Company Overview
Summa Defence Oyj is a Finnish defense and technology company that has undergone significant transformations in recent years. The company's mission is to create a strong industrial base for innovative defense and dual-use solutions, leveraging its expertise in traditional industries such as construction and manufacturing.
The core values of Summa Defence are built around innovation, customer satisfaction, and operational excellence. The company aims to deliver high-quality products and services that meet the needs of its customers, while maintaining a strong focus on research and development.
Primary Mission
Summa Defence's primary mission is to create a strong industrial base for innovative defense and dual-use solutions, leveraging its expertise in traditional industries such as construction and manufacturing.
Key Products/Services
Summa Defence offers a range of products and services that cater to the needs of various industries, including:
- Construction and infrastructure projects: Summa Defence's Uudenkaupungin Työvene subsidiary provides construction and infrastructure services, including shipbuilding and maintenance.
- Dual-use technology: The company's Light Space Group subsidiary develops and manufactures advanced dual-use technologies, including augmented reality and virtual reality solutions.
- Defense and security solutions: Summa Defence offers a range of defense and security solutions, including monitoring systems and communication networks.
Investment Highlights
Summa Defence offers several investment highlights, including:
- Growing demand for dual-use technologies: The increasing demand for dual-use technologies in various industries presents a significant growth opportunity for Summa Defence.
- Strategic partnerships: Summa Defence has established strategic partnerships with key players in the defense and technology sectors, providing access to new markets and customers.
Risk Factors
Investors should be aware of the following risk factors when considering an investment in Summa Defence:
- Dependence on government contracts: The company's reliance on government contracts for revenue may expose it to fluctuations in demand and funding.
- Competition from established players: Summa Defence operates in a competitive market, with established players dominating the defense and technology sectors.
Valuation
| 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | |
|---|---|---|---|---|---|
| Number of Shares (million) | 866.8 | 866.8 | 45.7 | 45.7 | 45.7 |
| Target Valuation (MEur) | 33.0 | 197.2 | 47.2 | 0.0 | 0.0 |
| Targer Price | 0.04 | 0.23 | 1.03 | 0.0 | 0.0 |
| Potential, % | -85.3 | 25.5 | -51.2 | -100.0 | -100.0 |
| Recommendation | Sell | Buy | Sell | Sell | Sell |
| MCAP (MEur) | 223.8 | 157.1 | 96.8 | 26.2 | 26.2 |
| Price | 0.26 | 0.18 | 2.12 | 0.57 | 0.57 |
| EV | 242.0 | 168.0 | 105.0 | 58.0 | 83.0 |
| P/S | 3.38 | 1.99 | 0.96 | 0.18 | 0.18 |
| EV/S | 3.66 | 2.12 | 1.04 | 0.41 | 0.57 |
| EV/EBIT | 232.0 | 380.9 | -5.27 | -1.59 | -2.04 |
| P/E | -825.97 | -159.05 | -4.31 | -0.9 | -0.8 |
| P/B | 5.6 | 8.13 | 0.57 | 0.19 | 0.25 |
| P/OCF | 80.57 | 26.73 | -16.77 | -1.44 | -1.41 |
| EV/OCF | 87.11 | 28.51 | -18.11 | -3.2 | -4.48 |
| P/FCF | -134.52 | -208.14 | -32.16 | -1.08 | -1.06 |
| EV/FCF | -145.42 | -221.98 | -34.74 | -2.39 | -3.36 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | |
|---|---|---|---|---|---|---|
| Revenue | 8.6 | 66.2 | 79.2 | 100.9 | 143.1 | 146.4 |
| Rev. Growth, % | 0.0 | 669.8 | 19.6 | 27.4 | 41.8 | 2.3 |
| Ebit | -3.8 | 1.0 | 0.4 | -19.8 | -36.6 | -40.7 |
| Ebit Growth, % | 0.0 | 126.3 | -60.0 | -5050.0 | -84.8 | -11.2 |
| Ebit, % | -44.2 | 1.5 | 0.5 | -19.6 | -25.6 | -27.8 |
| Profit | -4.1 | -0.3 | -1.0 | -22.5 | -29.2 | -32.5 |
| EPS | -0.01 | -0.0 | -0.0 | -0.49 | -0.64 | -0.71 |
| Profit Growth, % | 0.0 | 92.7 | -233.3 | -2150.0 | -29.8 | -11.3 |
| Profit, % | -47.7 | -0.5 | -1.3 | -22.3 | -20.4 | -22.2 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | |
|---|---|---|---|---|---|---|
| Inventory | 3.4 | 2.5 | 2.8 | 13.4 | 12.0 | 10.9 |
| Acc. Receivable | 3.3 | 4.2 | 4.6 | 4.8 | 3.6 | 1.5 |
| Cash | 3.8 | 7.7 | 8.1 | 4.7 | -19.7 | -44.3 |
| Equity | 35.4 | 40.0 | 19.3 | 168.4 | 139.2 | 106.6 |
| ROE, % | -11.6 | -0.8 | -5.2 | -13.4 | -21.0 | -30.5 |
| ROCE, % | -6.7 | 1.5 | 1.1 | -11.0 | -24.1 | -34.2 |
| Net Debt | 17.5 | 18.1 | 10.5 | 7.7 | 32.1 | 56.7 |
| Gearing, % | 49.5 | 45.4 | 54.1 | 4.6 | 23.0 | 53.2 |
| Equity ratio, % | 55.0 | 58.9 | 36.1 | 72.8 | 62.5 | 50.3 |
| Acc. Payable | 3.4 | 2.9 | 3.0 | 23.5 | 32.0 | 40.3 |
| Total Assets | 64.4 | 67.8 | 53.5 | 231.4 | 222.6 | 212.1 |
| ROA, % | -6.4 | -0.4 | -1.9 | -9.7 | -13.1 | -15.3 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | |
|---|---|---|---|---|---|---|
| Operating Cash Flow | -5.4 | 2.8 | 5.9 | -5.8 | -18.2 | -18.5 |
| Investment Cash Flow | -28.0 | -4.4 | -6.6 | 2.8 | -6.1 | -6.1 |
| Free Cash Flow | -33.4 | -1.7 | -0.8 | -3.0 | -24.3 | -24.7 |
| OCF/CAPEX | 0.0 | 0.63 | 0.89 | 0.0 | 0.0 | 0.0 |
| Financial Cash Flow | 33.1 | 5.6 | 1.1 | -0.5 | 0.0 | 0.0 |
Disclaimer
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