OTCPK:ORIN.F

Stock Analysis Report

Executive Summary

Orion Oyj engages in the development and manufacture of pharmaceuticals and active pharmaceutical ingredients (APIs) worldwide.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ORIN.F

-2.2%

US Pharmaceuticals

-1.3%

US Market


1 Year Return

23.7%

ORIN.F

13.1%

US Pharmaceuticals

22.0%

US Market

Return vs Industry: ORIN.F exceeded the US Pharmaceuticals industry which returned 13.6% over the past year.

Return vs Market: ORIN.F matched the US Market which returned 24.6% over the past year.


Shareholder returns

ORIN.FIndustryMarket
7 Day0%-2.2%-1.3%
30 Day0%0.6%1.8%
90 Dayn/a13.0%9.3%
1 Year23.7%23.7%16.0%13.1%24.6%22.0%
3 Yearn/a39.1%29.1%49.2%39.6%
5 Yearn/a30.0%16.3%77.9%58.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

29.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ORIN.F ($44.65) is trading above our estimate of fair value ($42.51)

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


Price To Earnings Ratio

PE vs Industry: ORIN.F is poor value based on its PE Ratio (28.2x) compared to the Pharmaceuticals industry average (24.9x).

PE vs Market: ORIN.F is poor value based on its PE Ratio (28.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ORIN.F is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: ORIN.F is overvalued based on its PB Ratio (8.3x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

How is Orion Oyj forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORIN.F's forecast earnings growth (6.7% per year) is above the savings rate (1.7%).

Earnings vs Market: ORIN.F's earnings (6.7% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: ORIN.F's revenue (3.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ORIN.F's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ORIN.F's Return on Equity is forecast to be high in 3 years time (28.3%)


Next Steps

Past Performance

How has Orion Oyj performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORIN.F has high quality earnings.

Growing Profit Margin: ORIN.F's current net profit margins (20.1%) are lower than last year (20.2%).


Past Earnings Growth Analysis

Earnings Trend: ORIN.F's earnings have declined by -2.6% per year over the past 5 years.

Accelerating Growth: ORIN.F's earnings growth over the past year (5.5%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: ORIN.F earnings growth over the past year (5.5%) underperformed the Pharmaceuticals industry 36.8%.


Return on Equity

High ROE: ORIN.F's Return on Equity (29.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Orion Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: ORIN.F's short term assets (€522.2M) exceed its short term liabilities (€158.7M).

Long Term Liabilities: ORIN.F's short term assets (€522.2M) exceed its long term liabilities (€61.4M).


Debt to Equity History and Analysis

Debt Level: ORIN.F's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: ORIN.F's debt to equity ratio has reduced from 46.7% to 0.3% over the past 5 years.

Debt Coverage: ORIN.F's debt is well covered by operating cash flow (12828.6%).

Interest Coverage: ORIN.F's interest payments on its debt are well covered by EBIT (102.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: ORIN.F's debt is covered by short term assets (assets are 248.7x debt).


Next Steps

Dividend

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

3.46%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: ORIN.F's dividend (3.58%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ORIN.F's dividend (3.58%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: ORIN.F's dividends per share have been stable in the past 10 years.

Growing Dividend: ORIN.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101%), ORIN.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORIN.F's dividends in 3 years are not forecast to be well covered by earnings (95.3% payout ratio).


Next Steps

Management

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

12.0yrs

Average management tenure


CEO

Timo Lappalainen (57yo)

12yrs

Tenure

€1,346,660

Compensation

Mr. Timo Lappalainen, M.Sc. (Ind. Eng.), has been the Chief Executive Officer and President of Orion Oyj (Formerly, Orion Corporation) since January 2008. Mr. Lappalainen has been the Chairman of the Execu ...


CEO Compensation Analysis

Compensation vs Market: Timo's total compensation ($USD1.50M) is below average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Timo's compensation has been consistent with company performance over the past year.


