The European IoT smart home sector has seen significant growth, with 2 clear heavyweights in the room — Shelly Group and Plejd — each carving out dominant positions within their respective niches. While both companies command a strong presence in their main markets, they differ significantly in strategy, valuation, and growth approach — factors that influence how investors may assess their potential.
So, which of the two has delivered stronger performance over the past 5 years — and how has each stock responded to the ups and downs of the IoT sector and broader economic shifts? We take a closer look at key metrics that tell a story.
Performance Snapshot Over the Past 5 Years
5-Year Total Return:
· Shelly: +2461%
· Plejd: +941%
Year-to-Date (YTD) 2025 Return:
· Shelly: +41%
· Plejd: +169%
The past 5 years have been pivotal for both Shelly and Plejd, as they’ve positioned themselves at the forefront of emerging trends in energy efficiency and smart home technology – and the fruits of that positioning have been clearly reflected in their equity performance. Investors in both Shelly Group and Plejd have been handsomely rewarded, with both stocks outperforming by a wide margin major benchmarks for the selected period.
In terms of both absolute and relative outperformance, Shelly had the clear edge over Plejd over the past five years — delivering 1520 percentage points more in absolute return, which translates to 162% higher relative performance. Plejd has been playing catch-up since. The tables turn when looking at the year-to-date performance: Plejd is up +169%, compared to Shelly’s +41%, However, this hasn’t been enough to catch up with Shelly’s 5-year run.
If we were to draw a metaphor from athletics, one might see Shelly’s journey resembling that of a seasoned long-distance runner—paced, deliberate, and ultimately reaching further. Plejd, in contrast, has moved with the burst and urgency of a sprinter— explosive, undeniably fast and covering remarkable ground in a short span, particularly over the last year and a half.
Both approaches reflect strength, just in different forms: one through sustained momentum, the other through sudden acceleration. Investors are left to consider which cadence they believe will carry further in the race ahead.
Key Financial Metrics Comparison
Looking at Plejd vs Shelly stock performance requires examining several financial indicators. Both companies maintain strong market positions, but their financial profiles tell different stories for potential investors.
| Metric |  |  |
| Market Cap | ~ € 960 million | ~€ 884 million |
| P/E Ratio (LTM) | 74 | 37 |
| Dividend Yield | No dividend | 0.26% |
| Annual Revenue Growth 2020-2024 | ~29% | ~53% |
Plejd is currently trading at a higher P/E multiple with strong growth, signaling a focus on primary market leadership. Shelly, with even faster revenue growth and a significantly lower P/E ratio, could present a compelling case for value-oriented investors. This contrast might shape a unique case of momentum (Plejd) versus valuation (Shelly).
Geographical Presence
| Metric |  |  |
| Primary Markets | Sweden, Norway | Germany, Austria, Switzerland, Italy, Poland |
| Secondary Markets | Finland, The Netherlands, Germany | Spain, Portugal, USA, LATAM, MENA |
| International Expansion | Conservative (strong focus on Nordics, gradual entry into new markets) | Aggressive (fast and mobilized expansion in new markets) |
Plejd has a strong focus on the Nordics. Its home market Sweden is the largest contributor, with about 20% revenue growth in Q2 and 30% growth in installations. Neighboring Norway is another key market. Plejd is also expanding into Continental Europe: the Netherlands showed exceptional growth of 121% YoY in Q2 2025. Germany is an emerging market for Plejd – growth is strong but from a low base, with Plejd’s roller-shutter controller (“Jalousie Puck”) already the most installed product there.
Shelly’s ’s presence is centered in Europe and the DACH region (Germany, Austria, Switzerland), leading Shelly’s sales, growing 19.1% YoY in Q1 2025. Shelly also saw strong growth in Italy and the Nordics. In fact, Europe outside DACH grew 41% YoY – indicating rapid expansion beyond its traditional core. Outside Europe, “other international markets” (e.g. North America and others) grew 34.6% YoY , showing that while Europe remains primary (nearly 87.5% of 2024 sales were in the EU ), Shelly is gaining traction globally. The company’s user base is broad, with over 4.5 million households using Shelly products worldwide.
Business Model Differences
| Metric |  |  |
| Product Focus | Smart lightning systems | IoT devices for smart homes |
| Product Portfolio | Dimmers, LED drivers, thermostats | 92+ SKUs (relays, sensors, locks) |
| Target Customers | Professional electricians | 89.6% B2B (by 2025) |
| Growth Model | Purely organic | Organic + M&A |
| Manufacturing | In-house in Sweden + some outsourced | Outsourced + expanding |
| R&D Approach | 100% in-house | Mixed (in-house + acquisitions) |
Plejd’s ’s top-selling products are centered on smart lighting controls, particularly the dimmer Puck series and smart Downlight fixtures. However, as of Q2 2025, the smart Downlight is rapidly catching up the dimmer as the most installed product. In Sweden, both series continue to drive strong growth. Product popularity varies by market: in Germany, the top product is a sun-blind controller puck for motorized shades; in Norway, the new smart Thermostat is growing fast and is expected to become a top-5 product.
