Musti Group Oyj (HLSE:MUSTI) - Share price, News & Analysis

Q: What is the Fair Price of MUSTI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MUSTI (€17.71) is trading below our estimate of [[fair value]] (€26.21)

MUSTI fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	1/6
Financial Health	3/6
Dividends	1/6

MUSTI Stock Overview

Musti Group Oyj operates as a pet care specialist in Finland, Sweden, and Norway.

Rewards

Trading at 32.4% below our estimate of its fair value

Earnings are forecast to grow 22.19% per year

Revenue grew by 16.7% over the past year

Analysts in good agreement that stock price will rise by 29.9%

Risk Analysis

No risks detected for MUSTI from our risk checks.

Musti Group Oyj Competitors

Kamux Oyj

HLSE:KAMUX

€208.7m

Tokmanni Group Oyj

HLSE:TOKMAN

€681.7m

Puuilo Oyj

HLSE:PUUILO

€429.1m

Stockmann Oyj Abp

HLSE:STOCKA

€345.3m

Price History & Performance

Summary of all time highs, changes and price drops for Musti Group Oyj
Historical stock prices
Current Share Price	€17.71
52 Week High	€37.18
52 Week Low	€15.13
Beta	1.51
1 Month Change	-4.17%
3 Month Change	-4.27%
1 Year Change	-41.55%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	71.94%

Recent News & Updates

Aug 13

Earnings Tell The Story For Musti Group Oyj (HEL:MUSTI) As Its Stock Soars 28%

Musti Group Oyj ( HEL:MUSTI ) shareholders would be excited to see that the share price has had a great month, posting...

Shareholder Returns

	MUSTI	FI Specialty Retail	FI Market
7D	0.6%	1.1%	5.1%
1Y	-41.6%	-32.7%	-16.6%

Return vs Industry: MUSTI underperformed the Finnish Specialty Retail industry which returned -33.9% over the past year.

Return vs Market: MUSTI underperformed the Finnish Market which returned -14.8% over the past year.

Price Volatility

Is MUSTI's price volatile compared to industry and market?
MUSTI volatility
MUSTI Average Weekly Movement	5.6%
Specialty Retail Industry Average Movement	5.6%
Market Average Movement	5.2%
10% most volatile stocks in FI Market	8.1%
10% least volatile stocks in FI Market	3.5%

Stable Share Price: MUSTI is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MUSTI's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	1,668	David Ronnberg	https://www.mustigroup.com

Musti Group Oyj operates as a pet care specialist in Finland, Sweden, and Norway. The company offers a range of pet products in the food and non-food categories under own and third-party brands. It also provides various services, such as veterinary, and pet health and care; trimming, cutting, and nail surgery; grooming; and education and learning.

Musti Group Oyj Fundamentals Summary

How do Musti Group Oyj's earnings and revenue compare to its market cap?
MUSTI fundamental statistics
Market Cap	€589.59m
Earnings (TTM)	€20.23m
Revenue (TTM)	€380.74m

29.2x

P/E Ratio

1.5x

P/S Ratio

Is MUSTI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MUSTI income statement (TTM)
Revenue	€380.74m
Cost of Revenue	€203.46m
Gross Profit	€177.28m
Other Expenses	€157.05m
Earnings	€20.23m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 08, 2022

Earnings per share (EPS)	0.61
Gross Margin	46.56%
Net Profit Margin	5.31%
Debt/Equity Ratio	38.9%

How did MUSTI perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

n/a

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is MUSTI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MUSTI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MUSTI. This is calculated by dividing MUSTI's market cap by their current preferred multiple.
What is MUSTI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€589.59m

MUSTI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.9x
Enterprise Value/EBITDA	17x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does MUSTI's PE Ratio compare to its peers?

MUSTI PE Ratio vs Peers

The above table shows the PE ratio for MUSTI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.7x
KAMUX Kamux Oyj	9.6x	17.3%	€208.7m
TOKMAN Tokmanni Group Oyj	10x	5.5%	€681.7m
PUUILO Puuilo Oyj	12.6x	7.1%	€429.1m
STOCKA Stockmann Oyj Abp	2.4x	n/a	€345.3m
MUSTI Musti Group Oyj	29.2x	22.2%	€589.6m

Price-To-Earnings vs Peers: MUSTI is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the peer average (8.7x).

Price to Earnings Ratio vs Industry

How does MUSTI's PE Ratio compare vs other companies in the European Specialty Retail Industry?

Price-To-Earnings vs Industry: MUSTI is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the European Specialty Retail industry average (9.4x)

Price to Earnings Ratio vs Fair Ratio

What is MUSTI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MUSTI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29.2x
Fair PE Ratio	24.7x

Price-To-Earnings vs Fair Ratio: MUSTI is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the estimated Fair Price-To-Earnings Ratio (24.7x).

Share Price vs Fair Value

What is the Fair Price of MUSTI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MUSTI (€17.71) is trading below our estimate of fair value (€26.21)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is Musti Group Oyj forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MUSTI's forecast earnings growth (22.2% per year) is above the savings rate (0.2%).

Earnings vs Market: MUSTI's earnings (22.2% per year) are forecast to grow faster than the Finnish market (6.9% per year).

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

Revenue vs Market: MUSTI's revenue (8.7% per year) is forecast to grow faster than the Finnish market (2% per year).

