Welcome back to Monday Delights!

This is your Monday morning dose of inspiration. Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.

Because these ideas are the result of my first-level idea generation process, they require more in depth research. Therefore, the ideas will often be concise, with occasional references to valuable work from other practitioners that I encourage you to explore.

If you have something fascinating to share that could benefit me and the wider community, don’t hesitate to send it my way—I’d love to hear from you!

Bertrandt AG

• Market Cap: €94.0M
• EV: €292.7M
• ROE: 27.5%
• EV/FCF: 8.1
• P/TB: 0.4

Bertrandt AG operates as an engineering and technology services provider that supports customers throughout the entire product development lifecycle, from concept design and research to testing, validation, quality management, and production support. Its core business model is based on selling highly specialized engineering expertise and development capacity to industrial clients, particularly in the automotive sector, while also serving aerospace, electronics, medical technology, energy, and industrial customers. Revenue is generated primarily through long-term engineering service contracts, project-based development work, and consulting assignments. The company’s value proposition lies in providing outsourced R&D capabilities, allowing customers to accelerate innovation and manage development costs without maintaining all capabilities in-house.

Weak R&D spending by German automotive OEMs continues to weigh on Bertrandt’s core business, and the outlook for this segment remains highly uncertain. However, management is actively reducing costs through workforce reductions, while diversification into other industrial verticals—particularly aerospace and defense—appears to be gaining traction. These activities already account for roughly 20% of revenue and continue to grow at a double-digit rate.

What appears particularly interesting is the balance sheet. Bertrandt’s current assets (€318M), consisting primarily of receivables and contract assets, cover all financial debt (€258M) and nearly all liabilities (€360M). Recent cash conversion, combined with the fact that most customers are blue-chip automotive OEMs, suggests limited risk around receivable collection.

At the current market capitalization, investors effectively pay approximately €136M (€94M market cap plus roughly €42M of net liabilities) for a tangible asset base consisting of technical equipment and real estate carried at approximately €200M. On that basis, the stock appears to trade below the value of its tangible operating assets and may warrant further investigation.

Bergman & Beving AB

• Market Cap: SEK 7.8B
• EV: SEK 9.9B
• ROE: 24.4%
• EV/FCF: 23.2

Bergman & Beving follows a decentralized industrial holding company model focused on acquiring, owning, and developing market-leading businesses in specialized industrial and construction niches. Rather than manufacturing products centrally, the group creates value through long-term ownership of independent subsidiaries that sell components, machinery, safety equipment, personal protective equipment, and other industrial solutions. Growth is driven primarily through acquisitions of profitable niche companies with strong market positions, while the parent company provides strategic guidance, capital allocation, governance, and operational support. The subsidiaries retain significant operational autonomy, enabling entrepreneurial decision-making while benefiting from the group’s financial resources and expertise. Revenue is therefore generated through the operating profits of its portfolio companies.

Bergman & Beving is arguably quite literally the “mother” of the Swedish serial-acquisition model. The company was the parent organization that spun off Addtech and Lagercrantz in 2001, followed by Momentum Group in 2017. All three businesses have subsequently become highly successful industrial consolidators, and their decentralized approach to operations and acquisitions has inspired a large number of imitators.

Despite the company’s impressive track record and pedigree, the current valuation and portfolio composition do not appear particularly compelling. At today’s multiples, it is difficult to make a strong investment case relative to other opportunities in the sector.

Bénéteau S.A.

• Market Cap: €524.8M
• EV: €600.3M
• ROIC: 22.2%
• P/TB: 0.77

Beneteau SA, through Groupe Beneteau, generates most of its revenue from designing, manufacturing, and selling recreational boats across multiple brands and market segments, including sailing yachts, motorboats, monohulls, and catamarans. The company operates a global production and dealer network, distributing its products through independent dealerships and sales partners. In addition to boat manufacturing, the group has expanded into boating-related services such as charter operations, marina services, digital solutions, boat clubs, and financing, creating recurring revenue streams that complement boat sales. Its business model combines premium brand management, large-scale manufacturing capabilities, and a broad distribution network to serve leisure boating customers worldwide.

The balance sheet appears unusually strong. Current assets exceed total liabilities by roughly €300M, implying that investors are paying only around €200M for the company’s fixed asset base, intellectual property, brands, and an order book that appears to be inflecting positively. Order intake increased 24% year-over-year, while the order book grew by approximately 10%.

For context, between 2017 and 2024 EBIT fell below €80M only once, during the COVID-related disruptions of 2020. Using €80M as a conservative estimate of normalized operating earnings would imply an EV/EBIT multiple of approximately 2.5x. If one adjusts for the excess working capital embedded in the balance sheet, the implied multiple appears substantially lower. Under a more normalized valuation framework, the shares could be trading at a significant discount to intrinsic value.

Better Collective A/S

• Market Cap: SEK 7.0B
• EV: SEK 10.3B
• ROE: 4.2%
• P/E: 25.1

Better Collective operates a digital sports media and sports-betting affiliate marketing business. The company owns a portfolio of sports media brands, websites, communities, podcasts, and data platforms that attract sports fans through content, statistics, news, and betting-related information. Revenue is generated primarily through performance-based marketing agreements with sportsbooks, where Better Collective earns either a fixed fee for acquiring new customers or a share of the revenue generated by referred bettors. The company also earns income from advertising, sponsorships, premium subscriptions, and strategic media partnerships. Its model depends on attracting large audiences, converting users into customers for betting operators, and monetizing those audiences through multiple digital channels.

From an outside perspective, the business appears to be a relatively loose collection of sports media assets and betting-related platforms assembled through acquisitions. While the company possesses few tangible assets, its low ROE raises questions about whether historical acquisitions have generated adequate returns on invested capital. The valuation does not appear particularly attractive either, especially considering the limited evidence of strong economic returns.

BEWI ASA

• Market Cap: NOK 4.5B
• EV: HUF 9.7B
• EV/EBITDA: 15.0
• P/B: 0.9

BEWI operates an integrated and circular manufacturing business focused on packaging, components, and insulation products. The company produces both raw materials and finished products, serving customers in packaging, logistics, and construction markets. A key feature of its business model is vertical integration combined with recycling: BEWI manufactures materials, converts them into end products, collects used materials after use, and recycles them into new products. This circular approach allows the company to capture value across the entire product lifecycle while supporting sustainability objectives. Revenue is generated from the sale of packaging solutions, industrial components, insulation products, and recycled materials, with a particular emphasis on energy-efficient building solutions and circular economy offerings.

While there may be certain manufacturing and material-related synergies between building insulation and packaging products, the strategic rationale for combining these businesses within a single corporate structure is not entirely obvious. More importantly, leverage remains elevated, and the company recently raised equity to strengthen its balance sheet.

Valuation is another concern. At approximately 8x next-twelve-month EV/EBITDA, the shares do not appear especially cheap relative to comparable building products and packaging businesses, many of which trade closer to 5–6x EBITDA in both public and private markets. Given the balance sheet risks and somewhat unconventional business mix, the current valuation does not appear particularly compelling.

That’s all for this week. I hope some of these ideas sparked your interest and inspired your research for the days ahead. If you’re looking for more inspiration for companies to explore, I recommend checking out last week’s article.

Have a great week!