Translation: Original published in Finnish on 5/28/2026 at 8:54 am EEST.

We initiate coverage of Framery with a target price of EUR 8.5 and our recommendation set at Accumulate. Framery is the global market leader in soundproofed office workspaces and pods, a growing category that the company has been instrumental in shaping. The investment case combines highly profitable growth and a capital-light business model, which enables an exceptionally generous dividend distribution for a growth company. On an earnings basis, the valuation of the stock appears neutral relative to the company's quality (2026e: P/E 17x, EV/EBIT 14x). 

Market leader in soundproofed workspaces

Framery's revenue is mainly generated from the sales of soundproofed office pods, alongside which the company aims to grow rental and SaaS software revenue. Soundproofed office pods represent an estimated target market of ~0.9 BEUR, of which Framery's market share is about 20 %. The category has historically seen strong growth, and based on market research commissioned by the company, growth is expected to continue at an annual rate of over 10 % until 2030, driven by increasing pod penetration.

Capital-intensive value chain functions are outsourced

Framery’s business is capital-light and scalable. In its value chain, the company has outsourced capital-intensive manufacturing operations as well as labor-intensive installation and resale. As a result, the company's return on capital is very high (2024-2025: 93-131 %) despite the physical nature of the end product. However, the company handles product assembly itself at its Tampere factory and, in the future, also at its Michigan production facility, which is a key step for the business model to ensure product quality. In our view, Framery’s key sources of competitiveness are its first-mover advantage, the distribution network of over 650 resellers the company has built, and a larger scale than its competitors, which enables the manufacturing of components in efficient batches.

Profitable growth and abundant payouts

Framery's historical growth track record is very impressive, and revenue grew by an average of 21 % per year in 2018-2025. Last year’s 37 % growth was exceptionally strong, as a long-term key customer placed more orders than usual. The share of that key customer in revenue rose to 13 %, whereas it has typically been around 2 %.

Framery is targeting over 10 % organic revenue growth and a 25 % comparable EBIT margin over the next 3-5 years. Given the very high return on capital, we consider growth in the coming years the key variable for value creation. In our view, the key prerequisites for future growth relate to the continuation of favorable market growth and Framery's ability to productize its service business, which is still in its early stages. For a growth company, Framery’s dividend policy is exceptionally generous: the company targets a payout ratio of 70-90 %. The low capital-intensity of the business explains this, as the company's growth investments are primarily expensed rather than capitalized.

Warranted valuation level

Framery’s investment profile offers a fairly rare combination of strong growth and high profit distribution on Nasdaq Helsinki. The stock's earnings-based valuation (2026e P/E 17x, EV/EBIT 14x) is, in our view, at neutral levels considering the company’s profitable growth profile. Based on our estimates for the coming years, Framery's dividend yield will be 5-6 %, which is an attractive level for a growth company. Our DCF model, which indicates a per-share value of EUR 8.6, also supports the view that the stock has upside and justifies looking beyond the stock's temporary period of weaker earnings growth.