HLSE:LAT1V

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Lassila & Tikanoja Oyj operates as a service company in Finland, Sweden, and Russia. More Details


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.

Share Price & News

How has Lassila & Tikanoja Oyj's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LAT1V has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

LAT1V

-3.4%

FI Commercial Services

-3.7%

FI Market


1 Year Return

-7.6%

LAT1V

-0.6%

FI Commercial Services

2.7%

FI Market

Return vs Industry: LAT1V underperformed the Finnish Commercial Services industry which returned 2.5% over the past year.

Return vs Market: LAT1V underperformed the Finnish Market which returned 5% over the past year.


Shareholder returns

LAT1VIndustryMarket
7 Day0.3%-3.4%-3.7%
30 Day2.8%1.3%1.6%
90 Day0%-2.2%5.9%
1 Year-0.8%-7.6%2.2%-0.6%11.2%2.7%
3 Year-11.7%-26.6%-19.4%-26.7%20.1%-0.9%
5 Year-2.3%-26.5%5.6%-11.2%51.1%19.0%

Price Volatility Vs. Market

How volatile is Lassila & Tikanoja Oyj's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lassila & Tikanoja Oyj undervalued compared to its fair value and its price relative to the market?

23.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAT1V (€13.22) is trading below our estimate of fair value (€17.29)

Significantly Below Fair Value: LAT1V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LAT1V is poor value based on its PE Ratio (28.9x) compared to the XE Commercial Services industry average (17.3x).

PE vs Market: LAT1V is poor value based on its PE Ratio (28.9x) compared to the Finnish market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LAT1V's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LAT1V is overvalued based on its PB Ratio (3x) compared to the FI Commercial Services industry average (2.8x).


Next Steps

Future Growth

How is Lassila & Tikanoja Oyj forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

2.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LAT1V's forecast earnings growth is above the savings rate (0.4%).

Earnings vs Market: Insufficient data to determine if LAT1V's earnings are forecast to grow faster than the Finnish market

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

Revenue vs Market: LAT1V's revenue (2% per year) is forecast to grow slower than the Finnish market (4.6% per year).

High Growth Revenue: LAT1V's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LAT1V's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has Lassila & Tikanoja Oyj performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAT1V has high quality earnings.

Growing Profit Margin: LAT1V's current net profit margins (2.3%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: LAT1V's earnings have declined by 6.3% per year over the past 5 years.

Accelerating Growth: LAT1V's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LAT1V had negative earnings growth (-53.5%) over the past year, making it difficult to compare to the Commercial Services industry average (-2.6%).


Return on Equity

High ROE: LAT1V's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Lassila & Tikanoja Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: LAT1V's short term assets (€166.6M) do not cover its short term liabilities (€196.6M).

Long Term Liabilities: LAT1V's short term assets (€166.6M) do not cover its long term liabilities (€196.9M).


Debt to Equity History and Analysis

Debt Level: LAT1V's debt to equity ratio (68.5%) is considered high.

Reducing Debt: LAT1V's debt to equity ratio has increased from 52.1% to 68.5% over the past 5 years.

Debt Coverage: LAT1V's debt is well covered by operating cash flow (69.7%).

Interest Coverage: LAT1V's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Lassila & Tikanoja Oyj current dividend yield, its reliability and sustainability?

6.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LAT1V's dividend (6.96%) is higher than the bottom 25% of dividend payers in the Finnish market (1.98%).

High Dividend: LAT1V's dividend (6.96%) is in the top 25% of dividend payers in the Finnish market (4.54%)


Stability and Growth of Payments

Stable Dividend: LAT1V's dividend payments have been volatile in the past 10 years.

Growing Dividend: LAT1V's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (200.8%), LAT1V's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Eero Hautaniemi (55 yo)

1.75yrs

Tenure

€420,000

Compensation

Mr. Eero Hautaniemi, M.Sc. (Econ.), has been President and Chief Executive Officer of Lassila & Tikanoja plc since January 1, 2019 and also serves as it's Member of the Group Executive Board since January ...


CEO Compensation Analysis

Compensation vs Market: Eero's total compensation ($USD496.34K) is about average for companies of similar size in the Finnish market ($USD526.71K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eero Hautaniemi
President1.75yrs€420.00k0.054%
€ 275.8k
Valtteri Palin
CFO & Member of the Group Executive Board1.17yrsno datano data
Jorma Mikkonen
Director of Corporate Relations & Responsibility and Member of the Group Executive Board5.33yrsno data0.015%
€ 78.2k
Antti Tervo
VP of Industrial Services & Member of the Group Executive Board8.67yrsno data0.021%
€ 109.4k
Tuomas Mäkipeska
VP of Facility Services Finland & Member of the Group Executive Board8.67yrsno data0.021%
€ 107.5k
Petri Salermo
VP of Environmental Services & Member of Group Executive Board7.75yrsno data0.039%
€ 201.8k
Sirpa Huopalainen
General Counsel1.67yrsno data0.014%
€ 73.3k
Erik Sundström
VP of Facility Services Sweden & Member of the Group Executive Board1.67yrsno datano data
Hilppa Rautpalo
Director of Human Resources & Member of Group Executive Board0.75yrno datano data
Kirsi Matero
1.42yrsno datano data

1.7yrs

Average Tenure

51yo

Average Age

Experienced Management: LAT1V's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Heikki Bergholm
Independent Chairman9.67yrs€75.80k2.19%
€ 11.3m
Teemu Kangas-Kärki
Independent Director4.58yrs€38.50k0.0072%
€ 37.0k
Sakari Lassila
Independent Vice Chairman3.58yrs€52.60k0.045%
€ 231.9k
Miikka Maijala
Independent Director10.58yrs€38.50k0.20%
€ 1.0m
Laura Tarkka
Independent Director3.58yrs€39.00k0.0055%
€ 28.2k
Laura Lares
Independent Director6.75yrs€38.50k0.011%
€ 54.9k
Pasi Tolppanen
Director0.58yrno datano data

4.6yrs

Average Tenure

54yo

Average Age

Experienced Board: LAT1V's board of directors are considered experienced (4.6 years average tenure).


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

Lassila & Tikanoja Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lassila & Tikanoja Oyj
  • Ticker: LAT1V
  • Exchange: HLSE
  • Founded: 1905
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: €515.183m
  • Shares outstanding: 38.11m
  • Website: https://www.lt.fi/fi

Number of Employees


Location

  • Lassila & Tikanoja Oyj
  • Valimotie 27
  • Helsinki
  • Uusimaa
  • 380
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LAT1VHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEUROct 2001
LT5DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2001
0F29LSE (London Stock Exchange)YesOrdinary SharesGBEUROct 2001
LASK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2001
LAT1VHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2001

Biography

Lassila & Tikanoja Oyj operates as a service company in Finland, Sweden, and Russia. It operates through four segments: Environmental Services, Industrial Services, Facility Services Finland, and Facility ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 21:51
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
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.