HLSE:AM1

Stock Analysis Report

Ahlstrom-Munksjö Oyj

Executive Summary

Ahlstrom-Munksjö Oyj manufactures and sells fiber-based materials, supplies innovative and sustainable solutions to customers worldwide.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Ahlstrom-Munksjö Oyj's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AM1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.3%

AM1

3.8%

FI Forestry

5.4%

FI Market


1 Year Return

-26.4%

AM1

-16.0%

FI Forestry

-19.3%

FI Market

Return vs Industry: AM1 underperformed the Finnish Forestry industry which returned -11.2% over the past year.

Return vs Market: AM1 underperformed the Finnish Market which returned -16.3% over the past year.


Shareholder returns

AM1IndustryMarket
7 Day16.3%3.8%5.4%
30 Day-24.5%-19.9%-23.2%
90 Day-29.3%-24.9%-23.1%
1 Year-24.2%-26.4%-12.0%-16.0%-15.3%-19.3%
3 Year-15.2%-27.8%3.2%-30.2%-3.8%-15.8%
5 Year9.0%-14.7%37.6%-12.3%4.8%-15.4%

Price Volatility Vs. Market

How volatile is Ahlstrom-Munksjö Oyj's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ahlstrom-Munksjö Oyj undervalued compared to its fair value and its price relative to the market?

47.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AM1 (€10.06) is trading below our estimate of fair value (€19.17)

Significantly Below Fair Value: AM1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AM1 is poor value based on its PE Ratio (36.8x) compared to the Forestry industry average (9.2x).

PE vs Market: AM1 is poor value based on its PE Ratio (36.8x) compared to the Finnish market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: AM1 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: AM1 is overvalued based on its PB Ratio (0.9x) compared to the XE Forestry industry average (0.9x).


Next Steps

Future Growth

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

34.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AM1's forecast earnings growth (34.2% per year) is above the savings rate (-0.1%).

Earnings vs Market: AM1's earnings (34.2% per year) are forecast to grow faster than the Finnish market (8.8% per year).

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

Revenue vs Market: AM1's revenue (1.2% per year) is forecast to grow faster than the Finnish market (0.3% per year).

High Growth Revenue: AM1'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: AM1's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Ahlstrom-Munksjö Oyj performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AM1 has high quality earnings.

Growing Profit Margin: AM1's current net profit margins (1.1%) are lower than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: AM1's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: AM1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AM1 had negative earnings growth (-24.3%) over the past year, making it difficult to compare to the Forestry industry average (-10.7%).


Return on Equity

High ROE: AM1's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Ahlstrom-Munksjö Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: AM1's short term assets (€840.4M) exceed its short term liabilities (€755.6M).

Long Term Liabilities: AM1's short term assets (€840.4M) do not cover its long term liabilities (€1.2B).


Debt to Equity History and Analysis

Debt Level: AM1's debt to equity ratio (80.7%) is considered high.

Reducing Debt: AM1's debt to equity ratio has increased from 73.3% to 80.7% over the past 5 years.

Debt Coverage: AM1's debt is well covered by operating cash flow (28.8%).

Interest Coverage: AM1's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: AM1 has a high level of physical assets or inventory.

Debt Coverage by Assets: AM1's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Ahlstrom-Munksjö Oyj's current dividend yield, its reliability and sustainability?

5.17%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 28 2020Ex Dividend DateJul 01 2020Dividend Pay DateJul 09 20208 days from Ex DividendBuy in the next 94 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AM1's dividend (5.17%) is higher than the bottom 25% of dividend payers in the Finnish market (3.07%).

High Dividend: AM1's dividend (5.17%) is low compared to the top 25% of dividend payers in the Finnish market (6.45%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AM1 has been paying a dividend for less than 10 years.

