DB:38P

Stock Analysis Report

Executive Summary

Pihlajalinna Oyj provides social and healthcare services for private persons, businesses, insurance companies, municipalities, and hospital districts in Finland.

Rewards

Trading at 41.7% below its fair value

Earnings are forecast to grow 30.44% per year

Risk Analysis

Large one-off items impacting financial results



Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 38P has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

38P

1.9%

DE Healthcare

1.7%

DE Market


1 Year Return

50.3%

38P

4.4%

DE Healthcare

15.0%

DE Market

Return vs Industry: 38P exceeded the German Healthcare industry which returned 4.4% over the past year.

Return vs Market: 38P exceeded the German Market which returned 15% over the past year.


Shareholder returns

38PIndustryMarket
7 Day-0.1%1.9%1.7%
30 Day-0.5%4.1%0.8%
90 Day1.6%4.7%3.7%
1 Year51.8%50.3%6.3%4.4%18.5%15.0%
3 Year-10.5%-13.3%-20.1%-23.0%17.1%6.9%
5 Yearn/a13.3%7.1%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

41.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 38P (€15.24) is trading below our estimate of fair value (€26.13)

Significantly Below Fair Value: 38P is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 38P is poor value based on its PE Ratio (101.7x) compared to the Healthcare industry average (39.2x).

PE vs Market: 38P is poor value based on its PE Ratio (101.7x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 38P is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: 38P is overvalued based on its PB Ratio (3.4x) compared to the DE Healthcare industry average (1.5x).


Next Steps

Future Growth

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

30.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 38P's forecast earnings growth (30.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: 38P's earnings (30.4% per year) are forecast to grow faster than the German market (13.3% per year).

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

Revenue vs Market: 38P's revenue (3.6% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 38P's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 38P's Return on Equity is forecast to be low in 3 years time (17.2%).


Next Steps

Past Performance

How has Pihlajalinna Oyj performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 38P has a large one-off loss of €6.6M impacting its December 31 2019 financial results.

Growing Profit Margin: 38P's current net profit margins (0.7%) are lower than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: 38P's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: 38P's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 38P had negative earnings growth (-11.1%) over the past year, making it difficult to compare to the Healthcare industry average (-6.8%).


Return on Equity

High ROE: 38P's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pihlajalinna Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: 38P's short term assets (€76.3M) do not cover its short term liabilities (€124.9M).

Long Term Liabilities: 38P's short term assets (€76.3M) do not cover its long term liabilities (€207.4M).


Debt to Equity History and Analysis

Debt Level: 38P's debt to equity ratio (2.9%) is considered satisfactory.

Reducing Debt: 38P's debt to equity ratio has reduced from 693.6% to 2.9% over the past 5 years.

Debt Coverage: 38P's debt is well covered by operating cash flow (1187.1%).

Interest Coverage: 38P's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Inventory Level: 38P has a high level of physical assets or inventory.

Debt Coverage by Assets: 38P's debt is covered by short term assets (assets are 24.6x debt).


Next Steps

Dividend

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

2.04%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage1.8%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 38P's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 38P's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 38P's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 38P's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 38P is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 38P's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Joni Raimo Aaltonen (49yo)

2.2yrs

Tenure

€285,436

Compensation

Mr. Joni Raimo Mikael Aaltonen has been Chief Executive Officer of Pihlajalinna Oyj since December 11, 2017 and has been its Chairman of the Management Team since August 15, 2019. He was Director of VMP Oy ...


CEO Compensation Analysis

Compensation vs Market: Joni Raimo's total compensation ($USD309.25K) is below average for companies of similar size in the German market ($USD801.26K).

Compensation vs Earnings: Joni Raimo's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joni Raimo Aaltonen
CEO & Chairman of the Management Team2.2yrs€285.44k0.36% 1.3m
Tarja Kristiina Rantala
Chief Financial Officer0.5yrsno datano data
Teija Kulmala
Chief Operating Officer0.5yrsno datano data
Taina Erkkilä
Head of Communications & IR1.1yrsno datano data
Marko Savolainen
General Counsel1.2yrsno datano data
Pauli Waroma
Head of Marketing & Communications1.2yrsno datano data
Elina Heliö
Head of Human Resources0.8yrsno datano data
Minna Elomaa
Head of Business Operations3.1yrsno datano data
Tero Järvinen
Head of Business Operations1.9yrsno data0.0025% 8.6k
Sanna Määttänen
Head of Service Development0yrsno data0.052% 178.8k

1.2yrs

Average Tenure

49yo

Average Age

Experienced Management: 38P's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Seija Turunen
Independent Director4.1yrs€38.00kno data
Leena Niemistö
Independent Vice-Chairman0.8yrs€44.00k3.11% 10.7m
Hannu Juvonen
Independent Director0.8yrsno datano data
Matti Jaakola
Independent Director0.8yrsno datano data
Mikko Wirén
Chairman of the Board3.5yrs€258.54kno data
Kati Sulin
Independent Director1.8yrs€28.50kno data
Mika Manninen
Independent Director0.8yrsno datano data

0.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 38P's board of directors are not considered experienced ( 0.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Pihlajalinna Oyj
  • Ticker: 38P
  • Exchange: DB
  • Founded: 2001
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: €345.636m
  • Shares outstanding: 22.62m
  • Website: https://www.pihlajalinna.fi

Number of Employees


Location

  • Pihlajalinna Oyj
  • Kehräsaari B
  • Tampere
  • Pirkanmaa
  • 33200
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PIHLISHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURJun 2015
PIHLIhBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURJun 2015
0R8HLSE (London Stock Exchange)YesShare CapitalGBEURJun 2015
38PDB (Deutsche Boerse AG)YesShare CapitalDEEURJun 2015
PIHL.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDJun 2015

Biography

Pihlajalinna Oyj provides social and healthcare services for private persons, businesses, insurance companies, municipalities, and hospital districts in Finland. It offers emergency and on-call, occupational healthcare, dental care, social and healthcare outsourcing, health center outsourcing, responsible doctor, remote consultation, imaging, and staffing services, as well as housing services for the elderly; and primary and specialized care services, which include orthopedics and surgery, internal medicine, neurology, cardiology, geriatrics, gynecology, psychiatry, radiology, and general medicine specialties. The company also operates fitness and reception centers; and books appointment with general practitioners and specialists. It operates approximately 110 healthcare centers, 4 municipal outsourcing arrangements, and 2 partial outsourcing arrangements. Pihlajalinna Oyj was founded in 2001 and is headquartered in Tampere, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:23
End of Day Share Price2020/02/17 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.