HLSE:HARVIA

Stock Analysis Report

Executive Summary

Harvia Oyj, through its subsidiaries, manufactures and distributes traditional saunas, steam saunas, and infrared saunas in Finland.

Rewards

Trading at 4% below its fair value

Earnings are forecast to grow 9.3% per year

Earnings grew by 77.6% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HARVIA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

HARVIA

0.3%

FI Leisure

-0.1%

FI Market


1 Year Return

62.4%

HARVIA

18.2%

FI Leisure

7.0%

FI Market

Return vs Industry: HARVIA exceeded the Finnish Leisure industry which returned 18.2% over the past year.

Return vs Market: HARVIA exceeded the Finnish Market which returned 7% over the past year.


Shareholder returns

HARVIAIndustryMarket
7 Day-0.4%0.3%-0.1%
30 Day9.0%5.2%-2.2%
90 Day37.3%8.9%0.08%
1 Year71.6%62.4%21.9%18.2%11.9%7.0%
3 Yearn/a76.6%60.9%25.5%10.4%
5 Yearn/a117.4%88.1%56.9%26.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HARVIA (€9.42) is trading below our estimate of fair value (€9.81)

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


Price To Earnings Ratio

PE vs Industry: HARVIA is poor value based on its PE Ratio (20.4x) compared to the Leisure industry average (16.2x).

PE vs Market: HARVIA is poor value based on its PE Ratio (20.4x) compared to the Finnish market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: HARVIA is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: HARVIA is overvalued based on its PB Ratio (2.5x) compared to the XE Leisure industry average (2x).


Next Steps

Future Growth

How is Harvia Oyj forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HARVIA's forecast earnings growth (9.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: HARVIA's earnings (9.3% per year) are forecast to grow slower than the Finnish market (14.2% per year).

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

Revenue vs Market: HARVIA's revenue (4.4% per year) is forecast to grow faster than the Finnish market (2.2% per year).

High Growth Revenue: HARVIA's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HARVIA's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Harvia Oyj performed over the past 5 years?

27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HARVIA has high quality earnings.

Growing Profit Margin: HARVIA's current net profit margins (12.4%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: HARVIA's earnings have grown significantly by 27.6% per year over the past 5 years.

Accelerating Growth: HARVIA's earnings growth over the past year (77.6%) exceeds its 5-year average (27.6% per year).

Earnings vs Industry: HARVIA earnings growth over the past year (77.6%) exceeded the Leisure industry 2.5%.


Return on Equity

High ROE: HARVIA's Return on Equity (12.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Harvia Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: HARVIA's short term assets (€38.4M) exceed its short term liabilities (€11.3M).

Long Term Liabilities: HARVIA's short term assets (€38.4M) do not cover its long term liabilities (€40.5M).


Debt to Equity History and Analysis

Debt Level: HARVIA's debt to equity ratio (55.4%) is considered high.

Reducing Debt: Insufficient data to determine if HARVIA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HARVIA's debt is well covered by operating cash flow (35%).

Interest Coverage: HARVIA's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: HARVIA's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

4.03%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%2.2%markettop25%4.9%industryaverage2.8%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: HARVIA's dividend (4.03%) is higher than the bottom 25% of dividend payers in the Finnish market (2.21%).

High Dividend: HARVIA's dividend (4.03%) is low compared to the top 25% of dividend payers in the Finnish market (4.89%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether HARVIA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HARVIA's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.2%), HARVIA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HARVIA's dividends in 3 years are forecast to be covered by earnings (69.8% payout ratio).


Next Steps

Management

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


CEO

Tapio Pajuharju (56yo)

3.5yrs

Tenure

0

Mr. Tapio Pajuharju has been Chairman at VMP Oyj ( also known as VMP Group Oy; VMP Plc) since August 23, 2019 and has been its Director at since 2010. Mr. Pajuharju has been Harvia Group's CEO since 2016.  ...


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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.6%.


Management Team

  • Ari Vesterinen

    Chief Financial Officer

    • Tenure: 0yrs
  • Tapio Pajuharju (56yo)

    Chief Executive Officer

    • Tenure: 3.5yrs
  • Sami Linna

    Marketing Director

    • Tenure: 2yrs

Board Members

  • Anders Björkell

    Independent Director

    • Tenure: 0yrs
  • Olli Liitola (62yo)

    Chairman

    • Tenure: 0yrs
  • Pertti Harvia (68yo)

    Director

    • Tenure: 0yrs
  • Ari Hiltunen (55yo)

    Independent Director

    • Tenure: 1.8yrs
  • Ia Adlercreutz (48yo)

    Independent Director

    • Tenure: 3.3yrs

Company Information

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


Key Information

  • Name: Harvia Oyj
  • Ticker: HARVIA
  • Exchange: HLSE
  • Founded: 1950
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: €176.100m
  • Shares outstanding: 18.69m
  • Website: https://www.harvia.fi

Number of Employees


Location

  • Harvia Oyj
  • Teollisuustie 1-7
  • PO Box 12
  • Muurame
  • Central Finland
  • 40951
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HARVIAHLSE (OMX Nordic Exchange Helsinki)YesCommon SharesFIEURMar 2018
HARVIHBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURMar 2018

Biography

Harvia Oyj, through its subsidiaries, manufactures and distributes traditional saunas, steam saunas, and infrared saunas in Finland. It offers sauna heaters, sauna rooms, control units, and steam generator ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 22:17
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
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.