HLSE:METSO

Stock Analysis Report

Executive Summary

Metso Corporation, an industrial company, provides equipment and services for the mining, aggregates, recycling, and process industries worldwide.


Snowflake Analysis

Exceptional growth potential with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

11.2%

METSO

9.0%

FI Machinery

9.8%

FI Market


1 Year Return

-34.4%

METSO

-18.2%

FI Machinery

-20.6%

FI Market

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

Return vs Market: METSO underperformed the Finnish Market which returned -19.3% over the past year.


Shareholder returns

METSOIndustryMarket
7 Day11.2%9.0%9.8%
30 Day-29.4%-13.3%-18.6%
90 Day-41.4%-23.0%-22.3%
1 Year-26.6%-34.4%-14.2%-18.2%-16.6%-20.6%
3 Year-15.3%-27.4%-4.4%-14.2%-3.2%-15.3%
5 Year-2.2%-24.3%10.7%-7.0%5.2%-15.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: METSO (€20.62) is trading below our estimate of fair value (€46.99)

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


Price To Earnings Ratio

PE vs Industry: METSO is poor value based on its PE Ratio (43.6x) compared to the Machinery industry average (13x).

PE vs Market: METSO is poor value based on its PE Ratio (43.6x) compared to the Finnish market (15x).


Price to Earnings Growth Ratio

PEG Ratio: METSO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: METSO is overvalued based on its PB Ratio (2x) compared to the FI Machinery industry average (1.4x).


Next Steps

Future Growth

How is Metso forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

31.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: METSO's forecast earnings growth (31.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: METSO's earnings (31.3% per year) are forecast to grow faster than the Finnish market (8.8% per year).

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

Revenue vs Market: METSO's revenue (26% per year) is forecast to grow faster than the Finnish market (0.4% per year).

High Growth Revenue: METSO's revenue (26% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: METSO's Return on Equity is forecast to be high in 3 years time (20.3%)


Next Steps

Past Performance

How has Metso performed over the past 5 years?

-16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: METSO has high quality earnings.

Growing Profit Margin: METSO's current net profit margins (10.8%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: METSO's earnings have declined by -16.5% per year over the past 5 years.

Accelerating Growth: METSO's earnings growth over the past year (7.6%) exceeds its 5-year average (-16.5% per year).

Earnings vs Industry: METSO earnings growth over the past year (7.6%) exceeded the Machinery industry -15.3%.


Return on Equity

High ROE: METSO's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is Metso's financial position?


Financial Position Analysis

Short Term Liabilities: METSO's short term assets (€3.7B) exceed its short term liabilities (€2.3B).

Long Term Liabilities: METSO's short term assets (€3.7B) exceed its long term liabilities (€88.0M).


Debt to Equity History and Analysis

Debt Level: METSO's debt to equity ratio (3.7%) is considered satisfactory.

Reducing Debt: METSO's debt to equity ratio has reduced from 70.3% to 3.7% over the past 5 years.

Debt Coverage: METSO's debt is well covered by operating cash flow (162.5%).

Interest Coverage: METSO's interest payments on its debt are well covered by EBIT (49x coverage).


Balance Sheet

Inventory Level: METSO has a low level of unsold assets or inventory.

Debt Coverage by Assets: METSO's debt is covered by short term assets (assets are 65.7x debt).


Next Steps

Dividend

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

7.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: METSO's dividend (7.13%) is higher than the bottom 25% of dividend payers in the Finnish market (3.2%).

High Dividend: METSO's dividend (7.13%) is in the top 25% of dividend payers in the Finnish market (6.48%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (310.7%), METSO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: METSO's dividends in 3 years are forecast to be covered by earnings (66.3% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Pekka Vauramo (62yo)

1.33s

Tenure

€752,574

Compensation

Mr. Pekka Vauramo, M.Sc. (Mining), serves as the President and Chief Executive Officer at Metso Corp. since November 1, 2018. Mr. Vauramo has been President and Chief Executive Officer of Metso Automation  ...


