HLSE:EXL1V

Stock Analysis Report

Executive Summary

Exel Composites Oyj, a composite technology company, designs, manufactures, and markets pultruded and pull-wound composite products in Europe, the Asia Pacific, and internationally.

Rewards

Trading at 42.5% below its fair value

Earnings are forecast to grow 16.65% per year

Earnings grew by 521% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Does not have a meaningful market cap (€45M)



Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EXL1V's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.6%

EXL1V

9.0%

FI Machinery

9.8%

FI Market


1 Year Return

-7.2%

EXL1V

-18.2%

FI Machinery

-20.6%

FI Market

Return vs Industry: EXL1V exceeded the Finnish Machinery industry which returned -16% over the past year.

Return vs Market: EXL1V exceeded the Finnish Market which returned -19.3% over the past year.


Shareholder returns

EXL1VIndustryMarket
7 Day3.6%9.0%9.8%
30 Day-27.9%-13.3%-18.6%
90 Day-42.1%-23.0%-22.3%
1 Year-2.7%-7.2%-14.2%-18.2%-16.6%-20.6%
3 Year-11.7%-24.5%-4.4%-14.2%-3.2%-15.3%
5 Year-50.6%-59.3%10.7%-7.0%5.2%-15.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

42.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXL1V (€3.75) is trading below our estimate of fair value (€6.52)

Significantly Below Fair Value: EXL1V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EXL1V is poor value based on its PE Ratio (18.5x) compared to the Machinery industry average (13x).

PE vs Market: EXL1V is poor value based on its PE Ratio (18.5x) compared to the Finnish market (15x).


Price to Earnings Growth Ratio

PEG Ratio: EXL1V is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: EXL1V is overvalued based on its PB Ratio (1.7x) compared to the FI Machinery industry average (1.4x).


Next Steps

Future Growth

How is Exel Composites Oyj forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXL1V's forecast earnings growth (16.7% per year) is above the savings rate (-0.1%).

Earnings vs Market: EXL1V's earnings (16.7% per year) are forecast to grow faster than the Finnish market (8.8% per year).

High Growth Earnings: EXL1V's earnings are forecast to grow, but not significantly.

Revenue vs Market: EXL1V's revenue (4.9% per year) is forecast to grow faster than the Finnish market (0.4% per year).

High Growth Revenue: EXL1V's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXL1V's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has Exel Composites Oyj performed over the past 5 years?

-27.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXL1V has high quality earnings.

Growing Profit Margin: EXL1V's current net profit margins (2.3%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: EXL1V's earnings have declined by -27.5% per year over the past 5 years.

Accelerating Growth: EXL1V's earnings growth over the past year (521%) exceeds its 5-year average (-27.5% per year).

Earnings vs Industry: EXL1V earnings growth over the past year (521%) exceeded the Machinery industry -15.3%.


Return on Equity

High ROE: EXL1V's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Exel Composites Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: EXL1V's short term assets (€43.8M) exceed its short term liabilities (€43.4M).

Long Term Liabilities: EXL1V's short term assets (€43.8M) exceed its long term liabilities (€15.6M).


Debt to Equity History and Analysis

Debt Level: EXL1V's debt to equity ratio (123%) is considered high.

Reducing Debt: EXL1V's debt to equity ratio has increased from 18.2% to 123% over the past 5 years.

Debt Coverage: EXL1V's debt is well covered by operating cash flow (27.9%).

Interest Coverage: EXL1V's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: EXL1V has a high level of physical assets or inventory.

Debt Coverage by Assets: EXL1V's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

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

4.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EXL1V's dividend (4.8%) is higher than the bottom 25% of dividend payers in the Finnish market (3.2%).

High Dividend: EXL1V's dividend (4.8%) is low compared to the top 25% of dividend payers in the Finnish market (6.48%).


Stability and Growth of Payments

Stable Dividend: EXL1V's dividend payments have been volatile in the past 10 years.

Growing Dividend: EXL1V's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.8%), EXL1V's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EXL1V's dividends in 3 years are forecast to be well covered by earnings (47.6% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Riku Kytömäki (48yo)

6.17s

Tenure

€324,000

Compensation

Mr. Riku Kytömäki, M.Sc. (Eng.) has been Chief Executive Officer and President at Exel Composites Oyj since January 2, 2014. Mr. Kytömäki has been Member of the Group Management Team since 2014. He served  ...


CEO Compensation Analysis

Compensation vs Market: Riku's total compensation ($USD359.24K) is about average for companies of similar size in the Finnish market ($USD341.12K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Riku Kytömäki
CEO & President6.17yrs€324.00k0.54% 242.3k
Mikko Kettunen
Chief Financial Officer4.92yrsno data0.0084% 3.8k
Callum Gough
Senior Vice President of Operations4.58yrsno data0.083% 36.9k
Kim Sjödahl
Senior Vice President of Technology and R&D4.58yrsno data0.084% 37.5k
Olli Tevä
Senior Vice President of Sales & Marketing1.58yrsno data0.050% 22.5k
Tiina Bies
Senior Vice President of Human Resources5.58yrsno datano data
Mikko Rummukainen
Senior Vice President of Business Development1yrno data0.014% 6.4k
Kari Loukola
Senior VP of Exel Composites Americas & President of DSC1.83yrsno data0.050% 22.5k

4.6yrs

Average Tenure

48.5yo

Average Age

Experienced Management: EXL1V's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Reima Kerttula
Independent Chairman of the Board4yrs€62.00k0.14% 63.4k
Petri Helsky
Independent Director4yrs€29.00k0.048% 21.5k
Kirsi Sormunen
Directorno datano datano data
Jouko Peussa
Independent Director4yrs€28.00k0.048% 21.5k
Helena Knutson
Independent Director2.92yrs€29.00kno data

4.0yrs

Average Tenure

62yo

Average Age

Experienced Board: EXL1V's board of directors are considered experienced (4 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

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


Key Information

  • Name: Exel Composites Oyj
  • Ticker: EXL1V
  • Exchange: HLSE
  • Founded: 1960
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €44.613m
  • Shares outstanding: 11.90m
  • Website: https://www.exelcomposites.com

Number of Employees


Location

  • Exel Composites Oyj
  • MAekituvantie 5
  • Vantaa
  • Uusimaa
  • 1510
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXL1VHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEUROct 1998
0MD5LSE (London Stock Exchange)YesOrdinary SharesGBEUROct 1998
EXL1VHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 1998

Biography

Exel Composites Oyj, a composite technology company, designs, manufactures, and markets pultruded and pull-wound composite products in Europe, the Asia Pacific, and internationally. The company produces a range of standard and custom sized composite tubes, tool handles, profiles, and laminates that are used in residential, commercial, and industrial applications. It also provides composites for airport structures, such as approach lights, glide path systems, weather equipment, anemometers, ILS equipment, and radar systems. Exel Composites Oyj was founded in 1960 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 Analysis2020/03/30 20:45
End of Day Share Price2020/03/30 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.