HLSE:RAUTE

Stock Analysis Report

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Executive Summary

Raute Oyj, a technology and service company, provides machinery and equipment for production process in the wood products industry in Europe, Russia, North America, and Chile. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.8%

RAUTE

-7.8%

FI Machinery

-6.3%

FI Market


1 Year Return

-17.2%

RAUTE

-0.4%

FI Machinery

-1.7%

FI Market

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

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


Shareholder returns

RAUTEIndustryMarket
7 Day-4.8%-7.8%-6.3%
30 Day8.2%-6.2%-4.3%
90 Day6.5%0.9%3.7%
1 Year-11.1%-17.2%12.1%-0.4%6.6%-1.7%
3 Year-7.1%-20.9%18.0%-1.8%15.1%-5.2%
5 Year89.8%46.7%61.1%25.8%42.3%12.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Raute Oyj 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: RAUTE (€19.7) is trading below our estimate of fair value (€41.28)

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


Price To Earnings Ratio

PE vs Industry: RAUTE is poor value based on its PE Ratio (146.8x) compared to the FI Machinery industry average (24.3x).

PE vs Market: RAUTE is poor value based on its PE Ratio (146.8x) compared to the Finnish market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: RAUTE is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: RAUTE is overvalued based on its PB Ratio (2.1x) compared to the FI Machinery industry average (2x).


Next Steps

Future Growth

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

82.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAUTE's forecast earnings growth (82.3% per year) is above the savings rate (0.4%).

Earnings vs Market: RAUTE's earnings (82.3% per year) are forecast to grow faster than the Finnish market (15.2% per year).

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

Revenue vs Market: RAUTE's revenue (6% per year) is forecast to grow faster than the Finnish market (4.5% per year).

High Growth Revenue: RAUTE's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RAUTE's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has Raute Oyj performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAUTE has a large one-off gain of €270.0K impacting its June 30 2020 financial results.

Growing Profit Margin: RAUTE's current net profit margins (0.5%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: RAUTE's earnings have grown by 1.7% per year over the past 5 years.

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

Earnings vs Industry: RAUTE had negative earnings growth (-94.9%) over the past year, making it difficult to compare to the Machinery industry average (-33.7%).


Return on Equity

High ROE: RAUTE's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is Raute Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: RAUTE's short term assets (€66.1M) exceed its short term liabilities (€45.7M).

Long Term Liabilities: RAUTE's short term assets (€66.1M) exceed its long term liabilities (€5.3M).


Debt to Equity History and Analysis

Debt Level: RAUTE's debt to equity ratio (4.8%) is considered satisfactory.

Reducing Debt: RAUTE's debt to equity ratio has reduced from 8.5% to 4.8% over the past 5 years.

Debt Coverage: RAUTE's debt is well covered by operating cash flow (504.6%).

Interest Coverage: Insufficient data to determine if RAUTE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

7.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAUTE's dividend (7.36%) is higher than the bottom 25% of dividend payers in the Finnish market (2.1%).

High Dividend: RAUTE's dividend (7.36%) is in the top 25% of dividend payers in the Finnish market (4.67%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1080.7%), RAUTE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RAUTE's dividends in 3 years are forecast to be covered by earnings (70.6% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Tapani Kiiski (58 yo)

16.58yrs

Tenure

€462,000

Compensation

Mr. Tapani Kiiski, M.Sc. (Eng.) has been the President and Chief Executive Officer at Raute Oyj since March 16, 2004. Mr. Kiiski serves as the Chairman of Executive Board of Raute Oyj and a Member of Execu ...


CEO Compensation Analysis

Compensation vs Market: Tapani's total compensation ($USD543.15K) is above average for companies of similar size in the Finnish market ($USD333.29K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tapani Kiiski
Chairman of Executive Board16.58yrs€462.00k0.60%
€ 504.8k
Tarja Järvinen
Group VP1.67yrsno data0.023%
€ 19.7k
Petri Strengell
Group VP7yrsno data0.11%
€ 94.1k
Timo Kangas
Group VP of Power & Member of Executive Board16yrsno data0.045%
€ 37.6k
Mika Hyysti
Group VP7yrsno data0.098%
€ 82.3k
Marko Hjelt
Group VP7yrsno data0.012%
€ 9.9k
Jani Roivainen
Group VP of Metrix & Member of Executive Board1.08yrsno data0.021%
€ 17.4k
Kurt Bossuyt
Group VP of Basic Services & Member of Executive Board1.08yrsno datano data
Jukka Siiriäinen
Group VP of Grow & Member of Executive Board1.08yrsno data0.094%
€ 79.2k

7.0yrs

Average Tenure

55yo

Average Age

Experienced Management: RAUTE's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mika Mustakallio
Vice Chairman8.75yrs€23.00k1.95%
€ 1.6m
Ari Harmaala
Independent Director1.5yrs€16.00kno data
Laura Raitio
Independent Chairman of the Board1.5yrs€39.00k0.023%
€ 19.7k
Pekka Suominen
Director10.58yrs€23.00k2.59%
€ 2.2m
Joni Bask
Director8.75yrs€23.00k0.52%
€ 438.1k
Patrick von Essen
Independent Director4.5yrs€23.00k0.0024%
€ 2.0k

6.6yrs

Average Tenure

56.5yo

Average Age

Experienced Board: RAUTE's board of directors are considered experienced (6.6 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

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


Key Information

  • Name: Raute Oyj
  • Ticker: RAUTE
  • Exchange: HLSE
  • Founded: 1908
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €83.985m
  • Shares outstanding: 4.26m
  • Website: https://www.raute.com

Number of Employees


Location

  • Raute Oyj
  • Rautetie 2
  • PO Box 69
  • Nastola
  • Päijänne Tavastia
  • 15551
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAUTEHLSE (OMX Nordic Exchange Helsinki)YesSeries A SharesFIEUROct 1994
0FUWLSE (London Stock Exchange)YesSeries A SharesGBEUROct 1994
RAUTEHBATS-CHIXE (BATS 'Chi-X Europe')YesSeries A SharesGBEUROct 1994

Biography

Raute Oyj, a technology and service company, provides machinery and equipment for production process in the wood products industry in Europe, Russia, North America, and Chile. The company supplies a range ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 21:54
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
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.