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Valmet Oyj

HLSE:VALMT
Snowflake Description

Proven track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VALMT
HLSE
€3B
Market Cap
  1. Home
  2. FI
  3. Capital Goods
Company description

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. The last earnings update was 86 days ago. More info.


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VALMT Share Price and Events
7 Day Returns
1.5%
HLSE:VALMT
-0.2%
FI Machinery
-0.3%
FI Market
1 Year Returns
22.7%
HLSE:VALMT
-3.4%
FI Machinery
-4%
FI Market
VALMT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Valmet Oyj (VALMT) 1.5% -4.6% -6.6% 22.7% 77.8% 172.2%
FI Machinery -0.2% -3.1% -3.4% -3.4% 11.5% 34.8%
FI Market -0.3% -0.3% -3.6% -4% 14.5% 24.8%
1 Year Return vs Industry and Market
  • VALMT outperformed the Machinery industry which returned -3.4% over the past year.
  • VALMT outperformed the Market in Finland which returned -4% over the past year.
Price Volatility
VALMT
Industry
5yr Volatility vs Market

Value

 Is Valmet Oyj undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Valmet Oyj to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Valmet Oyj.

HLSE:VALMT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year FI Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for HLSE:VALMT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year FI Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.5%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.083 (1 + (1- 20%) (11.09%))
1.12
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.54% + (1.12 * 6.51%)
7.83%

Discounted Cash Flow Calculation for HLSE:VALMT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Valmet Oyj is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

HLSE:VALMT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.83%)
2020 262.60 Analyst x5 243.53
2021 261.17 Analyst x6 224.60
2022 276.00 Analyst x1 220.12
2023 271.00 Analyst x1 200.43
2024 267.97 Est @ -1.12% 183.80
2025 266.30 Est @ -0.62% 169.39
2026 265.58 Est @ -0.27% 156.65
2027 265.50 Est @ -0.03% 145.23
2028 265.88 Est @ 0.14% 134.88
2029 266.57 Est @ 0.26% 125.41
Present value of next 10 years cash flows €1,804.04
HLSE:VALMT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €266.57 × (1 + 0.54%) ÷ (7.83% – 0.54%)
€3,675.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €3,675.16 ÷ (1 + 7.83%)10
€1,728.93
HLSE:VALMT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €1,804.04 + €1,728.93
€3,532.97
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €3,532.97 / 149.62
€23.61
HLSE:VALMT Discount to Share Price
Calculation Result
Value per share (EUR) From above. €23.61
Current discount Discount to share price of €21.64
= -1 x (€21.64 - €23.61) / €23.61
8.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Valmet Oyj is available for.
Intrinsic value
8%
Share price is €21.64 vs Future cash flow value of €23.61
Current Discount Checks
For Valmet Oyj to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Valmet Oyj's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Valmet Oyj's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
HLSE:VALMT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €1.16
HLSE:VALMT Share Price ** HLSE (2019-07-19) in EUR €21.64
Finland Machinery Industry PE Ratio Median Figure of 14 Publicly-Listed Machinery Companies 18.95x
Finland Market PE Ratio Median Figure of 108 Publicly-Listed Companies 20.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Valmet Oyj.

HLSE:VALMT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= HLSE:VALMT Share Price ÷ EPS (both in EUR)

= 21.64 ÷ 1.16

18.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Valmet Oyj's expected growth come at a high price?
Raw Data
HLSE:VALMT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
6.2%per year
Finland Machinery Industry PEG Ratio Median Figure of 12 Publicly-Listed Machinery Companies 1.91x
Finland Market PEG Ratio Median Figure of 93 Publicly-Listed Companies 1.77x

*Line of best fit is calculated by linear regression .

