HLSE:VALMT

Stock Analysis Report

Executive Summary

Valmet Oyj, together with its subsidiaries, develops and supplies process technologies, automation, and services for the pulp, paper, and energy industries in Finland, North America, South America, Europe, the Middle East, Africa, China, and the Asia-Pacific.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VALMT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.4%

VALMT

5.7%

FI Machinery

6.4%

FI Market


1 Year Return

-23.2%

VALMT

-15.5%

FI Machinery

-15.2%

FI Market

Return vs Industry: VALMT underperformed the Finnish Machinery industry which returned -16.2% over the past year.

Return vs Market: VALMT underperformed the Finnish Market which returned -19% over the past year.


Shareholder returns

VALMTIndustryMarket
7 Day1.4%5.7%6.4%
30 Day-0.7%3.7%-1.0%
90 Day-14.3%-18.6%-17.1%
1 Year-23.2%-23.2%-12.8%-15.5%-12.9%-15.2%
3 Year20.9%13.9%-4.3%-12.9%1.7%-9.3%
5 Year83.7%62.3%13.5%-3.3%9.7%-9.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

31.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VALMT (€19.07) is trading below our estimate of fair value (€27.57)

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


Price To Earnings Ratio

PE vs Industry: VALMT is good value based on its PE Ratio (14.2x) compared to the Machinery industry average (14.3x).

PE vs Market: VALMT is good value based on its PE Ratio (14.2x) compared to the Finnish market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: VALMT is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: VALMT is overvalued based on its PB Ratio (2.7x) compared to the FI Machinery industry average (1.4x).


Next Steps

Future Growth

How is Valmet Oyj forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VALMT's forecast earnings growth (5.5% per year) is above the savings rate (-0.1%).

Earnings vs Market: VALMT's earnings (5.5% per year) are forecast to grow slower than the Finnish market (9.2% per year).

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

Revenue vs Market: VALMT's revenue (1.7% per year) is forecast to grow slower than the Finnish market (3% per year).

High Growth Revenue: VALMT's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VALMT's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has Valmet Oyj performed over the past 5 years?

24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VALMT has high quality earnings.

Growing Profit Margin: VALMT's current net profit margins (5.7%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: VALMT's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: VALMT's earnings growth over the past year (33.1%) exceeds its 5-year average (24.6% per year).

Earnings vs Industry: VALMT earnings growth over the past year (33.1%) exceeded the Machinery industry -15.3%.


Return on Equity

High ROE: VALMT's Return on Equity (19.3%) is considered low.


Next Steps

Financial Health

How is Valmet Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: VALMT's short term assets (€1.9B) exceed its short term liabilities (€1.9B).

Long Term Liabilities: VALMT's short term assets (€1.9B) exceed its long term liabilities (€491.0M).


Debt to Equity History and Analysis

Debt Level: VALMT's debt to equity ratio (20%) is considered satisfactory.

Reducing Debt: VALMT's debt to equity ratio has increased from 8.8% to 20% over the past 5 years.

Debt Coverage: VALMT's debt is well covered by operating cash flow (141.1%).

Interest Coverage: VALMT's interest payments on its debt are well covered by EBIT (34.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VALMT's dividend (4.2%) is higher than the bottom 25% of dividend payers in the Finnish market (3.14%).

High Dividend: VALMT's dividend (4.2%) is low compared to the top 25% of dividend payers in the Finnish market (6.13%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VALMT has been paying a dividend for less than 10 years.

Growing Dividend: VALMT's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.5%), VALMT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VALMT's dividends in 3 years are forecast to be covered by earnings (61.5% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Pasi Laine (56yo)

no data

Tenure

Mr. Pasi Kalevi Laine, MSc (El Eng) serves as Director at at Ilmarinen Mutual Pension. He has been the Chief Executive Officer and President of Valmet Oyj since 2013. Mr. Laine serves as Managing Director  ...


