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

7.0%

VALMT

4.7%

FI Machinery

2.8%

FI Market


1 Year Return

-6.7%

VALMT

5.8%

FI Machinery

2.7%

FI Market

Return vs Industry: VALMT underperformed the Finnish Machinery industry which returned 5.8% over the past year.

Return vs Market: VALMT underperformed the Finnish Market which returned 2.7% over the past year.


Shareholder returns

VALMTIndustryMarket
7 Day7.0%4.7%2.8%
30 Day-4.0%-3.4%-0.1%
90 Day-18.9%-3.4%1.4%
1 Year-4.1%-6.7%9.5%5.8%7.4%2.7%
3 Year47.5%35.1%19.8%8.3%28.8%13.5%
5 Year167.2%131.0%67.3%41.8%64.0%32.6%

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?

14.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VALMT (€17.83) is trading below our estimate of fair value (€20.85)

Significantly Undervalued: VALMT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VALMT is good value based on its PE Ratio (15x) compared to the Machinery industry average (16.4x).

PE vs Market: VALMT is good value based on its PE Ratio (15x) compared to the Finnish market (20x).


Price to Earnings Growth Ratio

Low PEG Ratio: VALMT is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: VALMT is overvalued based on its PB Ratio (3x) compared to the FI Machinery industry average (2.2x).


Next Steps

Future Growth

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

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VALMT's forecast earnings growth (5.9% per year) is above the savings rate (0.5%).

Earnings vs Market: VALMT's earnings (5.9% per year) are forecast to grow slower than the Finnish market (13.3% per year).

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

Revenue vs Market: VALMT's revenue (3.3% per year) is forecast to grow faster than the Finnish market (2.1% per year).

High Growth Revenue: VALMT's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: VALMT's Return on Equity is forecast to be high in 3 years time (20.4%)


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

Earnings Trend: VALMT has become profitable over the past 5 years, growing earnings by 34.3% per year.

Accelerating Growth: VALMT's earnings growth over the past year (49.6%) exceeds its 5-year average (34.3% per year).

Earnings vs Industry: VALMT earnings growth over the past year (49.6%) exceeded the Machinery industry 4.7%.


Return on Equity

High ROE: VALMT's Return on Equity (19.8%) is considered low.


Return on Assets

ROA vs Industry: VALMT's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: VALMT has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Valmet Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: VALMT's short term assets (€1.7B) do not cover its short term liabilities (€1.8B)

Long Term Liabilities: VALMT's short term assets (1.7B) exceeds its long term liabilities (504.0M)


Debt to Equity History and Analysis

Debt Level: VALMT's debt to equity ratio (27%) is considered satisfactory

Reducing Debt: VALMT's debt to equity ratio has increased from 23.4% to 27% over the past 5 years.

Debt Coverage: VALMT's debt is well covered by operating cash flow (102.5%).

Interest Coverage: VALMT's interest payments on its debt are well covered by EBIT (88.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: VALMT's debt is covered by short term assets (assets are 6.822310x debt).


Next Steps

Dividend

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

3.65%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.3%markettop25%5.0%industryaverage3.5%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VALMT's dividend (3.65%) is higher than the bottom 25% of dividend payers in the Finnish market (2.34%).

High Dividend: VALMT's dividend (3.65%) is low compared to the top 25% of dividend payers in the Finnish market (5.01%).

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 (54.6%), 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 (60% payout ratio).


Next Steps

Management

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

2.0yrs

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

2.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: VALMT's management team is considered experienced (2 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

59yo

Average Age

Experienced Board: VALMT's board of directors are not considered experienced ( 1.6 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


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: 0.08yrs
  • Aki Niemi (50yo)

    Business Line President of Services

    • Tenure: 2yrs
  • Jari Vähäpesola (60yo)

    Business Line President of Paper

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

    Area President of Asia Pacific

    • Tenure: 2yrs
  • Julia Macharey (42yo)

    Senior Vice President of Human Resources & Operational Development

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

    Chief Financial Officer

    • Tenure: 3.9yrs
  • Rasmus Oksala

    General Counsel & Secretary

    • Tenure: 0yrs

Board Members

  • Aaro Cantell (55yo)

    Vice-Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: €72.78k
  • Pekka Kemppainen (65yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: €61.61k
  • Rogério Ziviani (63yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: €67.91k
  • Eriikka Söderström (51yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: €70.01k
  • Tarja Tyni (55yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: €63.71k
  • Monika Maurer (63yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: €64.91k
  • Riina Vilander (41yo)

    Personnel Representative

    • Tenure: 1.6yrs
    • Compensation: €4.20k
  • Mikael Mäkinen (63yo)

    Chairman

    • Tenure: 0.6yrs

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: €2.668b
  • 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 Analysis2019/10/15 21:30
End of Day Share Price2019/10/15 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.