Enedo Oyj (HLSE:ENEDO) - Share price, News & Analysis

Q: What is the Fair Price of ENEDO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ENEDO (€0.26) is trading below our estimate of [[fair value]] (€0.52)

ENEDO fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

ENEDO Stock Overview

Rewards

Trading at 50.4% below our estimate of its fair value

Earnings are forecast to grow 72.56% per year

Earnings have grown 15.6% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Volatile share price over the past 3 months

Does not have a meaningful market cap (€18M)

Enedo Oyj Competitors

Reka Industrial Oyj

HLSE:REKA

€22.4m

Merus Power Oyj

HLSE:MERUS

€57.2m

Kesla Oyj

HLSE:KELAS

€15.0m

Elecster Oyj

HLSE:ELEAV

€22.1m

Price History & Performance

Summary of all time highs, changes and price drops for Enedo Oyj
Historical stock prices
Current Share Price	€0.26
52 Week High	€0.48
52 Week Low	€0.23
Beta	1.79
1 Month Change	-6.83%
3 Month Change	-23.37%
1 Year Change	-43.70%
3 Year Change	-91.22%
5 Year Change	-99.20%
Change since IPO	-99.57%

Shareholder Returns

	ENEDO	FI Electrical	FI Market
7D	-1.9%	0.4%	-1.1%
1Y	-43.7%	-16.2%	-20.2%

Return vs Industry: ENEDO underperformed the Finnish Electrical industry which returned -16.2% over the past year.

Return vs Market: ENEDO underperformed the Finnish Market which returned -20.2% over the past year.

Price Volatility

Is ENEDO's price volatile compared to industry and market?
ENEDO volatility
ENEDO Average Weekly Movement	7.0%
Electrical Industry Average Movement	6.8%
Market Average Movement	5.0%
10% most volatile stocks in FI Market	9.0%
10% least volatile stocks in FI Market	3.4%

Stable Share Price: ENEDO is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ENEDO's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Finnish stocks.

About the Company

Founded	Employees	CEO	Website
1975	330	Mikael Fryklund	https://enedopower.com

Enedo Oyj engages in the design, manufacture, and sale of custom and standard DC power systems, AC/DC power supplies, and LED drivers for telecom, industrial, medical, lighting, utility, railway, and military industries. It offers power system products, such as DC, AC, and rail power systems, as well as power system components, legacy products, and custom solutions; power supply products, including AC/DC, configurable multi-output, high power LED, and medical grade power supplies, as well as battery chargers, DC UPS back-up power products, DC/DC converters, DC/AC inverters, and custom solutions. The company also provides constant current, constant voltage, and programmable LED drivers, as well as legacy products and custom solutions.

Enedo Oyj Fundamentals Summary

How do Enedo Oyj's earnings and revenue compare to its market cap?
ENEDO fundamental statistics
Market Cap	€17.73m
Earnings (TTM)	-€4.50m
Revenue (TTM)	€36.63m

0.5x

P/S Ratio

-3.9x

P/E Ratio

Is ENEDO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ENEDO income statement (TTM)
Revenue	€36.63m
Cost of Revenue	€24.64m
Gross Profit	€12.00m
Other Expenses	€16.50m
Earnings	-€4.50m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 12, 2022

Earnings per share (EPS)	-0.066
Gross Margin	32.75%
Net Profit Margin	-12.29%
Debt/Equity Ratio	215.1%

How did ENEDO perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ENEDO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ENEDO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ENEDO. This is calculated by dividing ENEDO's market cap by their current preferred multiple.
What is ENEDO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€17.73m

ENEDO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	-5.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ENEDO's PS Ratio compare to its peers?

ENEDO PS Ratio vs Peers

The above table shows the PS ratio for ENEDO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.2x
REKA Reka Industrial Oyj	0.1x	2.7%	€22.4m
MERUS Merus Power Oyj	3.7x	26.9%	€57.2m
KELAS Kesla Oyj	0.3x	5.6%	€15.0m
ELEAV Elecster Oyj	0.7x	n/a	€22.1m
ENEDO Enedo Oyj	0.5x	10.0%	€17.7m

Price-To-Sales vs Peers: ENEDO is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1.2x).

Price to Earnings Ratio vs Industry

How does ENEDO's PE Ratio compare vs other companies in the European Electrical Industry?

Price-To-Sales vs Industry: ENEDO is good value based on its Price-To-Sales Ratio (0.5x) compared to the European Electrical industry average (1.9x)

Price to Sales Ratio vs Fair Ratio

What is ENEDO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ENEDO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	0.5x

Price-To-Sales vs Fair Ratio: ENEDO is expensive based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

Share Price vs Fair Value

What is the Fair Price of ENEDO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ENEDO (€0.26) is trading below our estimate of fair value (€0.52)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

72.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENEDO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: ENEDO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ENEDO is expected to become profitable in the next 3 years.

Revenue vs Market: ENEDO's revenue (10% per year) is forecast to grow faster than the Finnish market (1.6% per year).

High Growth Revenue: ENEDO's revenue (10% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ENEDO's Return on Equity is forecast to be low in 3 years time (13.6%).

Discover growth companies

Past Performance

How has Enedo Oyj performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ENEDO is currently unprofitable.

Growing Profit Margin: ENEDO is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ENEDO is unprofitable, but has reduced losses over the past 5 years at a rate of 15.6% per year.

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

Earnings vs Industry: ENEDO is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (30.8%).

Return on Equity

High ROE: ENEDO has a negative Return on Equity (-97.51%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Enedo Oyj's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ENEDO's short term assets (€17.3M) do not cover its short term liabilities (€22.9M).

Long Term Liabilities: ENEDO's short term assets (€17.3M) exceed its long term liabilities (€4.0M).

Debt to Equity History and Analysis

Debt Level: ENEDO's net debt to equity ratio (156.1%) is considered high.

Reducing Debt: ENEDO's debt to equity ratio has increased from 180.2% to 215.1% over the past 5 years.

Balance Sheet

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: ENEDO has less than a year of cash runway based on its current free cash flow.

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

Discover healthy companies

Dividend

What is Enedo Oyj current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ENEDO has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.3yrs

Average board tenure

CEO

Mikael Fryklund (59 yo)

1.17yrs

Tenure

€88,000

Compensation

Mr. Mikael Fryklund, M. Sc. Eng., B. Sc. serves as an Interim Chief Executive Officer at Enedo Oyj since June 8, 2021 and also serves its Interim President since June 2021. Mr. Fryklund served as President...

Board Members

Experienced Board: ENEDO's board of directors are not considered experienced ( 1.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31