Management Age and Tenure

12.0yrs

Average Tenure

55yo

Average Age

Experienced Management: ORIN.F's management team is seasoned and experienced (12 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

Experienced Board: ORIN.F's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Jari Karlson (58yo)

    CFO, Senior VP of Animal Health & Member of the Executive Management Board

    • Tenure: 17.4yrs
  • Olli Huotari (53yo)

    Senior VP of Corporate Functions

    • Timo Lappalainen (57yo)

      CEO, President & Chairman of the Executive Management Board

      • Tenure: 12yrs
      • Compensation: €1.35m
    • Markku Huhta-Koivisto (63yo)

      Senior VP of Growth Projects & Member of Executive Management Board

      • Satu Ahomäki (53yo)

        Senior VP of Commercial Operations and Member of the Executive Management Board

        • Tenure: 12yrs
      • Liisa Hurme (52yo)

        Senior VP of Supply Chain & Member of the Executive Management Board

        • Virve Laitinen (47yo)

          Senior VP of Specialty Products & Member of Executive Management Board

          • Tenure: 8yrs
        • Tuukka Hirvonen

          Investor Relations & Financial Communications Officer

          • Marko Torppala

            Employee Representative Executive Management Board

            • Christer Nordstedt (57yo)

              Senior VP of Research & Development and Member of Executive Management Board

              • Tenure: 2.9yrs

            Board Members

            • Heikki Westerlund (53yo)

              Chairman

              • Tenure: 2.8yrs
              • Compensation: €117.54k
            • Mikael Silvennoinen (63yo)

              Independent Director

              • Tenure: 5.8yrs
              • Compensation: €62.67k
            • Timo Maasilta (65yo)

              Vice Chairman

              • Tenure: 3.8yrs
              • Compensation: €79.65k
            • Ari Lehtoranta (56yo)

              Independent Director

              • Tenure: 2.8yrs
              • Compensation: €57.27k
            • Pia Kalsta (49yo)

              Independent Director

              • Tenure: 0.8yrs
            • Eija Ronkainen (53yo)

              Independent Director

              • Tenure: 3.8yrs
              • Compensation: €57.27k
            • Hilpi Rautelin (58yo)

              Independent Director

              • Tenure: 2.8yrs
              • Compensation: €56.67k

            Company Information

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


            Key Information

            • Name: Orion Oyj
            • Ticker: ORIN.F
            • Exchange: OTCPK
            • Founded:
            • Industry: Pharmaceuticals
            • Sector: Pharmaceuticals & Biotech
            • Market Cap: €6.086b
            • Listing Market Cap: €6.711b
            • Shares outstanding: 140.49m
            • Website: https://www.orion.fi

            Number of Employees


            Location

            • Orion Oyj
            • Orionintie 1A
            • Espoo
            • Uusimaa
            • 2200
            • Finland

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            ORNAVHLSE (OMX Nordic Exchange Helsinki)Class A SharesFIEURJul 2006
            ORNBVHLSE (OMX Nordic Exchange Helsinki)YesClass B SharesFIEURJul 2006
            OFKDB (Deutsche Boerse AG)YesClass B SharesDEEURJul 2006
            0M2NLSE (London Stock Exchange)Class A SharesGBEURJul 2006
            0M2OLSE (London Stock Exchange)YesClass B SharesGBEURJul 2006
            ORIN.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJul 2006
            ORNBVHBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBEURJul 2006
            ORNAVHBATS-CHIXE (BATS 'Chi-X Europe')Class A SharesGBEURJul 2006
            ORIN.YOTCPK (Pink Sheets LLC)ADRUSUSDApr 2010

            Biography

            Orion Oyj engages in the development and manufacture of pharmaceuticals and active pharmaceutical ingredients (APIs) worldwide. It provides prescription drugs and self-care products, including Nubeqa for the treatment of prostate cancer; dexdor and Precedex for intensive care sedative; Stalevo and Comtess/Comtan for Parkinson’s disease; Simdax for acute decompensated heart failure; and Fareston for breast cancer, as well as Salmeterol/fluticasone Easyhaler, Budesonide/formoterol Easyhaler, Formoterol Easyhaler, Budesonide Easyhaler, Beclomet Easyhaler, and Buventol Easyhaler for the treatment of asthma and chronic obstructive pulmonary disease. The company also offers veterinary drugs; and APIs for generic and proprietary drugs, as well as offers contract manufacturing services. In addition, it markets and sells veterinary drugs manufactured by other international companies. The company has research collaboration with Fifth Corner Inc. to seek solutions to improve the quality of life of prostate cancer patients. It serves various healthcare service providers and professionals, such as specialist and general practitioners, veterinarians, pharmacies, hospitals, healthcare centres, clinics, and laboratories. Orion Oyj is headquartered in Espoo, Finland. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/25 00:27
            End of Day Share Price2019/12/03 00:00
            Earnings2019/09/30
            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.