High Growth Revenue: MUSTI's revenue (8.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MUSTI's Return on Equity is forecast to be high in 3 years time (21.5%)

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Past Performance

How has Musti Group Oyj performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-6.3%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: MUSTI has high quality earnings.

Growing Profit Margin: MUSTI's current net profit margins (5.3%) are lower than last year (6.6%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if MUSTI's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: MUSTI had negative earnings growth (-6.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (17.8%).

Return on Equity

High ROE: MUSTI's Return on Equity (13.2%) is considered low.

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Financial Health

How is Musti Group Oyj's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MUSTI's short term assets (€69.4M) do not cover its short term liabilities (€80.8M).

Long Term Liabilities: MUSTI's short term assets (€69.4M) do not cover its long term liabilities (€121.9M).

Debt to Equity History and Analysis

Debt Level: MUSTI's net debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MUSTI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MUSTI's debt is well covered by operating cash flow (79.4%).

Interest Coverage: MUSTI's interest payments on its debt are well covered by EBIT (6x coverage).

Balance Sheet

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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.48%

Current Dividend Yield

Dividend Yield vs Market

Musti Group Oyj Dividend Yield vs Market

How does Musti Group Oyj dividend yield compare to the market?
Segment	Dividend Yield
Company (Musti Group Oyj)	2.5%
Market Bottom 25% (FI)	2.8%
Market Top 25% (FI)	5.3%
Industry Average (Specialty Retail)	4.6%
Analyst forecast in 3 Years (Musti Group Oyj)	4.2%

Notable Dividend: MUSTI's dividend (2.48%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.8%).

High Dividend: MUSTI's dividend (2.48%) is low compared to the top 25% of dividend payers in the Finnish market (5.39%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether MUSTI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MUSTI's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (44.7%), MUSTI's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure

CEO

David Ronnberg (45 yo)

5.75yrs

Tenure

Mr. David Ronnberg serves as Chief Executive Officer at Musti Group Oyj since 2017. Mr. Ronnberg served as Independent Director of Public Joint Stock Company Detsky Mir since 2021 until July 2022. Mr. Ronn...

Leadership Team

Experienced Management: MUSTI's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: MUSTI's board of directors are not considered experienced ( 1.8 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

What is the ownership structure of MUSTI?
Owner Type	Number of Shares	Ownership Percentage
Private Companies	121,025	0.4%
Individual Insiders	1,008,779	3.0%
General Public	10,891,041	32.7%
Institutions	21,270,608	63.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 58.52% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
9.38%	Capital Research and Management Company	3,122,537	€55.3m	0%	no data
7.27%	FMR LLC	2,421,764	€42.9m	0.08%	no data
5.1%	Grandeur Peak Global Advisors, LLC	1,696,730	€30.0m	0%	0.69%
5.05%	Columbia Management Investment Advisers, LLC	1,681,332	€29.8m	0%	0.01%
2.91%	Sampo Oyj, Asset Management Arm	968,558	€17.2m	0%	1.71%
2.31%	Evli Fund Management Company Ltd.	770,000	€13.6m	0%	3.55%
2.24%	Varma Mutual Pension Insurance Company, Asset Management Arm	745,000	€13.2m	0%	0.13%
2.22%	Enter Fonder AB	737,770	€13.1m	0%	1.32%
2.02%	David Ronnberg	670,959	€11.9m	0%	no data
2.01%	Opstock Asset Management	669,640	€11.9m	0%	3.39%
1.98%	DNCA Finance	660,822	€11.7m	-39.75%	0.14%
1.75%	Oddo Bhf Asset Management SAS	581,400	€10.3m	0%	0.19%
1.56%	Allianz Asset Management AG	519,745	€9.2m	0%	0.01%
1.54%	Dalton Capital (Guernsey) Limited	511,335	€9.1m	0%	1.09%
1.51%	Ilmarinen Pension Insurance Co. Ltd, Asset Management Arm	503,682	€8.9m	0%	0.09%
1.4%	Nordea Investment Management AB	464,705	€8.2m	0%	0.01%
1.2%	CM-CIC Asset Management Société anonyme	400,000	€7.1m	0%	0.22%
1.08%	Financiere De l'Echiquier	360,000	€6.4m	0%	0.11%
1.08%	Nykredit Portefølje Administration A/S	359,091	€6.4m	0%	0.6%
0.98%	OP Varainhoito Oy	326,961	€5.8m	0%	1.72%
0.86%	BlackRock, Inc.	285,091	€5.0m	0.55%	no data
0.8%	SEB Investment Management AB	265,000	€4.7m	0%	0.01%
0.78%	Aktia Kapitalförvaltning AB	260,000	€4.6m	0%	2.2%
0.77%	Deka Investment GmbH	257,040	€4.6m	0%	0.01%
0.73%	SP-Rahastoyhtiö Oy	242,651	€4.3m	0%	0.29%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
49U	DB (Deutsche Boerse AG)	Yes	Share Capital	DE	EUR	Feb 2020
MUSTI	HLSE (OMX Nordic Exchange Helsinki)	Yes	Share Capital	FI	EUR	Feb 2020
0A3B	LSE (London Stock Exchange)	Yes	Share Capital	GB	EUR	Feb 2020
MUSTIH	BATS-CHIXE (BATS 'Chi-X Europe')	Yes	Share Capital	GB	EUR	Feb 2020

Data	Last Updated (UTC time)
Company Analysis	2022/10/05 00:00
End of Day Share Price	2022/10/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/09/30