The glass is half full
We find the overall picture of Valmet’s Q1 report neutral, even though there was strong discord in the businesses, especially in terms of orders and demand outlook. However, we prefer to see the glass as half full, as the stable businesses that are important for Valmet's result and value develop at least reasonably, which compensates for the headwind caused by the weakness of the device businesses' orders and order outlook, especially for next year. After the report, the decreases in earnings forecasts were minor at Group level. We believe that the upside in Valmet's low valuation and the good dividend yield of nearly 6% still generate a higher expected return than the required return on a one-year scope.
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Valmet
Valmet is a technical supplier in the pulp, paper, and energy industries. Services and products offered include printing machines, spare equipment, condition testing of machines, and automation service solutions. In addition to the main business, aftermarket service and training are also offered. Businesses are conducted on a global level, with the largest domestic market in the Nordic region. The company has its headquarters in Espoo.
Read more on company pageKey Estimate Figures24.04.
| 2023 | 24e | 25e | |
|---|---|---|---|
| Revenue | 5,532.0 | 5,404.3 | 5,049.1 |
| growth-% | 9.03 % | -2.31 % | -6.57 % |
| EBIT (adj.) | 598.0 | 599.4 | 597.9 |
| EBIT-% (adj.) | 10.81 % | 11.09 % | 11.84 % |
| EPS (adj.) | 2.31 | 2.22 | 2.23 |
| Dividend | 1.35 | 1.40 | 1.45 |
| Dividend % | 5.17 % | 5.72 % | 5.93 % |
| P/E (adj.) | 11.32 | 11.00 | 10.98 |
| EV/EBITDA | 8.35 | 7.60 | 7.19 |
