Loomis AB (publ) (LOIMF) Stock Analysis

Loomis AB (publ) (LOIMF) Industrial Operations Profile

Loomis AB (publ) is a global leader in secure cash and valuables management, providing essential services like cash-in-transit, ATM support, and integrated payment solutions for financial institutions and retailers. Operating since 1852 with a vast international network, the company underpins the physical cash infrastructure within the Industrials sector.

What Is the Investment Thesis for LOIMF?

Loomis AB (publ) presents as a stable entity within the Industrials sector, underpinned by its critical role in secure cash and valuables logistics globally. The company's established market position, extensive operational network, and long history since 1852 provide a significant competitive moat. Key financial metrics include a market capitalization of $3.18B, a P/E ratio of 19.16, and a solid gross margin of 28.6%, reflecting operational efficiency. The dividend yield of 4.38% suggests a commitment to shareholder returns. Growth catalysts include the ongoing expansion of its Loomis Pay platform, which diversifies revenue streams into digital payment processing and mitigates risks associated with declining cash usage in some markets. Continued demand for secure logistics for high-value assets and strategic acquisitions in a consolidating industry also represent significant growth opportunities. However, potential risks include the accelerating global shift towards cashless societies and intense competition from both traditional and digital payment providers. Loomis's beta of 0.51 indicates lower volatility relative to the broader market, appealing to investors seeking stability in essential services.

Based on FMP financials and quantitative analysis

LOIMF Key Highlights

Market Capitalization of $3.18B, indicating a significant presence in the global security and protection services industry.

• P/E ratio of 19.16, suggesting investor valuation relative to earnings within its specialized sector.
• Gross Margin of 28.6%, reflecting operational efficiency in its secure logistics and cash management services.
• Dividend Yield of 4.38%, offering income potential for shareholders in a stable industrials company.
• Extensive global network of approximately 400 branches as of February 3, 2022, supporting widespread operations and client reach.

Who Are LOIMF's Competitors?

LOIMF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are LOIMF's Key Strengths?

Extensive global operational network with approximately 400 branches as of February 2022.

• Comprehensive service portfolio including cash-in-transit, cash management, and the Loomis Pay platform.
• Long operating history since 1852, establishing a strong brand reputation and deep industry expertise.
• Critical infrastructure provider for cash-based economies and high-value asset logistics.

What Are LOIMF's Weaknesses?

High operational costs associated with maintaining security, specialized logistics, and a large workforce.

• Potential exposure to declining physical cash usage in certain developed markets.
• Reliance on physical infrastructure and personnel, which can be vulnerable to external threats.
• Beta of 0.51 suggests lower market sensitivity, potentially indicating slower growth compared to higher-beta stocks.

What Could Drive LOIMF Stock Higher?

LOIMF catalyst: Expansion of the Loomis Pay platform into new merchant segments and geographies, driving digital revenue growth and diversification.

• Continued demand for secure cash management and logistics services globally, particularly in regions with high cash usage or complex security needs.
• Potential strategic acquisitions to expand geographic reach or enhance service capabilities within the security and protection services industry over the next 2-4 years.
• Innovation in cash handling technologies and automation, leading to improved operational efficiency and enhanced client offerings in cash management solutions.

What Are the Key Risks for LOIMF?

Inconsistent delivery — missed Wall Street EPS estimates in 6 of the last 8 reported quarters.

• Declining physical cash usage in certain developed markets, which could potentially impact core cash-in-transit volumes and revenue streams.
• Increased competition from alternative payment solutions and other logistics providers, which may put pressure on pricing and profit margins.
• Operational security risks, including theft, fraud, or cyber-attacks, which could lead to significant financial losses and reputational damage.
• Regulatory changes impacting cash handling, cross-border logistics, or payment processing, potentially increasing compliance costs and operational complexities.
• Economic downturns affecting retail activity and overall financial transactions, thereby reducing the demand for Loomis's secure services.

What Are the Growth Opportunities for LOIMF?

