2Mo·

INVISIO AB (SE0001200015) - The Scandinavian high-growth racehorse for the portfolio!

Hello everyone!

After my AI assistant "Mister Prompt" and I dug up a solid REIT in the Swedish forests the day before yesterday, we set off on another search today. This post is a little special dedication to our @Tenbagger2024 - You had asked for a real "racehorse" where dividends don't matter and pure, explosive growth is the priority!

But also for everyone else who wants to add some rapid momentum to their portfolio: Buckle up. Here is a stock that is currently benefiting massively from global megatrends and for which there is not yet a single post here in the forum: $IVSO (-0,37 %)
INVISIO AB.

A little hint, I'm not invested yet, but from Monday I'll be on the speculative side of my dumbbell strategy.

🚁 Who is INVISIO and who are the customers?

INVISIO (based in Copenhagen, listed in Stockholm) develops state-of-the-art tactical communication systems and high-tech hearing protection for special forces, the military and police forces worldwide.

This is not a classic headset business, but vital equipment: the systems allow emergency forces to communicate with each other in deafening noise (helicopters, gunfire, explosions) at room volume and at the same time protect their hearing from trauma. Customers include Western governments and the NATO armed forces. An absolute beneficiary of the current massive increase in global defense budgets!

📊 The evaluation dashboard (as of March 13, 2026)

The current share price is approx. 304.50 SEK (approx. 28.60 EUR) with a market capitalization of approx. SEK 14 billion (approx. EUR 1.3 billion). The valuation is - fittingly for a racehorse - extremely sporty:

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📉 CURRENT KEY VALUATION FIGURES (TTM)

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▶ P/E ratio (price-earnings ratio): ~ 64.4

▶ KCV (price-cash flow ratio) : ~ 77.2

▶ KUV (price-sales ratio) : ~ 8.2

▶ P/B ratio (price-book value ratio) : ~ 12.1

▶ Dividend yield : ~ 1.0 %

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🔬 The quality and formula check

A P/E ratio of over 60? We have to apply our strict filters to see whether this is insubstantial storytelling or qualitative growth:

1. core quality formula (sales growth + operating margin = score)

Growth & Margin: Q4 sales growth was a very strong 15.1% (in a record quarter with SEK 684m sales). As INVISIO works extremely "asset-light" (research in-house, production externally), the profit scales immediately: the operating margin (EBIT) was recently at a fantastic 32,8 %.
Result: 15,1 + 32,8 = Score 47.9.
Conclusion: Our rule of thumb says: > 25 = "very good". With almost 48 points, INVISIO pulverizes this mark. Extremely strong, profitable growth!

[ CORE QUALITY SCORE METER ]

< 15 (Schwach) | 15-25 (Solide) | > 25 (very good)

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⭐⭐⭐ 47,9 !

2. cash flow quality formula (FCF yield = free cash flow / market cap)

Evaluation: The FCF yield is only around 1,3 %. This would be a knock-out criterion for our income portfolio. But: Our filter exception rule states: "Low or negative is only permitted with clear growth". INVISIO immediately reinvests every available cent in scaling, which is exactly what management should do with a 32.8% margin!

3. dividend filter (income core)

Result: The proposed dividend for 2025 is SEK 3.00 (yielding just under 1.0%). This naturally falls well short of our 3.5% minimum. But our exception rule also applies here: the balance sheet is incredibly strong (more cash than debt!) and growth is extremely high. The dividend is just nice pocket money for us shareholders.

4. the hard exclusion rule

Growth is positive, the margin is sustainable and well above 5%, the business model is backed up by hard figures (record order backlog of over SEK 854 million). Despite the high valuation: check passed!

🆚 Comparison with US stocks (The Axon / Motorola effect)

Why INVISIO when you can also buy Axon Enterprise or Motorola Solutions from the USA in the tech security sector?

The niche: Axon focuses primarily on police (tasers, bodycams). INVISIO is the undisputed top dog in the field of tactical military communication in Europe.
Diversification: We escape the constant tech focus of Wall Street and participate directly in the massive European and NATO internal armament cycle without having to buy direct defense companies (like Rheinmetall) if you don't want to for ethical reasons. INVISIO is "only" communication and protection!

📅 Important upcoming dates

For the watchlist or direct entry:

May 06, 2026: Publication of the Q1 2026 earnings report (This will show how the order books continue to fill up).
May 07, 2026: Expected ex-dividend day.
May 13, 2026: Planned payment date (pay date) of the dividend.

⚖️ Opportunities and risks

Opportunities:

Scalability: The asset-light model means that every additional million-euro order directly catapults earnings per share upwards with extremely little additional cost.
Moat: The certification and procurement processes in the military often take 3-5 years. Once you are in the system as a standard supplier (like INVISIO for many NATO countries), you will not be replaced so quickly.

Risks:

Valuation risk: A P/E ratio of over 60 does not forgive operational mistakes. If a major government contract fails to materialize or is delayed in parliament, the share price will plummet.
Lumpy revenues risk: The business is dependent on a few, but huge, major contracts from governments. This often leads to very volatile quarterly results.

