HLSE:TIK1V

Stock Analysis Report

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Executive Summary

Tikkurila Oyj, a paint company, produces and sells a range of decorative paints for surface protection and decoration to consumers and professionals in Sweden, Russia, Finland, Poland, the Baltic countries, and internationally.


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TIK1V's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.3%

TIK1V

2.0%

FI Chemicals

-2.0%

FI Market


1 Year Return

-6.2%

TIK1V

6.0%

FI Chemicals

-5.9%

FI Market

Return vs Industry: TIK1V underperformed the Finnish Chemicals industry which returned 4.7% over the past year.

Return vs Market: TIK1V matched the Finnish Market which returned -7.2% over the past year.


Shareholder returns

TIK1VIndustryMarket
7 Day10.3%2.0%-2.0%
30 Day16.6%7.0%0.6%
90 Day24.7%12.9%8.5%
1 Year-3.1%-6.2%9.2%6.0%3.1%-5.9%
3 Year-12.7%-21.0%10.8%0.2%7.4%-9.1%
5 Year-4.9%-21.8%22.8%4.5%33.3%5.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TIK1V (€13.94) is trading below our estimate of fair value (€15.37)

Significantly Below Fair Value: TIK1V is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TIK1V is poor value based on its PE Ratio (20.6x) compared to the XE Chemicals industry average (17.8x).

PE vs Market: TIK1V is poor value based on its PE Ratio (20.6x) compared to the Finnish market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: TIK1V is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: TIK1V is overvalued based on its PB Ratio (3.6x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

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

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TIK1V's forecast earnings growth (11.9% per year) is above the savings rate (0.4%).

Earnings vs Market: TIK1V's earnings (11.9% per year) are forecast to grow slower than the Finnish market (13.6% per year).

High Growth Earnings: TIK1V's earnings are forecast to grow, but not significantly.

Revenue vs Market: TIK1V's revenue (1.4% per year) is forecast to grow slower than the Finnish market (4.8% per year).

High Growth Revenue: TIK1V's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TIK1V's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has Tikkurila Oyj performed over the past 5 years?

-21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TIK1V has high quality earnings.

Growing Profit Margin: TIK1V's current net profit margins (5.2%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: TIK1V's earnings have declined by -21.6% per year over the past 5 years.

Accelerating Growth: TIK1V's earnings growth over the past year (92%) exceeds its 5-year average (-21.6% per year).

Earnings vs Industry: TIK1V earnings growth over the past year (92%) exceeded the Chemicals industry -6.1%.


Return on Equity

High ROE: TIK1V's Return on Equity (17.2%) is considered low.


Next Steps

Financial Health

How is Tikkurila Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: TIK1V's short term assets (€238.7M) exceed its short term liabilities (€156.0M).

Long Term Liabilities: TIK1V's short term assets (€238.7M) exceed its long term liabilities (€109.1M).


Debt to Equity History and Analysis

Debt Level: TIK1V's debt to equity ratio (59.8%) is considered high.

Reducing Debt: TIK1V's debt to equity ratio has increased from 43.6% to 59.8% over the past 5 years.

Debt Coverage: TIK1V's debt is well covered by operating cash flow (59.7%).

Interest Coverage: TIK1V's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Next Steps

Dividend

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

3.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TIK1V's dividend (3.59%) is higher than the bottom 25% of dividend payers in the Finnish market (2.43%).

High Dividend: TIK1V's dividend (3.59%) is low compared to the top 25% of dividend payers in the Finnish market (5.38%).


Stability and Growth of Payments

Stable Dividend: TIK1V has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TIK1V has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.8%), TIK1V's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TIK1V's dividends in 3 years are forecast to be covered by earnings (65.5% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Elisa Markkula (54yo)

2.25yrs

Tenure

€777,000

Compensation

Ms. Elisa Markkula has serves as President and Chief Executive Officer at Tikkurila Oyj since April 12, 2018. She serves as Senior Vice President and Managing Director of Coffee at Paulig Oy since 2010. Ms ...


CEO Compensation Analysis

Compensation vs Market: Elisa's total compensation ($USD879.06K) is about average for companies of similar size in the Finnish market ($USD683.53K).

Compensation vs Earnings: Elisa's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Elisa Markkula
President & CEO2.25yrs€777.00kno data
Markus Melkko
CFO & Controller1.25yrsno datano data
Fredrik Linde
Senior Vice President of Operations2.08yrsno datano data
Tapio Pesola
Director of IR & Communications1.17yrsno datano data
Sanna Lehti
General Counselno datano datano data
Oskari Vidman
Senior Vice President of Sales1yrno datano data
Melisa Bärholm
Senior Vice President of Human Resources3.17yrsno data0.0045% 27.9k
Aleksander Truszczynski
Head of Business Unit - Poland6.42yrsno datano data
Meri Vainikka
Senior Vice President of Offering3.17yrsno data0.0045% 27.9k
Anders Rotkirch
Senior Vice President of Transformation & ICT1.5yrsno datano data

2.1yrs

Average Tenure

47yo

Average Age

Experienced Management: TIK1V's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Heikki Westerlund
Independent Director2.25yrs€51.00k0.0043% 26.6k
Petteri Walldén
Independent Vice Chairman of the Board10.5yrs€48.00k0.025% 153.6k
Jari Paasikivi
Chairman of the Board10.5yrs€72.00k0.19% 1.1m
Lars Lindfors
Independent Director1.25yrs€40.00k0.0019% 11.7k
Riitta Mynttinen
Independent Director9.33yrs€51.00k0.016% 97.0k
Catherine Sahlgren
Independent Director2.25yrs€39.00k0.0039% 23.7k
Andrey Pantyukhov
Independent Director0.083yrno datano data

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: TIK1V'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.


Top Shareholders

Company Information

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


Key Information

  • Name: Tikkurila Oyj
  • Ticker: TIK1V
  • Exchange: HLSE
  • Founded: 1862
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: €614.836m
  • Shares outstanding: 44.11m
  • Website: https://www.tikkurilagroup.com

Number of Employees


Location

  • Tikkurila Oyj
  • Heidehofintie 2
  • PO Box 53
  • Vantaa
  • Uusimaa
  • 1300
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0MFILSE (London Stock Exchange)YesRegistered SharesGBEURMar 2010
TIK1VHLSE (OMX Nordic Exchange Helsinki)YesRegistered SharesFIEURMar 2010
7TODB (Deutsche Boerse AG)YesRegistered SharesDEEURMar 2010
TIK1VHBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURMar 2010

Biography

Tikkurila Oyj, a paint company, produces and sells a range of decorative paints for surface protection and decoration to consumers and professionals in Sweden, Russia, Finland, Poland, the Baltic countries, and internationally. It provides interior paints, lacquers, and other products; and exterior products for wood, masonry, and metal surfaces, as well as offers services related to painting. The company produces paints and coatings for the metal and wood industries. It markets its products under the Tikkurila, Beckers, Alcro, Teks, Vivacolor, Jedynka, Finncolor, Polifarb Debica, and Pigrol brands. The company sells decorative paints primarily to home improvement stores, paint store chains, and independent paint retailers; and industrial coatings directly to customers or through the retailer network. The company was founded in 1862 and is headquartered in Vantaa, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 20:55
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
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.