Waiting for a trend change
We retain our 3.50 euro target price and reduce recommendation for Suominen. We estimate that Suominen’s earnings will recover from difficult years of 2016 and 2017, where critical elements are pricing, product mix transformation, and production ramp-up in Bethune. However, we consider short term valuation too high given major uncertainty over the speed of profit recovery in challenging trading conditions. Medium term potential remains but we are not willing to stretch short term valuation at this point.
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Suominen
Suominen is a manufacturing company. The company manufactures and develops a wide range of napkins, hygiene products, and medical applications. The production is based on non-woven fabrics that can be used for various purposes. Customers are found in a number of industries, with the largest operations in Europe and North America. The company is headquartered in Helsinki.
Read more on company pageKey Estimate Figures03.07.2018
2017 | 18e | 19e | |
---|---|---|---|
Revenue | 426.0 | 433.3 | 459.4 |
growth-% | 2.19 % | 1.73 % | 6.00 % |
EBIT (adj.) | 15.0 | 16.0 | 24.6 |
EBIT-% (adj.) | 3.52 % | 3.70 % | 5.36 % |
EPS (adj.) | 0.27 | 0.14 | 0.26 |
Dividend | 0.11 | 0.11 | 0.12 |
Dividend % | 2.49 % | 4.07 % | 4.44 % |
P/E (adj.) | 16.37 | 19.36 | 10.28 |
EV/EBITDA | 9.93 | 6.28 | 4.83 |