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Market Cap

€25.1m

Last Updated

2021/05/09 18:44 UTC

Data Sources

Company Financials +

Executive Summary

Reka Industrial Oyj manufactures and sells cables in Finland, Sweden, Denmark, Norway, the Baltic countries, and Russia. More Details


Snowflake Analysis

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.


Market Performance


7 Day Return

3.7%

REKA

-1.2%

FI Electrical

2.2%

FI Market


1 Year Return

90.9%

REKA

75.2%

FI Electrical

36.5%

FI Market

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.


Shareholder returns

REKAIndustryMarket
7 Day3.7%-1.2%2.2%
30 Day12.6%-2.0%4.6%
90 Day23.5%-0.2%5.7%
1 Year93.5%90.9%77.1%75.2%46.0%36.5%
3 Year-2.7%-6.3%75.0%63.4%35.9%13.4%
5 Year137.1%125.8%122.1%92.5%96.4%55.3%

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

Valuation

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

8.0%

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).


Future Growth

How is Reka Industrial Oyj forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

4.0%

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%).


Past Performance

How has Reka Industrial Oyj performed over the past 5 years?

-13.8%

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.


Financial Health

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).


Balance Sheet


Dividend

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

1.19%

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).


Next Steps

Management

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

0.5yrs

Average board tenure


CEO

Jukka Poutanen (58 yo)

1.67yrs

Tenure

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 ...


Board Members

Experienced Board: REKA's board of directors are not considered experienced ( 0.5 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: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • 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


Location

  • Reka Industrial Oyj
  • Kankurinkatu 4-6
  • Hyvinkää
  • Uusimaa
  • 5800
  • Finland

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/09 18:44
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
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.