HLSE:CGCBV

Stock Analysis Report

Executive Summary

Cargotec Corporation provides cargo and load handling solutions worldwide.

Rewards

PE ratio (16.8x) is below the Finnish market (20.8x)

Earnings are forecast to grow 23.96% per year

Earnings grew by 23.5% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record



Snowflake Analysis

Solid track record, good value and pays a dividend.


Similar Companies

Navistar International

NYSE:NAV

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.3%

CGCBV

-1.3%

FI Machinery

-0.5%

FI Market


1 Year Return

10.7%

CGCBV

19.4%

FI Machinery

9.2%

FI Market

Return vs Industry: CGCBV underperformed the Finnish Machinery industry which returned 21.5% over the past year.

Return vs Market: CGCBV exceeded the Finnish Market which returned 11.5% over the past year.


Shareholder returns

CGCBVIndustryMarket
7 Day-2.3%-1.3%-0.5%
30 Day5.7%1.7%3.2%
90 Day2.9%5.5%6.6%
1 Year14.6%10.7%24.0%19.4%14.2%9.2%
3 Year-20.5%-26.6%27.9%15.5%32.4%16.4%
5 Year33.3%17.8%53.8%30.1%51.2%22.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CGCBV (€32.16) is trading above our estimate of fair value (€31.22)

Significantly Below Fair Value: CGCBV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CGCBV is good value based on its PE Ratio (17.7x) compared to the Machinery industry average (17.8x).

PE vs Market: CGCBV is good value based on its PE Ratio (16.8x) compared to the Finnish market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: CGCBV is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CGCBV is good value based on its PB Ratio (1.4x) compared to the FI Machinery industry average (2.1x).


Next Steps

Future Growth

How is Cargotec forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGCBV's forecast earnings growth (24% per year) is above the savings rate (-0.1%).

Earnings vs Market: CGCBV's earnings (24% per year) are forecast to grow faster than the Finnish market (14.6% per year).

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

Revenue vs Market: CGCBV's revenue (1.6% per year) is forecast to grow slower than the Finnish market (1.9% per year).

High Growth Revenue: CGCBV's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CGCBV's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Cargotec performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGCBV has high quality earnings.

Growing Profit Margin: CGCBV's current net profit margins (3.5%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: CGCBV's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: CGCBV's earnings growth over the past year (23.5%) exceeds its 5-year average (2.4% per year).

Earnings vs Industry: CGCBV earnings growth over the past year (23.5%) exceeded the Machinery industry 4.5%.


Return on Equity

High ROE: CGCBV's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cargotec's financial position?


Financial Position Analysis

Short Term Liabilities: CGCBV's short term assets (€2.2B) exceed its short term liabilities (€1.6B).

Long Term Liabilities: CGCBV's short term assets (€2.2B) exceed its long term liabilities (€1.2B).


Debt to Equity History and Analysis

Debt Level: CGCBV's debt to equity ratio (92.3%) is considered high.

Reducing Debt: CGCBV's debt to equity ratio has increased from 83.7% to 92.3% over the past 5 years.

Debt Coverage: CGCBV's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: CGCBV's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: CGCBV's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

3.35%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.1%markettop25%4.7%industryaverage3.1%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: CGCBV's dividend (3.42%) is higher than the bottom 25% of dividend payers in the Finnish market (2.13%).

High Dividend: CGCBV's dividend (3.42%) is low compared to the top 25% of dividend payers in the Finnish market (4.68%).


Stability and Growth of Payments

Stable Dividend: CGCBV's dividend payments have been volatile in the past 10 years.

Growing Dividend: CGCBV's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.3%), CGCBV's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CGCBV's dividends in 3 years are forecast to be well covered by earnings (48.6% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Mika Vehviläinen (58yo)

6.8yrs

Tenure

€3,362,702

Compensation

Mr. Mika Vehviläinen, M.Sc (Econ and BA), HSE, has been Chief Executive Officer and President of Cargotec Corporation since March 5, 2016 and March 1, 2013 respectively. Mr. Vehviläinen was the Chairman of ...


CEO Compensation Analysis

Compensation vs Market: Mika's total compensation ($USD3.74M) is above average for companies of similar size in the Finnish market ($USD1.40M).