Growing Dividend: AM1's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (190.3%), AM1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AM1's dividends in 3 years are forecast to be well covered by earnings (48% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Hans Sohlström (55yo)

1.92s

Tenure

€870,000

Compensation

Mr. Hans Sohlström, M.Sc. (Tech.), M. Sc. (Econ.), has been the President and Chief Executive Officer of Ahlstrom-Munksjö Oyj since April 16, 2018. Mr. Sohlstrom was the President and Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Hans's total compensation ($USD964.63K) is below average for companies of similar size in the Finnish market ($USD1.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hans Sohlström
CEO & President1.92yrs€870.00k0.032% 367.4k
Sakari Ahdekivi
Deputy CEO1yrno datano data
Johan Lindh
Vice President of Communications & Investor Relationsno datano datano data
Andreas Elving
Executive VP of Legal & General Counselno datano data0.0034% 38.9k
Tarja Takko
Executive Vice President of People & Safety0.75yrno datano data
Anna Bergquist
Executive Vice-President of Strategy0.17yrno datano data
Dan Adrianzon
Executive Vice President of Business Area Industrial Solutions0.75yrno data0.000030% 347.0
Daniele Borlatto
Executive Vice President of Business Area Filtration & Performanceno datano data0.021% 245.6k
Anders Hilderman
Senior Vice President of Sustainability4.5yrsno datano data
Tomas Wulkan
Executive Vice President of Business Area Decor Solutions2.17yrsno datano data

1.0yrs

Average Tenure

55yo

Average Age

Experienced Management: AM1's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Valerie Mars
Independent Director2yrsno data0.013% 147.7k
Johannes Gullichsen
Independent Director2.92yrs€69.00k1.38% 16.0m
Elisabet Björklund
Independent Vice Chairman of the Board3.33yrs€102.00k0.0044% 50.7k
Alexander Ehrnrooth
Board Member6.17yrs€75.00k0.0010% 12.0k
Jaakko Eskola
Independent Chairman of the Boardno data€53.00kno data
Lasse Heinonen
Director1.5yrs€69.00kno data
Harri-Pekka Kaukonen
Independent Director2.92yrs€71.00k0.0042% 48.9k
Hannele Jakosuo-Jansson
Independent Director7.17yrs€73.00k0.0031% 36.2k
Nathalie Ahsltröm
Directorno datano datano data

2.9yrs

Average Tenure

55.5yo

Average Age

Experienced Board: AM1's board of directors are not considered experienced ( 2.9 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 been diluted in the past year, with total shares outstanding growing by 19.2%.


Top Shareholders

Company Information

Ahlstrom-Munksjö Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ahlstrom-Munksjö Oyj
  • Ticker: AM1
  • Exchange: HLSE
  • Founded: 1862
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: €1.157b
  • Shares outstanding: 114.99m
  • Website: https://www.ahlstrom-munksjo.com

Number of Employees


Location

  • Ahlstrom-Munksjö Oyj
  • Alvar Aallon katu 3 C
  • PO Box 329
  • Helsinki
  • 101
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AM1HLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURJun 2013
0QEQLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2013
AM1SOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKJun 2013
AM1HBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2013
AM1SSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKJun 2013
M9ODB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2013
AM1 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 2013

Biography

Ahlstrom-Munksjö Oyj manufactures and sells fiber-based materials, supplies innovative and sustainable solutions to customers worldwide. It offers decor paper, filter media, release liners, abrasive backings, nonwovens, electrotechnical papers, glass fiber materials, food packaging and labeling products, tapes, medical fiber materials, and solutions for diagnostics. The company’s product portfolio solutions also comprise wetlaid nonwovens; balancing and primer foils; beverage packaging and filter solutions; coated specialties; fine art and printing papers; food processing and industrial liquid filtration products; glass fibers; graphic papers; health care materials; label papers; non-food packaging products; release papers; special filters and analytics; specialty pulp products; thin papers; and wallcoverings. It serves transportation; construction; food and beverage; furniture; health care and life science; non-food consumer goods; general industry; and energy industries. The company was formerly known as Munksjö Oyj and changed its name to Ahlstrom-Munksjö Oyj in March 2017. Ahlstrom-Munksjö Oyj was founded in 1862 and is headquartered in Helsinki, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 22:17
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.