Reka Industrial Oyj manufactures and sells cables in Finland, Sweden, Denmark, Norway, the Baltic countries, and Russia. More Details
Fair value with limited growth.
Share Price & News
How has Reka Industrial Oyj's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: REKA is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: REKA's weekly volatility (6%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: REKA exceeded the Finnish Electrical industry which returned 74.9% over the past year.
Return vs Market: REKA exceeded the Finnish Market which returned 36.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Reka Industrial Oyj's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall StTaking A Look At Reka Industrial Oyj's (HEL:REKA) ROE
1 month ago | Simply Wall StReka Industrial Oyj (HEL:REKA) Will Pay A €0.05 Dividend In Four Days
1 month ago | Simply Wall StReka Industrial Oyj (HEL:REKA) Seems To Be Using A Lot Of Debt
Is Reka Industrial Oyj undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: REKA (€4.2) is trading below our estimate of fair value (€4.56)
Significantly Below Fair Value: REKA is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: REKA is good value based on its PE Ratio (26.2x) compared to the XE Electrical industry average (31.5x).
PE vs Market: REKA's PE Ratio (26.2x) is in line with the Finnish market.
Price to Earnings Growth Ratio
PEG Ratio: REKA is poor value based on its PEG Ratio (6.5x)
Price to Book Ratio
PB vs Industry: REKA is good value based on its PB Ratio (2.3x) compared to the XE Electrical industry average (3.3x).
How is Reka Industrial Oyj forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: REKA's forecast earnings growth (4% per year) is above the savings rate (0.2%).
Earnings vs Market: REKA's earnings (4% per year) are forecast to grow slower than the Finnish market (12.2% per year).
High Growth Earnings: REKA's earnings are forecast to grow, but not significantly.
Revenue vs Market: REKA's revenue (5.6% per year) is forecast to grow faster than the Finnish market (3.5% per year).
High Growth Revenue: REKA'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: REKA's Return on Equity is forecast to be low in 3 years time (19.4%).
How has Reka Industrial Oyj performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REKA has a large one-off gain of €283.0K impacting its December 31 2020 financial results.
Growing Profit Margin: REKA became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: REKA has become profitable over the past 5 years, growing earnings by -13.8% per year.
Accelerating Growth: REKA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: REKA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electrical industry (22%).
Return on Equity
High ROE: REKA's Return on Equity (8.6%) is considered low.
How is Reka Industrial Oyj's financial position?
Financial Position Analysis
Short Term Liabilities: REKA's short term assets (€28.9M) exceed its short term liabilities (€28.7M).
Long Term Liabilities: REKA's short term assets (€28.9M) do not cover its long term liabilities (€33.4M).
Debt to Equity History and Analysis
Debt Level: REKA's debt to equity ratio (231.2%) is considered high.
Reducing Debt: REKA's debt to equity ratio has reduced from 381.4% to 231.2% over the past 5 years.
Debt Coverage: REKA's debt is not well covered by operating cash flow (8.3%).
Interest Coverage: REKA's interest payments on its debt are not well covered by EBIT (1.8x coverage).
What is Reka Industrial Oyj current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: REKA's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (1.71%).
High Dividend: REKA's dividend (1.19%) is low compared to the top 25% of dividend payers in the Finnish market (3.64%).
Stability and Growth of Payments
Stable Dividend: REKA's dividend payments have been volatile in the past 10 years.
Growing Dividend: REKA's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (31.2%), REKA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: REKA's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Jukka Poutanen (58 yo)
Mr. Jukka Poutanen, M. Sc. (Tech), MBA, has been Managing Director at Neo Industrial Plc since August 12, 2019 and has been its Chief Executive Officer since September 2019. Mr. Poutanen has versatile and ...
Experienced Board: REKA's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Reka Industrial Oyj's company bio, employee growth, exchange listings and data sources
- Name: Reka Industrial Oyj
- Ticker: REKA
- Exchange: HLSE
- Founded: 1898
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Market Cap: €25.100m
- Shares outstanding: 5.98m
- Website: https://www.rekaindustrial.fi
Number of Employees
- Reka Industrial Oyj
- Kankurinkatu 4-6
Reka Industrial Oyj manufactures and sells cables in Finland, Sweden, Denmark, Norway, the Baltic countries, and Russia. It offers instrumentation cables, fire-resistant cables, medium and high voltage cab...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/09 18:44|
|End of Day Share Price||2021/05/07 00:00|
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.