Compensation vs Earnings: Mika's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: CGCBV's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

60yo

Average Age

Experienced Board: CGCBV's board of directors are considered experienced (6.8 years average tenure).


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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mika Vehviläinen (58yo)

    CEO & President

    • Tenure: 6.8yrs
    • Compensation: €3.36m
  • Soili Mäkinen (59yo)

    Chief Information Officer

    • Mikko Puolakka (50yo)

      Executive VP

      • Tenure: 3.7yrs
    • Hanna-Maria Heikkinen (40yo)

      Vice President of Investor Relations

      • Tenure: 3.3yrs
    • Mikael Laine (55yo)

      Senior Vice President of Strategy

      • Tenure: 5.8yrs
    • Stephen Foster

      Senior Vice President of Finance

      • Mikko Pelkonen (49yo)

        Senior Vice President of Human Resources

        • Tenure: 6.4yrs
      • Michel van Roozendaal (56yo)

        President of MacGregor

        • Tenure: 0.8yrs
      • Carina Geber-Teir (47yo)

        Senior Vice President of Communications

        • Tenure: 1.3yrs
      • Camilla Orko

        Vice President of Ethics & Compliance

        • Tenure: 0.8yrs

      Board Members

      • Johanna Lamminen (53yo)

        Independent Director

        • Tenure: 2.8yrs
      • Jorma Eloranta (68yo)

        Independent Non-Executive Director

        • Tenure: 6.8yrs
      • Teuvo Salminen (65yo)

        Independent Non-Executive Director

        • Tenure: 10yrs
      • Tapio Hakakari (66yo)

        Independent Vice Chairman

        • Tenure: 11yrs
      • Peter Immonen (60yo)

        Independent Director

        • Tenure: 14.5yrs
      • Ilkka Herlin (60yo)

        Independent Chairman

        • Tenure: 15yrs
      • Heikki Soljama (65yo)

        Independent Director

        • Tenure: 3.8yrs
      • Kaisa Olkkonen (55yo)

        Independent Director

        • Tenure: 3.8yrs
      • Teresa Kemppi-Vasama (49yo)

        Independent Director

        • Tenure: 2.8yrs

      Company Information

      Cargotec Corporation's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Cargotec Corporation
      • Ticker: CGCBV
      • Exchange: HLSE
      • Founded:
      • Industry: Industrial Machinery
      • Sector: Capital Goods
      • Market Cap: €2.190b
      • Shares outstanding: 64.40m
      • Website: https://www.cargotec.com

      Number of Employees


      Location

      • Cargotec Corporation
      • Porkkalankatu 5
      • Helsinki
      • Uusimaa
      • 180
      • Finland

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CGCBVHLSE (OMX Nordic Exchange Helsinki)YesClass B SharesFIEURJun 2005
      C1CDB (Deutsche Boerse AG)YesClass B SharesDEEURJun 2005
      0MGHLSE (London Stock Exchange)YesClass B SharesGBEURJun 2005
      CYJB.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJun 2005
      CGCBVHBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBEURJun 2005
      CYJB.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

      Biography

      Cargotec Corporation provides cargo and load handling solutions worldwide. It operates in three segments: Kalmar, Hiab, and MacGregor. The Kalmar segment provides cargo handling equipment and automated terminal solutions, software, and services for ports, terminals, distribution centers, and various industries; straddle and shuttle carriers, terminal tractors, yard cranes, ship-to-shore cranes, reachstackers, empty container handlers and forklift trucks, Navis terminal operating systems, and Bromma spreaders. The Hiab segment offers loader cranes, truck mounted forklifts, forestry and recycling cranes, hooklifts, skiploaders, and tail lifts, as well as services and spare parts, which are used in various sectors of on-road transport and delivery. The MacGregor segment offers engineering solutions and lifetime maintenance and service solutions for merchant cargo and passenger vessels; offshore oil and gas and renewable energy sector; fishing, research, and marine-resource vessels; naval operations and logistics vessels; and ports and terminals under the MacGregor, Hatlapa, Porsgrunn, Pusnes, Triplex, and Flintstone brand names. The company serves ports, terminals, distribution centers, fleet operators, single truck owners, and small fleet owners. Cargotec Corporation is headquartered in Helsinki, Finland. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/27 20:51
      End of Day Share Price2020/01/27 00:00
      Earnings2019/09/30
      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.