HLSE:HONBS

Stock Analysis Report

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Executive Summary

Honkarakenne Oyj designs, manufactures, and sells log and solid wood building packages. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.4%

HONBS

-5.1%

FI Consumer Durables

-6.3%

FI Market


1 Year Return

24.6%

HONBS

-10.1%

FI Consumer Durables

-1.7%

FI Market

Return vs Industry: HONBS exceeded the Finnish Consumer Durables industry which returned -10.1% over the past year.

Return vs Market: HONBS exceeded the Finnish Market which returned -1.7% over the past year.


Shareholder returns

HONBSIndustryMarket
7 Day-5.4%-5.1%-6.3%
30 Day-6.7%-2.0%-4.3%
90 Day-1.4%0.7%3.7%
1 Year29.1%24.6%-7.3%-10.1%6.6%-1.7%
3 Year-3.8%-7.2%-12.5%-24.2%15.1%-5.2%
5 Year113.4%105.9%26.3%1.0%42.3%12.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HONBS (€3.5) is trading above our estimate of fair value (€0.04)

Significantly Below Fair Value: HONBS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HONBS is good value based on its PE Ratio (8.1x) compared to the XE Consumer Durables industry average (14.6x).

PE vs Market: HONBS is good value based on its PE Ratio (8.1x) compared to the Finnish market (22.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HONBS is overvalued based on its PB Ratio (1.6x) compared to the XE Consumer Durables industry average (1.3x).


Next Steps

Future Growth

How is Honkarakenne Oyj forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.0%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Honkarakenne Oyj has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Honkarakenne Oyj performed over the past 5 years?

66.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HONBS has a high level of non-cash earnings.

Growing Profit Margin: HONBS's current net profit margins (5.2%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: HONBS has become profitable over the past 5 years, growing earnings by 66.4% per year.

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

Earnings vs Industry: HONBS had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the Consumer Durables industry average (-19.6%).


Return on Equity

High ROE: HONBS's Return on Equity (20%) is considered high.


Next Steps

Financial Health

How is Honkarakenne Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: HONBS's short term assets (€13.9M) exceed its short term liabilities (€12.3M).

Long Term Liabilities: HONBS's short term assets (€13.9M) exceed its long term liabilities (€4.4M).


Debt to Equity History and Analysis

Debt Level: HONBS's debt to equity ratio (24.2%) is considered satisfactory.

Reducing Debt: HONBS's debt to equity ratio has reduced from 119.5% to 24.2% over the past 5 years.

Debt Coverage: HONBS's debt is well covered by operating cash flow (91.4%).

Interest Coverage: HONBS's interest payments on its debt are well covered by EBIT (209.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HONBS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HONBS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HONBS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HONBS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HONBS is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HONBS's dividend in 3 years as they are not forecast to pay a notable one for the Finnish market.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Marko Saarelainen (53 yo)

5.33yrs

Tenure

€112,000

Compensation

Mr. Marko Saarelainen has been the Chief Executive Officer and President of Honkarakenne Oyj since June 2015. Mr. Saarelainen served as the President of Honka Japan Inc., a subsidiary of Honkarakenne Oyj a ...


CEO Compensation Analysis

Compensation vs Market: Marko's total compensation ($USD0.00) is below average for companies of similar size in the Finnish market ($USD333.29K).

Compensation vs Earnings: Insufficient data to compare Marko's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Marko Saarelainen
CEO & President5.33yrs€112.00k6.64%
€ 1.4m
Viljo Saarelainen
Co-Founderno datano datano data
Leena Aalto
CFO & VP of Finance3.5yrsno data0.0051%
€ 1.1k
Sanna Huovinen
Vice President of Marketing0.83yrno datano data
Jorma Ruuska
Head of Karstula Factoryno datano datano data
Antti Unkuri
Vice President of Business Control16.92yrsno datano data

4.4yrs

Average Tenure

53yo

Average Age

Experienced Management: HONBS's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Helena Ruponen
Directorno datano data0.94%
€ 193.0k
Arimo Ristola
Independent Chairman of the Board3.75yrsno data1.03%
€ 210.3k
Kari Saarelainen
Directorno datano data0.38%
€ 77.2k
Timo Kohtamäki
Independent Director3.5yrsno datano data
Kyösti Saarimäki
Deputy Chairman0.42yrno data0.17%
€ 35.0k

3.5yrs

Average Tenure

59yo

Average Age

Experienced Board: HONBS's board of directors are considered experienced (3.5 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

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


Key Information

  • Name: Honkarakenne Oyj
  • Ticker: HONBS
  • Exchange: HLSE
  • Founded: 1958
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: €20.517m
  • Shares outstanding: 5.86m
  • Website: https://www.honka.com

Number of Employees


Location

  • Honkarakenne Oyj
  • Hongantie 41
  • Karstula
  • Central Finland
  • 43500
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HONBSHLSE (OMX Nordic Exchange Helsinki)YesSeries B SharesFIEURJan 1992
0EPRLSE (London Stock Exchange)YesSeries B SharesGBEURJan 1992
HONBSHBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBEURJan 1992

Biography

Honkarakenne Oyj designs, manufactures, and sells log and solid wood building packages. It offers contemporary homes, log cabins and holiday lodges, and traditional and custom log homes, as well as commerc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 21:31
End of Day Share Price2020/10/28 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.