DB:C7O

Stock Analysis Report

Executive Summary

Caverion Oyj, together with its subsidiaries, designs, builds, operates, and maintains technical solutions for buildings, industries, and infrastructures in Northern, Central, and Eastern Europe.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: C7O's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.1%

C7O

-7.6%

DE Commercial Services

-5.7%

DE Market


1 Year Return

15.0%

C7O

-11.1%

DE Commercial Services

6.1%

DE Market

Return vs Industry: C7O exceeded the German Commercial Services industry which returned -11.1% over the past year.

Return vs Market: C7O exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

C7OIndustryMarket
7 Day-8.1%-7.6%-5.7%
30 Day-24.9%-9.3%-5.7%
90 Day-16.7%-5.5%-3.6%
1 Year16.1%15.0%-7.9%-11.1%9.3%6.1%
3 Year-13.7%-14.5%3.5%-5.5%8.9%-0.7%
5 Year-27.7%-32.2%-4.5%-17.9%13.6%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Caverion Oyj undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: C7O (€5.75) is trading below our estimate of fair value (€16.18)

Significantly Below Fair Value: C7O is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: C7O is poor value based on its PE Ratio (43.4x) compared to the Commercial Services industry average (31.6x).

PE vs Market: C7O is poor value based on its PE Ratio (43.4x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: C7O is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: C7O is overvalued based on its PB Ratio (3.6x) compared to the DE Commercial Services industry average (3.1x).


Next Steps

Future Growth

How is Caverion Oyj forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C7O's forecast earnings growth (37% per year) is above the savings rate (-0.4%).

Earnings vs Market: C7O's earnings (37% per year) are forecast to grow faster than the German market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: C7O's revenue (5% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: C7O's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: C7O's Return on Equity is forecast to be high in 3 years time (26.4%)


Next Steps

Past Performance

How has Caverion Oyj performed over the past 5 years?

-45.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C7O has high quality earnings.

Growing Profit Margin: C7O became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: C7O's earnings have declined by -45.5% per year over the past 5 years.

Accelerating Growth: C7O has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: C7O has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (10.8%).


Return on Equity

High ROE: C7O's Return on Equity (9.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Caverion Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: C7O's short term assets (€675.0M) do not cover its short term liabilities (€740.9M).

Long Term Liabilities: C7O's short term assets (€675.0M) exceed its long term liabilities (€311.5M).


Debt to Equity History and Analysis

Debt Level: C7O's debt to equity ratio (54.6%) is considered high.

Reducing Debt: C7O's debt to equity ratio has reduced from 62% to 54.6% over the past 5 years.

Debt Coverage: C7O's debt is well covered by operating cash flow (103.5%).

Interest Coverage: C7O's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: C7O has a low level of unsold assets or inventory.

Debt Coverage by Assets: C7O's debt is covered by short term assets (assets are 5.4x debt).


Next Steps

Dividend

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

1.33%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Caverion Oyj before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.8%industryaverage3.6%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: C7O's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: C7O's dividend (1.33%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: C7O has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: C7O has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.8%), C7O's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: C7O's dividends in 3 years are forecast to be well covered by earnings (47.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Ari Lehtoranta (56yo)

3.1yrs

Tenure

€804,035

Compensation

Mr. Ari Tapio Lehtoranta, M.Sc. (Eng.), serves as the Chief Executive Officer and President of Nokian Tyres, Inc. Mr. Lehtoranta has been Chief Executive Officer, President and Member of Management Board a ...


CEO Compensation Analysis

Compensation vs Market: Ari's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD1.20M).

Compensation vs Earnings: Ari's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ari Lehtoranta
President3.1yrs€804.04k0.58% 4.9m
Martti Ala-Härkönen
CFO of Finance2.6yrsno data0.076% 635.0k
Jarno Hacklin
VP of Project Management & Execution Development and Member of Management Board6.7yrsno datano data
Knut Gaaserud
Executive VP6.7yrsno data0.049% 410.0k
Manfred Simmet
Senior VP6.7yrsno data0.038% 319.8k
Klas Tocklin
Executive VP3.5yrsno datano data
Ville Tamminen
Executive VP of Caverion Finland & Member of Management Board3.1yrsno data0.049% 413.0k
Anne Viitala
Head of Legal & Compliance3.1yrsno data0.037% 306.9k
Minna Schrey-Hyppänen
Head of Human Resources & Safety and Member of Management Board2.7yrsno data0.037% 311.3k
Thomas Hietto
Deputy CEO2.6yrsno data0.065% 542.4k

3.1yrs

Average Tenure

53yo

Average Age

Experienced Management: C7O's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Antti Herlin
Independent Director2.9yrs€37.81k15.07% 126.5m
Joachim Hallengren
Independent Director2.9yrs€43.57k0.012% 104.9k
Thomas Hinnerskov
Independent Director2.9yrs€45.22k0.029% 246.8k
Anna Hyvönen
Director7.1yrs€55.60k0.0015% 12.3k
Jussi Aho
Director2.9yrs€44.12kno data
Markus Ehrnrooth
Vice Chairman2.9yrs€69.33kno data
Mats Paulsson
Chairman of the Board0.9yrsno datano data

2.9yrs

Average Tenure

51yo

Average Age

Experienced Board: C7O's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Caverion Oyj
  • Ticker: C7O
  • Exchange: DB
  • Founded: 1912
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: €839.556m
  • Shares outstanding: 136.07m
  • Website: https://www.caverion.com

Number of Employees


Location

  • Caverion Oyj
  • Torpantie 2
  • Vantaa
  • Uusimaa
  • 1650
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAV1VHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURJul 2013
0QFCLSE (London Stock Exchange)YesShare CapitalGBEURJul 2013
CAV1VHBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURJul 2013
C7ODB (Deutsche Boerse AG)YesShare CapitalDEEURJul 2013

Biography

Caverion Oyj, together with its subsidiaries, designs, builds, operates, and maintains technical solutions for buildings, industries, and infrastructures in Northern, Central, and Eastern Europe. The company offers its services in the areas of advisory, design and engineering, project management and execution, technical and industrial maintenance, and managed services. It serves the public sector, various industries, real estate investors and developers, real estate users, and general contractors. Caverion Oyj was founded in 1912 and is headquartered in Vantaa, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:40
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.