HLSE:CGCBV

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Cargotec Corporation provides cargo and load handling solutions worldwide. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

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 is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CGCBV's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.0%

CGCBV

-1.3%

FI Machinery

-1.9%

FI Market


1 Year Return

67.7%

CGCBV

18.5%

FI Machinery

16.7%

FI Market

Return vs Industry: CGCBV exceeded the Finnish Machinery industry which returned 18.5% over the past year.

Return vs Market: CGCBV exceeded the Finnish Market which returned 16.7% over the past year.


Shareholder returns

CGCBVIndustryMarket
7 Day2.0%-1.3%-1.9%
30 Day21.5%4.2%-0.9%
90 Day30.1%5.2%3.5%
1 Year76.2%67.7%29.9%18.5%25.3%16.7%
3 Year8.5%-2.7%35.8%15.9%34.9%11.4%
5 Year71.1%46.4%72.9%36.3%74.2%35.6%

Long-Term 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?

6.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CGCBV (€43.6) is trading below our estimate of fair value (€46.74)

Significantly Below Fair Value: CGCBV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CGCBV is poor value based on its PE Ratio (346.7x) compared to the FI Machinery industry average (34.2x).

PE vs Market: CGCBV is poor value based on its PE Ratio (346.7x) compared to the Finnish market (27.2x).


Price to Earnings Growth Ratio

PEG Ratio: CGCBV is poor value based on its PEG Ratio (8.5x)


Price to Book Ratio

PB vs Industry: CGCBV is good value based on its PB Ratio (2.2x) compared to the FI Machinery industry average (2.8x).


Next Steps

Future Growth

How is Cargotec forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

40.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGCBV's forecast earnings growth (40.8% per year) is above the savings rate (0.3%).

Earnings vs Market: CGCBV's earnings (40.8% per year) are forecast to grow faster than the Finnish market (19.7% per year).

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

Revenue vs Market: CGCBV's revenue (5.2% per year) is forecast to grow faster than the Finnish market (3.6% per year).

High Growth Revenue: CGCBV's revenue (5.2% 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 (13.3%).


Next Steps

Past Performance

How has Cargotec performed over the past 5 years?

-23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGCBV has a large one-off loss of €134.0M impacting its December 31 2020 financial results.

Growing Profit Margin: CGCBV's current net profit margins (0.2%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: CGCBV's earnings have declined by 23.7% per year over the past 5 years.

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

Earnings vs Industry: CGCBV had negative earnings growth (-90.9%) over the past year, making it difficult to compare to the Machinery industry average (-32.9%).


Return on Equity

High ROE: CGCBV's Return on Equity (0.6%) is considered low.


Next Steps

Financial Health

How is Cargotec's financial position?


Financial Position Analysis

Short Term Liabilities: CGCBV's short term assets (€2.0B) exceed its short term liabilities (€1.4B).

Long Term Liabilities: CGCBV's short term assets (€2.0B) exceed its long term liabilities (€1.2B).


Debt to Equity History and Analysis

Debt Level: CGCBV's debt to equity ratio (78.1%) is considered high.

Reducing Debt: CGCBV's debt to equity ratio has increased from 62% to 78.1% over the past 5 years.

Debt Coverage: CGCBV's debt is well covered by operating cash flow (23.6%).

Interest Coverage: CGCBV's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.48%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CGCBV's dividend (2.48%) is higher than the bottom 25% of dividend payers in the Finnish market (1.88%).

High Dividend: CGCBV's dividend (2.48%) is low compared to the top 25% of dividend payers in the Finnish market (3.97%).


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 high payout ratio (858.8%), CGCBV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CGCBV's dividends in 3 years are forecast to be well covered by earnings (38% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Mika Vehviläinen (59 yo)

7.92yrs

Tenure

€1,637,695

Compensation

Mr. Mika Vehviläinen, M.Sc (Econ and BA), HSE, has been Chief Executive Officer and President of Cargotec Czech Republic s.r.o (formerly known as Cargotec Corporation) since March 5, 2016 and March 1, 2013...


CEO Compensation Analysis

Compensation vs Market: Mika's total compensation ($USD1.98M) is about average for companies of similar size in the Finnish market ($USD1.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mika Vehviläinen
CEO & President7.92yrs€1.64m0.19%
€ 5.4m
Mikko Puolakka
Executive VP & CFO4.75yrsno data0.038%
€ 1.1m
Soili Mäkinen
Chief Information Officer & Senior VP of Digitalisationno datano data0.018%
€ 508.6k
Hanna-Maria Heikkinen
Vice President of Investor Relations4.33yrsno datano data
Camilla Orko
Vice President of Ethics & Compliance1.83yrsno datano data
Outi Aaltonen
Senior VPno datano data0.0096%
€ 269.9k
Carina Geber-Teir
Senior Vice President of Communications2.42yrsno data0.0018%
€ 50.0k
Mikko Pelkonen
Senior Vice President of Human Resources7.5yrsno data0.066%
€ 1.8m
Stephen Foster
Senior Vice President of Financeno datano datano data
Mikael Laine
Senior Vice President of Strategy6.83yrsno data0.023%
€ 640.0k
Michel van Roozendaal
President of MacGregor1.83yrsno data0.053%
€ 1.5m
Antti Kaunonen
President of Kalmar Automation Solutions1.83yrsno data0.022%
€ 622.9k

4.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CGCBV's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Johanna Lamminen
Independent Director3.92yrs€59.02k0.0025%
€ 69.9k
Teuvo Salminen
Independent Non-Executive Director11.08yrs€82.70k0.017%
€ 464.8k
Tapio Hakakari
Independent Vice Chairman12.08yrs€81.70k0.25%
€ 7.0m
Peter Immonen
Independent Director15.58yrs€67.02k0.086%
€ 2.4m
Olli Herlin
Independent Chairman16.08yrs€115.16k0.29%
€ 8.1m
Heikki Soljama
Independent Director4.92yrs€58.02k0.0029%
€ 82.6k
Kaisa Olkkonen
Independent Director4.92yrs€68.02k0.0029%
€ 82.6k
Teresa Kemppi-Vasama
Independent Director3.92yrs€65.02k0.0025%
€ 69.9k

8.0yrs

Average Tenure

61yo

Average Age

Experienced Board: CGCBV's board of directors are considered experienced (8 years average tenure).


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

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


Key Information

  • Name: Cargotec Corporation
  • Ticker: CGCBV
  • Exchange: HLSE
  • Founded: 2005
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €2.808b
  • Shares outstanding: 64.41m
  • Website: https://www.cargotec.com

Number of Employees


Location

  • Cargotec Corporation
  • Porkkalankatu 5
  • P.O. Box, 00501
  • 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 offers cargo handling equipment and automated termi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 19:40
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.