CEO Compensation Analysis

Compensation vs Market: Pekka's total compensation ($USD830.29K) is below average for companies of similar size in the Finnish market ($USD1.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pekka Vauramo
CEO & President1.33yrs€752.57k0.0070% 216.6k
Eeva Sipilä
CFO & Deputy to CEO3.58yrs€600.46k0.0075% 231.2k
Vesa Erolainen
Chief Information Officer2.58yrsno datano data
Juha Rouhiainen
Vice President of Investor Relationsno datano datano data
Aleksanteri Lebedeff
Senior VP13.83yrsno datano data
Helena Marjaranta
VP of Communications & Stakeholder Relations4.25yrsno datano data
Sudhir Srivastava
Senior Vice President of Minerals Sales & Marketing Developmentno datano datano data
Hannele Järvistö
Interim Senior Vice President of Human Resources1yrno datano data
Harri Nikunen
Senior Vice President of Mergers & Acquisitions15.67yrs€679.97kno data
Simo Sääskilahti
Senior VP of Finance for Valves Business Area6.33yrsno datano data

3.9yrs

Average Tenure

56yo

Average Age

Experienced Management: METSO's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mikael Lilius
Independent Chairman of the Board6.25yrs€140.00k0.024% 737.7k
Kari Stadigh
Director0.92yr€60.00k0.0072% 222.5k
Lars Josefsson
Independent Director6.25yrs€68.00k0.0030% 93.1k
Christer Gardell
Vice-Chairman of the Board6.25yrs€81.00k0.0052% 162.2k
Arja Talma
Independent Director4.17yrs€83.00k0.0026% 81.1k
Peter Carlsson
Independent Director11.92yrs€58.00k0.0020% 60.7k
Raimo Brand
Personnel Representative Director1.17yrs€10.00kno data
Antti Mäkinen
Director2yrs€73.00k0.0011% 33.4k

5.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: METSO's board of directors are considered experienced (5.2 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

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


Key Information

  • Name: Metso Corporation
  • Ticker: METSO
  • Exchange: HLSE
  • Founded:
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €3.095b
  • Shares outstanding: 150.08m
  • Website: https://www.metso.com

Number of Employees


Location

  • Metso Corporation
  • Töölönlahdenkatu 2
  • Helsinki
  • Uusimaa
  • 100
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MXCY.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1999
MXTO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1999
METSOHLSE (OMX Nordic Exchange Helsinki)YesCommon SharesFIEURJul 1999
0F89LSE (London Stock Exchange)YesCommon SharesGBEURJul 1999
VLMDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1999
METSOHBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJul 1999

Biography

Metso Corporation, an industrial company, provides equipment and services for the mining, aggregates, recycling, and process industries worldwide. The company operates through two segment, Minerals and Flow Control. It offers mining solutions, including crushing, screening, grinding, classification, beneficiation, dewatering, pyro processing, bulk materials handling, and slurry pumping solutions, as well as wear and spare parts; and aggregates, such as crushers, screens, feeders, rock breakers, air classifiers, lokotrack mobile plants, NW rapid and portable plants, stationary plants, slurry pumps, and preowned equipment, as well as wear and spare parts. The company also provides control, on-off, emergency shutdown, butterfly, ball, segment, eccentric plug, globe, and tank car valves; valve controls and limit switches; electric and pneumatic actuators; positioners, on-off controllers; intelligent safety solenoids; instrumentation panel; and valve spare parts. In addition, it offers metal recycling solutions, including shears, balers, briquettes, turnings and pre shredders, shredders, post shredder technology, and anode crusher; and waste recycling solutions, such as fine-shredders, mobile pre-shredders, and pre-shredders. Further, the company provides expert, flow control, maintenance, performance and engineered, and training services. Metso 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 Analysis2020/03/30 20:56
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.