Nasdaq Stockholm
Ticker: INWI | Timeframe: 12 months | 😐 Neutral
Kavaljer believes Inwido is a high-quality company that has delivered strong operational performance and successfully navigated challenging market conditions through organic growth and strategic acquisitions. However, the fund argues that the current valuation at P/E 22x and EV/EBIT 16x fully reflects the company’s positive prospects, limiting future outperformance potential. Kavaljer anticipates P/E multiple contraction rather than expansion, leading to their decision to sell despite believing in continued earnings growth.
Setup: Quality European windows/doors leader trading at historically elevated multiples.
Latest Development: Strong Q1 2025 results with 10% revenue growth and margin expansion.
Valuation Concern: P/E 22x vs historical 15-17x average, EV/EBIT 16x vs 12-14x historical.
Timing: Post-strong performance period with limited multiple expansion potential.
Risk: Market normalization could drive multiple compression despite earnings growth.
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