HLSE:WRT1V

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer and good value.


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


Market Performance


7 Day Return

0.6%

WRT1V

0.5%

FI Machinery

0.8%

FI Market


1 Year Return

-25.9%

WRT1V

9.6%

FI Machinery

5.5%

FI Market

Return vs Industry: WRT1V underperformed the Finnish Machinery industry which returned 9.6% over the past year.

Return vs Market: WRT1V underperformed the Finnish Market which returned 5.5% over the past year.


Shareholder returns

WRT1VIndustryMarket
7 Day0.6%0.5%0.8%
30 Day2.7%-1.4%0.6%
90 Day-6.7%-2.5%2.7%
1 Year-22.8%-25.9%13.6%9.6%10.4%5.5%
3 Year-15.5%-23.0%19.7%8.2%29.6%14.2%
5 Year4.9%-9.9%63.7%38.8%62.9%31.7%

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?

9.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WRT1V (€10.46) is trading below our estimate of fair value (€11.53)

Significantly Undervalued: WRT1V is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WRT1V is good value based on its PE Ratio (16.5x) compared to the Machinery industry average (16.6x).

PE vs Market: WRT1V is good value based on its PE Ratio (16.5x) compared to the Finnish market (20.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: WRT1V is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: WRT1V is overvalued based on its PB Ratio (2.7x) compared to the FI Machinery industry average (2.1x).


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?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRT1V's forecast earnings growth (17.6% per year) is above the savings rate (0.5%).

Earnings vs Market: WRT1V's earnings (17.6% per year) are forecast to grow faster than the Finnish market (13.4% per year).

High Growth Earnings: WRT1V's earnings are forecast to grow, but not significantly.

Revenue vs Market: WRT1V's revenue (2% per year) is forecast to grow slower than the Finnish market (2.1% per year).

High Growth Revenue: WRT1V's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WRT1V's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

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

-1.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WRT1V's earnings have declined by -1.1% 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 (-1.8%) over the past year, making it difficult to compare to the Machinery industry average (4.7%).


Return on Equity

High ROE: WRT1V's Return on Equity (16.5%) is considered low.


Return on Assets

ROA vs Industry: WRT1V has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: WRT1V's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Wärtsilä Oyj Abp's financial position?


Financial Position Analysis

Short Term Liabilities: WRT1V's short term assets (€3.7B) exceeds its short term liabilities (€2.5B)

Long Term Liabilities: WRT1V's short term assets (3.7B) exceeds its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: WRT1V's debt to equity ratio (40.5%) is considered high

Reducing Debt: WRT1V's debt to equity ratio has increased from 37.8% to 40.5% over the past 5 years.

Debt Coverage: WRT1V's debt is well covered by operating cash flow (50.7%).

Interest Coverage: WRT1V's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet

Inventory Level: WRT1V has a high level of physical assets or inventory.

Debt Coverage by Assets: WRT1V's debt is covered by short term assets (assets are 3.947020x debt).


Next Steps

Dividend

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

4.59%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%2.2%markettop25%5.1%industryaverage3.5%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WRT1V's dividend (4.59%) is higher than the bottom 25% of dividend payers in the Finnish market (2.24%).

High Dividend: WRT1V's dividend (4.59%) is low compared to the top 25% of dividend payers in the Finnish market (5.06%).

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: At its current payout ratio (75.7%), WRT1V's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WRT1V's dividends in 3 years are forecast to be covered by earnings (59.6% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Jaakko Eskola (61yo)

3.9yrs

Tenure

€2,967,000

Compensation

Mr. Jaakko Eskola, MSc (Eng.) has been the Chief Executive Officer and President of Wärtsilä Oyj Abp since November 1, 2015. He was Wärtsilä Corporation, Senior Executive Vice President and Deputy to the C ...


CEO Compensation Analysis

Compensation vs. Market: Jaakko's total compensation ($USD3.31M) is about average for companies of similar size in the Finnish market ($USD971.04K).

Compensation vs Earnings: Jaakko's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: WRT1V's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

60yo

Average Age

Experienced Board: WRT1V's board of directors are considered experienced (7.1 years average tenure).


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

  • Kari Hietanen (56yo)

    Executive VP of Corporate Relations & Legal Affairs

    • Tenure: 16.8yrs
  • Jaakko Eskola (61yo)

    CEO, President & Member of Board of Management

    • Tenure: 3.9yrs
    • Compensation: €2.97m
  • Päivi Castrén (61yo)

    Executive VP of Human Resources & Member of Board of Management

    • Tenure: 7.8yrs
  • Sari Kolu (52yo)

    Director of Compliance

    • Tenure: 4.2yrs
  • Atte Palomäki (54yo)

    Executive VP of Communications

    • Tenure: 11.6yrs
  • Roger Holm (47yo)

    Executive VP

    • Tenure: 3.9yrs
  • Marco Wirén (53yo)

    President of Energy Solutions

    • Tenure: 6.2yrs
  • Natalia Valtasaari (35yo)

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Jukka Kumpulainen (51yo)

    Chief Information Officer & VP

    • Tenure: 0yrs
  • Arjen Berends (51yo)

    CFO, Executive VP & Member of the Board of Management

    • Tenure: 1yrs

Board Members

  • Johan Forssell (48yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: €82.00k
  • Mikael Lilius (70yo)

    Chairman

    • Tenure: 8.6yrs
    • Compensation: €175.00k
  • Kaj-Gustaf Bergh (64yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: €82.00k
  • Risto Murto (56yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: €94.00k
  • Markus Heikki Rauramo (51yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: €103.00k
  • Maarit Aarni-Sirviö (66yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: €96.00k
  • Karin Falk (54yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: €78.00k
  • Tom Johnstone (64yo)

    Deputy Chairman

    • Tenure: 2.6yrs
    • Compensation: €119.00k

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: €6.189b
  • Shares outstanding: 591.72m
  • Website: https://www.wartsila.com

Number of Employees


Location

  • Wärtsilä Oyj Abp
  • Hiililaiturinkuja 2
  • Helsinki
  • 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. The company offers gas, multi-fuel, and liquid fuel power plants; and seals, bearings, and relate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:36
End of Day Share Price2019/10/18 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.