HLSE:WRT1V

Stock Analysis Report

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Executive Summary

Wärtsilä Oyj Abp provides technologies and lifecycle solutions for the marine and energy markets worldwide. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WRT1V has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.3%

WRT1V

-5.0%

FI Machinery

-7.4%

FI Market


1 Year Return

-28.8%

WRT1V

1.2%

FI Machinery

-2.4%

FI Market

Return vs Industry: WRT1V underperformed the Finnish Machinery industry which returned -0.4% over the past year.

Return vs Market: WRT1V underperformed the Finnish Market which returned -1.7% over the past year.


Shareholder returns

WRT1VIndustryMarket
7 Day-8.3%-5.0%-7.4%
30 Day1.5%-6.7%-5.6%
90 Day-3.6%1.3%1.0%
1 Year-24.2%-28.8%13.8%1.2%5.7%-2.4%
3 Year-59.3%-64.3%18.8%-1.1%13.3%-6.3%
5 Year-39.7%-49.9%61.1%26.0%40.1%10.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WRT1V (€6.75) is trading below our estimate of fair value (€8.47)

Significantly Below Fair Value: WRT1V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WRT1V is good value based on its PE Ratio (22.4x) compared to the FI Machinery industry average (24.3x).

PE vs Market: WRT1V's PE Ratio (22.4x) is in line with the Finnish market.


Price to Earnings Growth Ratio

PEG Ratio: WRT1V is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: WRT1V's PB Ratio (1.9x) is in line with the FI Machinery industry average.


Next Steps

Future Growth

How is Wärtsilä Oyj Abp forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRT1V's forecast earnings growth (22% per year) is above the savings rate (0.4%).

Earnings vs Market: WRT1V's earnings (22% per year) are forecast to grow faster than the Finnish market (15.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WRT1V's revenue (2.8% per year) is forecast to grow slower than the Finnish market (4.5% per year).

High Growth Revenue: WRT1V's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WRT1V's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has Wärtsilä Oyj Abp performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRT1V has high quality earnings.

Growing Profit Margin: WRT1V's current net profit margins (3.5%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: WRT1V's earnings have declined by 11.5% per year over the past 5 years.

Accelerating Growth: WRT1V's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WRT1V had negative earnings growth (-33.7%) over the past year, making it difficult to compare to the Machinery industry average (-33.7%).


Return on Equity

High ROE: WRT1V's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Wärtsilä Oyj Abp's financial position?


Financial Position Analysis

Short Term Liabilities: WRT1V's short term assets (€3.9B) exceed its short term liabilities (€2.7B).

Long Term Liabilities: WRT1V's short term assets (€3.9B) exceed its long term liabilities (€1.5B).


Debt to Equity History and Analysis

Debt Level: WRT1V's debt to equity ratio (60.1%) is considered high.

Reducing Debt: WRT1V's debt to equity ratio has increased from 37.5% to 60.1% over the past 5 years.

Debt Coverage: WRT1V's debt is well covered by operating cash flow (55.8%).

Interest Coverage: WRT1V's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Wärtsilä Oyj Abp current dividend yield, its reliability and sustainability?

7.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WRT1V's dividend (7.11%) is higher than the bottom 25% of dividend payers in the Finnish market (2.1%).

High Dividend: WRT1V's dividend (7.11%) is in the top 25% of dividend payers in the Finnish market (4.67%)


Stability and Growth of Payments

Stable Dividend: WRT1V's dividends per share have been stable in the past 10 years.

Growing Dividend: WRT1V's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (159.6%), WRT1V's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WRT1V's dividends in 3 years are forecast to be covered by earnings (67.5% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Jaakko Eskola (62 yo)

4.92yrs

Tenure

€1,073,000

Compensation

Mr. Jaakko Eskola, MSc (Eng.) serves as Independent Chairman of the Board at Ahlstrom-Munksjö Oyj since March 25, 2020. He has been the Chief Executive Officer and President of Wärtsilä Oyj Abp since Novem ...


CEO Compensation Analysis

Compensation vs Market: Jaakko's total compensation ($USD1.25M) is about average for companies of similar size in the Finnish market ($USD1.71M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jaakko Eskola
CEO, President & Member of Board of Management4.92yrs€1.07m0.0070%
€ 284.6k
Arjen Berends
CFO, Executive VP & Member of the Board of Management2yrsno datano data
Kari Hietanen
Executive VP of Corporate Relations & Legal Affairs17.75yrsno data0.0026%
€ 106.6k
Roger Holm
President of Marine Power4.92yrsno data0.0020%
€ 80.3k
Atte Palomäki
Executive VP of Communications12.58yrsno data0.0024%
€ 98.9k
Alid Dettke
Executive VP of Human Resources & Member of Management Board1yrno datano data
Tamara De Gruyter
President of Wartsila Marine Systems0.58yrno datano data
Sean Fernback
President of Wartsila Voyage0.42yrno datano data
Sushil Purohit
President of Energy0.17yrno datano data
Jukka Kumpulainen
Chief Information Officer & VPno datano datano data
Natalia Valtasaari
Vice President of Investor Relationsno datano datano data
Sari Kolu
Director of Compliance5.17yrsno datano data

3.5yrs

Average Tenure

52yo

Average Age

Experienced Management: WRT1V's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Johan Forssell
Director3.58yrs€81.00k0.00086%
€ 34.7k
Risto Murto
Independent Director6.58yrs€91.00k0.0019%
€ 75.1k
Markus Heikki Rauramo
Independent Deputy Chairman of the Board0.58yr€97.00k0.0032%
€ 127.6k
Maarit Aarni-Sirviö
Independent Director13.75yrs€92.00k0.0058%
€ 235.3k
Karin Falk
Independent Director3.58yrs€77.00k0.00086%
€ 34.7k
Tom Johnstone
Chairman of the Board0.58yr€117.00k0.0020%
€ 79.9k
Karen Bomba
Director0.58yrno datano data
Mats Rahmstrom
Director0.58yrno datano data

2.1yrs

Average Tenure

55.5yo

Average Age

Experienced Board: WRT1V'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

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


Key Information

  • Name: Wärtsilä Oyj Abp
  • Ticker: WRT1V
  • Exchange: HLSE
  • Founded: 1834
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €4.037b
  • Shares outstanding: 591.72m
  • Website: https://www.wartsila.com

Number of Employees


Location

  • Wärtsilä Oyj Abp
  • Hiililaiturinkuja 2
  • Helsinki
  • Uusimaa
  • 180
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WRT1VHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURJan 1992
MTADB (Deutsche Boerse AG)YesShare CapitalDEEURJan 1992
WRTB.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDJan 1992
0IKJLSE (London Stock Exchange)YesShare CapitalGBEURJan 1992
WRT1VHBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURJan 1992
WRTB.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Wärtsilä Oyj Abp provides technologies and lifecycle solutions for the marine and energy markets worldwide. It offers gas, multi-fuel, and liquid fuel power plants; and seals, bearings, and related equipme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 22:10
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
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.