• Expansion of Loomis Pay Platform: The integrated payment processing platform for merchants, Loomis Pay, represents a significant growth avenue. This platform allows Loomis to capture a share of the digital payment market, complementing its traditional cash management services. As businesses increasingly seek unified solutions for both physical cash and digital transactions, Loomis Pay offers a competitive advantage by providing an end-to-end service. The global digital payments market is projected to continue its robust growth, offering a substantial addressable market for Loomis to penetrate, particularly among small to medium-sized enterprises seeking streamlined financial operations over the next 3-5 years.
• International Valuables Logistics: Loomis's expertise in international logistics for high-value goods extends beyond currency, encompassing items requiring specialized secure transport. This segment benefits from global trade and the increasing movement of sensitive assets across borders. The company's established secure network and operational protocols provide a strong competitive moat. Expanding services in emerging markets or specialized niches within high-value logistics, such as precious metals or critical components, could unlock new revenue streams. This opportunity is ongoing, driven by global supply chain complexities and the continuous need for secure, reliable cross-border asset movement.
• Enhanced Cash Management Solutions: Despite the rise of digital payments, physical cash remains a vital component of many economies, particularly in retail and certain financial sectors. Loomis's advanced cash management solutions, including smart safes and automated cash handling, optimize efficiency and security for clients. Continued innovation and deployment of these technologies can drive deeper integration with existing clients and attract new ones seeking to reduce operational costs and risks associated with cash. The market for cash management hardware and software is stable, with ongoing demand for upgrades and efficiency improvements over the long term.
• Strategic Acquisitions and Market Consolidation: The security and protection services industry, especially in specialized logistics, often presents opportunities for consolidation. Loomis, with its established global presence and financial capacity, could pursue strategic acquisitions to expand its geographic footprint, enhance its technological capabilities, or diversify its service offerings. Such inorganic growth could quickly increase market share and operational synergies. Identifying and integrating smaller, regional players or technology providers would be a key driver, potentially materializing over the next 2-4 years as market dynamics evolve.
• ATM Services Optimization and Expansion: Loomis provides comprehensive support for ATMs, a critical service for financial institutions ensuring cash availability. As banks and independent ATM deployers look to optimize their networks and reduce operational overhead, Loomis's efficient and secure ATM services become increasingly valuable. This includes cash replenishment, maintenance, and technical support. Expanding these services to new regions or offering more integrated solutions, such as predictive maintenance, can secure long-term contracts and recurring revenue. This opportunity is ongoing, adapting to evolving banking infrastructure and consumer cash access needs.

What Are LOIMF's Competitive Advantages?

• Extensive global operational network with approximately 400 branches as of February 2022, providing widespread reach and logistical capabilities.
• High barriers to entry due to significant capital investment required for secure vehicles, facilities, technology, and specialized personnel.
• Deep expertise in security protocols, risk management, and complex logistics for handling high-value assets.
• Long-standing client relationships with major financial institutions and retailers, built on trust and reliability over decades.
• Integrated service offerings, combining traditional physical cash handling with modern digital payment solutions through Loomis Pay.

What Does LOIMF Do?

Loomis AB (publ), established in Stockholm, Sweden, in 1852, has evolved into a prominent global specialist in the secure transportation, management, storage, and recirculation of currency and other valuable assets. With a rich history spanning over 170 years, the company has built an extensive operational network, comprising approximately 400 branches as of February 3, 2022, and employing 24,100 individuals. Its comprehensive suite of offerings is designed to meet the diverse needs of financial institutions, retail businesses, and various other commercial entities both within Sweden and across international territories. Core services include secure cash-in-transit, ensuring the safe movement of cash between locations, and advanced cash management solutions that optimize the handling and processing of currency. Loomis also provides essential support for Automated Teller Machines (ATMs), including replenishment and maintenance, and offers physical foreign exchange services. Beyond traditional cash services, the company specializes in international logistics for high-value goods, requiring stringent security protocols and specialized handling. In a strategic move to adapt to evolving payment landscapes, Loomis has introduced Loomis Pay, an integrated payment processing platform specifically tailored for merchants. This platform allows Loomis to offer an end-to-end solution that encompasses both physical cash handling and digital payment processing, positioning the company as a critical infrastructure provider in the broader financial ecosystem.

