Robit Oyj (HLSE:ROBIT) - Share price, News & Analysis

Q: What is the Fair Price of ROBIT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ROBIT (€2.32) is trading below our estimate of [[fair value]] (€5.1)

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

ROBIT Stock Overview

Robit Oyj engages in manufacture and sale of drilling consumables for applications in mining, quarrying, construction, and well drilling industries in Finland.

Rewards

Trading at 54.5% below our estimate of its fair value

Earnings are forecast to grow 65.41% per year

Earnings have grown 14.6% per year over the past 5 years

Risk Analysis

Does not have a meaningful market cap (€49M)

Robit Oyj Competitors

Raute Oyj

HLSE:RAUTE

€49.0m

Glaston Oyj Abp

HLSE:GLA1V

€72.5m

Exel Composites Oyj

HLSE:EXL1V

€72.1m

Merus Power Oyj

HLSE:MERUS

€48.8m

Price History & Performance

Summary of all time highs, changes and price drops for Robit Oyj
Historical stock prices
Current Share Price	€2.32
52 Week High	€5.90
52 Week Low	€2.13
Beta	2.03
1 Month Change	-7.20%
3 Month Change	-24.18%
1 Year Change	-55.89%
3 Year Change	-14.71%
5 Year Change	-78.26%
Change since IPO	-62.52%

Recent News & Updates

Feb 16

Robit Oyj (HEL:ROBIT) Takes On Some Risk With Its Use Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	ROBIT	FI Machinery	FI Market
7D	0%	-3.5%	-0.7%
1Y	-55.9%	-33.7%	-17.6%

Return vs Industry: ROBIT underperformed the Finnish Machinery industry which returned -36.5% over the past year.

Return vs Market: ROBIT underperformed the Finnish Market which returned -19.8% over the past year.

Price Volatility

Is ROBIT's price volatile compared to industry and market?
ROBIT volatility
ROBIT Average Weekly Movement	6.4%
Machinery Industry Average Movement	6.1%
Market Average Movement	5.3%
10% most volatile stocks in FI Market	8.3%
10% least volatile stocks in FI Market	3.4%

Stable Share Price: ROBIT is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ROBIT's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1985	271	Arto Halonen	https://www.robitgroup.com

Robit Oyj engages in manufacture and sale of drilling consumables for applications in mining, quarrying, construction, and well drilling industries in Finland. It provides top hammer, down the hole, and geotechnical products. The company’s products include button bits; overburden drilling bits; reaming equipment, including reamers, adapters, dome reamers; rods, which include standard mm rods, fully carburized mm rods, and drifter rods; shanks; couplings sleeves and adapters, and roxes, as well as hyper hammers and spare parts, shock absorbers and spare parts, DTH bits, DTH drill pipes.

Robit Oyj Fundamentals Summary

How do Robit Oyj's earnings and revenue compare to its market cap?
ROBIT fundamental statistics
Market Cap	€48.93m
Earnings (TTM)	-€362.00k
Revenue (TTM)	€104.03m

0.5x

P/S Ratio

-135.2x

P/E Ratio

Is ROBIT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ROBIT income statement (TTM)
Revenue	€104.03m
Cost of Revenue	€68.81m
Gross Profit	€35.23m
Other Expenses	€35.59m
Earnings	-€362.00k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 09, 2022

Earnings per share (EPS)	-0.017
Gross Margin	33.86%
Net Profit Margin	-0.35%
Debt/Equity Ratio	65.7%

How did ROBIT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ROBIT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ROBIT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ROBIT. This is calculated by dividing ROBIT's market cap by their current preferred multiple.
What is ROBIT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€48.93m

ROBIT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	19.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ROBIT's PS Ratio compare to its peers?

ROBIT PS Ratio vs Peers

The above table shows the PS ratio for ROBIT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.1x
RAUTE Raute Oyj	0.3x	0.9%	€49.0m
GLA1V Glaston Oyj Abp	0.4x	6.6%	€72.5m
EXL1V Exel Composites Oyj	0.5x	4.5%	€72.1m
MERUS Merus Power Oyj	3.1x	26.9%	€48.8m
ROBIT Robit Oyj	0.5x	6.6%	€48.9m

Forward PS

Price-To-Sales vs Peers: ROBIT is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1.1x).

Price to Earnings Ratio vs Industry

How does ROBIT's PE Ratio compare vs other companies in the European Machinery Industry?

Price-To-Sales vs Industry: ROBIT is good value based on its Price-To-Sales Ratio (0.5x) compared to the Finnish Machinery industry average (0.6x)

Price to Sales Ratio vs Fair Ratio

What is ROBIT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ROBIT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.5x
Fair PS Ratio	0.5x

Price-To-Sales vs Fair Ratio: ROBIT is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

Share Price vs Fair Value

What is the Fair Price of ROBIT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ROBIT (€2.32) is trading below our estimate of fair value (€5.1)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

65.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

High Growth Earnings: ROBIT is expected to become profitable in the next 3 years.

Revenue vs Market: ROBIT's revenue (6.6% per year) is forecast to grow faster than the Finnish market (1.9% per year).

High Growth Revenue: ROBIT's revenue (6.6% 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 ROBIT's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Robit 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

14.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ROBIT is currently unprofitable.

Growing Profit Margin: ROBIT is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ROBIT is unprofitable, but has reduced losses over the past 5 years at a rate of 14.6% per year.

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

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

Return on Equity

High ROE: ROBIT has a negative Return on Equity (-0.56%), as it is currently unprofitable.

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Financial Health

How is Robit Oyj's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ROBIT's short term assets (€76.5M) exceed its short term liabilities (€31.9M).

Long Term Liabilities: ROBIT's short term assets (€76.5M) exceed its long term liabilities (€32.6M).

Debt to Equity History and Analysis

Debt Level: ROBIT's net debt to equity ratio (51.2%) is considered high.

Reducing Debt: ROBIT's debt to equity ratio has increased from 53.1% to 65.7% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ROBIT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ROBIT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

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

3.38%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate ROBIT'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 ROBIT's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: ROBIT is not paying a notable dividend for the Finnish market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ROBIT has not reported any payouts.

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Management

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

2.5yrs

Average management tenure

CEO

Arto Halonen (41 yo)

0.25

Tenure

Mr. Arto Halonen M.Sc. Eng., M.Sc. Econ., serves as Group Chief Executive Officer at Robit Oyj since March 15, 2022 and served as its Chief Operating Officer since February 2022. Mr. Halonen served as Grou...

Leadership Team

Experienced Management: ROBIT's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: ROBIT's board of directors are not considered experienced ( 2.2 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31