With regards to the distribution strategy, Plejd is focused on professional electrical installers. The company primarily sells through professional electricians and wholesalers that supply electricians. Overall, Plejd’s distribution strategy is to double down on establishing themselves as the go-to brand for the electrician community amplifying it with efforts in training and supporting installers.
A very interesting part of Plejd’s distribution puzzle is the Elsäkerhetsverket in Sweden, or the Electrical Safety Authority. Plejd distributes its products exclusively via professional electricians due to strict local regulations. In Plejd’s core markets —Sweden, Norway, and Finland — DIY electrical work is not permitted. The Electrical Safety Authorities mandate that installations like dimmers or smart lighting must be performed by certified electricians. As a result, Plejd’s go-to-market strategy focuses on empowering professional installers and positioning itself as the primary supplier within the electrical trade.
Shelly’s best-selling products are smart relays and switches that transform traditional lights and outlets into smart-controlled devices. The flagship product, Shelly 1, along with variations like Shelly 1PM (which includes power monitoring) and Shelly 2PM (with dual-channel), are key to the company’s success. Since launch of sales in 2018, Shelly has sold over 23 million devices, with 9 million sold in the past 12 months alone. The company’s offerings also include smart plugs, dimmers, and sensors, all designed to retrofit into existing systems with ease. The product portfolio and expanding ecosystem spans to over 92 SKUs and support both DIY consumers and professional integrators.
When it comes to distribution channels, Shelly employs a hybrid distribution strategy addressed to both DIY consumers and professional installers. On the consumer side, Shelly products are sold through a broad network of distributors and retailers – about 40 distribution partners (including major outlets like Amazon and home-improvement stores such as Bauhaus) as of 2023, with plans to expand to 100+ distributors in 2025.
This retail presence targets DIY customers who install Shelly devices themselves.
At the same time, Shelly is rapidly growing its B2B channel: about 90% of revenue comes via B2B clients (distributors/resellers) and only ~10% is direct consumer sales – reflecting that even many “DIY” sales are conducted via partner retailers. Shelly has been adding electrical wholesalers and installer networks to reach the professional market: for instance, the company is negotiating a listing with a major electrical wholesaler to get Shelly devices into electrician supply catalogs. In 2024 Shelly launched the Installer Certification Program, enrolling 1,200+ installers within a year (primarily in DACH and Nordic regions). This omnichannel approach ensures Shelly products are widely accessible (online, in stores, and via installers), supporting the company’s global expansion.
Financials
Without diving into complex technicalities, let’s take a closer look at how Shelly and Plejd stack up financially. From market valuations to growth and efficiency metrics, this section breaks down the numbers of key essence to investor interest.
| Metric |  |  |
| Net Sales Revenue FY2020 | € 20.77m | € 23.69m |
| Net Sales Revenue FY2024 | € 57.72m | € 106.71m |
| Revenue Growth | ~29% | ~47% |
| Employees 2024 | 207 | 277 |
| Revenue per Employee 2024 | € 279k | € 399k |
| EBITDA | € 17.659m | € 26.812m |
| EBIT | € 11.723m | € 25.795m |
| Net Profit | € 9.121m | € 22.879m |
Note: The EUR/SEK exchange rates are sourced from https://www.oanda.com/currency-converter/en/?from=SEK&to=EUR&amount=1 and reflect historical values as of 31.12.2020 and 31.12.2024. The EUR/BGN exchange rate is fixed at 1 EUR = 1.95583 BGN under the ERM II mechanism.
Back in 2020, Shelly and Plejd were nearly neck-and-neck in revenue terms, with only a slight edge separating them. Fast forward to 2024, and Shelly has relatively doubled Plejd’s financial output across several key metrics.
Shelly not only achieved higher total revenue (€106.7M vs. €57.7M) and a greater revenue growth rate (~47% vs. ~29%), but it also demonstrated superior operational efficiency — managing to derive more value per employee and, crucially, converting a much larger share of its earnings into actual profit.
While Plejd converts approximately 52% of its EBITDA into net profit, Shelly retains a striking 85%, underscoring a much tighter grip on cost management and operational efficiency. This stark difference reflects not only Shelly’s ability to scale effectively, but also its superior profitability discipline across the income statement—from gross margins to SG&A optimization.
Such a high EBITDA-to-net profit conversion rate suggests that Shelly is not merely growing, but growing intelligently and profitably, ensuring that gains at the top line translate into meaningful returns for shareholders. This financial robustness — paired with its larger revenue base and faster growth — cements Shelly’s dominant position in the sector and highlights its structural advantage in value creation.
Valuation and Performance
| Metric |  |  |
| Price per share (31/07/25) | SEK 960 / € 85.90 | BGN 96.81 / € 49.50 |
| Market Cap | ~€960 million | ~€896 million |
| P/E LTM | 74 | 37 |
| P/B LTM | 17 | 11 |
| P/S LTM | 14 | 8 |
| EV | SEK 10.592b / € 949m | BGN 1.721b / € 880m |
| EV/EBITDA LTM | 41x | 33x |
Note: Prices in SEK are courtesy of MarketWatch . Prices in EUR derived from Boerse Frankfurt – Plejd ; Shelly – Xetra. Plejd LTM multiples calculated starting from Q2 2025. Shelly LTM multiples calculated starting from Q1 2025.
