OTCPK:RPNM.F

Stock Analysis Report

Executive Summary

Rapala VMC Corporation, together with its subsidiaries, engages in manufacturing, sourcing, and distributing fishing tackle products in North America, Nordic countries, rest of Europe, and internationally.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Rapala VMC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RPNM.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

RPNM.F

9.5%

US Leisure

5.3%

US Market


1 Year Return

-13.7%

RPNM.F

-25.7%

US Leisure

-10.7%

US Market

Return vs Industry: RPNM.F exceeded the US Leisure industry which returned -25.7% over the past year.

Return vs Market: RPNM.F underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

RPNM.FIndustryMarket
7 Day0%9.5%5.3%
30 Day0%-12.0%-13.6%
90 Dayn/a-30.5%-19.8%
1 Year-13.7%-13.7%-24.5%-25.7%-8.9%-10.7%
3 Year-32.4%-32.4%-32.5%-35.9%15.5%8.0%
5 Year-46.0%-46.0%-31.2%-37.7%35.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Rapala VMC undervalued compared to its fair value and its price relative to the market?

35.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RPNM.F ($3.03) is trading below our estimate of fair value ($4.72)

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


Price To Earnings Ratio

PE vs Industry: RPNM.F is poor value based on its PE Ratio (24x) compared to the Leisure industry average (12.1x).

PE vs Market: RPNM.F is poor value based on its PE Ratio (24x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: RPNM.F is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: RPNM.F is good value based on its PB Ratio (0.6x) compared to the US Leisure industry average (2.1x).


Next Steps

Future Growth

How is Rapala VMC forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

45.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RPNM.F's forecast earnings growth (45.2% per year) is above the savings rate (1.7%).

Earnings vs Market: RPNM.F's earnings (45.2% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: RPNM.F's revenue (0.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RPNM.F's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RPNM.F's Return on Equity is forecast to be low in 3 years time (4.4%).


Next Steps

Past Performance

How has Rapala VMC performed over the past 5 years?

-19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RPNM.F has high quality earnings.

Growing Profit Margin: RPNM.F's current net profit margins (1.4%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: RPNM.F's earnings have declined by -19.8% per year over the past 5 years.

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

Earnings vs Industry: RPNM.F had negative earnings growth (-24%) over the past year, making it difficult to compare to the Leisure industry average (-3.4%).


Return on Equity

High ROE: RPNM.F's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Rapala VMC's financial position?


Financial Position Analysis

Short Term Liabilities: RPNM.F's short term assets (€156.7M) exceed its short term liabilities (€74.4M).

Long Term Liabilities: RPNM.F's short term assets (€156.7M) exceed its long term liabilities (€63.6M).


Debt to Equity History and Analysis

Debt Level: RPNM.F's debt to equity ratio (54.3%) is considered high.

Reducing Debt: RPNM.F's debt to equity ratio has reduced from 84.4% to 54.3% over the past 5 years.

Debt Coverage: RPNM.F's debt is well covered by operating cash flow (31.5%).

Interest Coverage: RPNM.F's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: RPNM.F's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Rapala VMC's current dividend yield, its reliability and sustainability?

4.34%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: RPNM.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Nicolas Warchalowski (48yo)

no data

Tenure

Mr. Nicolas Warchalowski has been Chief Executive Officer and President at Rapala VMC Corporation since March 01, 2020. Mr. Warchalowski served as the Chief Executive Officer of Peak Performance Production ...


Leadership Team

NamePositionTenureCompensationOwnership
Nicolas Warchalowski
President & CEOno datano datano data
Jan-Elof Cavander
Chief Financial Officer2.75yrsno data0.026% 26.4k
Lars Ollberg
Chief Operating Officer2.67yrsno data0.026% 26.4k
Olli Aho
Executive VP of Investor Relations4.33yrsno data0.026% 26.4k
Stanislas de Castelnau
Head of Manufacturing Operations & Global Supply Chain Development and Hook & Carp Business Unit4.5yrsno data0.021% 20.9k
Tom Mackin
Head of Distribution & Brands - North America3.5yrsno data0.0078% 7.8k
Victor Skvortsov
Head of Distribution in Russia9.58yrsno data0.026% 26.4k
Cyrille Viellard
Executive Vice President of Market Intelligence & Business Development3.5yrsno data0.026% 26.4k
Jean-Philippe Nicolle
Executive VP & Head of European Distributionno datano datano data

3.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: RPNM.F's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jorma Kasslin
Director22.17yrs€500.00k0.070% 70.3k
Emmanuel Viellard
Director15.17yrs€60.00k0.0052% 5.2k
Eero Makkonen
Director22.17yrsno data0.013% 13.1k
Marc Speeckaert
Director14.33yrsno data0.0078% 7.8k
Julia Aubertin
Director5.92yrsno datano data
Louis D'Alançon
Chairman1.5yrsno data0.0057% 5.8k

14.8yrs

Average Tenure

63yo

Average Age

Experienced Board: RPNM.F's board of directors are seasoned and experienced ( 14.8 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

Rapala VMC Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rapala VMC Corporation
  • Ticker: RPNM.F
  • Exchange: OTCPK
  • Founded: 1936
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: €91.744m
  • Listing Market Cap: €100.817m
  • Shares outstanding: 38.55m
  • Website: https://www.rapalavmc.com

Number of Employees


Location

  • Rapala VMC Corporation
  • Mäkelänkatu 91
  • Helsinki
  • Uusimaa
  • 610
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RPNM.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDDec 1998
RAP1VHLSE (OMX Nordic Exchange Helsinki)YesClass A SharesFIEURDec 1998
0MEFLSE (London Stock Exchange)YesClass A SharesGBEURDec 1998
RAP1VHBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBEURDec 1998

Biography

Rapala VMC Corporation, together with its subsidiaries, engages in manufacturing, sourcing, and distributing fishing tackle products in North America, Nordic countries, rest of Europe, and internationally. The company operates in two segments, Group Products and Third Party Products. It offers products used in lures for hard baits, and also for fishing accessories, clothing, luggage, and eyewear; metal lures specifically designed for salmon and trout fishing, and trolling in fresh and salt wats; braided and monofilament lines, and specialized leader lines; hooks used for sport fishing and commercial hooks, and terminal tackles; hard baits, hybrids and rigged, and unrigged soft baits; specialized trolling lures and metal jigs for saltwater big game fishing; baits for carp, match, and coarse fishing; and knives for filleting, outdoor, hunting, and kitchen use, as well as ice augers and auger blades, and cross country skis. The company’s brand portfolio includes Rapala and other international brands, such as VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamite Baits, Mora Ice, StrikeMaster, Carp Spirit, Marttiini, and Peltonen. The company was founded in 1936 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 Analysis2020/04/01 00:39
End of Day Share Price2020/01/10 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.