Raisio (HLSE:RAIVV) - Share price, News & Analysis

RAIVV fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	1/6
Financial Health	6/6
Dividends	3/6

RAIVV Stock Overview

Rewards

Trading at 62.8% below our estimate of its fair value

Earnings are forecast to grow 35.64% per year

Risk Analysis

Dividend of 5.04% is not well covered by earnings

Profit margins (4.1%) are lower than last year (12%)

Raisio Competitors

Lotus Bakeries

ENXTBR:LOTB

€3.7b

Ebro Foods

BME:EBRO

€2.5b

Cranswick

LSE:CWK

UK£1.6b

Corbion

ENXTAM:CRBN

€1.9b

Price History & Performance

Summary of all time highs, changes and price drops for Raisio
Historical stock prices
Current Share Price	€1.98
52 Week High	€4.45
52 Week Low	€1.94
Beta	0.85
1 Month Change	-14.85%
3 Month Change	-35.27%
1 Year Change	-52.71%
3 Year Change	-32.97%
5 Year Change	-46.09%
Change since IPO	43.09%

Shareholder Returns

	RAIVV	FI Food	FI Market
7D	-3.5%	-0.9%	-0.2%
1Y	-52.7%	-40.9%	-13.4%

Return vs Industry: RAIVV underperformed the Finnish Food industry which returned -40.8% over the past year.

Return vs Market: RAIVV underperformed the Finnish Market which returned -13.7% over the past year.

Price Volatility

Is RAIVV's price volatile compared to industry and market?
RAIVV volatility
RAIVV Average Weekly Movement	5.4%
Food Industry Average Movement	5.4%
Market Average Movement	6.1%
10% most volatile stocks in FI Market	8.9%
10% least volatile stocks in FI Market	4.4%

Stable Share Price: RAIVV is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RAIVV's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1939	388	Pekka Kuusniemi	https://www.raisio.com

Raisio plc, together with its subsidiaries, produces and sells food and fish feeds primarily in Finland, the United Kingdom, Poland, Ireland, Belgium, Russia, Ukraine, Spain, Hong Kong, Scandinavia, and the Baltic countries. The company operates through three segments: Healthy Food, Healthy Ingredients, and Other Operations. The company engages in the production, procurement, and supply of grain-based foods and their ingredients for industrial and catering companies, as well as fish feed under the Benecol, Elovena, Sunnuntai, Nalle, Torino, Provena, Nordic, Benella, Hercules, Baltic Blend, and Raisio Oats brands.

Raisio Fundamentals Summary

How do Raisio's earnings and revenue compare to its market cap?
RAIVV fundamental statistics
Market Cap	€322.54m
Earnings (TTM)	€10.50m
Revenue (TTM)	€254.00m

29.9x

P/E Ratio

1.2x

P/S Ratio

Is RAIVV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RAIVV income statement (TTM)
Revenue	€254.00m
Cost of Revenue	€198.90m
Gross Profit	€55.10m
Other Expenses	€44.60m
Earnings	€10.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 03, 2022

Earnings per share (EPS)	0.066
Gross Margin	21.69%
Net Profit Margin	4.13%
Debt/Equity Ratio	0.0%

How did RAIVV perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

76%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RAIVV (€1.98) is trading below our estimate of fair value (€5.33)

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

Price To Earnings Ratio

PE vs Industry: RAIVV is poor value based on its PE Ratio (29.9x) compared to the European Food industry average (17.6x).

PE vs Market: RAIVV is poor value based on its PE Ratio (29.9x) compared to the Finnish market (17.3x).

Price to Earnings Growth Ratio

PEG Ratio: RAIVV is good value based on its PEG Ratio (0.8x)

Price to Book Ratio

PB vs Industry: RAIVV is overvalued based on its PB Ratio (1.1x) compared to the FI Food industry average (0.7x).

Future Growth

How is Raisio forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

35.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAIVV's forecast earnings growth (35.6% per year) is above the savings rate (0.2%).

Earnings vs Market: RAIVV's earnings (35.6% per year) are forecast to grow faster than the Finnish market (8.7% per year).

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

Revenue vs Market: RAIVV's revenue (1.2% per year) is forecast to grow slower than the Finnish market (2.9% per year).

High Growth Revenue: RAIVV's revenue (1.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: RAIVV's Return on Equity is forecast to be low in 3 years time (7.1%).

Past Performance

How has Raisio 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

-9.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RAIVV has high quality earnings.

Growing Profit Margin: RAIVV's current net profit margins (4.1%) are lower than last year (12%).

Past Earnings Growth Analysis

Earnings Trend: RAIVV's earnings have declined by 9% per year over the past 5 years.

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

Earnings vs Industry: RAIVV had negative earnings growth (-61.8%) over the past year, making it difficult to compare to the Food industry average (11.9%).

Return on Equity

High ROE: RAIVV's Return on Equity (3.8%) is considered low.

Financial Health

How is Raisio's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: RAIVV's short term assets (€159.0M) exceed its short term liabilities (€40.2M).

Long Term Liabilities: RAIVV's short term assets (€159.0M) exceed its long term liabilities (€31.8M).

Debt to Equity History and Analysis

Debt Level: RAIVV is debt free.

Reducing Debt: RAIVV has no debt compared to 5 years ago when its debt to equity ratio was 23.3%.

Debt Coverage: RAIVV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RAIVV has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Raisio current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

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

5.04%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RAIVV's dividend (5.04%) is higher than the bottom 25% of dividend payers in the Finnish market (2.37%).

High Dividend: RAIVV's dividend (5.04%) is in the top 25% of dividend payers in the Finnish market (4.79%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (75.7%), RAIVV's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (97.2%), RAIVV's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

1.4yrs

Average management tenure

CEO

Pekka Kuusniemi (53 yo)

4.5yrs

Tenure

€712,282

Compensation

Mr. Pekka Kuusniemi has been Supervisory Board member of the Keskinäinen työeläkevakuutusyhtiö Varma since March 15, 2018. He serves as Chief Executive Officer and President of Raisio plc since November 1,...

CEO Compensation Analysis

Compensation vs Market: Pekka's total compensation ($USD751.43K) is about average for companies of similar size in the Finnish market ($USD754.14K).

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

Leadership Team

Experienced Management: RAIVV's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.

Board Members

Experienced Board: RAIVV's board of directors are seasoned and experienced ( 13.8 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	2022/05/20 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31