Piippo Oyj (HLSE:PIIPPO) - Share price, News & Analysis

PIIPPO fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	1/6
Financial Health	2/6
Dividends	0/6

PIIPPO Stock Overview

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

Rewards

Trading at 37% below our estimate of its fair value

Earnings are forecast to grow 44.77% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over the past 3 months

Does not have a meaningful market cap (€4M)

Profit margins (0.5%) are lower than last year (1.1%)

+ 1 more risk

Piippo Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Piippo Oyj
Historical stock prices
Current Share Price	€3.30
52 Week High	€4.10
52 Week Low	€2.70
Beta	0.61
1 Month Change	9.27%
3 Month Change	3.77%
1 Year Change	-10.81%
3 Year Change	-2.94%
5 Year Change	-49.23%
Change since IPO	-60.62%

Recent News & Updates

May 28

Capital Allocation Trends At Piippo Oyj (HEL:PIIPPO) Aren't Ideal

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...

Shareholder Returns

	PIIPPO	FI Luxury	FI Market
7D	10.0%	6.8%	-1.6%
1Y	-10.8%	-18.2%	-19.8%

Return vs Industry: PIIPPO exceeded the Finnish Luxury industry which returned -20.5% over the past year.

Return vs Market: PIIPPO exceeded the Finnish Market which returned -19.8% over the past year.

Price Volatility

Is PIIPPO's price volatile compared to industry and market?
PIIPPO volatility
PIIPPO Average Weekly Movement	15.5%
Luxury Industry Average Movement	5.8%
Market Average Movement	5.3%
10% most volatile stocks in FI Market	8.4%
10% least volatile stocks in FI Market	3.4%

Stable Share Price: PIIPPO is more volatile than 90% of Finnish stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: PIIPPO's weekly volatility has increased from 10% to 16% over the past year.

About the Company

Founded	Employees	CEO	Website
1942	98	Jukka Keisanen	https://www.piippo.fi

Piippo Oyj manufactures and sells baling net wraps and baling twines for farmers in Finland. The company offers hybrid edge master and other net wraps and slash bundler twines, round, conventional, and big square bailing. It also provides 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, and starting ropes.

Piippo Oyj Fundamentals Summary

How do Piippo Oyj's earnings and revenue compare to its market cap?
PIIPPO fundamental statistics
Market Cap	€4.27m
Earnings (TTM)	€85.64k
Revenue (TTM)	€17.78m

49.8x

P/E Ratio

0.2x

P/S Ratio

Is PIIPPO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PIIPPO income statement (TTM)
Revenue	€17.78m
Cost of Revenue	€8.85m
Gross Profit	€8.93m
Other Expenses	€8.85m
Earnings	€85.64k

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.066
Gross Margin	50.24%
Net Profit Margin	0.48%
Debt/Equity Ratio	95.1%

How did PIIPPO perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

n/a

Payout Ratio

Does PIIPPO pay a reliable dividends?

See PIIPPO dividend history and benchmarks

When do you need to buy PIIPPO by to receive an upcoming dividend?
Piippo Oyj dividend dates
Ex Dividend Date	Jul 07 2022
Dividend Pay Date	Jul 15 2022
Days until Ex dividend	12 days
Days until Dividend pay date	20 days

Does PIIPPO pay a reliable dividends?

See PIIPPO dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is PIIPPO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PIIPPO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PIIPPO. This is calculated by dividing PIIPPO's market cap by their current preferred multiple.
What is PIIPPO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€4.27m

PIIPPO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	9.5x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does PIIPPO's PE Ratio compare to its peers?

PIIPPO PE Ratio vs Peers

The above table shows the PE ratio for PIIPPO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	5.1x

Forward PE

Price-To-Earnings vs Peers: PIIPPO is expensive based on its Price-To-Earnings Ratio (49.8x) compared to the peer average (5.1x).

Price to Earnings Ratio vs Industry

How does PIIPPO's PE Ratio compare vs other companies in the Luxury Industry?

Price-To-Earnings vs Industry: PIIPPO is expensive based on its Price-To-Earnings Ratio (49.8x) compared to the European Luxury industry average (15.5x)

Price to Earnings Ratio vs Fair Ratio

What is PIIPPO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PIIPPO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	49.8x
Fair PE Ratio	24.8x

Price-To-Earnings vs Fair Ratio: PIIPPO is expensive based on its Price-To-Earnings Ratio (49.8x) compared to the estimated Fair Price-To-Earnings Ratio (24.8x).

Share Price vs Fair Value

What is the Fair Price of PIIPPO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PIIPPO (€3.3) is trading below our estimate of fair value (€5.24)

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

Price to Earnings Growth Ratio

PEG Ratio: PIIPPO is poor value based on its PEG Ratio (1.1x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

44.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PIIPPO's forecast earnings growth (44.8% per year) is above the savings rate (0.2%).

Earnings vs Market: PIIPPO's earnings (44.8% per year) are forecast to grow faster than the Finnish market (8.1% per year).

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

Revenue vs Market: PIIPPO's revenue (4.8% per year) is forecast to grow faster than the Finnish market (1.9% per year).

High Growth Revenue: PIIPPO's revenue (4.8% 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%).

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Past Performance

How has Piippo Oyj performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-26.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PIIPPO has high quality earnings.

Growing Profit Margin: PIIPPO's current net profit margins (0.5%) are lower than last year (1.1%).

Past Earnings Growth Analysis

Earnings Trend: PIIPPO's earnings have declined by 26.9% per year over the past 5 years.

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

Earnings vs Industry: PIIPPO had negative earnings growth (-53.5%) over the past year, making it difficult to compare to the Luxury industry average (59.4%).

Return on Equity

High ROE: PIIPPO's Return on Equity (1.2%) is considered low.

Discover strong past performing companies

Financial Health

How is Piippo Oyj's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PIIPPO's short term assets (€10.1M) exceed its short term liabilities (€6.2M).

Long Term Liabilities: PIIPPO's short term assets (€10.1M) exceed its long term liabilities (€3.0M).

Debt to Equity History and Analysis

Debt Level: PIIPPO's net debt to equity ratio (90.8%) is considered high.

Reducing Debt: PIIPPO's debt to equity ratio has increased from 45.1% to 95.1% over the past 5 years.

Debt Coverage: PIIPPO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PIIPPO's interest payments on its debt are not well covered by EBIT (2.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.79%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: PIIPPO's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.54%).

High Dividend: PIIPPO's dividend (0.79%) is low compared to the top 25% of dividend payers in the Finnish market (5.07%).

Stability and Growth of Payments

Stable Dividend: PIIPPO is not paying a notable dividend for the Finnish market, therefore no need to check if payments are stable.

Growing Dividend: PIIPPO is not paying a notable dividend for the Finnish market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: PIIPPO is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure

CEO

Jukka Keisanen

4.75yrs

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

Experienced Management: PIIPPO's management team is considered experienced (4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2021/09/30
Annual Earnings	2020/12/31