Episode Details

Shelly Group is a Bulgarian technology company that specializes in offering smart home solutions. So , it competes with the likes of Google, Amazon, and Samsung in this market. Tough competition, right? 

So, why would I analyze Shelly Group, then? I actually found the company by running a stock screener with criteria on gross profit margins, insider ownership, net margins, and ROIC. The numbers speak for themselves. I thought to myself, with these numbers, there must be something special about this company. That’s exactly what I’m going to find out during this analysis. 

The 2025 numbers are as follows:
Gross Profit Margin: 57.7%
Net Profit Margin: 17%
ROIC 5-year average: 39.8%
Revenue Growth 5 yr: 44.6%
Insiders own half of the company

To be honest, I’m pretty enthusiastic about the extent to which Shelly’s customers can automate their homes. For example, via Shelly’s premium app, users can easily automate lighting or locking features. For example, when the toilet door gets opened, the light must turn on. The application can detect devices that are on if you left the house, such as the oven or the television. You can speak to its AI assistant in any language, something even Amazon is not offering yet. 

Shelly operates both via installers, for example, for new construction projects, as well as direct-to-consumer. To be honest, you must be a bit of a geek to install Shelly’s products, such as relays and switches, yourself. But yes, how cool to fully automate your home. 

While I’m writing this introduction, I’m listening to Shelly’s FY 2025 investor call. They talk a lot about how to fend off competition like Amazon. So, you will definitely see a competitor analysis here. Let’s explore this interesting and little-known company!

Enjoy the episode! 

Disclaimer:
Nothing in this podcast can be considered financial advice. This is for educational purposes only. We may hold positions in the businesses discussed. Do your own research.

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