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PON1

Ponsse Oyj HLSE:PON1V Stock Report

Last Price

€27.05

Market Cap

€757.4m

7D

4.6%

1Y

-37.1%

Updated

12 Aug, 2022

Data

Company Financials +
PON1V fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends3/6

PON1V Stock Overview

Ponsse Oyj, together with its subsidiaries, develops, manufactures, and sells cut-to-length forest machines Northern Europe, Central and Southern Europe, Russia and Asia, North and South America, and internationally.

Rewards

Trading at 54.5% below our estimate of its fair value

Earnings are forecast to grow 16.04% per year

Earnings grew by 12.4% over the past year

Risk Analysis

Dividend of 3.14% is not well covered by earnings


Ponsse Oyj Competitors

Kesla Oyj

HLSE:KELAS

€15.1m

Konecranes

HLSE:KCR

€2.1b

Uponor Oyj

HLSE:UPONOR

€1.1b

Cargotec

HLSE:CGCBV

€2.3b

Price History & Performance

Summary of all time highs, changes and price drops for Ponsse Oyj
Historical stock prices
Current Share Price€27.05
52 Week High€48.80
52 Week Low€22.80
Beta1.05
1 Month Change15.11%
3 Month Change-0.92%
1 Year Change-37.09%
3 Year Change-4.42%
5 Year Change17.05%
Change since IPO893.27%

Recent News & Updates

Aug 10
Be Wary Of Ponsse Oyj (HEL:PON1V) And Its Returns On Capital

Be Wary Of Ponsse Oyj (HEL:PON1V) And Its Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Ideally, a business...

Jul 23
Here's Why Ponsse Oyj (HEL:PON1V) Can Manage Its Debt Responsibly

Here's Why Ponsse Oyj (HEL:PON1V) Can Manage Its Debt Responsibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Jun 29
What Does Ponsse Oyj's (HEL:PON1V) Share Price Indicate?

What Does Ponsse Oyj's (HEL:PON1V) Share Price Indicate?

Ponsse Oyj ( HEL:PON1V ), might not be a large cap stock, but it received a lot of attention from a substantial price...

Shareholder Returns

PON1VFI MachineryFI Market
7D4.6%3.3%2.0%
1Y-37.1%-31.8%-18.6%

Return vs Industry: PON1V underperformed the Finnish Machinery industry which returned -31.8% over the past year.

Return vs Market: PON1V underperformed the Finnish Market which returned -18.6% over the past year.

Price Volatility

Is PON1V's price volatile compared to industry and market?
PON1V volatility
PON1V Average Weekly Movement5.5%
Machinery Industry Average Movement5.3%
Market Average Movement5.0%
10% most volatile stocks in FI Market8.8%
10% least volatile stocks in FI Market3.3%

Stable Share Price: PON1V is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PON1V's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19702,076Juho Nummelahttps://www.ponsse.com

Ponsse Oyj, together with its subsidiaries, develops, manufactures, and sells cut-to-length forest machines Northern Europe, Central and Southern Europe, Russia and Asia, North and South America, and internationally. Its products include harvesters, forwarders, harvester heads, and dual machines. The company also offers information system products, such as harvester and forwarder systems; forest machine; and wood procurement systems; and simulators.

Ponsse Oyj Fundamentals Summary

How do Ponsse Oyj's earnings and revenue compare to its market cap?
PON1V fundamental statistics
Market Cap€757.39m
Earnings (TTM)€52.38m
Revenue (TTM)€807.16m

14.5x

P/E Ratio

0.9x

P/S Ratio

Is PON1V overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PON1V income statement (TTM)
Revenue€807.16m
Cost of Revenue€523.51m
Gross Profit€283.65m
Other Expenses€231.27m
Earnings€52.38m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 25, 2022

Earnings per share (EPS)1.87
Gross Margin35.14%
Net Profit Margin6.49%
Debt/Equity Ratio18.0%

How did PON1V perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

46%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PON1V undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 PON1V?

Other financial metrics that can be useful for relative valuation.

PON1V 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/Revenue1x
Enterprise Value/EBITDA8.8x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does PON1V's PE Ratio compare to its peers?