Leadership Team

NamePositionTenureCompensationOwnership
Pasi Laine
President & CEOno datano data0.091% 2.5m
Kari Saarinen
Chief Financial Officer4.42yrsno data0.026% 734.3k
Julia Macharey
Senior Vice President of Human Resources & Operational Development1.08yrsno data0.018% 499.8k
Pekka Rouhiainen
Director of Investor Relations0.58yrno datano data
Rasmus Oksala
General Counsel & Secretaryno datano datano data
Anu Salonsaari-Posti
Senior Vice President of Marketingno datano data0.014% 400.1k
Aki Niemi
Business Line President of Services2.5yrsno data0.034% 942.7k
Jari Vähäpesola
Business Line President of Paper6.25yrsno data0.032% 884.4k
Jukka Tiitinen
Area President of Asia Pacific2.5yrsno data0.052% 1.5m
Celso Tacla
Area President of South America6.25yrsno data0.050% 1.4m

2.5yrs

Average Tenure

54.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Aaro Cantell
Vice-Chairman of the Board2.08yrs€79.52k0.0037% 102.2k
Pekka Kemppainen
Independent Director2.08yrs€70.64k0.0014% 38.3k
Rogério Ziviani
Independent Director7.25yrs€81.14k0.0061% 170.6k
Eriikka Söderström
Independent Director3.25yrs€77.64k0.0021% 59.5k
Tarja Tyni
Independent Director4.08yrs€70.64k0.0033% 92.8k
Monika Maurer
Independent Director2.08yrs€76.74k0.0014% 38.3k
Riina Vilander
Personnel Representative2.08yrs€7.00kno data
Mikael Mäkinen
Independent Chairman1.08yrs€123.00k0.0012% 32.8k

2.1yrs

Average Tenure

59yo

Average Age

Experienced Board: VALMT's board of directors are not considered experienced ( 2.1 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

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


Key Information

  • Name: Valmet Oyj
  • Ticker: VALMT
  • Exchange: HLSE
  • Founded:
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €2.778b
  • Shares outstanding: 149.50m
  • Website: https://www.valmet.com

Number of Employees


Location

  • Valmet Oyj
  • Keilasatama 5
  • PO Box 11
  • Espoo
  • Uusimaa
  • 2150
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VALMTHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURJan 2014
VALMTHBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURJan 2014
2VODB (Deutsche Boerse AG)YesShare CapitalDEEURJan 2014
0QIWLSE (London Stock Exchange)YesShare CapitalGBEURJan 2014
VOYJ.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDJan 2014
VALMT NBMV (Bolsa Mexicana de Valores)YesShare CapitalMXMXNJan 2014
VLMT.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDAug 2019

Biography

Valmet Oyj, together with its subsidiaries, develops and supplies process technologies, automation, and services for the pulp, paper, and energy industries in Finland, North America, South America, Europe, the Middle East, Africa, China, and the Asia-Pacific. It offers pulping and fiber products, including wood handling, cooking and fiber line, chemical recovery, pulp drying, mechanical pulping, recycled fiber, stock preparation, and automation for pulp; and board and paper mill products, such as recycled fiber, stock preparation, headbox, forming, pressing, drying, process ventilation, sizing, coating, coating drying, chemical systems, calendering, reeling, and winders and roll handling systems, as well as tissue mill products. The company also provides energy production equipment, including bubbling fluidized bed and circulating fluidized bed boilers, gasification, power plants, heating plants, air emission control products, and other services; filter fabrics for mining and chemical industry; inline conductivity measurements for pharmaceutical and industrial applications; biofuels and biomaterials; and automation services. In addition, it offers spare parts and components, maintenance and shutdown management, outsourcing, production consumables, process support and optimization, process and automation upgrades, and industrial Internet and remote solutions. The company also serves paper converting, food and biotechnology, and pharmaceuticals industries, as well as commercial laundries. Valmet Oyj is headquartered in Espoo, Finland. Valmet Oyj(HLSE:VALMT) operates independently of Metso Corporation as of December 31, 2013. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 05:36
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.