HLSE:VALMT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.61x ÷ 6.2%

2.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Valmet Oyj is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Valmet Oyj's assets?
Raw Data
HLSE:VALMT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €5.82
HLSE:VALMT Share Price * HLSE (2019-07-19) in EUR €21.64
Finland Machinery Industry PB Ratio Median Figure of 16 Publicly-Listed Machinery Companies 2.01x
Finland Market PB Ratio Median Figure of 142 Publicly-Listed Companies 1.95x
HLSE:VALMT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= HLSE:VALMT Share Price ÷ Book Value per Share (both in EUR)

= 21.64 ÷ 5.82

3.72x

* Primary Listing of Valmet Oyj.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Valmet Oyj is overvalued based on assets compared to the FI Machinery industry average.
X
Value checks
We assess Valmet Oyj's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Valmet Oyj has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Valmet Oyj expected to grow at an attractive rate?
  • Valmet Oyj's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Valmet Oyj's earnings growth is positive but not above the Finland market average.
  • Valmet Oyj's revenue growth is expected to exceed the Finland market average.
Annual Growth Rates Comparison
Raw Data
HLSE:VALMT Future Growth Rates Data Sources
Data Point Source Value (per year)
HLSE:VALMT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 6.2%
HLSE:VALMT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 4.6%
Finland Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
Finland Machinery Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
Finland Market Earnings Growth Rate Market Cap Weighted Average 13.9%
Finland Market Revenue Growth Rate Market Cap Weighted Average 2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
HLSE:VALMT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
HLSE:VALMT Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,350 369 1
2022-12-31 3,997 368 191 2
2021-12-31 3,914 338 238 7
2020-12-31 3,859 338 231 8
2019-12-31 3,573 239 201 9
HLSE:VALMT Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 3,279 295 174
2018-12-31 3,325 284 151
2018-09-30 3,308 229 126
2018-06-30 3,258 188 119
2018-03-31 3,145 216 111
2017-12-31 3,058 291 121
2017-09-30 2,876 291 87
2017-06-30 2,846 335 85
2017-03-31 2,919 337 90
2016-12-31 2,926 246 83
2016-09-30 2,995 222 95
2016-06-30 3,044 117 91

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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 is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
HLSE:VALMT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Valmet Oyj Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

HLSE:VALMT Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.58 1.83 1.22 6.00
2020-12-31 1.51 1.75 1.14 7.00
2019-12-31 1.34 1.43 1.17 8.00
HLSE:VALMT Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 1.16
2018-12-31 1.01
2018-09-30 0.84
2018-06-30 0.79
2018-03-31 0.74
2017-12-31 0.81
2017-09-30 0.58
2017-06-30 0.57
2017-03-31 0.60
2016-12-31 0.55
2016-09-30 0.63
2016-06-30 0.61

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Valmet Oyj is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Valmet Oyj's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Finland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Finland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Valmet Oyj has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Valmet Oyj performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Valmet Oyj's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (56.8% vs 39.7%)
  • Valmet Oyj's earnings growth has exceeded the FI Machinery industry average in the past year (56.8% vs 14.2%).
Earnings and Revenue History
Valmet Oyj's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Valmet Oyj Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

HLSE:VALMT Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,279.00 174.00 535.00
2018-12-31 3,325.00 151.00 535.00
2018-09-30 3,308.00 126.00 525.00
2018-06-30 3,258.00 119.00 522.00
2018-03-31 3,145.00 111.00 520.00
2017-12-31 3,058.00 121.00 517.00
2017-09-30 2,876.00 87.00 521.00
2017-06-30 2,846.00 85.00 522.00
2017-03-31 2,919.00 90.00 519.00
2016-12-31 2,926.00 83.00 522.00
2016-09-30 2,995.00 95.00 522.00
2016-06-30 3,044.00 91.00 526.00
2016-03-31 3,019.00 80.00 526.00
2015-12-31 2,928.00 77.00 500.00
2015-09-30 2,850.00 75.00 470.00
2015-06-30 2,706.00 70.00 442.00
2015-03-31 2,515.00 60.00 409.00
2014-12-31 2,473.00 46.00 404.00
2014-09-30 2,364.00 -40.00 435.00
2014-06-30 2,375.00 -72.00 443.00
2014-03-31 2,501.00 -81.00 458.00
2013-12-31 2,613.00 -63.00 473.00
2013-09-30 2,871.00 4.00 448.00
2013-06-30 2,906.00 44.00 452.00
2013-03-31 2,918.50 65.00 453.50
2012-12-31 3,014.00 76.00 455.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Valmet Oyj has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Valmet Oyj used its assets less efficiently than the FI Machinery industry average last year based on Return on Assets.
  • Valmet Oyj has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Valmet Oyj's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Valmet Oyj has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Valmet Oyj's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Valmet Oyj's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Valmet Oyj's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Valmet Oyj Company Filings, last reported 3 months ago.

