Suominen Oyj (HLSE:SUY1V) - Share price, News & Analysis

Q: What is the Fair Price of SUY1V when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SUY1V (€2.93) is trading below our estimate of [[fair value]] (€13.12)

SUY1V fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	1/6
Financial Health	3/6
Dividends	2/6

SUY1V Stock Overview

Suominen Oyj manufactures and sells nonwovens as roll goods for wipes and other applications in Finland, the Americas, the rest of Europe, and internationally.

Rewards

Trading at 77.7% below our estimate of its fair value

Earnings are forecast to grow 34.83% per year

Risk Analysis

Dividend of 6.83% is not well covered by earnings or forecast to be in the next 3 years

Volatile share price over the past 3 months

Large one-off items impacting financial results

Profit margins (1.1%) are lower than last year (8.7%)

Suominen Oyj Competitors

TRANSACTIONLtd

TSE:7818

JP¥33.6b

Unilever Nigeria

NGSE:UNILEVER

₦85.0b

Oil-Dri Corporation of America

NYSE:ODC

US$224.2m

S.T

TSE:4951

JP¥34.2b

Price History & Performance

Summary of all time highs, changes and price drops for Suominen Oyj
Historical stock prices
Current Share Price	€2.93
52 Week High	€6.41
52 Week Low	€2.75
Beta	0.62
1 Month Change	-12.54%
3 Month Change	-17.35%
1 Year Change	-47.40%
3 Year Change	24.15%
5 Year Change	-41.40%
Change since IPO	-86.37%

Recent News & Updates

Jun 14

Returns On Capital Signal Difficult Times Ahead For Suominen Oyj (HEL:SUY1V)

What financial metrics can indicate to us that a company is maturing or even in decline? More often than not, we'll see...

Shareholder Returns

	SUY1V	FI Household Products	FI Market
7D	-0.3%	1.5%	1.0%
1Y	-47.4%	-13.8%	-17.7%

Return vs Industry: SUY1V underperformed the Finnish Household Products industry which returned -14.1% over the past year.

Return vs Market: SUY1V underperformed the Finnish Market which returned -17% over the past year.

Price Volatility

Is SUY1V's price volatile compared to industry and market?
SUY1V volatility
SUY1V Average Weekly Movement	7.3%
Household Products Industry Average Movement	7.3%
Market Average Movement	5.3%
10% most volatile stocks in FI Market	8.4%
10% least volatile stocks in FI Market	3.4%

Stable Share Price: SUY1V is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SUY1V's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Finnish stocks.

About the Company

Founded	Employees	CEO	Website
1767	700	Petri Helsky	https://www.suominen.fi

Suominen Oyj manufactures and sells nonwovens as roll goods for wipes and other applications in Finland, the Americas, the rest of Europe, and internationally. It provides baby care, flushable, household, and workplace wipes. The company also offers nonwovens for hygiene, such as products for feminine hygiene and adult incontinence products, as well as baby diapers; personal care products; and medical products for wound care, surgical drape, patient cleaning, and cast padding applications.

Suominen Oyj Fundamentals Summary

How do Suominen Oyj's earnings and revenue compare to its market cap?
SUY1V fundamental statistics
Market Cap	€168.42m
Earnings (TTM)	€4.62m
Revenue (TTM)	€438.16m

36.4x

P/E Ratio

0.4x

P/S Ratio

Is SUY1V overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SUY1V income statement (TTM)
Revenue	€438.16m
Cost of Revenue	€400.95m
Gross Profit	€37.20m
Other Expenses	€32.58m
Earnings	€4.62m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 09, 2022

Earnings per share (EPS)	0.08
Gross Margin	8.49%
Net Profit Margin	1.06%
Debt/Equity Ratio	87.0%

How did SUY1V perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

249%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SUY1V undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SUY1V?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SUY1V. This is calculated by dividing SUY1V's market cap by their current preferred multiple.
What is SUY1V's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€168.42m

SUY1V key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	4.5x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does SUY1V's PE Ratio compare to its peers?

