HLSE:VIK1V

Stock Analysis Report

Executive Summary

Viking Line ABP, together with its subsidiaries, provides passenger and cargo carrier services.

Rewards

PE ratio (17.2x) is below the Finnish market (20.8x)

Earnings grew by 87.3% over the past year

Risk Analysis

Earnings have declined by -38.16% per year over past 5 years

Has a high level of debt

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet with proven track record.

Share Price & News

How has Viking Line ABP's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VIK1V has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

VIK1V

-0.7%

FI Hospitality

2.9%

FI Market


1 Year Return

25.9%

VIK1V

14.3%

FI Hospitality

11.5%

FI Market

Return vs Industry: VIK1V exceeded the Finnish Hospitality industry which returned 16.5% over the past year.

Return vs Market: VIK1V exceeded the Finnish Market which returned 12.5% over the past year.


Shareholder returns

VIK1VIndustryMarket
7 Day-2.1%-0.7%2.9%
30 Day-1.1%0.002%4.9%
90 Day4.5%5.2%7.4%
1 Year27.4%25.9%17.9%14.3%16.6%11.5%
3 Year-6.9%-10.9%25.8%14.2%35.0%18.8%
5 Year21.6%7.3%39.6%18.1%49.1%20.6%

Price Volatility Vs. Market

How volatile is Viking Line ABP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Viking Line ABP undervalued compared to its fair value and its price relative to the market?

17.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VIK1V (€18.6) is trading above our estimate of fair value (€8.47)

Significantly Below Fair Value: VIK1V is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VIK1V is good value based on its PE Ratio (17.2x) compared to the Hospitality industry average (20.9x).

PE vs Market: VIK1V is good value based on its PE Ratio (17.2x) compared to the Finnish market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VIK1V's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VIK1V is good value based on its PB Ratio (0.8x) compared to the XE Hospitality industry average (1.6x).


Next Steps

Future Growth

How is Viking Line ABP forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.1%

Forecasted Consumer Services 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 Viking Line ABP 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 Viking Line ABP performed over the past 5 years?

-38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIK1V has high quality earnings.

Growing Profit Margin: VIK1V's current net profit margins (2.4%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: VIK1V's earnings have declined by -38.2% per year over the past 5 years.

Accelerating Growth: VIK1V's earnings growth over the past year (87.3%) exceeds its 5-year average (-38.2% per year).

Earnings vs Industry: VIK1V earnings growth over the past year (87.3%) exceeded the Hospitality industry -7%.


Return on Equity

High ROE: VIK1V's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Viking Line ABP's financial position?


Financial Position Analysis

Short Term Liabilities: VIK1V's short term assets (€114.3M) exceed its short term liabilities (€101.8M).

Long Term Liabilities: VIK1V's short term assets (€114.3M) do not cover its long term liabilities (€145.7M).


Debt to Equity History and Analysis

Debt Level: VIK1V's debt to equity ratio (53.5%) is considered high.

Reducing Debt: VIK1V's debt to equity ratio has reduced from 118.9% to 53.5% over the past 5 years.

Debt Coverage: VIK1V's debt is well covered by operating cash flow (25.6%).

Interest Coverage: VIK1V's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

Inventory Level: VIK1V has a high level of physical assets or inventory.

Debt Coverage by Assets: VIK1V's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Viking Line ABP's current dividend yield, its reliability and sustainability?

1.08%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.1%markettop25%4.6%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: VIK1V's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.13%).

High Dividend: VIK1V's dividend (1.08%) is low compared to the top 25% of dividend payers in the Finnish market (4.68%).


Stability and Growth of Payments

Stable Dividend: VIK1V is not paying a notable dividend for the Finnish market, therefore no need to check if payments are stable.

Growing Dividend: VIK1V is not paying a notable dividend for the Finnish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: VIK1V is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VIK1V's dividend in 3 years as they are not forecast to pay a notable one for the Finnish market.