HLSE:VALMT Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 876.00 307.00 511.00
2018-12-31 949.00 202.00 420.00
2018-09-30 877.00 201.00 295.00
2018-06-30 848.00 202.00 200.00
2018-03-31 831.00 202.00 312.00
2017-12-31 918.00 220.00 302.00
2017-09-30 897.00 262.00 297.00
2017-06-30 877.00 277.00 249.00
2017-03-31 845.00 277.00 297.00
2016-12-31 886.00 312.00 241.00
2016-09-30 858.00 310.00 177.00
2016-06-30 843.00 351.00 113.00
2016-03-31 813.00 372.00 173.00
2015-12-31 861.00 372.00 186.00
2015-09-30 815.00 399.00 143.00
2015-06-30 811.00 428.00 165.00
2015-03-31 794.00 446.00 562.00
2014-12-31 809.00 67.00 220.00
2014-09-30 802.00 101.00 246.00
2014-06-30 782.00 184.00 227.00
2014-03-31 773.00 212.00 239.00
2013-12-31 813.00 211.00 212.00
2013-09-30 845.00 311.00 201.00
2013-06-30 852.00 381.00 212.00
2013-03-31 886.00 189.00 265.00
2012-12-31 423.00 867.00 159.00
  • Valmet Oyj's level of debt (35%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (27.4% vs 35% today).
  • Debt is well covered by operating cash flow (96.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 50.4x coverage).
X
Financial health checks
We assess Valmet Oyj's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Valmet Oyj has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3%
Current annual income from Valmet Oyj dividends. Estimated to be 3.88% next year.
If you bought €2,000 of Valmet Oyj shares you are expected to receive €60 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Valmet Oyj's pays a higher dividend yield than the bottom 25% of dividend payers in Finland (2.25%).
  • Valmet Oyj's dividend is below the markets top 25% of dividend payers in Finland (5.21%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
HLSE:VALMT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Finland Machinery Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 3.4%
Finland Market Average Dividend Yield Market Cap Weighted Average of 100 Stocks 4.4%
Finland Minimum Threshold Dividend Yield 10th Percentile 1.5%
Finland Bottom 25% Dividend Yield 25th Percentile 2.3%
Finland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

HLSE:VALMT Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.85 1.00
2021-12-31 0.93 8.00
2020-12-31 0.85 9.00
2019-12-31 0.75 9.00
HLSE:VALMT Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-07 0.650 2.888
2018-02-06 0.550 3.093
2017-02-08 0.420 2.571
2016-02-29 0.350 2.908
2016-02-09 0.350 3.903
2015-02-06 0.250 2.525
2014-03-04 0.150 1.773
2014-02-07 0.150 2.280

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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 5 years.
Current Payout to shareholders
What portion of Valmet Oyj's earnings are paid to the shareholders as a dividend.
  • 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).
X
Income/ dividend checks
We assess Valmet Oyj's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Valmet Oyj afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Valmet Oyj has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pasi Laine
AGE 56
CEO Bio

