HLSE:OUT1V

Stock Analysis Report

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Market Cap

€2.2b

Last Updated

2021/06/18 04:06 UTC

Data Sources

Company Financials +

Executive Summary

Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally. More Details


Snowflake Analysis

Adequate balance sheet 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

Stable Share Price: OUT1V is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: OUT1V's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of Finnish stocks.


Market Performance


7 Day Return

-8.3%

OUT1V

-5.1%

FI Metals and Mining

-0.6%

FI Market


1 Year Return

81.6%

OUT1V

50.8%

FI Metals and Mining

30.2%

FI Market

Return vs Industry: OUT1V exceeded the Finnish Metals and Mining industry which returned 54.7% over the past year.

Return vs Market: OUT1V exceeded the Finnish Market which returned 30.8% over the past year.


Shareholder returns

OUT1VIndustryMarket
7 Day-8.3%-5.1%-0.6%
30 Day3.6%-6.9%2.4%
90 Day12.2%5.1%7.8%
1 Year81.6%81.6%58.3%50.8%36.2%30.2%
3 Year-4.4%-8.7%40.9%22.1%40.9%19.0%
5 Year29.8%17.8%162.8%113.5%86.7%49.2%

Long-Term 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?

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OUT1V (€4.84) is trading below our estimate of fair value (€8.06)

Significantly Below Fair Value: OUT1V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OUT1V is unprofitable, so we can't compare its PE Ratio to the European Metals and Mining industry average.

PE vs Market: OUT1V is unprofitable, so we can't compare its PE Ratio to the Finnish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OUT1V's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OUT1V is good value based on its PB Ratio (0.8x) compared to the XE Metals and Mining industry average (1.7x).


Future Growth

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

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OUT1V is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: OUT1V is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OUT1V's is expected to become profitable in the next 3 years.

Revenue vs Market: OUT1V's revenue (0.8% per year) is forecast to grow slower than the Finnish market (3.4% per year).

High Growth Revenue: OUT1V's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OUT1V's Return on Equity is forecast to be low in 3 years time (8.7%).


Past Performance

How has Outokumpu Oyj performed over the past 5 years?

-50.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OUT1V is currently unprofitable.

Growing Profit Margin: OUT1V is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OUT1V is unprofitable, and losses have increased over the past 5 years at a rate of 50% per year.

Accelerating Growth: Unable to compare OUT1V's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OUT1V is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (22%).


Return on Equity

High ROE: OUT1V has a negative Return on Equity (-2.28%), as it is currently unprofitable.


Financial Health

How is Outokumpu Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: OUT1V's short term assets (€2.5B) exceed its short term liabilities (€2.1B).

Long Term Liabilities: OUT1V's short term assets (€2.5B) exceed its long term liabilities (€1.6B).


Debt to Equity History and Analysis

Debt Level: OUT1V's debt to equity ratio (49.4%) is considered high.

Reducing Debt: OUT1V's debt to equity ratio has reduced from 67.8% to 49.4% over the past 5 years.

Debt Coverage: OUT1V's debt is well covered by operating cash flow (31.4%).

Interest Coverage: OUT1V is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

3.17%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OUT1V's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OUT1V's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OUT1V's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OUT1V's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: OUT1V is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OUT1V's dividend in 3 years as they are not forecast to pay a notable one for the Finnish market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Heikki Malinen (58 yo)

1.08yrs

Tenure

€784,955

Compensation

Mr. Heikki Malinen, M.Sc (Econ.), MBA (Harvard), has been Head of Business Area Europe at Outokumpu Oyj since October 01, 2020. Mr. Malinen has been President and Chief Executive Officer of Outokumpu Oyj s...


CEO Compensation Analysis

Compensation vs Market: Heikki's total compensation ($USD935.25K) is below average for companies of similar size in the Finnish market ($USD1.98M).

Compensation vs Earnings: Heikki's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: OUT1V's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: OUT1V'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 been diluted in the past year, with total shares outstanding growing by 9.9%.


Top Shareholders

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: €2.191b
  • Shares outstanding: 452.56m
  • Website: https://www.outokumpu.com

Number of Employees


Location

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

Listings


Biography

Outokumpu Oyj produces and sells various stainless steel products in Finland, other European countries, North America, the Asia-Pacific, and internationally. It offers cold rolled coils, strips, and sheets...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/18 04:06
End of Day Share Price2021/06/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.