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Market Cap

€1.8b

Last Updated

2021/05/18 02:47 UTC

Data Sources

Company Financials +

Executive Summary

Neles Oyj provides flow control solutions and services worldwide. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


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 is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NELES's weekly volatility has decreased from 12% to 4% over the past year.


Market Performance


7 Day Return

-0.04%

NELES

-0.02%

FI Machinery

-0.7%

FI Market


1 Year Return

-54.9%

NELES

23.8%

FI Machinery

33.5%

FI Market

Return vs Industry: NELES underperformed the Finnish Machinery industry which returned 23.8% over the past year.

Return vs Market: NELES underperformed the Finnish Market which returned 33.5% over the past year.


Shareholder returns

NELESIndustryMarket
7 Day-0.04%-0.02%-0.7%
30 Day0.8%-2.9%0.6%
90 Day13.7%4.8%2.4%
1 Year75.1%-54.9%37.9%23.8%42.8%33.5%
3 Year56.8%-61.0%39.6%16.2%31.2%9.8%
5 Year152.9%-41.8%84.3%45.9%90.9%51.5%

Long-Term 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?

37.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NELES (€12.01) is trading above our estimate of fair value (€3.96)

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 (37.2x) compared to the Finnish Machinery industry average (35.5x).

PE vs Market: NELES is poor value based on its PE Ratio (37.2x) compared to the Finnish market (24.6x).


Price to Earnings Growth Ratio

PEG Ratio: NELES is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: NELES is overvalued based on its PB Ratio (7.2x) compared to the FI Machinery industry average (2.9x).


Future Growth

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

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NELES's forecast earnings growth (12.3% per year) is above the savings rate (0.2%).

Earnings vs Market: NELES's earnings (12.3% per year) are forecast to grow faster than the Finnish market (11.9% per year).

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

Revenue vs Market: NELES's revenue (7.1% per year) is forecast to grow faster than the Finnish market (3.2% per year).

High Growth Revenue: NELES's revenue (7.1% 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 (23.9%)


Past Performance

How has Neles Oyj performed over the past 5 years?

-38.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NELES has high quality earnings.

Growing Profit Margin: NELES's current net profit margins (8.5%) are lower than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: NELES's earnings have declined by 38.8% per year over the past 5 years.

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

Earnings vs Industry: NELES had negative earnings growth (-24.3%) over the past year, making it difficult to compare to the Machinery industry average (-6.9%).


Return on Equity

High ROE: NELES's Return on Equity (19.3%) is considered low.


Financial Health

How is Neles Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: NELES's short term assets (€455.3M) exceed its short term liabilities (€207.9M).

Long Term Liabilities: NELES's short term assets (€455.3M) exceed its long term liabilities (€217.4M).


Debt to Equity History and Analysis

Debt Level: NELES's debt to equity ratio (68.3%) is considered high.

Reducing Debt: NELES's debt to equity ratio has increased from 60.8% to 68.3% over the past 5 years.

Debt Coverage: NELES's debt is well covered by operating cash flow (203.7%).

Interest Coverage: NELES's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet


Dividend

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

1.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NELES's dividend (1.84%) is higher than the bottom 25% of dividend payers in the Finnish market (1.77%).

High Dividend: NELES's dividend (1.84%) is low compared to the top 25% of dividend payers in the Finnish market (3.74%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.3%), NELES's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NELES's dividends in 3 years are forecast to be well covered by earnings (43.7% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Olli Isotalo (61 yo)

no data

Tenure

€283,870

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Olli's total compensation ($USD344.92K) is below average for companies of similar size in the Finnish market ($USD948.94K).

Compensation vs Earnings: Insufficient data to compare Olli's compensation with company performance.


Leadership Team

Experienced Management: NELES's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: NELES's board of directors are not considered experienced ( 0.4 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: 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: 1956
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €1.804b
  • Shares outstanding: 150.20m
  • Website: https://www.neles.com

Number of Employees


Location

  • Neles Oyj
  • Vanha Porvoontie 229
  • Vantaa
  • Uusimaa
  • 1380
  • Finland

Listings


Biography

Neles Oyj provides flow control solutions and services worldwide. It offers control, on-off, emergency shutdown, butterfly, ball, globe, segment, and eccentric rotary plug valves; pneumatic, electric, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/18 02:47
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
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.