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 Valmet Technologies Oy. Mr. Laine served as the Chief Executive Officer, President of Member of the Executive Team at Valmet Technologies Oy and served as its President of Pulp, Paper & Power until December 31, 2013. Mr. Laine served as the President of Energy & Environmental Technology of Valmet Technologies Oy since 2006 and Metso Corporation since December 1, 2008. He served as the Head of Paper & Fiber Technology at Metso Corp. since September 1, 2011 and also served as its Deputy to the Chief Executive Officer and Executive Vice President of Metso Corp. since March 1, 2011 until October 31, 2013. He served as a Member of Corporate Executive Board at Metso Corp. since 2006 and served as its President of Pulp, Paper & Power from March 1, 2011 to December 31, 2013. He served as the President of Paper and Fiber Technology of Metso Corp. from March 1, 2011 to September 1, 2011. He served as the President of Metso Automation Oy from August 1, 2006 to 2008. He also served as the President of Field Systems Business Line at Metso Automation Oy from 2003 to 2006. He served as Senior Vice President of Paper and Pulp Automation Solutions Business Unit at Metso Automation Oy from 2002 to 2003 and also served as its Vice President of Process & Energy Business Unit from 1998 to 2002. From 1996 to 1998, he served as a Managing Director of Elsag Bailey Hartmann & Braun. From 1988 to 1996, he held various positions at Valmet Automation in Finland, Canada, Germany and the United Kingdom. He has been a Director at SSAB AB since April 15, 2017. He serves as a Director of Pakastamo Oy. He served as a Member of Supervisory Board at Ilmarinen Mutual Pension Insurance Company until 2019. Mr. Laine served as a Director of HKScan Oyj from April 2010 to February 27, 2011. He served as a Director at Tamfelt Oyj. He holds an M.Sc. in Engineering from Helsinki University of Technology.

CEO Compensation
  • Insufficient data for Pasi to compare compensation growth.
  • Insufficient data for Pasi to establish whether their remuneration is reasonable compared to companies of similar size in Finland.
Management Team Tenure

Average tenure and age of the Valmet Oyj management team in years:

2.3
Average Tenure
54.5
Average Age
  • The tenure for the Valmet Oyj management team is about average.
Management Team

Pasi Laine

TITLE
President & CEO
AGE
56

Kari Saarinen

TITLE
Chief Financial Officer
AGE
58
TENURE
3.7 yrs

Calle Loikkanen

TITLE
Director of Investor Relations
TENURE
2.8 yrs

Rasmus Oksala

TITLE
General Counsel & Secretary

Anu Salonsaari-Posti

TITLE
Senior Vice President of Marketing & Communications
AGE
51

Julia Macharey

TITLE
Senior Vice President of Human Resources & Operational Development
AGE
42

Aki Niemi

TITLE
Business Line President of Services
AGE
50
TENURE
1.8 yrs

Jari Vähäpesola

TITLE
Business Line President of Paper
AGE
60

Jukka Tiitinen

TITLE
Area President of Asia Pacific
AGE
54
TENURE
1.8 yrs

Celso Tacla

TITLE
Area President of South America
AGE
55
Board of Directors Tenure

Average tenure and age of the Valmet Oyj board of directors in years:

1.3
Average Tenure
59
Average Age
  • The average tenure for the Valmet Oyj board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mikael Mäkinen

TITLE
Chairman
AGE
63
TENURE
0.3 yrs

Aaro Cantell

TITLE
Vice-Chairman of the Board
COMPENSATION
€73K
AGE
55
TENURE
1.3 yrs

Eriikka Söderström

TITLE
Director
COMPENSATION
€70K
AGE
51
TENURE
2.5 yrs

Rogério Ziviani

TITLE
Director
COMPENSATION
€68K
AGE
63
TENURE
6.5 yrs

Tarja Tyni

TITLE
Director
COMPENSATION
€64K
AGE
55
TENURE
3.3 yrs

Monika Maurer

TITLE
Director
COMPENSATION
€65K
AGE
63
TENURE
1.3 yrs

Pekka Kemppainen

TITLE
Director
COMPENSATION
€62K
AGE
65
TENURE
1.3 yrs

Riina Vilander

TITLE
Personnel Representative
COMPENSATION
€4K
AGE
41
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Valmet Oyj's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Valmet Oyj has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's Why I Think Valmet Oyj (HEL:VALMT) Is An Interesting Stock

While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. … As a result, I'm encouraged by the fact that insiders own Valmet Oyj shares worth a considerable sum. … Given my belief that share price follows earnings per share you can easily imagine how I feel about Valmet Oyj's strong EPS growth.

Simply Wall St -

What Kind Of Shareholder Owns Most Valmet Oyj (HEL:VALMT) Stock?

