HLSE:RAP1V

Stock Analysis Report

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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.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.

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

-1.1%

RAP1V

3.1%

FI Leisure

2.8%

FI Market


1 Year Return

-8.5%

RAP1V

21.4%

FI Leisure

1.5%

FI Market

Return vs Industry: RAP1V underperformed the Finnish Leisure industry which returned 21.5% over the past year.

Return vs Market: RAP1V underperformed the Finnish Market which returned 1.5% over the past year.


Shareholder returns

RAP1VIndustryMarket
7 Day-1.1%3.1%2.8%
30 Day-10.9%8.8%7.2%
90 Day12.1%32.8%10.0%
1 Year-7.5%-8.5%23.3%21.4%10.4%1.5%
3 Year-29.3%-32.4%55.5%45.0%19.4%-0.09%
5 Year-43.5%-48.4%111.0%83.8%45.8%15.2%

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?

7.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAP1V (€2.69) is trading below our estimate of fair value (€2.9)

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 unprofitable, so we can't compare its PE Ratio to the XE Leisure industry average.

PE vs Market: RAP1V is unprofitable, so we can't compare its PE Ratio to the Finnish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RAP1V's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RAP1V is good value based on its PB Ratio (0.7x) compared to the XE Leisure industry average (2.1x).


Next Steps

Future Growth

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

74.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAP1V is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.4%).

Earnings vs Market: RAP1V is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RAP1V's is expected to become profitable in the next 3 years.

Revenue vs Market: RAP1V's revenue (2.7% per year) is forecast to grow slower than the Finnish market (5.1% per year).

High Growth Revenue: RAP1V's revenue (2.7% 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?

-25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAP1V is currently unprofitable.

Growing Profit Margin: RAP1V is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RAP1V is unprofitable, and losses have increased over the past 5 years at a rate of 25.7% per year.

Accelerating Growth: Unable to compare RAP1V's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RAP1V is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (-8.2%).


Return on Equity

High ROE: RAP1V has a negative Return on Equity (-4.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rapala VMC's financial position?


Financial Position Analysis

Short Term Liabilities: RAP1V's short term assets (€189.7M) exceed its short term liabilities (€108.2M).

Long Term Liabilities: RAP1V's short term assets (€189.7M) exceed its long term liabilities (€63.2M).


Debt to Equity History and Analysis

Debt Level: RAP1V's debt to equity ratio (81.9%) is considered high.

Reducing Debt: RAP1V's debt to equity ratio has reduced from 89.8% to 81.9% over the past 5 years.

Debt Coverage: RAP1V's debt is well covered by operating cash flow (23.4%).

Interest Coverage: RAP1V is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.10%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RAP1V's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RAP1V'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 RAP1V's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RAP1V's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RAP1V is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RAP1V'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?

3.9yrs

Average management tenure


CEO

Nicolas Warchalowski (49 yo)

0.42

Tenure

Mr. Nicolas Warchalowski has been Chief Executive Officer and President at Rapala VMC Corporation since March 01, 2020. Mr. Warchalowski served as the Chief Executive Officer of Peak Performance Production ...


Leadership Team

NamePositionTenureCompensationOwnership
Nicolas Warchalowski
President & CEO0.42yrno datano data
Jan-Elof Cavander
Chief Financial Officer3.17yrsno data0.026%
€ 27.2k
Lars Ollberg
Chief Operating Officerno datano data0.026%
€ 27.2k
Olli Aho
Executive VP of Investor Relations4.75yrsno data0.026%
€ 27.2k
Stanislas de Castelnau
Executive VP & Head of Operations4.92yrsno data0.021%
€ 21.5k
Tom Mackin
Executive Vice President of Distribution & Brands - North America3.92yrsno data0.0078%
€ 8.1k
Victor Skvortsov
Executive Vice President of Distribution - Russia10yrsno data0.026%
€ 27.2k
Cyrille Viellard
Executive VP & President of VMC Pêche3.92yrsno data0.026%
€ 27.2k
Arto Nygren
Executive Vice President of Lure Manufacturingno datano data0.026%
€ 27.2k
Jean-Philippe Nicolle
Executive VP & Head of European Distributionno datano datano data

3.9yrs

Average Tenure

56yo

Average Age

Experienced Management: RAP1V's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jorma Kasslin
Director22.58yrs€500.00k0.070%
€ 72.3k
Emmanuel Viellard
Director20.58yrs€60.00k0.0052%
€ 5.4k
Eero Makkonen
Independent Director22.58yrsno data0.013%
€ 13.4k
Marc Speeckaert
Independent Director14.75yrsno data0.0078%
€ 8.1k
Julia Aubertin
Independent Director6.33yrsno datano data
Louis D'Alançon
Chairman1.92yrsno data0.0057%
€ 5.9k

17.7yrs

Average Tenure

64yo

Average Age

Experienced Board: RAP1V's board of directors are seasoned and experienced ( 17.7 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

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: €103.694m
  • Shares outstanding: 38.55m
  • Website: https://www.rapalavmc.com

Number of Employees


Location

  • Rapala VMC Corporation
  • MAekelAenkatu 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 Analysis2020/08/08 22:17
End of Day Share Price2020/08/07 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.