HLSE:VERK

Stock Analysis Report

Verkkokauppa.com Oyj

Executive Summary

Verkkokauppa.com Oyj operates as an online consumer electronics retailer in Finland.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

VERK

2.3%

FI Online Retail

7.9%

FI Market


1 Year Return

-14.6%

VERK

6.6%

FI Online Retail

-17.8%

FI Market

Return vs Industry: VERK underperformed the Finnish Online Retail industry which returned 6.6% over the past year.

Return vs Market: VERK exceeded the Finnish Market which returned -17.8% over the past year.


Shareholder returns

VERKIndustryMarket
7 Day0%2.3%7.9%
30 Day3.4%-4.6%-15.0%
90 Day-1.6%-9.3%-19.0%
1 Year-9.4%-14.6%7.1%6.6%-13.9%-17.8%
3 Year-45.9%-52.3%13.4%10.9%0.6%-11.7%
5 Year-19.3%-30.5%37.9%33.0%8.3%-12.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Verkkokauppa.com Oyj undervalued compared to its fair value and its price relative to the market?

20x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VERK (€3.48) is trading above our estimate of fair value (€2.55)

Significantly Below Fair Value: VERK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VERK is poor value based on its PE Ratio (20x) compared to the Online Retail industry average (13.7x).

PE vs Market: VERK is poor value based on its PE Ratio (20x) compared to the Finnish market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: VERK is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: VERK is overvalued based on its PB Ratio (4.3x) compared to the XE Online Retail industry average (1.9x).


Next Steps

Future Growth

How is Verkkokauppa.com Oyj forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VERK's forecast earnings growth (12.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: VERK's earnings (12.3% per year) are forecast to grow faster than the Finnish market (9.1% per year).

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

Revenue vs Market: VERK's revenue (3.9% per year) is forecast to grow faster than the Finnish market (2.9% per year).

High Growth Revenue: VERK's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VERK's Return on Equity is forecast to be high in 3 years time (32%)


Next Steps

Past Performance

How has Verkkokauppa.com Oyj performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VERK has high quality earnings.

Growing Profit Margin: VERK's current net profit margins (1.5%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: VERK's earnings have grown by 14.8% per year over the past 5 years.

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

Earnings vs Industry: VERK had negative earnings growth (-16.3%) over the past year, making it difficult to compare to the Online Retail industry average (3.5%).


Return on Equity

High ROE: VERK's Return on Equity (21.4%) is considered high.


Next Steps

Financial Health

How is Verkkokauppa.com Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: VERK's short term assets (€134.7M) exceed its short term liabilities (€103.3M).

Long Term Liabilities: VERK's short term assets (€134.7M) exceed its long term liabilities (€20.3M).


Debt to Equity History and Analysis

Debt Level: VERK is debt free.

Reducing Debt: VERK has no debt compared to 5 years ago when its debt to equity ratio was 23%.

Debt Coverage: VERK has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VERK has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: VERK's debt is covered by short term assets (assets are 3.790398331381E+16x debt).


Next Steps

Dividend

What is Verkkokauppa.com Oyj's current dividend yield, its reliability and sustainability?

6.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VERK's dividend (6.16%) is higher than the bottom 25% of dividend payers in the Finnish market (3.17%).

High Dividend: VERK's dividend (6.16%) is low compared to the top 25% of dividend payers in the Finnish market (6.35%).


Stability and Growth of Payments

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

Growing Dividend: VERK's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (123.2%), VERK's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VERK's dividends in 3 years are not forecast to be well covered by earnings (93.7% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Panu Porkka (42yo)

2s

Tenure

€748,000

Compensation

Mr. Panu Porkka serves as Independent Director of Solteq Oyj since 2019. He has been the Chief Executive Officer of Verkkokauppa.com Oyj since March 22, 2018 and serves as its Managing Director. Mr. Porkka ...


CEO Compensation Analysis

Compensation vs Market: Panu's total compensation ($USD821.98K) is above average for companies of similar size in the Finnish market ($USD506.95K).

Compensation vs Earnings: Panu's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Panu Porkka
CEO & Managing Director2yrs€748.00k0.10% 156.4k
Mikko Forsell
Chief Financial Officer0.42yrno data0.022% 34.7k
Henrik Weckström
Chief Technology Officer21.17yrsno data0.024% 37.6k
Seppo Niemelä
Director of Marketing & Communications1.58yrsno data0.022% 34.7k
Kalle Koutajoki
Chief Sales Officer1yrno data0.011% 17.4k
Taina Suorsa
Human Resources Director1.17yrsno data0.022% 34.7k

1.4yrs

Average Tenure

42.5yo

Average Age

Experienced Management: VERK's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Arja Talma
Independent Director2yrs€45.00k0.017% 26.4k
Kai Aarne Seikku
Independent Director7.17yrs€51.00k0.27% 427.4k
Mikael Hagman
Independent Director6.17yrs€35.00k0.024% 37.2k
Christoffer Häggblom
Independent Chairmanno data€84.00k0.034% 52.8k
Sipi Seppälä
Founder & Director22.17yrs€45.00k49.15% 76.8m
Robert Burén
Independent Director2.83yrs€35.00k0.030% 47.3k

6.2yrs

Average Tenure

50yo

Average Age

Experienced Board: VERK's board of directors are considered experienced (6.2 years average tenure).


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

Verkkokauppa.com Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Verkkokauppa.com Oyj
  • Ticker: VERK
  • Exchange: HLSE
  • Founded: 1992
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: €156.319m
  • Shares outstanding: 44.98m
  • Website: https://www.verkkokauppa.com

Number of Employees


Location

  • Verkkokauppa.com Oyj
  • Tyynenmerenkatu 11
  • Helsinki
  • Uusimaa
  • 220
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VERKHLSE (OMX Nordic Exchange Helsinki)YesRegistered SharesFIEURApr 2014

Biography

Verkkokauppa.com Oyj operates as an online consumer electronics retailer in Finland. The company also operates four retail stores. In addition, it offers installation and maintenance services. The company was founded in 1992 and is headquartered in Helsinki, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 23:33
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.