What Products and Services Does LOIMF Offer?

• Securely transport cash, currency, and other valuable assets.
• Manage and process cash for financial institutions and retail businesses.
• Provide physical foreign exchange services for various currencies.
• Support and replenish Automated Teller Machines (ATMs) for banks.
• Offer international logistics for high-value goods requiring specialized security.
• Operate Loomis Pay, an integrated platform for merchant payment processing.
• Recirculate currency to ensure efficient cash flow within economies.
• Serve a diverse clientele including banks, retailers, and commercial operators globally.

How Does LOIMF Make Money?

• Generating revenue through fees for secure cash-in-transit and valuables logistics services.
• Earning income from comprehensive cash management solutions, including processing, storage, and recirculation.
• Collecting service charges for ATM support, such as cash replenishment and maintenance.
• Realizing transaction fees and service charges from its Loomis Pay integrated payment platform for merchants.
• Profiting from providing physical foreign exchange services, typically through a margin or fee structure.

What Industry Does LOIMF Operate In?

Loomis AB (publ) operates within the specialized segment of Security & Protection Services, a critical component of the broader Industrials sector. The company holds a prominent position as a global leader in secure cash and valuables management. The industry is characterized by persistent demand for physical cash handling, particularly in retail and financial sectors, alongside a growing need for secure logistics for high-value assets. While digital payment trends continue to evolve, the underlying infrastructure for physical cash remains essential in many economies. Loomis navigates this landscape by providing core cash-in-transit and cash management services, while also strategically expanding into digital payment processing with Loomis Pay. The competitive environment includes specialized security firms and broader logistics companies. A notable competitor is Aurizon Holdings Limited (QRNNF), which operates in diversified transport and logistics, potentially overlapping in certain secure freight aspects. Loomis differentiates itself through its deep specialization, extensive global network, and integrated service offerings.

Who Are LOIMF's Key Customers?

• Financial institutions, including commercial banks and credit unions.
• Retail businesses, ranging from small local shops to large national chains.
• Various other commercial entities requiring secure handling of valuable assets.
• Merchants utilizing the Loomis Pay platform for both physical and digital payment processing.
• Organizations involved in international trade requiring secure logistics for high-value goods.

Loomis AB (publ) Financial Trajectory

Loomis AB (publ) (LOIMF) reported $814.1M in revenue for Q2 FY2026, reflecting 9.5% growth compared to the prior quarter. The company recorded net income of $62.7M, with diluted EPS of $0.93. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Industrials. Across the four most recent quarters, LOIMF averaged $0.71 in diluted EPS.

Company Profile

Loomis AB (publ) operates in the Security & Protection Services industry within the Industrials sector. It is headquartered in Stockholm, SE. The company is led by CEO Aritz Larrea Uribiarte. LOIMF has traded publicly since 2009.

How Loomis AB (publ) Is Valued

Loomis AB (publ) carries a market capitalization of $3.18B, placing it in the mid-cap category.

Return on equity for Loomis AB (publ) stands at 14.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.5%, showing how much profit it generates from its asset base. LOIMF trades at a trailing price-to-earnings ratio of 19.16, below the Industrials sector average of ~28.00x. Its free cash flow yield is 11.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.17 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.8%, the inverse of the P/E and a quick read on earnings relative to price.

Loomis AB (publ)'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.03 places it in the grey zone, a middle ground that warrants monitoring.

Loomis AB (publ) has missed Wall Street's EPS estimate in 6 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 12.6% below estimates on average.

LOIMF Financials

LOIMF Latest News

LOIMF Analyst Consensus

LOIMF MoonshotScore

What Investors Ask About Loomis AB (publ) (LOIMF) — Industrials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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