PON1V PE Ratio vs Peers
The above table shows the PE ratio for PON1V vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.4x
KELAS Kesla Oyj
42.4x53.1%€15.1m
KCR Konecranes
19.4x26.3%€2.1b
UPONOR Uponor Oyj
11.4x-2.7%€1.1b
CGCBV Cargotec
8.4x11.2%€2.3b
PON1V Ponsse Oyj
14.5x16.0%€757.4m

Price-To-Earnings vs Peers: PON1V is good value based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (20.4x).

Price to Earnings Ratio vs Industry

How does PON1V's PE Ratio compare vs other companies in the European Machinery Industry?

Price-To-Earnings vs Industry: PON1V is good value based on its Price-To-Earnings Ratio (14.5x) compared to the Finnish Machinery industry average (27.4x)

Price to Earnings Ratio vs Fair Ratio

What is PON1V's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PON1V PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.5x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: PON1V is good value based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).

Share Price vs Fair Value

What is the Fair Price of PON1V when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PON1V (€27.05) is trading below our estimate of fair value (€59.51)

Significantly Below Fair Value: PON1V 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: Target price is less than 20% higher than the current share price.

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE

16.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PON1V's forecast earnings growth (16% per year) is above the savings rate (0.2%).

Earnings vs Market: PON1V's earnings (16% per year) are forecast to grow faster than the Finnish market (7.8% per year).

High Growth Earnings: PON1V's earnings are forecast to grow, but not significantly.

Revenue vs Market: PON1V's revenue (2.6% per year) is forecast to grow faster than the Finnish market (1.8% per year).

High Growth Revenue: PON1V's revenue (2.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PON1V's Return on Equity is forecast to be low in 3 years time (14.1%).

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Past Performance

How has Ponsse Oyj performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

2.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PON1V has high quality earnings.

Growing Profit Margin: PON1V's current net profit margins (6.5%) are lower than last year (7.1%).

Past Earnings Growth Analysis

Earnings Trend: PON1V's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: PON1V's earnings growth over the past year (12.4%) exceeds its 5-year average (2.7% per year).

Earnings vs Industry: PON1V earnings growth over the past year (12.4%) exceeded the Machinery industry -1.5%.

Return on Equity

High ROE: PON1V's Return on Equity (17%) is considered low.

Discover strong past performing companies

Financial Health

How is Ponsse Oyj's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PON1V's short term assets (€375.1M) exceed its short term liabilities (€180.2M).

Long Term Liabilities: PON1V's short term assets (€375.1M) exceed its long term liabilities (€52.0M).

Debt to Equity History and Analysis

Debt Level: PON1V's net debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: PON1V's debt to equity ratio has reduced from 50.4% to 18% over the past 5 years.

Debt Coverage: PON1V's debt is well covered by operating cash flow (71.5%).

Interest Coverage: PON1V earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

3.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PON1V's dividend (3.14%) is higher than the bottom 25% of dividend payers in the Finnish market (2.4%).

High Dividend: PON1V's dividend (3.14%) is low compared to the top 25% of dividend payers in the Finnish market (4.81%).

Stability and Growth of Payments

Stable Dividend: PON1V's dividend payments have been volatile in the past 10 years.

Growing Dividend: PON1V's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.7%), PON1V's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (281.3%), PON1V's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

13.2yrs

Average management tenure

CEO

Juho Nummela (45 yo)

14.17yrs

Tenure

€501,983

Compensation

Dr. Juho Aleksi Nummela, M.Sc. (Eng.), has been the President and Chief Executive Officer of Ponsse Oyj since June 2008. He has been Director at Olvi Oyj since March 31, 2021. Dr. Nummela serves as Chairma...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Juho's total compensation is reasonable compared to companies of similar size in the Finnish market.

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

Leadership Team

Experienced Management: PON1V's management team is seasoned and experienced (13.2 years average tenure).

Board Members

Experienced Board: PON1V's board of directors are considered experienced (7.8 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: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Ponsse Oyj's employee growth, exchange listings and data sources

Key Information

  • Name: Ponsse Oyj
  • Ticker: PON1V
  • Exchange: HLSE
  • Founded: 1970
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Implied Market Cap: €757.394m
  • Shares outstanding: 28.00m
  • Website: https://www.ponsse.com

Number of Employees

Location

  • Ponsse Oyj
  • Ponssentie 22
  • Vieremä
  • Northern Savonia
  • 74200
  • Finland

Listings

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.