My conclusion: An absolute monster in a fast-growing niche. Not for the faint-hearted and not for the pure dividend hunter, but as a growth satellite in the portfolio a first-class choice from Sweden!

@Tenbagger2024 Is this risky enough for you? 😉

Looking forward to your opinions! Who already had INVISIO on their radar?

Maybe also something for the others like:

@Multibagger
@Get_Rich_or_Die_Tryin
@Klein-Anleger
@schlimmschlimm
@Derspekulant1
@SAUgut777
@Keineui

18 Commentaires

Tenbagger2024@Tenbagger2024

2Mo

Thank you, Mr. Prompt. I had already introduced the company here once. Of course, I'm a little surprised why it's no longer listed in the forum. But thanks for reminding me. I'll have another look at it. From Performance My Mr. Beam suggests $DGII as an alternative.

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Raketentoni@Raketentoni

2Mo

@Tenbagger2024

Let's talk about the proposal from your "Mr. Beam": Digi International (NASDAQ: DGII). A very exciting battle of the AIs! 😉

I put "Mr. Prompt" straight onto DGII's current figures. Here is his verdict on your alternative:

📡 What does Digi International do?
Digi is a real heavyweight in the field of the Industrial Internet of Things (IIoT). They build the critical hardware (routers, gateways, sensors) to connect machines, traffic lights or medical devices. However, the real highlight and current share price driver is that they are currently undergoing a massive transformation from a pure hardware vendor to a provider of software and recurring revenue (subscription models for network control).

💪 Why "Mr. Beam" quite rightly likes the share (The strengths):
Strong momentum & numbers: DGII just delivered (early February 2026) bearish numbers for its first fiscal quarter. Sales climbed by 18% to USD 122m.

The software transformation is underway: Even more important for the stock market is the Annualized Recurring Revenue (ARR) - i.e. the predictable, recurring software revenue. This has shot up by a whopping 31 % to USD 157 million.

Excellent margins: Thanks to the shift towards software and clever acquisitions (such as the recent acquisition of the cloud company Particle), the gross margin now stands at a strong 62.4%.

Consistent upward trend: The share is currently trading at around USD 49 to 50 and is therefore within striking distance of its all-time high.

⚠️ What's the problem? (The risk for real racehorses):
Sporting valuation: Quality has its price. With a current P/E ratio of around 43 to 44 and a price/sales ratio of over 4, Digi is anything but an undiscovered bargain. The market has already priced in the successful transformation into a high-margin software provider to a large extent.

Cyclicality: Despite the software focus, a lot still depends on initial hardware sales. If the industry cuts back on investment during a recession, Digi.

Conclusion in the AI duel:
"Mr. Beam" has pulled a rock-solid, highly profitable tech stock out of the hat that is mastering its transition excellently. As a pure, explosive "racehorse", INVISIO with its extreme armor momentum and scalability is perhaps a bit wilder, but DGII is definitely a fantastic, somewhat more predictable alternative for the tech sector. Definitely on our watchlist from now on!

Greetings from Mr. Prompt! 🤖💼

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Tenbagger2024@Tenbagger2024

2Mo

@Raketentoni Now we're friends again 😘

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Raketentoni@Raketentoni

2Mo

@Tenbagger2024 Give him warm greetings from "Mr. Prompt". Among real stock market nerds, a cultivated exchange of blows about margins, P/E ratios and real moats is simply part of the game. In the end, we're all chasing the best returns together, and it's discussions like this that make a forum worth reading!

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Anderlé MPoint@Anderle

2Mo

Thank you for the great contribution, keep it up! ✌🏼

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Raketentoni@Raketentoni

2Mo

@Anderle thanks for the flowers 🫡

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Chris@Multibagger

2Mo

I love racehorses. And usually the small, agile ones run faster and have more stamina to maintain their speed.

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Raketentoni@Raketentoni

2Mo

@Multibagger Well, you see, at least this is more suitable for you than my last dividend value 🙃

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

2Mo

@Multibagger then take a look at <security:n/a:NO0013709089>.😉 There's a lot of racehorse character there.

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Chris@Multibagger

2Mo

@Get_Rich_or_Die_Tryin I have often experienced that there are no prices at GQ, but the fact that there is no fundamental data apart from the ISIN is a highlight. Where did you trade them? Is the last price from 04/25 on OnVista?

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Raketentoni@Raketentoni

2Mo

@Multibagger Fjord Defence Group share: share price & charts | comdirect Informer https://share.google/hdrLAKfNUifZWOSen

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

2Mo

@Multibagger Frankfurt/Stuttgart/Munich or directly Euronext Oslo. Can trade them at ING or comdirect (ING only German trading centers, comdirect all mentioned incl. L/S Exchange). I haven't traded them yet, would buy them via Euronext Oslo if I did, the turnover on the German exchanges is probably even lower than on the home exchange.

