Sensys Gatso Group AB develops and sells traffic safety systems to police and highway authorities. The group was formed by the merger of the Swedish Sensys Traffic with the Dutch Gatso during July 2015 to form worlds market leader in the field. The group previously installed around 18,000 systems in around 75 countries. Main markets currently are Sweden, Netherland, UK, Belguim, USA, Japan, UAE.
Quality of Earnings
Quality of Management
Sensys Gatso Group – Diversified customer base in 75 countries
Strong over-average demand in mid-term: traffic safety development plans do exist in many markets. Sweden will expand streets radar control coverage 3 times by 2025. Bright potential in Japan rises on the horizon following the new agreement with OKI.
Valuable acquisition for Dutch Gatso: positive value is generated by post-acquisition, smoother revenue trends (less risk and lower cost of capital), enhanced margins, R&D savings, revenue synergies.
Low operational risk and high continuity: market leader with strong track record during 2 decades for Sensys and more than 4 decades for Gatso. 18,000 systems installed in 75 countries. Continuously supported by low debt-ratio and high asset quality.
Moderate risk profile: being operational leverage and project oriented volatile revenues as biggest source of risk.