An Increased Focus on Value Creation
PTRK is moving in the right direction to unlock value. In particular, Q2 showed a stronger focus on profitable growth and improved cash flow.
Many of our suggestions for increasing value have already been executed by PTRK, which is a good sign:
From EBITDA to cash flow: The change is apparent as focus has shifted more to “EBITDA less CAPEX”, we hope to see long-term goals for this instead of EBITDA margin in the near-term.
Better segment reporting: The difference between the Q4'24 report and the Q2'25 report is clear; it's now easier to see how the segments have changed over time.
Headquarters (HQ) cost cuts: HQ costs as a share of revenue hit an all-time low.
The share has had a strong run since our initial investment case write-up, but we still view PTRK as undervalued and mispriced. We raise our valuation assumptions following the strong execution by the company and that they are following our suggested value-creation plan.
Large safety margin: Our assumptions suggest that a share price of up to about 26 SEK is attractive, even when the Required Rate of Return is set at 20%. This gives us a large safety margin at the current price level.
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