HLSE:UPONOR

Stock Analysis Report

Executive Summary

Uponor Oyj provides plumbing, indoor climate, and infrastructure solutions in Europe and North America.

Rewards

Trading at 35.8% below its fair value

Earnings are forecast to grow 14.58% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Uponor Oyj's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UPONOR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

UPONOR

0.8%

FI Building

-0.1%

FI Market


1 Year Return

40.7%

UPONOR

27.5%

FI Building

7.0%

FI Market

Return vs Industry: UPONOR exceeded the Finnish Building industry which returned 27.5% over the past year.

Return vs Market: UPONOR exceeded the Finnish Market which returned 7% over the past year.


Shareholder returns

UPONORIndustryMarket
7 Day3.4%0.8%-0.1%
30 Day1.7%3.3%-2.2%
90 Day24.1%9.9%0.08%
1 Year48.2%40.7%30.7%27.5%11.9%7.0%
3 Year-12.7%-22.2%29.4%20.5%25.5%10.4%
5 Year38.2%15.8%80.8%59.5%56.9%26.8%

Price Volatility Vs. Market

How volatile is Uponor Oyj's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

35.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UPONOR (€12.21) is trading below our estimate of fair value (€19.02)

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


Price To Earnings Ratio

PE vs Industry: UPONOR is poor value based on its PE Ratio (19.6x) compared to the Building industry average (18.9x).

PE vs Market: UPONOR is poor value based on its PE Ratio (19.6x) compared to the Finnish market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: UPONOR is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: UPONOR is overvalued based on its PB Ratio (3x) compared to the XE Building industry average (1.6x).


Next Steps

Future Growth

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

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UPONOR's forecast earnings growth (14.6% per year) is above the savings rate (-0.1%).

Earnings vs Market: UPONOR's earnings (14.6% per year) are forecast to grow faster than the Finnish market (14.2% per year).

High Growth Earnings: UPONOR's earnings are forecast to grow, but not significantly.

Revenue vs Market: UPONOR's revenue (1.1% per year) is forecast to grow slower than the Finnish market (2.2% per year).

High Growth Revenue: UPONOR's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UPONOR's Return on Equity is forecast to be high in 3 years time (20.7%)


Next Steps

Past Performance

How has Uponor Oyj performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UPONOR has a large one-off gain of €13.6M impacting its September 30 2019 financial results.

Growing Profit Margin: UPONOR's current net profit margins (4.1%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: UPONOR's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: UPONOR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UPONOR had negative earnings growth (-23.9%) over the past year, making it difficult to compare to the Building industry average (5.3%).


Return on Equity

High ROE: UPONOR's Return on Equity (13.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Uponor Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: UPONOR's short term assets (€435.7M) exceed its short term liabilities (€255.7M).

Long Term Liabilities: UPONOR's short term assets (€435.7M) exceed its long term liabilities (€239.5M).


Debt to Equity History and Analysis

Debt Level: UPONOR's debt to equity ratio (60.4%) is considered high.

Reducing Debt: UPONOR's debt to equity ratio has increased from 46.1% to 60.4% over the past 5 years.

Debt Coverage: UPONOR's debt is well covered by operating cash flow (42.2%).

Interest Coverage: UPONOR's interest payments on its debt are well covered by EBIT (17.3x coverage).


Balance Sheet

Inventory Level: UPONOR has a high level of physical assets or inventory.

Debt Coverage by Assets: UPONOR's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Uponor Oyj's current dividend yield, its reliability and sustainability?

4.18%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.2%markettop25%4.9%industryaverage2.1%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: UPONOR's dividend (4.18%) is higher than the bottom 25% of dividend payers in the Finnish market (2.21%).

High Dividend: UPONOR's dividend (4.18%) is low compared to the top 25% of dividend payers in the Finnish market (4.89%).


Stability and Growth of Payments

Stable Dividend: UPONOR's dividend payments have been volatile in the past 10 years.

Growing Dividend: UPONOR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.9%), UPONOR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UPONOR's dividends in 3 years are forecast to be covered by earnings (66.6% payout ratio).


Next Steps

Management

What is the CEO of Uponor Oyj's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Jyri Luomakoski (52yo)

11.2yrs

Tenure

0

Mr. Jyri Luomakoski, MBA, has been Vice Chairman of Fiskars Oyj Abp since March 14, 2018. He has been the Chief Executive Officer and President at Uponor Oyj since October 27, 2008. Mr. Luomakoski serves a ...


CEO Compensation Analysis

Compensation vs Market: Jyri's total compensation ($USD0.00) is below average for companies of similar size in the Finnish market ($USD1.01M).

Compensation vs Earnings: Jyri's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.5yrs

Average Tenure

52yo

Average Age

Experienced Management: UPONOR's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

48yo

Average Age

Experienced Board: UPONOR's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Jyri Luomakoski (52yo)

    President

    • Tenure: 11.2yrs
  • Sebastian Bondestam (57yo)

    President of Uponor Infra Ltd

    • Tenure: 0yrs
    • Compensation: €425.90k
  • Tarmo Anttila

    Vice President of Communications

    • Tenure: 0yrs
  • Reetta Härkki

    General Counsel & Board Secretary

    • Tenure: 0yrs
  • Bill Gray (54yo)

    President of Uponor North America

    • Tenure: 0yrs
  • Susanna Inkinen

    Vice President of Communications & Corporate Responsibility

    • Tenure: 1.5yrs
  • Karsten Hoppe (48yo)

    President of Building Solutions for Europe

    • Tenure: 0.8yrs
  • Minna Yrjönmäki (51yo)

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Eva Nygren (64yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: €54.71k
  • Johan Falk (48yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: €52.31k
  • Markus Lengauer (54yo)

    Deputy Chair of the Board

    • Tenure: 0.8yrs
    • Compensation: €64.47k
  • Annika Paasikivi (44yo)

    Chairman

    • Tenure: 1.8yrs
    • Compensation: €109.23k
  • Casimir Lindholm (48yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: €52.91k
  • Pia Aaltonen-Forsell (45yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: €64.47k
  • Johan Falk

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Uponor Oyj
  • Ticker: UPONOR
  • Exchange: HLSE
  • Founded: 1918
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: €891.176m
  • Shares outstanding: 72.99m
  • Website: https://www.uponor.com

Number of Employees


Location

  • Uponor Oyj
  • Äyritie 20
  • PO Box 37
  • Vantaa
  • Uusimaa
  • 1511
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UPNR.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDJan 1992
UPONORHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURJan 1992
UPNDB (Deutsche Boerse AG)YesShare CapitalDEEURJan 1992
0KI5LSE (London Stock Exchange)YesShare CapitalGBEURJan 1992
UPNR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Uponor Oyj provides plumbing, indoor climate, and infrastructure solutions in Europe and North America. The company operates through three segments: Building Solutions – Europe, Building Solutions – North  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:39
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.