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Market Cap

€6.3b

Last Updated

2021/05/16 19:47 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable growth potential 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 is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WRT1V's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of Finnish stocks.


Market Performance


7 Day Return

-0.6%

WRT1V

-1.6%

FI Machinery

-1.9%

FI Market


1 Year Return

65.4%

WRT1V

28.2%

FI Machinery

38.6%

FI Market

Return vs Industry: WRT1V exceeded the Finnish Machinery industry which returned 28.2% over the past year.

Return vs Market: WRT1V exceeded the Finnish Market which returned 39.3% over the past year.


Shareholder returns

WRT1VIndustryMarket
7 Day-0.6%-1.6%-1.9%
30 Day15.6%-3.1%0.3%
90 Day27.6%5.0%2.3%
1 Year73.2%65.4%42.3%28.2%48.1%38.6%
3 Year-34.0%-41.9%42.5%18.6%32.1%10.6%
5 Year2.7%-12.9%85.3%46.7%90.7%51.3%

Long-Term 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?

1.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WRT1V (€10.65) is trading below our estimate of fair value (€10.81)

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


Price To Earnings Ratio

PE vs Industry: WRT1V is poor value based on its PE Ratio (49.2x) compared to the Finnish Machinery industry average (35.6x).

PE vs Market: WRT1V is poor value based on its PE Ratio (49.2x) compared to the Finnish market (24.7x).


Price to Earnings Growth Ratio

PEG Ratio: WRT1V is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: WRT1V's PB Ratio (3x) is in line with the FI Machinery industry average.


Future Growth

How is Wärtsilä Oyj Abp forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

27.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRT1V's forecast earnings growth (27.7% per year) is above the savings rate (0.2%).

Earnings vs Market: WRT1V's earnings (27.7% per year) are forecast to grow faster than the Finnish market (11.9% per year).

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

Revenue vs Market: WRT1V's revenue (5.4% per year) is forecast to grow faster than the Finnish market (3.2% per year).

High Growth Revenue: WRT1V's revenue (5.4% 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 (13.5%).


Past Performance

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

-16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRT1V has high quality earnings.

Growing Profit Margin: WRT1V's current net profit margins (2.9%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: WRT1V's earnings have declined by 16.3% 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 (-31.9%) over the past year, making it difficult to compare to the Machinery industry average (-6.9%).


Return on Equity

High ROE: WRT1V's Return on Equity (5.9%) is considered low.


Financial Health

How is Wärtsilä Oyj Abp's financial position?


Financial Position Analysis

Short Term Liabilities: WRT1V's short term assets (€3.8B) exceed its short term liabilities (€2.7B).

Long Term Liabilities: WRT1V's short term assets (€3.8B) exceed its long term liabilities (€1.4B).


Debt to Equity History and Analysis

Debt Level: WRT1V's debt to equity ratio (53%) is considered high.

Reducing Debt: WRT1V's debt to equity ratio has increased from 52.9% to 53% over the past 5 years.

Debt Coverage: WRT1V's debt is well covered by operating cash flow (62.1%).

Interest Coverage: WRT1V's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


Dividend

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

1.88%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 17 2021Ex Dividend DateSep 10 2021Dividend Pay DateSep 20 202110 days from Ex DividendBuy in the next 116 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WRT1V's dividend (1.88%) is higher than the bottom 25% of dividend payers in the Finnish market (1.78%).

High Dividend: WRT1V's dividend (1.88%) is low compared to the top 25% of dividend payers in the Finnish market (3.73%).


Stability and Growth of Payments

Stable Dividend: WRT1V's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.5%), 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 (65% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Håkan Agnevall (54 yo)

0.25

Tenure

Mr. Håkan Agnevall, M.Sc. (Tech), MBA., has been the President of Volvo Bussar AB since June 2013. Mr. Agnevall has worked in industry for many years and has extensive Swedish and international experience ...


Leadership Team

Experienced Management: WRT1V's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: WRT1V's board of directors are not considered experienced ( 1.2 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: €6.284b
  • Shares outstanding: 590.02m
  • Website: https://www.wartsila.com

Number of Employees


Location

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

Listings


Biography

Wärtsilä Oyj Abp provides technologies and lifecycle solutions for the marine and energy markets worldwide. It offers gas, multi-fuel, liquid fuel, biofuel, and hybrid power plants; and hydro, and project ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 19:47
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.