HLSE:RAP1V

Stock Analysis Report

Executive Summary

Rapala VMC Corporation, together with its subsidiaries, engages in manufacturing, sourcing, and distributing fishing tackle products in North America, Nordic countries, rest of Europe, and internationally.

Rewards

Trading at 18.6% below its fair value

Earnings are forecast to grow 37.01% per year

Risk Analysis

Debt is not well covered by operating cash flow

Profit margins (1%) are lower than last year (1.8%)



Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

How has Rapala VMC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAP1V has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

RAP1V

1.1%

FI Leisure

0.8%

FI Market


1 Year Return

-13.9%

RAP1V

20.4%

FI Leisure

10.6%

FI Market

Return vs Industry: RAP1V underperformed the Finnish Leisure industry which returned 20.4% over the past year.

Return vs Market: RAP1V underperformed the Finnish Market which returned 10.6% over the past year.


Shareholder returns

RAP1VIndustryMarket
7 Day-2.8%1.1%0.8%
30 Day-5.4%5.7%-2.2%
90 Day-5.4%10.0%1.1%
1 Year-12.1%-13.9%24.2%20.4%15.7%10.6%
3 Year-28.8%-32.8%78.0%62.2%25.0%9.9%
5 Year-33.9%-41.9%116.7%87.5%58.3%27.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Rapala VMC undervalued compared to its fair value and its price relative to the market?

18.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAP1V (€2.79) is trading below our estimate of fair value (€3.43)

Significantly Below Fair Value: RAP1V is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RAP1V is poor value based on its PE Ratio (39.6x) compared to the Leisure industry average (16.2x).

PE vs Market: RAP1V is poor value based on its PE Ratio (39.6x) compared to the Finnish market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: RAP1V is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: RAP1V is good value based on its PB Ratio (0.9x) compared to the XE Leisure industry average (2x).


Next Steps

Future Growth

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

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAP1V's forecast earnings growth (37% per year) is above the savings rate (-0.1%).

Earnings vs Market: RAP1V's earnings (37% per year) are forecast to grow faster than the Finnish market (14.4% per year).

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

Revenue vs Market: RAP1V's revenue (1.6% per year) is forecast to grow faster than the Finnish market (1.5% per year).

High Growth Revenue: RAP1V's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RAP1V's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rapala VMC performed over the past 5 years?

-29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAP1V has high quality earnings.

Growing Profit Margin: RAP1V's current net profit margins (1%) are lower than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: RAP1V's earnings have declined by -29.2% per year over the past 5 years.

Accelerating Growth: RAP1V's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RAP1V had negative earnings growth (-41.3%) over the past year, making it difficult to compare to the Leisure industry average (2.5%).


Return on Equity

High ROE: RAP1V's Return on Equity (3.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rapala VMC's financial position?


Financial Position Analysis

Short Term Liabilities: RAP1V's short term assets (€194.7M) exceed its short term liabilities (€122.8M).

Long Term Liabilities: RAP1V's short term assets (€194.7M) exceed its long term liabilities (€66.4M).


Debt to Equity History and Analysis

Debt Level: RAP1V's debt to equity ratio (90.7%) is considered high.

Reducing Debt: RAP1V's debt to equity ratio has increased from 86.7% to 90.7% over the past 5 years.

Debt Coverage: RAP1V's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: RAP1V's interest payments on its debt are well covered by EBIT (12.4x coverage).


Balance Sheet

Inventory Level: RAP1V has a high level of physical assets or inventory.

Debt Coverage by Assets: RAP1V's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Rapala VMC's current dividend yield, its reliability and sustainability?

2.15%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.2%markettop25%4.9%industryaverage2.8%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: RAP1V's dividend (2.15%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.23%).

High Dividend: RAP1V's dividend (2.15%) is low compared to the top 25% of dividend payers in the Finnish market (4.85%).


Stability and Growth of Payments

Stable Dividend: RAP1V's dividend payments have been volatile in the past 10 years.

Growing Dividend: RAP1V's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.2%), RAP1V's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RAP1V's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Louis D’Alançon (60yo)

0.3yrs

Tenure

0

Mr. Louis Audemard D’Alançon serves as Interim President and Chief Executive Officer of Rapala VMC Corporation since September 27, 2019. Mr. D’Alançon has been Chairman of Rapala VMC Corporation since Sept ...


Management Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

Experienced Management: RAP1V's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

14.5yrs

Average Tenure

63yo

Average Age

Experienced Board: RAP1V's board of directors are seasoned and experienced ( 14.5 years average tenure).


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 not been meaningfully diluted in the past year.


Management Team

  • Lars Ollberg (63yo)

    Chief Operating Officer

    • Tenure: 2.4yrs
  • Stanislas de Castelnau (56yo)

    Head of Manufacturing Operations & Global Supply Chain Development and Hook & Carp Business Unit

    • Tenure: 4.3yrs
  • Olli Aho (60yo)

    Executive VP of Investor Relations

    • Tenure: 4.1yrs
  • Tom Mackin (58yo)

    Head of Distribution & Brands - North America

    • Tenure: 3.3yrs
  • Jussi Ristimäki (45yo)

    Executive Officer

    • Tenure: 0yrs
  • Victor Skvortsov (57yo)

    Head of Distribution in Russia

    • Tenure: 9.3yrs
  • Cyrille Viellard (42yo)

    Executive Vice President of Market Intelligence & Business Development

    • Tenure: 3.3yrs
  • Jan-Elof Cavander (33yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
  • Louis D’Alançon (60yo)

    Chairman

    • Tenure: 0.3yrs

Board Members

  • Jorma Kasslin (66yo)

    Director

    • Tenure: 21.9yrs
    • Compensation: €500.00k
  • Emmanuel Viellard (56yo)

    Director

    • Tenure: 14.9yrs
    • Compensation: €60.00k
  • Eero Makkonen (73yo)

    Director

    • Tenure: 21.9yrs
  • Marc Speeckaert (68yo)

    Director

    • Tenure: 14.1yrs
  • Julia Aubertin (40yo)

    Director

    • Tenure: 5.7yrs
  • Louis D’Alançon (60yo)

    Chairman

    • Tenure: 0.3yrs

Company Information

Rapala VMC Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rapala VMC Corporation
  • Ticker: RAP1V
  • Exchange: HLSE
  • Founded: 1936
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: €107.548m
  • Shares outstanding: 38.55m
  • Website: https://www.rapalavmc.com

Number of Employees


Location

  • Rapala VMC Corporation
  • Mäkelänkatu 91
  • Helsinki
  • Uusimaa
  • 610
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RPNM.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDDec 1998
RAP1VHLSE (OMX Nordic Exchange Helsinki)YesClass A SharesFIEURDec 1998
0MEFLSE (London Stock Exchange)YesClass A SharesGBEURDec 1998
RAP1VHBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBEURDec 1998

Biography

Rapala VMC Corporation, together with its subsidiaries, engages in manufacturing, sourcing, and distributing fishing tackle products in North America, Nordic countries, rest of Europe, and internationally. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 20:39
End of Day Share Price2019/12/10 00:00
Earnings2019/06/30
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.