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

Fair value with moderate growth potential.


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

-0.5%

HLSE:OUT1V

1.1%

FI Metals and Mining

1.0%

FI Market


1 Year Return

-44.5%

HLSE:OUT1V

-1.7%

FI Metals and Mining

-2.2%

FI Market

OUT1V underperformed the Metals and Mining industry which returned -1.7% over the past year.

OUT1V underperformed the Market in Finland which returned -2.2% over the past year.


Share holder returns

OUT1VIndustryMarket
7 Day-0.5%1.1%1.0%
30 Day11.1%10.1%4.0%
90 Day-1.7%-4.3%2.1%
1 Year-41.9%-44.5%5.2%-1.7%2.3%-2.2%
3 Year-41.3%-46.8%48.4%29.2%31.5%16.3%
5 Year-42.0%-47.4%33.4%10.2%57.6%27.6%

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 based on future cash flows and its price relative to the stock market?

24%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Outokumpu Oyj's share price is below the future cash flow value, and at a moderate discount (> 20%).

Outokumpu Oyj's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Outokumpu Oyj is overvalued based on earnings compared to the Europe Metals and Mining industry average.

Outokumpu Oyj is overvalued based on earnings compared to the Finland market.


Price Based on Expected Growth

Outokumpu Oyj is good value based on expected growth next year.


Price Based on Value of Assets

Outokumpu Oyj is good value based on assets compared to the Europe Metals and Mining industry average.


Next Steps

Future Growth

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

54.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Outokumpu Oyj's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).

Outokumpu Oyj's earnings are expected to grow significantly at over 20% yearly.

Outokumpu Oyj's revenue growth is positive but not above the Finland market average.

Outokumpu Oyj's earnings growth is expected to exceed the Finland market average.

Outokumpu Oyj's earnings growth is expected to exceed the low risk savings rate of 0.5%.


Earnings per Share Growth Estimates


Future Return on Equity

Outokumpu Oyj is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Outokumpu Oyj has delivered over 20% year on year earnings growth in the past 5 years.

Outokumpu Oyj's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Outokumpu Oyj's 1-year earnings growth is negative, it can't be compared to the Europe Metals and Mining industry average.


Return on Equity

Outokumpu Oyj has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Outokumpu Oyj used its assets less efficiently than the Europe Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Outokumpu Oyj has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Outokumpu Oyj's financial position?


Financial Position Analysis

Outokumpu Oyj's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Outokumpu Oyj's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Outokumpu Oyj's level of debt (53.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (87.9% vs 53.8% today).

Debt is well covered by operating cash flow (22.7%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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

4.85%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Outokumpu Oyj's pays a higher dividend yield than the bottom 25% of dividend payers in Finland (2.31%).

Outokumpu Oyj's dividend is above the markets top 25% of dividend payers in Finland (5.1%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Roeland I. Baan (62yo)

3.7yrs

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

Roeland I.'s remuneration is higher than average for companies of similar size in Finland.

Roeland I.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

49yo

Average Age

The tenure for the Outokumpu Oyj management team is about average.


Board Age and Tenure

1.5yrs

Average Tenure

57yo

Average Age

The average tenure for the Outokumpu Oyj board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Roeland I. Baan (62yo)

    President & CEO

    • Tenure: 3.7yrs
    • Compensation: €2.71m
  • Reeta Kaukiainen (55yo)

    Executive Vice President of Communications & Investor Relations

    • Tenure: 2.5yrs
  • Johann Steiner (53yo)

    Executive Vice President of Human Resources & Organizational Development

    • Tenure: 3.7yrs
  • Kari Tuutti (49yo)

    President of Long Products

    • Tenure: 5.7yrs
  • Juha Ylimaunu

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

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

    Chief Financial Officer

    • Tenure: 0.5yrs
  • 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: 4.4yrs
  • Jose Salas

    Head of Mexinox

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

    Executive Vice President of Supply Chain Management - Europe

    • Tenure: 3.7yrs

Board Members

  • Kari Alpo Jordan (63yo)

    Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: €164.20k
  • Vesa-Pekka Takala (53yo)

    Director

    • Tenure: 0.5yrs
  • Eeva Sipilä (46yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: €75.40k
  • Heikki Malinen (57yo)

    Vice Chairman

    • Tenure: 0.5yrs
    • Compensation: €76.60k
  • Kati Horst (51yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: €76.60k
  • Pierre Vareille (62yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: €77.20k
  • Julia Woodhouse (61yo)

    Director

    • Tenure: 0.5yrs

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: €1.207b
  • 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 Analysis2019/09/18 20:41
End of Day Share Price2019/09/18 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.