HLSE:RAIVV

Stock Analysis Report

Executive Summary

Raisio plc, a food company, manufactures and sells food and fish feeds in Northern and Eastern Europe, Western Europe, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

RAIVV

-2.6%

FI Food

2.1%

FI Market


1 Year Return

19.8%

RAIVV

11.8%

FI Food

5.9%

FI Market

Return vs Industry: RAIVV exceeded the Finnish Food industry which returned 11.8% over the past year.

Return vs Market: RAIVV exceeded the Finnish Market which returned 5.9% over the past year.


Shareholder returns

RAIVVIndustryMarket
7 Day-1.1%-2.6%2.1%
30 Day-2.7%-3.0%1.2%
90 Day1.5%-1.3%1.7%
1 Year27.1%19.8%16.4%11.8%10.9%5.9%
3 Year-7.6%-20.5%33.9%14.5%29.3%13.9%
5 Year3.7%-16.9%58.6%45.8%62.8%31.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAIVV (€3.12) is trading below our estimate of fair value (€3.59)

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


Price To Earnings Ratio

PE vs Industry: RAIVV is poor value based on its PE Ratio (30.1x) compared to the Food industry average (17.1x).

PE vs Market: RAIVV is poor value based on its PE Ratio (30.1x) compared to the Finnish market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: RAIVV is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: RAIVV is overvalued based on its PB Ratio (1.9x) compared to the XE Food industry average (1.2x).


Next Steps

Future Growth

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

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAIVV's forecast earnings growth (13.9% per year) is above the savings rate (0.5%).

Earnings vs Market: RAIVV's earnings (13.9% per year) are forecast to grow faster than the Finnish market (13.5% per year).

High Growth Earnings: RAIVV's earnings are forecast to grow, but not significantly.

Revenue vs Market: RAIVV's revenue (4.4% per year) is forecast to grow faster than the Finnish market (2% per year).

High Growth Revenue: RAIVV's revenue (4.4% 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 (9.4%).


Next Steps

Past Performance

How has Raisio performed over the past 5 years?

3.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RAIVV's earnings have grown by 3.8% per year over the past 5 years.

Accelerating Growth: RAIVV's earnings growth over the past year (35.8%) exceeds its 5-year average (3.8% per year).

Earnings vs Industry: RAIVV earnings growth over the past year (35.8%) exceeded the Food industry 0.3%.


Return on Equity

High ROE: RAIVV's Return on Equity (6.4%) is considered low.


Return on Assets

ROA vs Industry: RAIVV has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: RAIVV has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Raisio's financial position?


Financial Position Analysis

Short Term Liabilities: RAIVV's short term assets (€180.2M) exceeds its short term liabilities (€47.3M)

Long Term Liabilities: RAIVV's short term assets (180.2M) exceeds its long term liabilities (6.2M)


Debt to Equity History and Analysis

Debt Level: RAIVV's debt to equity ratio (4.9%) is considered satisfactory

Reducing Debt: RAIVV's debt to equity ratio has reduced from 14.3% to 4.9% over the past 5 years.

Debt Coverage: RAIVV's debt is well covered by operating cash flow (158.5%).

Interest Coverage: RAIVV's interest payments on its debt are well covered by EBIT (253x coverage).


Balance Sheet

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

Debt Coverage by Assets: RAIVV's debt is covered by short term assets (assets are 14.650400x debt).


Next Steps

Dividend

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

3.85%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.3%markettop25%5.0%industryaverage2.4%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RAIVV's dividend (3.85%) is higher than the bottom 25% of dividend payers in the Finnish market (2.34%).

High Dividend: RAIVV's dividend (3.85%) is low compared to the top 25% of dividend payers in the Finnish market (5.01%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (115.8%), RAIVV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RAIVV's dividends in 3 years are not forecast to be well covered by earnings (100% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Pekka Kuusniemi (51yo)

1.9yrs

Tenure

0

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, ...


Management Age and Tenure

1.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: RAIVV's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.6yrs

Average Tenure

56.5yo

Average Age

Experienced Board: RAIVV's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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


Management Team

  • Paul Simmonds (61yo)

    Senior Advisor

    • Tenure: 6.5yrs
  • Merja Lumme (58yo)

    Vice President of Human Resources

    • Tenure: 0yrs
  • Pekka Kuusniemi (51yo)

    CEO & President

    • Tenure: 1.9yrs
  • Sari Koivulehto-Mäkitalo (45yo)

    VP of Legal Affairs & Secretary

    • Tenure: 0yrs
  • Jukka Heinänen (47yo)

    Vice President of Operations and Managing Director of Raisionkaari Industrial Park Ltd

    • Tenure: 2.4yrs
  • Iiro Wester (56yo)

    Chief Commercial Officer of Healthy Food Division

    • Tenure: 1.1yrs
  • Toni Rannikko

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Aija Immonen

    Secretary of the Board

    • Tenure: 0yrs
  • Mika Saarinen

    Director of Treasury

    • Tenure: 0.2yrs

Board Members

  • Paavo Myllymäki (61yo)

    Chairman of Supervisory Board

    • Tenure: 6.4yrs
    • Compensation: €1.50k
  • Erkki Haavisto (51yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: €24.00k
  • Holger Falck (62yo)

    Vice Chairman of the Supervisory Board

    • Tenure: 13.8yrs
    • Compensation: €1.80k
  • Leena Niemistö (56yo)

    Independent Director

    • Tenure: 2.6yrs
  • Ann-Christine Sundell (55yo)

    Deputy Chairman

    • Tenure: 0.6yrs
  • Ilkka Mäkelä (62yo)

    Independent Chairman of the Board

    • Tenure: 1.6yrs
  • Henrik Brotherus (38yo)

    Member of Supervisory Board

    • Tenure: 2.6yrs
  • Ilkka Mattila (57yo)

    Member of Supervisory Board

    • Tenure: 2.6yrs
  • Olli-Pekka Saario (62yo)

    Member of Supervisory Board

    • Tenure: 2.6yrs
  • Timo Himberg (50yo)

    Member of Supervisory Board

    • Tenure: 1.6yrs

Company Information

Raisio plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Raisio plc
  • Ticker: RAIVV
  • Exchange: HLSE
  • Founded: 1939
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €488.726m
  • Shares outstanding: 157.35m
  • Website: https://www.raisio.com

Number of Employees


Location

  • Raisio plc
  • Raisionkaari 55
  • Raisio
  • Finland Proper
  • 21200
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAIVVHLSE (OMX Nordic Exchange Helsinki)YesSeries V SharesFIEURDec 1994
0CIJLSE (London Stock Exchange)YesSeries V SharesGBEURDec 1994
RATVDB (Deutsche Boerse AG)YesSeries V SharesDEEURDec 1994
RAIVVHBATS-CHIXE (BATS 'Chi-X Europe')YesSeries V SharesGBEURDec 1994
RAIKVHLSE (OMX Nordic Exchange Helsinki)Series K SharesFIEURMar 1996
0CIHLSE (London Stock Exchange)Series K SharesGBEURMar 1996
RAIKVHBATS-CHIXE (BATS 'Chi-X Europe')Series K SharesGBEURMar 1996

Biography

Raisio plc, a food company, manufactures and sells food and fish feeds in Northern and Eastern Europe, Western Europe, and internationally. It operates through Healthy Food, Raisioaqua, and Others segments ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:41
End of Day Share Price2019/10/21 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.