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Chris@Multibagger

2Mo

@Get_Rich_or_Die_Tryin I haven't even looked at trading venues yet. I wanted to look for more information first. How did you come across them?

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

2Mo

I sent my margin focus prompt after the presentation of @Raketentoni and Mr. Prompt from $IVSO to search for niche market leaders in the defense sector from Europe, independent of the market cap. This is one of the values that came out of it.👌🏻 Then found it exciting that you can achieve such margins and such a position with something as succinct as mounting systems or mounts for MGs on tanks and other vehicles. In Scandinavia, their mounting systems are standard on every vehicle, but of course they are also heavily dependent on the US military.

It would have seemed to me to be a standard defense system, but obviously it is not.🤷🏼‍♂️

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Raketentoni@Raketentoni

2Mo

@Get_Rich_or_Die_Tryin yes, Scandinavia has a lot of great small companies 😬 I'm trying to get away from too many dollars and the USA at the moment anyway

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

2Mo

I like it! Except for the valuation, of course.😅 But you know I love good margin profiles and niche champions!

You've spurred me on to do more research and I've found 3 stocks that I find quite interesting alongside $IVSO, albeit with significant risk in some cases.

$CHG $AVON <security:n/a:NO0013709089>

Good to very good margin profiles, market leaders or at least extremely strong technologically and with ample market shares in their niches. However, some of them are either very US-dependent or really small.

I would be interested in Mr. Prompt's assessment of the 3.

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Raketentoni@Raketentoni

2Mo

You've really dug deep into the trenches of the European security niche! Chapeau for the strong research. That's exactly why I love this forum. And thanks for clearing up the typo - now we have a really strong trio together!
You hit the nail on the head: INVISIO is an absolute dream in operational terms, but is currently priced to perfection. If a P/E ratio of > 60 gives you a stomach ache, let's take a look at your three alternatives through the strict "Mr. Prompt" lens:
1. Chemring Group PLC ($CHG) - The countermeasure king
An absolute plank from the UK. They primarily produce flares and propellants and have a highly exciting cyber and electronic warfare division with "Roke".
* The numbers: They are sitting on a massive record order backlog of over £1.35 billion, which already secures over 80% of expected sales for 2026. The operating margin is a rock-solid just under 15%.
* The advantage: With a current P/E ratio of around 25 to 30, they are a real value bargain in the hot defense sector compared to INVISIO.
* The catch: It is more of a steady "value compounder" than a pure racehorse. Revenue growth is solid (low double digits) but lacks the extreme scaling momentum of INVISIO's asset-light model.
2. Avon Technologies PLC ($AVON) - The direct INVISIO relative
This is the perfect content match! While INVISIO protects the hearing of special forces, Avon protects the lungs (state of the art NBC protective masks) and through its subsidiary Team Wendy, the heads (ballistic helmets).
* The numbers: After a few tough years, the management has achieved an ingenious turnaround. Sales growth is stable again at > 10 %. At Group level, they are heading for a strong 14 to 16 % operating margin in 2026. The pure "Avon Protection" segment is even already scratching a fantastic 20 %!
* The catch: You actually wanted to move away from US dependency, but Avon is extremely dependent on the US Department of Defense (DoD) and US budgets. Unfortunately, with this stock you're jumping from the frying pan into the fire!
3. fjord defense group ASA ($DFENS | NO0013647693) - The Nordic compounder
Ah, there's the missing piece of the puzzle! An extremely exciting choice that fits perfectly into our Scandinavian journey. Fjord Defence (formerly Aquila Holdings) is currently building itself into a highly profitable defense compounder through clever acquisitions ("buy & build" strategy).
* The figures: This is a transformation story par excellence. You recently acquired Fjord Defence AS (weapon mounts, tripods) and the Danish Scanfiber Composites (ballistic protection). If you look at the pro forma figures for 2025, they have a whopping NOK 266 million in sales and an adjusted EBITDA of NOK 69 million - which corresponds to a strong EBITDA margin of almost 26%! They also have a squeaky clean balance sheet with a net cash position of just under NOK 200 million and an equity ratio of 91%.
* The advantage: they have a bulging war chest and a clear target: only company acquisitions with an EBITDA margin of at least 15%. If the "buy & build" play continues at this rate, a Nordic defense powerhouse will emerge.
* The catch: execution risk! With a compounder, everything depends on the quality of future acquisitions and the successful integration of existing companies. In addition, the share is often still very volatile and depends heavily on the news flow of future M&A activities.
My conclusion in direct comparison:
If you are looking for the extreme INVISIO margin of over 32% and organic scaling, stay in Sweden.
If you are looking for value, go to Chemring.
If you want to play the operational turnaround in specialty equipment, Avon is your choice.
And if you like M&A fantasy and want to accompany the next big defense conglomerate from the beginning (buy & build), your find Fjord Defence Group is an absolute hit!

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Keineui@Keineui

2Mo

I don't know. But I can't keep up with all the company ideas either. Cash is scarce. Off to the watchlist

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