GN Store Nord A/S
GN: XCSE (DNK)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| DKK 822.00 | Vqbxnx | Ktjqcjfnz |
Despite GN Hearing's Strong Showing in Q4, Audio Drags Down Fiscal 2022 Growth
We anticipate a material decrease to our fair value estimate of narrow-moat GN Store Nord following our model update to include fiscal 2022 results. Hit from both sides with soft markets resulting in an organic revenue decline of 3% and increased costs, GN's EBIT margin dropped from over 15% in fiscal 2021 to just under 6% for the full year. Audio was particularly pressured between integrating SteelSeries and weak demand in the consumer market. Additionally, with many companies having invested in audio solutions during COVID, the enterprise portion of GN Audio had tough comparables.