Compare 4 big Swedish investment companies: Investor, EQT, Lundbergföretagen and Industrivärden

Investor (INVE B) is a venture capital firm specializing in mature, middle market, buyouts and growth capital investments. It is operating through four business areas including core, private equity, operating, and financial investments. It was founded in 1916 and is based in Stockholm, Sweden.
EQT (EQT) is a private equity firm specializing in buyout investments. The firm focuses on Private Capital & Real Asset segments. It seeks to make investments globally and take a majority stake. Investor has 18% stake in EQT. It was founded in 2012 and is based in Stockholm, Sweden.
Lundbergföretagen (LUND B) manufactures and sells printing paper, paperboard, and sawn timber products in Sweden and internationally. It operates through four segments: Lundberg’s Real Estate Operations, Lundberg’s Equity Management, Hufvudstaden, and Holmen. The company offers printing paper for magazines, product catalogs, direct advertising, books, and newspapers; and solid board and folding boxboards primarily for use as consumer packaging materials. It was founded in 1944 and is headquartered in Stockholm, Sweden.
Industrivärden (INDU C) is a publicly owned investment manager. The firm invests in the public equity markets of Nordic region. It employs fundamental analysis, with a focus on factors like long term return potential, proven business model, balance between risk and return, and attractive valuation to create its portfolio. Lundbergföretagen has 18% stake in Industrivärden. It was founded in 1944 and is based in Stockholm, Sweden.
For more information read this on why I look at the things I am looking at. The data I get from TradingView that you can get from here (affiliate link).
The first thing is ROIC, we wanna see plus 10% for many years and no sign of slowing down.




Investor, Lundbergföretagen and Industrivärde naverage around 8,5%, EQT has insufficient information so this one is an automatic elimination. It is okey to see some years to have negative ROIC, investment companies some years preform badly depending on what they invest in and where the market is going, the important thing is the trend and the average. All 3 are okey enough to continue with.
Next let’s check the earnings.



Lundbergföretagen averages to 10,05% of growth, not bad. but Investor and Industrivärde does not seem to have growth.
Now it is revenue’s turn.



Lundbergföretagen has no growth on their revenue, so the increase in the earning should be because of increase in earning margin. Investor and Industrivärde does not have consistency, which means they are not predictable, which we don’t like.
What about free cash flow?



Don’t be fooled by the growth in FCF of Investor, they have an average 20% net earning to FCF ratio which is means they should be very low on cash which we don’t like. Lundbergföretagen has an average 65% net earning to FCF ratio which is still not good. Industrivärde is even worth at 10%. All of them fail here. And since this is one of the more important ones for us (they don’t have cash to extend the business or pay dividend) we are just gonna stop here and remove all of them, they are not for us.
I knew from the beginning that we will probably remove these, not because of their performance but because of what they do. If you are a jockey [racing horse rider] you should not bet on other horses, you should bet on you and your horse. That’s what we do if we invest on Investment companies.

So we are done for today, let’s talk some more tomorrow. C ya.