Raute Oyj (HLSE:RAUTE) - Share price, News & Analysis

RAUTE fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	0/6
Financial Health	5/6
Dividends	4/6

RAUTE Stock Overview

Raute Oyj, operates as a technology and service company in Europe, Russia, North America, South America, and the Asia-Pacific.

Rewards

Trading at 66% below our estimate of its fair value

Earnings are forecast to grow 68.06% per year

Risk Analysis

Dividend of 6.3% is not well covered by earnings

Does not have a meaningful market cap (€54M)

Raute Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Raute Oyj
Historical stock prices
Current Share Price	€12.70
52 Week High	€24.90
52 Week Low	€11.60
Beta	0.91
1 Month Change	-16.17%
3 Month Change	-29.83%
1 Year Change	-44.78%
3 Year Change	-45.26%
5 Year Change	-44.05%
Change since IPO	6.52%

Shareholder Returns

	RAUTE	FI Machinery	FI Market
7D	3.7%	2.1%	-0.9%
1Y	-44.8%	-28.6%	-12.2%

Return vs Industry: RAUTE underperformed the Finnish Machinery industry which returned -28.6% over the past year.

Return vs Market: RAUTE underperformed the Finnish Market which returned -12.2% over the past year.

Price Volatility

Is RAUTE's price volatile compared to industry and market?
RAUTE volatility
RAUTE Average Weekly Movement	7.1%
Machinery Industry Average Movement	6.3%
Market Average Movement	6.0%
10% most volatile stocks in FI Market	8.7%
10% least volatile stocks in FI Market	4.1%

Stable Share Price: RAUTE is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RAUTE's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1908	821	Petri Strengell	https://www.raute.com

Raute Oyj, operates as a technology and service company in Europe, Russia, North America, South America, and the Asia-Pacific. The company provides machinery and equipment for production process in the wood products industry. It supplies a range of machinery, systems, and technology for the production of plywood and laminated veneer lumber, such as log handling; veneer peeling, drying, scarf-jointing, composing, and patching; plywood layup and pressing, panel and billet handling, and grading.

Raute Oyj Fundamentals Summary

How do Raute Oyj's earnings and revenue compare to its market cap?
RAUTE fundamental statistics
Market Cap	€52.01m
Earnings (TTM)	-€242.00k
Revenue (TTM)	€158.73m

0.3x

P/S Ratio

-223.7x

P/E Ratio

Is RAUTE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RAUTE income statement (TTM)
Revenue	€158.73m
Cost of Revenue	€89.41m
Gross Profit	€69.32m
Other Expenses	€69.56m
Earnings	-€242.00k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 22, 2022

Earnings per share (EPS)	-0.057
Gross Margin	43.67%
Net Profit Margin	-0.15%
Debt/Equity Ratio	4.6%

How did RAUTE perform over the long term?

See historical performance and comparison

Dividends

6.3%

Current Dividend Yield

-1,409%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RAUTE (€12.7) is trading below our estimate of fair value (€37.35)

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

Price To Earnings Ratio

PE vs Industry: RAUTE is unprofitable, so we can't compare its Price-To-Earnings Ratio to the Finnish Machinery industry average.

PE vs Market: RAUTE is unprofitable, so we can't compare its Price-To-Earnings Ratio to the Finnish market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RAUTE's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: RAUTE's Price-To-Book Ratio (1.6x) is in line with the FI Machinery industry average.

Future Growth

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

68.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAUTE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: RAUTE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RAUTE's is expected to become profitable in the next 3 years.

Revenue vs Market: RAUTE's revenue (0.9% per year) is forecast to grow slower than the Finnish market (2.9% per year).

High Growth Revenue: RAUTE's revenue (0.9% 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 (14.8%).

Past Performance

How has Raute Oyj performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-47.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RAUTE is currently unprofitable.

Growing Profit Margin: RAUTE is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: RAUTE is unprofitable, and losses have increased over the past 5 years at a rate of 47.2% per year.

Accelerating Growth: Unable to compare RAUTE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RAUTE is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (20.1%).

Return on Equity

High ROE: RAUTE has a negative Return on Equity (-0.74%), as it is currently unprofitable.

Financial Health

How is Raute Oyj's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RAUTE's short term assets (€90.2M) exceed its short term liabilities (€81.7M).

Long Term Liabilities: RAUTE's short term assets (€90.2M) exceed its long term liabilities (€7.2M).

Debt to Equity History and Analysis

Debt Level: RAUTE has more cash than its total debt.

Reducing Debt: RAUTE's debt to equity ratio has reduced from 9.8% to 4.6% over the past 5 years.

Debt Coverage: RAUTE's debt is well covered by operating cash flow (1238.2%).

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

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.30%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RAUTE's dividend (6.3%) is higher than the bottom 25% of dividend payers in the Finnish market (2.38%).

High Dividend: RAUTE's dividend (6.3%) is in the top 25% of dividend payers in the Finnish market (4.68%)

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.

Earnings Payout to Shareholders

Earnings Coverage: RAUTE is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (29.6%), RAUTE's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

8.6yrs

Average management tenure

CEO

Petri Strengell (59 yo)

17.92yrs

Tenure

Mr. Petri Strengell, M.Sc. (Eng.), serves as Chief Executive Officer & President at Raute Oyj since May 01, 2022. He had been Executive Vice President at Raute Oyj since February 2021 until May 1, 2022 and...

Leadership Team

Experienced Management: RAUTE's management team is seasoned and experienced (8.6 years average tenure).

Board Members

Experienced Board: RAUTE's board of directors are considered experienced (5.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31