HLSE:OUT1V

Stock Analysis Report

Executive Summary

Outokumpu Oyj produces and sells various stainless steel products in Finland, Germany, Sweden, the United Kingdom, other European countries, Asia and Oceania, and internationally.

Snowflake

Fundamentals

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

12.8%

OUT1V

1.3%

FI Metals and Mining

1.5%

FI Market


1 Year Return

-42.7%

OUT1V

-7.3%

FI Metals and Mining

4.2%

FI Market

Return vs Industry: OUT1V underperformed the Finnish Metals and Mining industry which returned -7.3% over the past year.

Return vs Market: OUT1V underperformed the Finnish Market which returned 4.2% over the past year.


Shareholder returns

OUT1VIndustryMarket
7 Day12.8%1.3%1.5%
30 Day-17.2%-6.9%-0.9%
90 Day-9.2%-9.9%-0.1%
1 Year-40.0%-42.7%-0.8%-7.3%9.1%4.2%
3 Year-54.3%-58.5%32.3%14.5%29.0%13.8%
5 Year-37.3%-43.1%37.2%13.0%66.2%34.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OUT1V (€2.57) is trading below our estimate of fair value (€3.53)

Significantly Undervalued: OUT1V is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OUT1V is poor value based on its PE Ratio (45.8x) compared to the Metals and Mining industry average (9x).

PE vs Market: OUT1V is poor value based on its PE Ratio (45.8x) compared to the Finnish market (20x).


Price to Earnings Growth Ratio

Low PEG Ratio: OUT1V is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: OUT1V is good value based on its PB Ratio (0.4x) compared to the XE Metals and Mining industry average (0.9x).


Next Steps

Future Growth

How is Outokumpu Oyj forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

68.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OUT1V's forecast earnings growth (68.3% per year) is above the savings rate (0.5%).

Earnings vs Market: OUT1V's earnings (68.3% per year) are forecast to grow faster than the Finnish market (13.6% per year).

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

Revenue vs Market: OUT1V's revenue (2.3% per year) is forecast to grow faster than the Finnish market (2.1% per year).

High Growth Revenue: OUT1V's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: OUT1V's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has Outokumpu Oyj performed over the past 5 years?

55.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OUT1V has become profitable over the past 5 years, growing earnings by 55.7% per year.

Accelerating Growth: OUT1V's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OUT1V had negative earnings growth (-86.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-6.3%).


Return on Equity

High ROE: OUT1V's Return on Equity (0.9%) is considered low.


Return on Assets

ROA vs Industry: OUT1V's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: OUT1V's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Outokumpu Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: OUT1V's short term assets (€2.4B) do not cover its short term liabilities (€2.4B)

Long Term Liabilities: OUT1V's short term assets (2.4B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: OUT1V's debt to equity ratio (53.8%) is considered high

Reducing Debt: OUT1V's debt to equity ratio has reduced from 87.9% to 53.8% over the past 5 years.

Debt Coverage: OUT1V's debt is well covered by operating cash flow (22.7%).

Interest Coverage: OUT1V's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

Inventory Level: OUT1V has a high level of physical assets or inventory.

Debt Coverage by Assets: OUT1V's debt is covered by short term assets (assets are 1.700420x debt).


Next Steps

Dividend

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

5.85%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%2.3%markettop25%5.0%industryaverage7.0%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OUT1V's dividend (5.85%) is higher than the bottom 25% of dividend payers in the Finnish market (2.34%).

High Dividend: OUT1V's dividend (5.85%) is in the top 25% of dividend payers in the Finnish market (5.03%)

Stable Dividend: OUT1V's dividend payments have been volatile in the past 10 years.

Growing Dividend: OUT1V's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (267.7%), OUT1V's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OUT1V's dividends in 3 years are forecast to be well covered by earnings (40.9% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Roeland I. Baan (62yo)

3.8yrs

Tenure

€2,705,913

Compensation

Mr. Roeland I. J. Baan, M.Sc. (Econ.), has been the Chairman of the Leadership Team at Outokumpu Oyj since January 1, 2016. Mr. Baan serves as a Director of Norsk Hydro ASA since May 29, 2019. Mr. Baan has ...


CEO Compensation Analysis

Compensation vs. Market: Roeland I.'s total compensation ($USD2.98M) is above average for companies of similar size in the Finnish market ($USD493.50K).

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


Management Age and Tenure

3.8yrs

Average Tenure

49yo

Average Age

Experienced Management: OUT1V's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

57yo

Average Age

Experienced Board: OUT1V's board of directors are not considered experienced ( 1.6 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

  • Roeland I. Baan (62yo)

    President & CEO

    • Tenure: 3.8yrs
    • Compensation: €2.71m
  • Reeta Kaukiainen (55yo)

    Executive Vice President of Communications & Investor Relations

    • Tenure: 2.6yrs
  • Johann Steiner (53yo)

    Executive Vice President of Human Resources & Organizational Development

    • Tenure: 3.8yrs
  • Kari Tuutti (49yo)

    President of Long Products

    • Tenure: 5.8yrs
  • Juha Ylimaunu

    Head of Sustainability & Environment and Senior Vice President of Environment & Quality

    • Tenure: 0yrs
  • Pia Aaltonen-Forsell (45yo)

    Chief Financial Officer

    • Tenure: 0.6yrs
  • Matti Suurnäkki

    Head of Ferrochrome Production and Senior Vice President of Ferrochrome

    • Tenure: 0yrs
  • Jan Hofmann (40yo)

    Executive Vice President of Business Transformation & IT

    • Tenure: 4.5yrs
  • Jose Salas

    Head of Mexinox

    • Tenure: 4.3yrs
  • Liam Bates (48yo)

    Executive Vice President of Supply Chain Management - Europe

    • Tenure: 3.8yrs

Board Members

  • Kari Alpo Jordan (63yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: €164.20k
  • Vesa-Pekka Takala (53yo)

    Director

    • Tenure: 0.6yrs
  • Eeva Sipilä (46yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: €75.40k
  • Heikki Malinen (57yo)

    Vice Chairman

    • Tenure: 0.6yrs
    • Compensation: €76.60k
  • Kati Horst (51yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: €76.60k
  • Pierre Vareille (62yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: €77.20k
  • Julia Woodhouse (61yo)

    Director

    • Tenure: 0.6yrs

Company Information

Outokumpu Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Outokumpu Oyj
  • Ticker: OUT1V
  • Exchange: HLSE
  • Founded: 1910
  • Industry: Steel
  • Sector: Materials
  • Market Cap: €1.055b
  • Shares outstanding: 411.39m
  • Website: https://www.outokumpu.com

Number of Employees


Location

  • Outokumpu Oyj
  • Salmisaarenranta 11
  • Helsinki
  • Uusimaa
  • 180
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OUT1VHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURJan 1994
OUTF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1994
0FJ8LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1994
OUTADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1994
OUT1VHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1994
OUTK.YOTCPK (Pink Sheets LLC)ADR NEWUSUSDOct 2008

Biography

Outokumpu Oyj produces and sells various stainless steel products in Finland, Germany, Sweden, the United Kingdom, other European countries, Asia and Oceania, and internationally. It offers cold rolled coi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:39
End of Day Share Price2019/10/14 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.