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

Fundamentals

Proven track record with adequate 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


Market Performance


7 Day Return

6.8%

HLSE:VALMT

-0.5%

FI Machinery

1.2%

FI Market


1 Year Return

0.4%

HLSE:VALMT

2.3%

FI Machinery

-1.9%

FI Market

VALMT underperformed the Machinery industry which returned 2.3% over the past year.

VALMT outperformed the Market in Finland which returned -1.9% over the past year.


Share holder returns

VALMTIndustryMarket
7 Day6.8%-0.5%1.2%
30 Day15.2%9.5%5.2%
90 Day-15.6%2.2%3.0%
1 Year3.2%0.4%5.7%2.3%2.5%-1.9%
3 Year55.1%42.0%27.2%15.6%33.0%17.6%
5 Year164.8%128.8%62.6%38.9%55.7%26.2%

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 based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Valmet Oyj's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Valmet Oyj's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Valmet Oyj is good value based on earnings compared to the FI Machinery industry average.

Valmet Oyj is good value based on earnings compared to the Finland market.


Price Based on Expected Growth

Valmet Oyj is poor value based on expected growth next year.


Price Based on Value of Assets

Valmet Oyj is overvalued based on assets compared to the FI Machinery industry average.


Next Steps

Future Growth

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

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Valmet Oyj's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Valmet Oyj's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).

Valmet Oyj's revenue growth is expected to exceed the Finland market average.

Valmet Oyj's earnings growth is positive but not above the Finland market average.

Valmet Oyj's earnings growth is expected to exceed the low risk savings rate of 0.5%.


Earnings per Share Growth Estimates


Future Return on Equity

Valmet Oyj is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Valmet Oyj performed over the past 5 years?

34.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Valmet Oyj has delivered over 20% year on year earnings growth in the past 5 years.

Valmet Oyj's 1-year earnings growth exceeds its 5-year average (49.6% vs 34.3%)

Valmet Oyj's earnings growth has exceeded the FI Machinery industry average in the past year (49.6% vs 4.7%).


Return on Equity

Valmet Oyj has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Valmet Oyj used its assets less efficiently than the FI Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Valmet Oyj has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Valmet Oyj's financial position?


Financial Position Analysis

Valmet Oyj's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Valmet Oyj's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Valmet Oyj's level of debt (27%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (23.4% vs 27% today).

Debt is well covered by operating cash flow (102.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 88.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6.8x debt.


Next Steps

Dividend

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

4.60%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Valmet Oyj's pays a higher dividend yield than the bottom 25% of dividend payers in Finland (2.29%).

Valmet Oyj's dividend is below the markets top 25% of dividend payers in Finland (5.09%).

Whilst dividend payments have been stable, Valmet Oyj has been paying a dividend for less than 10 years.

Dividend payments have increased, but Valmet Oyj only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Pasi Laine (56yo)

0yrs

Tenure

0

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


Management Age and Tenure

1.9yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Valmet Oyj management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

59yo

Average Age

The average tenure for the Valmet Oyj board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Pasi Laine (56yo)

    President & CEO

    • Tenure: 0yrs
  • Anu Salonsaari-Posti (51yo)

    Senior Vice President of Marketing & Communications

    • Tenure: 0yrs
  • Celso Tacla (55yo)

    Area President of South America

    • Tenure: 0yrs
  • Pekka Rouhiainen

    Director of Investor Relations

    • Tenure: 0yrs
  • Aki Niemi (50yo)

    Business Line President of Services

    • Tenure: 1.9yrs
  • Jari Vähäpesola (60yo)

    Business Line President of Paper

    • Tenure: 0yrs
  • Jukka Tiitinen (54yo)

    Area President of Asia Pacific

    • Tenure: 1.9yrs
  • Julia Macharey (42yo)

    Senior Vice President of Human Resources & Operational Development

    • Tenure: 0yrs
  • Kari Saarinen (58yo)

    Chief Financial Officer

    • Tenure: 3.8yrs
  • Rasmus Oksala

    General Counsel & Secretary

    • Tenure: 0yrs

Board Members

  • Aaro Cantell (55yo)

    Vice-Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: €72.78k
  • Pekka Kemppainen (65yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: €61.61k
  • Rogério Ziviani (63yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: €67.91k
  • Eriikka Söderström (51yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: €70.01k
  • Tarja Tyni (55yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: €63.71k
  • Monika Maurer (63yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: €64.91k
  • Riina Vilander (41yo)

    Personnel Representative

    • Tenure: 1.5yrs
    • Compensation: €4.20k
  • Mikael Mäkinen (63yo)

    Chairman

    • Tenure: 0.5yrs

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: €2.780b
  • Shares outstanding: 149.62m
  • 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 ADSUSUSDJul 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 21:48
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
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.