SUY1V PE Ratio vs Peers

The above table shows the PE ratio for SUY1V vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	73.4x
7818 TRANSACTIONLtd	17.2x	13.6%	JP¥33.6b
UNILEVER Unilever Nigeria	27.8x	13.5%	₦85.0b
ODC Oil-Dri Corporation of America	217.9x	n/a	US$224.2m
4951 S.T	30.2x	21.7%	JP¥34.2b
SUY1V Suominen Oyj	36.4x	34.8%	€168.4m

Forward PE

Price-To-Earnings vs Peers: SUY1V is good value based on its Price-To-Earnings Ratio (36.4x) compared to the peer average (73.4x).

Price to Earnings Ratio vs Industry

How does SUY1V's PE Ratio compare vs other companies in the Global Household Products Industry?

Price-To-Earnings vs Industry: SUY1V is expensive based on its Price-To-Earnings Ratio (36.4x) compared to the European Household Products industry average (16.3x)

Price to Earnings Ratio vs Fair Ratio

What is SUY1V's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SUY1V PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	36.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SUY1V's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SUY1V when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SUY1V (€2.93) is trading below our estimate of fair value (€13.12)

Significantly Below Fair Value: SUY1V is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: SUY1V is poor value based on its PEG Ratio (1x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

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

34.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUY1V's forecast earnings growth (34.8% per year) is above the savings rate (0.2%).

Earnings vs Market: SUY1V's earnings (34.8% per year) are forecast to grow faster than the Finnish market (7.9% per year).

High Growth Earnings: SUY1V's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SUY1V's revenue (2.3% per year) is forecast to grow faster than the Finnish market (1.9% per year).

High Growth Revenue: SUY1V's revenue (2.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SUY1V's Return on Equity is forecast to be low in 3 years time (12.1%).

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Past Performance

How has Suominen Oyj 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

25.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SUY1V has a large one-off gain of €1.8M impacting its March 31 2022 financial results.

Growing Profit Margin: SUY1V's current net profit margins (1.1%) are lower than last year (8.7%).

Past Earnings Growth Analysis

Earnings Trend: SUY1V's earnings have grown significantly by 25.9% per year over the past 5 years.

Accelerating Growth: SUY1V's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUY1V had negative earnings growth (-88.5%) over the past year, making it difficult to compare to the Household Products industry average (-37.5%).

Return on Equity

High ROE: SUY1V's Return on Equity (3%) is considered low.

Discover strong past performing companies

Financial Health

How is Suominen Oyj's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: SUY1V's short term assets (€224.2M) exceed its short term liabilities (€155.0M).

Long Term Liabilities: SUY1V's short term assets (€224.2M) exceed its long term liabilities (€78.1M).

Debt to Equity History and Analysis

Debt Level: SUY1V's net debt to equity ratio (23.8%) is considered satisfactory.

Reducing Debt: SUY1V's debt to equity ratio has increased from 74.2% to 87% over the past 5 years.

Debt Coverage: SUY1V's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SUY1V's interest payments on its debt are not well covered by EBIT (2.3x coverage).

Balance Sheet

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Dividend

What is Suominen Oyj 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

6.83%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SUY1V's dividend (6.83%) is higher than the bottom 25% of dividend payers in the Finnish market (2.46%).

High Dividend: SUY1V's dividend (6.83%) is in the top 25% of dividend payers in the Finnish market (4.95%)

Stability and Growth of Payments

Stable Dividend: SUY1V has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SUY1V's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (248.8%), SUY1V's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: SUY1V is paying a dividend but the company has no free cash flows.

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Management

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

3.3yrs

Average management tenure

CEO

Petri Helsky (55 yo)

3.42yrs

Tenure

€1,070,679

Compensation

Mr. Petri Helsky, M.Sc (Chem. Eng.), M.Sc. (Econ.) has been the President and Chief Executive Officer of Suominen Oyj since January 7, 2019. He was the Chief Executive Officer of Metsä Tissue Corporation a...

CEO Compensation Analysis

Compensation vs Market: Petri's total compensation ($USD1.12M) is above average for companies of similar size in the Finnish market ($USD468.08K).

Compensation vs Earnings: Petri's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: SUY1V's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: SUY1V's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

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	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31