HLSE:REKA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential and overvalued.

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 more volatile than 90% of Finnish stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: REKA's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Finnish stocks.


Market Performance


7 Day Return

-2.7%

REKA

-5.4%

FI Electrical

-2.0%

FI Market


1 Year Return

38.5%

REKA

44.4%

FI Electrical

16.7%

FI Market

Return vs Industry: REKA underperformed the Finnish Electrical industry which returned 42.2% over the past year.

Return vs Market: REKA exceeded the Finnish Market which returned 15.3% over the past year.


Shareholder returns

REKAIndustryMarket
7 Day-2.7%-5.4%-2.0%
30 Day6.2%-5.1%-2.4%
90 Day32.8%6.4%3.4%
1 Year38.5%38.5%48.1%44.4%25.1%16.7%
3 Year-28.9%-31.0%72.5%59.3%34.6%11.3%
5 Year115.5%108.1%109.8%81.1%73.3%35.0%

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?

19.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REKA (€3.6) is trading below our estimate of fair value (€4.47)

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 unprofitable, so we can't compare its PE Ratio to the XE Electrical industry average.

PE vs Market: REKA is unprofitable, so we can't compare its PE Ratio to the Finnish market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: REKA is overvalued based on its PB Ratio (4.1x) compared to the XE Electrical industry average (3.6x).


Next Steps

Future Growth

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

63.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REKA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.3%).

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

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

Revenue vs Market: REKA's revenue (8.2% per year) is forecast to grow faster than the Finnish market (3.5% per year).

High Growth Revenue: REKA's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if REKA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REKA is currently unprofitable.

Growing Profit Margin: REKA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: REKA is unprofitable, and losses have increased over the past 5 years at a rate of 8.5% per year.

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

Earnings vs Industry: REKA is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (5.6%).


Return on Equity

High ROE: REKA has a negative Return on Equity (-17.88%), as it is currently unprofitable.


Next Steps

Financial Health

How is Reka Industrial Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: REKA's short term assets (€31.6M) exceed its short term liabilities (€30.3M).

Long Term Liabilities: REKA's short term assets (€31.6M) do not cover its long term liabilities (€41.4M).


Debt to Equity History and Analysis

Debt Level: REKA's debt to equity ratio (499.8%) is considered high.

Reducing Debt: REKA's debt to equity ratio has increased from 337.7% to 499.8% over the past 5 years.

Debt Coverage: REKA's debt is not well covered by operating cash flow (20%).

Interest Coverage: REKA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.08%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate REKA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate REKA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if REKA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if REKA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: REKA is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of REKA's dividend in 3 years as they are not forecast to pay a notable one for the Finnish market.


Next Steps

Management

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

0.3yrs

Average board tenure


CEO

Jukka Poutanen (58 yo)

1.42yrs

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

NamePositionTenureCompensationOwnership
Marjo Matikainen-Kallström
Director5.83yrsno datano data
Markku Rentto
Chairman8.25yrs€29.00k0.38%
€ 86.7k
Matti Hyytiainen
Director0.25yrno datano data
Ari Jarvela
Vice Chairman of the Board0.25yrno datano data
Olli-Heikki Kyllonen
Director0.25yrno datano data

0.3yrs

Average Tenure

57yo

Average Age

Experienced Board: REKA's board of directors are not considered experienced ( 0.3 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: NaN
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: €22.912m
  • Shares outstanding: 5.97m
  • Website: https://www.rekaindustrial.fi

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REKAHLSE (OMX Nordic Exchange Helsinki)YesSeries B SharesFIEURDec 1992
0OEJLSE (London Stock Exchange)YesSeries B SharesGBEURDec 1992

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 under the FlameRex; medium a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 19:03
End of Day Share Price2021/02/26 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.