Next Steps

Management

What is the CEO of Viking Line ABP's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Jan Hanses (58yo)

5.8yrs

Tenure

€323,291

Compensation

Mr. Jan Hanses has been the Chief Executive Officer and President of Viking Line ABP since March 20, 2014. Mr. Hanses served as Deputy Chief Executive of Viking Line ABP from November 2008 to March 20, 201 ...


CEO Compensation Analysis

Compensation vs Market: Jan's total compensation ($USD0.00) is below average for companies of similar size in the Finnish market ($USD581.82K).

Compensation vs Earnings: Jan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.9yrs

Average Tenure

53yo

Average Age

Experienced Management: VIK1V's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

15.0yrs

Average Tenure

69yo

Average Age

Experienced Board: VIK1V's board of directors are seasoned and experienced ( 15 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 been diluted in the past year, with total shares outstanding growing by 2.1%.


Management Team

  • Jan Hanses (58yo)

    President & CEO

    • Tenure: 5.8yrs
    • Compensation: €323.29k
  • Peter Hellgren (52yo)

    Deputy CEO

    • Johanna Boijer-Svahnström (54yo)

      Senior Vice President of Corporate Communications & Public Affairs

      • Tenure: 2yrs
    • Wilhelm Hård Af Segerstad (55yo)

      Senior Vice President of Shipboard Commercial Operations & Shipboard Staff

      • Tenure: 6yrs
    • Ulf Hagström (50yo)

      Senior Vice President of Marine Operations & New buildings

      • Mats Engblom (42yo)

        Senior Vice President of Finance

        • Tenure: 1.2yrs

      Board Members

      • Lars Nordström (76yo)

        Independent Director

        • Tenure: 14yrs
        • Compensation: €32.00k
      • Ben Lundqvist (76yo)

        Chairman

        • Tenure: 25yrs
        • Compensation: €38.00k
      • Dick Lundqvist (73yo)

        Independent Director

        • Tenure: 20yrs
        • Compensation: €31.00k
      • Nils-Erik Eklund (73yo)

        Independent Director

        • Tenure: 23yrs
        • Compensation: €32.00k
      • Agneta Karlsson (65yo)

        Independent Director

        • Tenure: 14yrs
        • Compensation: €32.00k
      • Erik Grönberg (76yo)

        Independent Director

        • Tenure: 16yrs
        • Compensation: €32.00k
      • Stefan Lundqvist (48yo)

        Deputy Director

        • Tenure: 20yrs
        • Compensation: €5.00k
      • Johnny Rosenholm (48yo)

        Deputy Director

        • Tenure: 7.8yrs
        • Compensation: €6.00k
      • Ulrica Danielsson (54yo)

        Deputy Director

        • Tenure: 6.8yrs
        • Compensation: €7.00k
      • Peter Wiklöf (53yo)

        Independent Director

        • Tenure: 2.8yrs
        • Compensation: €30.00k

      Company Information

      Viking Line ABP's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Viking Line ABP
      • Ticker: VIK1V
      • Exchange: HLSE
      • Founded: 1959
      • Industry: Hotels, Resorts and Cruise Lines
      • Sector: Consumer Services
      • Market Cap: €199.800m
      • Shares outstanding: 10.80m
      • Website: https://www.vikingline.fi

      Number of Employees


      Location

      • Viking Line ABP
      • Norragatan 4
      • PO Box 166
      • Mariehamn
      • Åland
      • 22100
      • Finland

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      VIK1VHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURJul 1995
      0GFYLSE (London Stock Exchange)YesShare CapitalGBEURJul 1995
      VIK1VhBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURJul 1995

      Biography

      Viking Line ABP, together with its subsidiaries, provides passenger and cargo carrier services. The company offers its services using seven vessels between Finland, Sweden, and Estonia; and owns 13 buses. It also provides cargo shipment and freight forwarding services. The company also has operations in other Baltic countries, Poland, Denmark, Norway, and Russia. Viking Line ABP was founded in 1959 and is headquartered in Mariehamn, Finland. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 20:37
      End of Day Share Price2020/01/20 00:00
      Earnings2019/09/30
      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.