HLSE:NELES

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.1%

NELES

-7.8%

FI Machinery

-6.3%

FI Market


1 Year Return

-67.6%

NELES

-0.4%

FI Machinery

-1.7%

FI Market

Return vs Industry: NELES underperformed the Finnish Machinery industry which returned -0.4% over the past year.

Return vs Market: NELES underperformed the Finnish Market which returned -1.7% over the past year.


Shareholder returns

NELESIndustryMarket
7 Day-2.1%-7.8%-6.3%
30 Day-1.1%-6.2%-4.3%
90 Day-6.5%0.9%3.7%
1 Year23.1%-67.6%12.1%-0.4%6.6%-1.7%
3 Year49.5%-63.6%18.0%-1.8%15.1%-5.2%
5 Year115.9%-51.6%61.1%25.8%42.3%12.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NELES (€11.37) is trading above our estimate of fair value (€5.99)

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


Price To Earnings Ratio

PE vs Industry: NELES is poor value based on its PE Ratio (29.4x) compared to the FI Machinery industry average (24.3x).

PE vs Market: NELES is poor value based on its PE Ratio (29.4x) compared to the Finnish market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: NELES is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: NELES is overvalued based on its PB Ratio (6.8x) compared to the FI Machinery industry average (2x).


Next Steps

Future Growth

How is Neles Oyj forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NELES's forecast earnings growth (14.3% per year) is above the savings rate (0.4%).

Earnings vs Market: NELES's earnings (14.3% per year) are forecast to grow slower than the Finnish market (15.2% per year).

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

Revenue vs Market: NELES's revenue (5.6% per year) is forecast to grow faster than the Finnish market (4.5% per year).

High Growth Revenue: NELES's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Neles Oyj performed over the past 5 years?

-48.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NELES has high quality earnings.

Growing Profit Margin: NELES became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NELES's earnings have declined by 48.3% per year over the past 5 years.

Accelerating Growth: NELES has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NELES has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-33.7%).


Return on Equity

High ROE: NELES's Return on Equity (22.5%) is considered high.


Next Steps

Financial Health

How is Neles Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: NELES's short term assets (€430.0M) exceed its short term liabilities (€178.0M).

Long Term Liabilities: NELES's short term assets (€430.0M) exceed its long term liabilities (€201.0M).


Debt to Equity History and Analysis

Debt Level: NELES's debt to equity ratio (68%) is considered high.

Reducing Debt: NELES's debt to equity ratio has increased from 55% to 68% over the past 5 years.

Debt Coverage: NELES's debt is well covered by operating cash flow (230.2%).

Interest Coverage: NELES's interest payments on its debt are well covered by EBIT (20.8x coverage).


Balance Sheet


Next Steps

Dividend

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

12.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NELES's dividend (12.93%) is higher than the bottom 25% of dividend payers in the Finnish market (2.1%).

High Dividend: NELES's dividend (12.93%) is in the top 25% of dividend payers in the Finnish market (4.67%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (380.5%), NELES's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NELES's dividends in 3 years are forecast to be well covered by earnings (41.1% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Olli Isotalo (61 yo)

no data

Tenure

Mr. Olli Isotalo, M.Sc (Eng.), serves as President and Chief Executive Officer of Neles Oyj. He served as the President of the Valves Business Area at Metso Corp. since July 15, 2019. Mr. Isotalo serves as ...


Leadership Team

NamePositionTenureCompensationOwnership
Olli Isotalo
President & CEOno datano datano data
Simo Sääskilahti
CFO & Deputy CEOno datano datano data
Kevin Tinsley
Head of Global Operationsno datano datano data
Rita Uotila
Head of Investor Relationsno datano datano data
Aleksanteri Lebedeff
Senior VP14.42yrsno datano data
Kaisa Voutilainen
Head of Communications & Marketingno datano datano data
Sudhir Srivastava
Senior Vice President of Minerals Sales & Marketing Developmentno datano datano data
Hanne Peltola
Head of Human Resourceno datano datano data
Harri Nikunen
Senior Vice President of Mergers & Acquisitions16.25yrs€679.97kno data
Hangpheng Tan
Head of Asia Pacific Market Area0.75yrno datano data
Jani Puroranta
Chief Digital Officer4.17yrsno datano data
Markku Simula
President of Aggregates Equipment Business Line4.75yrsno data0%
€ 0

4.8yrs

Average Tenure

53yo

Average Age

Experienced Management: NELES's management team is considered experienced (4.8 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: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Neles Oyj
  • Ticker: NELES
  • Exchange: HLSE
  • Founded:
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €1.708b
  • Shares outstanding: 150.20m
  • Website: https://www.metso.com

Number of Employees


Location

  • Neles Oyj
  • TOeOelOenlahdenkatu 2
  • Helsinki
  • Uusimaa
  • 100
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0F89LSE (London Stock Exchange)YesNew Common SharesGBEURJul 1999
NELESHLSE (OMX Nordic Exchange Helsinki)YesNew Common SharesFIEURJul 1999
MXTO.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDJul 1999
NELESHBATS-CHIXE (BATS 'Chi-X Europe')YesNew Common SharesGBEURJul 1999
52RDB (Deutsche Boerse AG)YesNew Common SharesDEEURJul 1999

Biography

Metso Oyj, 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 Contro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 21:05
End of Day Share Price2020/10/28 00:00
Earnings2020/09/30
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.