HLSE:PIIPPO

Stock Analysis Report

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Executive Summary

Piippo Oyj manufactures and sells baling net wraps and baling twines for farmers in Finland and internationally.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.6%

PIIPPO

6.6%

FI Luxury

2.2%

FI Market


1 Year Return

-12.7%

PIIPPO

4.5%

FI Luxury

5.7%

FI Market

Return vs Industry: PIIPPO underperformed the Finnish Luxury industry which returned 1.6% over the past year.

Return vs Market: PIIPPO underperformed the Finnish Market which returned 3.9% over the past year.


Shareholder returns

PIIPPOIndustryMarket
7 Day3.6%6.6%2.2%
30 Day-4.0%16.0%12.5%
90 Day-19.9%3.1%1.3%
1 Year-12.7%-12.7%6.2%4.5%9.7%5.7%
3 Year-52.8%-55.0%43.0%34.8%10.4%-1.5%
5 Year-50.8%-56.9%91.0%73.0%40.7%15.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PIIPPO (€2.86) is trading below our estimate of fair value (€14.15)

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


Price To Earnings Ratio

PE vs Industry: PIIPPO is poor value based on its PE Ratio (36x) compared to the Luxury industry average (17x).

PE vs Market: PIIPPO is poor value based on its PE Ratio (36x) compared to the Finnish market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: PIIPPO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: PIIPPO is good value based on its PB Ratio (0.5x) compared to the XE Luxury industry average (1.1x).


Next Steps

Future Growth

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

25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PIIPPO's forecast earnings growth (25.4% per year) is above the savings rate (0.4%).

Earnings vs Market: PIIPPO's earnings (25.4% per year) are forecast to grow faster than the Finnish market (14.5% per year).

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

Revenue vs Market: PIIPPO's revenue (2% per year) is forecast to grow slower than the Finnish market (5.9% per year).

High Growth Revenue: PIIPPO'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: PIIPPO's Return on Equity is forecast to be low in 3 years time (4.6%).


Next Steps

Past Performance

How has Piippo Oyj performed over the past 5 years?

-50.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PIIPPO has high quality earnings.

Growing Profit Margin: PIIPPO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PIIPPO's earnings have declined by -50.1% per year over the past 5 years.

Accelerating Growth: PIIPPO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PIIPPO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (-17.7%).


Return on Equity

High ROE: PIIPPO's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

How is Piippo Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: PIIPPO's short term assets (€9.1M) exceed its short term liabilities (€7.1M).

Long Term Liabilities: PIIPPO's short term assets (€9.1M) exceed its long term liabilities (€1.8M).


Debt to Equity History and Analysis

Debt Level: PIIPPO's debt to equity ratio (96%) is considered high.

Reducing Debt: PIIPPO's debt to equity ratio has reduced from 116.1% to 96% over the past 5 years.

Debt Coverage: PIIPPO's debt is well covered by operating cash flow (26.5%).

Interest Coverage: PIIPPO's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

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

7.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PIIPPO's dividend (7.94%) is higher than the bottom 25% of dividend payers in the Finnish market (2.45%).

High Dividend: PIIPPO's dividend (7.94%) is in the top 25% of dividend payers in the Finnish market (5.05%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PIIPPO has been paying a dividend for less than 10 years.

Growing Dividend: PIIPPO has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PIIPPO'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?

2.0yrs

Average management tenure


CEO

Jukka Keisanen

2.75yrs

Tenure

Mr. Jukka Keisanen has been Managing Director of Piippo Oyj since September 14, 2017. Mr. Keisanen served as Vice Chief Executive Officer of Piippo Oyj since June 1, 2017 until September 14, 2017. 


Leadership Team

NamePositionTenureCompensationOwnership
Jukka Keisanen
Managing Director2.75yrsno datano data
Arja Karvonen
Finance Managerno datano datano data
Saija Paasonen
Chief Financial Officer0.33yrno datano data
Jussi Kortelainen
Technical Managerno datano datano data
Mika Joensuu
Sales Directorno datano datano data
Jaana Mustonen
Controller2yrsno datano data
Petra Karvonen
Controllerno datano datano data

2.0yrs

Average Tenure

Experienced Management: PIIPPO's management team is considered experienced (2 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

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


Key Information

  • Name: Piippo Oyj
  • Ticker: PIIPPO
  • Exchange: HLSE
  • Founded: 1942
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: €3.749m
  • Shares outstanding: 1.29m
  • Website: https://www.piippo.fi

Location

  • Piippo Oyj
  • SysmAejAerventie 3
  • Outokumpu
  • North Karelia
  • 83500
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PIIPPOHLSE (OMX Nordic Exchange Helsinki)YesCommon StockFIEURMar 2015

Biography

Piippo Oyj manufactures and sells baling net wraps and baling twines for farmers in Finland and internationally. The company also offers baling films; B2B products that include cable fillers and armouring yarns; and consumer products, such as synthetic ropes and twines, rolleri, natural ropes and twines, railing and decorative ropes, products for household use, towing ropes, binding straps, starting ropes, and short and long link chains. Piippo Oyj was founded in 1942 and is based in Outokumpu, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 00:22
End of Day Share Price2020/06/02 00:00
Earnings2019/12/31
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.