DB:RO3

Stock Analysis Report

Executive Summary

Robit Oyj manufactures and sells drilling consumables for applications in mining, construction and contracting, tunneling, and well drilling industries.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.

Share Price & News

How has Robit Oyj's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

RO3

1.0%

DE Machinery

2.8%

DE Market


1 Year Return

-44.4%

RO3

-17.4%

DE Machinery

2.9%

DE Market

Return vs Industry: RO3 underperformed the German Machinery industry which returned -17.4% over the past year.

Return vs Market: RO3 underperformed the German Market which returned 2.9% over the past year.


Share holder returns

RO3IndustryMarket
7 Day2.1%1.0%2.8%
30 Day-2.2%-6.2%-0.2%
90 Day-28.6%-7.4%0.9%
1 Year-44.4%-44.4%-14.8%-17.4%6.2%2.9%
3 Yearn/a-19.6%-25.4%18.2%8.0%
5 Yearn/a19.9%5.8%43.1%23.6%

Price Volatility Vs. Market

How volatile is Robit Oyj's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Robit Oyj undervalued based on future cash flows and its price relative to the stock market?

0.79x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: RO3 (€1.99) is trading above our estimate of fair value (€1.46)

Significantly Undervalued: RO3 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: RO3 is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: RO3 is unprofitable, so we can't compare its PE Ratio to the German market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate RO3's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: RO3 is good value based on its PB Ratio (0.8x) compared to the DE Machinery industry average (1.3x).


Next Steps

Future Growth

How is Robit Oyj expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

117.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: RO3 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RO3 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RO3 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RO3's revenue (6.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: RO3's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: RO3's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

Past Performance

How has Robit Oyj performed over the past 5 years?

-87.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RO3 is unprofitable, and losses have increased over the past 5 years at a rate of -87% per year.

Accelerating Growth: Unable to compare RO3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RO3 is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-9.7%).


Return on Equity

High ROE: RO3 has a negative Return on Equity (-56.56%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RO3 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RO3 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Robit Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: RO3's short term assets (€68.0M) exceeds its short term liabilities (€22.7M)

Long Term Liabilities: RO3's short term assets (68.0M) exceeds its long term liabilities (32.6M)


Debt to Equity History and Analysis

Debt Level: RO3's debt to equity ratio (59.5%) is considered high

Reducing Debt: RO3's debt to equity ratio has reduced from 69.9% to 59.5% over the past 5 years.


Balance Sheet

Inventory Level: RO3 has a high level of physical assets or inventory.

Debt Coverage by Assets: RO3's debt is covered by short term assets (assets are 2.113230x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RO3 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RO3 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Robit Oyj's current dividend yield, its reliability and sustainability?

1.49%

Expected Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.9%industryaverage2.4%forecastin3Years1.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate RO3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RO3's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if RO3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RO3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RO3 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RO3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Robit Oyj's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Tommi Lehtonen (49yo)

0.4yrs

Tenure

0

Mr. Tommi Lehtonen M.Sc. serves as Group Chief Executive Officer of Robit Oyj since May 01, 2019. Mr. Lehtonen served as an Executive Vice President of Robit Plc since January 18, 2018 until May 01, 2019.  ...


Management Age and Tenure

2.5yrs

Average Tenure

53yo

Average Age

Experienced Management: RO3's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

54.5yo

Average Age

Experienced Board: RO3's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jaana Rinne (57yo)

    Group HR Director

    • Tenure: 2.1yrs
  • David Delorme

    Vice President of Americas and General Manager of Robit Inc

    • Tenure: 0yrs
  • Ilkka Miettinen (56yo)

    Group Chief Financial Officer

    • Tenure: 2.7yrs
  • Jari Gadd (53yo)

    Secretary

    • Tenure: 4.2yrs
  • Anni Leinonen (35yo)

    Group Controller

    • Tenure: 2.5yrs
  • Tommi Lehtonen (49yo)

    Group Chief Executive Officer

    • Tenure: 0.4yrs
  • Jukka Pihamaa (53yo)

    Head of Supply Chain

    • Tenure: 0yrs

Board Members

  • Harri Sjöholm (65yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: €34.90k
  • Kai Öistämö (55yo)

    Board Advisor

    • Tenure: 4yrs
  • Mammu Kaario (56yo)

    Vice Chairman

    • Tenure: 2.8yrs
    • Compensation: €44.28k
  • Hannu-Kalle Reponen (54yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: €46.00k
  • Mikko Kuitunen (39yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: €9.29k
  • Kai Seikku (54yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: €40.00k

Company Information

Robit Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Robit Oyj
  • Ticker: RO3
  • Exchange: DB
  • Founded: 1985
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: €42.414m
  • Shares outstanding: 21.00m
  • Website: https://www.robitgroup.com

Number of Employees


Location

  • Robit Oyj
  • Vikkiniityntie 9
  • Lempäälä
  • Pirkanmaa
  • 33880
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROBITHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURMay 2015
RO3DB (Deutsche Boerse AG)YesShare CapitalDEEURMay 2015
ROBITHBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURMay 2015

Biography

Robit Oyj manufactures and sells drilling consumables for applications in mining, construction and contracting, tunneling, and well drilling industries. It operates through Top Hammer, Down the Hole (DTH), ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 00:34
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)