Taking a look at our data on the ownership groups (below), it's seems that institutions are noticeable on the share registry. … Check out our latest analysis for Valmet Oyj HLSE:VALMT Ownership Summary, July 10th 2019 What Does The Institutional Ownership Tell Us About Valmet Oyj? … Insider Ownership Of Valmet Oyj The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

Should You Be Impressed By Valmet Oyj's (HEL:VALMT) ROE?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Valmet Oyj: 20% = €174m ÷ €876m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Careful use of debt to boost returns is often very good for shareholders. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

How To Gain With Valmet Oyj (HEL:VALMT)

I'm talking about the well-proven, robust track record Valmet Oyj. … This continuous market outperformance demonstrates a strong track record of delivering robust returns over many years, raising my confidence in Valmet Oyj as a long-term hold. … The intrinsic value infographic in our free research report helps visualize whether VALMT is currently mispriced by the market.

Simply Wall St -

Is Valmet Oyj (HEL:VALMT) A Smart Choice For Dividend Investors?

HLSE:VALMT Historical Dividend Yield, June 7th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Calculating The Fair Value Of Valmet Oyj (HEL:VALMT)

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (€, Millions) €147.00 €264.60 €250.50 €226.50 €238.50 €231.91 €227.80 €225.35 €224.01 €223.44 Growth Rate Estimate Source Analyst x2 Analyst x5 Analyst x6 Analyst x2 Analyst x2 Est @ -2.76% Est @ -1.77% Est @ -1.08% Est @ -0.59% Est @ -0.25% Present Value (€, Millions) Discounted @ 7.64% €136.56 €228.36 €200.84 €168.70 €165.03 €149.08 €136.04 €125.02 €115.45 €106.98 Present Value of 10-year Cash Flow (PVCF)= €1.53b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = €223m × (1 + 0.5%) ÷ (7.6% – 0.5%) = €3.2b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = €€3.2b ÷ ( 1 + 7.6%)10 = €1.51b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €3.05b.

Simply Wall St -

What Does Valmet Oyj's (HEL:VALMT) Balance Sheet Tell Us About It?

Help shape the future of investing tools and you could win a $250 gift card! … Investors are always looking for growth in small-cap stocks like Valmet Oyj (HEL:VALMT), with a market cap of €3.6b. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Valmet Oyj (HEL:VALMT): What We Can Expect From This Growth Stock

Based on Valmet Oyj's (HEL:VALMT) earnings update in December 2018, … with earnings expected to grow by 29% in the upcoming year,

Simply Wall St -

Should You Be Adding Valmet Oyj (HEL:VALMT) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … While we note Valmet Oyj's EBIT margins were flat over the last year, revenue grew by a solid 8.7% to €3.3b.

Simply Wall St -

Could Valmet Oyj's (HEL:VALMT) Investor Composition Influence The Stock Price?

Generally speaking, as a company grows, institutions will increase their ownership. … We'd expect to see both institutions and retail investors owning a portion of the company. … institutions own shares in the company.

Simply Wall St -

Company Info

Description

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.

Details
Name: Valmet Oyj
VALMT
Exchange: HLSE
Founded:
€3,237,763,469
149,619,384
Website: http://www.valmet.com
Address: Valmet Oyj
Keilasatama 5,
PO Box 11,
Espoo,
Uusimaa, 02150,
Finland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
HLSE VALMT Share Capital OMX Nordic Exchange Helsinki FI EUR 02. Jan 2014
OTCPK VOYJ.F Share Capital Pink Sheets LLC US USD 02. Jan 2014
DB 2VO Share Capital Deutsche Boerse AG DE EUR 02. Jan 2014
LSE 0QIW Share Capital London Stock Exchange GB EUR 02. Jan 2014
BMV VALMT N Share Capital Bolsa Mexicana de Valores MX MXN 02. Jan 2014
BATS-CHIXE VALMTH Share Capital BATS 'Chi-X Europe' GB EUR 02. Jan 2014
OTCPK VLMT.Y UNSPONSRED ADS Pink Sheets LLC US USD 12. Jul 2019
Number of employees
Current staff
Staff numbers
12,539
Valmet Oyj employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/21 23:45
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.