There is a clear valuation gap between the two companies. Plejd is currently trading at a lofty P/E ratio of approximately 74, reflecting high growth expectations and a premium market position in the Nordics. In contrast, Shelly trades at a much more modest P/E ratio of around 37, despite delivering stronger revenue growth, a broader international footprint, and higher earnings efficiency.
This wide divergence suggests that Shelly may be significantly undervalued, especially when considering its consistent profitability, expanding global reach, and strong bottom-line conversion. The company’s current market pricing could present an attractive entry point for value-focused investors looking for upside potential not yet fully reflected in the stock.
Sources: Plejd Annual Report FY2020, Plejd Interim Report 24Q1, Plejd Interim Report 24Q2, Plejd Interim Report 24Q3, Plejd Annual Report FY2024, Plejd Interim Report 25Q1, Plejd Interim Report 25Q2Shelly Annual Report FY2020, Shelly Interim Report 24Q1 , Shelly Interim Report 24Q2, Shelly Interim Report 24Q3, Shelly Annual Report FY2024, Shelly Interim Report 25Q1
Conclusion
Value Discovery: Shelly Group – A European IoT Leader Hidden in Plain Sight
Shelly Group is a European IoT innovator and an export-driven tech player with global reach and strong fundamentals. Yet, due to its initial listing on a smaller European exchange (Bulgarian Stock Exchange – BSE), the company remains under the radar of many institutional and retail investors across Europe.
This geographical “mismatch” is not a risk, moreover Bulgaria’s entry into the Eurozone as of January 1, 2026. Investors aren’t pricing Shelly based on its fundamentals and quality while compared with Plejd. Shelly has become tradable on XETRA in 2024 thus exposing the opportunity to a wider investment community. Shelly increased its liquidity 6x in the last 12 months (ending June 2025) compared to a year before. Shelly is a textbook example of a small cap company with great fundamentals, excellent management execution, undervalued to its peers.
Liquidity & Market Inefficiency: Same Quality, Different Market Visibility
One of the key differences between Shelly Group and Plejd lies not in quality or growth potential, but in market structure and liquidity.
Plejd, listed on Spotlight Select, benefits from being part of a recognized European growth platform. It is accessible to thousands of retail and institutional investors across the Nordics and beyond.
Shelly, meanwhile, has launched its prime trading venue on the Bulgarian Stock Exchange, a market with limited visibility, especially outside Southeast Europe. Despite Shelly being dually listed on Deutsche Boerse, the number of active investors is relatively small and analyst coverage remains minuscular. As a result, stock discovery is slower and often disconnected from the company’s operational performance and its global footprint.
In essence, we are looking at two companies of almost comparable quality, but with vastly different retail and institutional market visibility. This builds visible discounts in valuation for Shelly. For long-term and value investors, such inefficiencies are great opportunity. Coming from the maxim “liquidity attracts liquidity”, over time, capital tends to gravitate towards quality, and when it does, the valuation adjustment can be substantial.
Final Words
Both Shelly and Plejd are standout players in Europe’s smart home tech space. Plejd excels in operational depth and professional-grade market penetration, especially in highly regulated Nordic environments. Shelly, meanwhile, offers a more diversified and expansive strategy, with strong global growth and product breadth.
For Scandinavian investors familiar with Plejd’s premium valuation, Shelly offers a compelling alternative — a higher-growth company with stronger margins, available at approximately 50% the price of Plejd.
Given Shelly’s robust revenue growth, global scalability, and notably low P/E ratio, it could be worthwhile to explore the company as a potentially undervalued asset in the smart home sector. While this isn’t a recommendation, the data suggests there may be untapped value for investors that want access to growth and historically sound financial performance at a reasonable price.
Disclaimer
This publication is produced by Viktor Manev as an individual and, for avoidance of doubt, not acting in his capacity of IMPETUS Capital’s managing director, is completed on August 6, 2025. Viktor Manev, via IMPETUS Capital and managed by the latter companies, currently helds shares of Shelly Group SE (ISIN: BG1100003166) which may constitute potential conflict of interest. An independent member of the board of Shelly Group SE is a shareholder and a managing partner in IMPETUS Capital which may constitute potential conflict of interest.
This publication, produced by Viktor Manev, is first disseminated by IMPETUS Capital on August 7, 2025 with modification thereafter by the author. The content published by IMPETUS Capital — including articles, podcasts, and newsletters — reflects the personal opinions of the authors affiliated with the firm and does not represent the official views of IMPETUS Capital, its subsidiaries, or affiliates. This content is provided for informational purposes only and should not be construed as investment advice, a recommendation to buy or sell any security, digital asset (such as cryptocurrency), or other financial instruments, nor as a basis for making investment decisions. It does not constitute a research report. Any third-party information referenced does not necessarily reflect the views of IMPETUS Capital or its related entities. All investors should execute their own due diligence in making investment decisions. All investments involve risk, including the potential loss of capital. Past performance is not indicative of future results.
