Company Overview
Kesla is a Finnish multinational corporation that operates in the forestry, wood products, and equipment industries. With a rich history dating back to 1873, Kesla has established itself as a leading player in the global market for forest-based products and solutions.
The company's primary mission is to develop new technologies, products, and services that enable its customers to achieve sustainable growth and success. Kesla's core values include innovation, customer focus, and responsible operations, which guide the company's strategic decisions and daily activities.
Key Products/Services
Kesla offers a range of products and services that cater to the needs of various industries, including forestry, wood processing, and equipment manufacturing. Some of its key products include:
- Tractor-tractors and agricultural machinery: Kesla's tractor-tractors and agricultural machinery are designed for efficient and sustainable farming practices.
- Harvesters: Kesla's harvesters are engineered to optimize wood harvesting and processing efficiency.
- Auto and industrial equipment: Kesla's auto- and industrial equipment solutions cater to the needs of various industries, including automotive and manufacturing.
- KESLA Defence: Kesla's defence business offers a range of products and services for military and security applications.
The benefits of Kesla's products and services include improved efficiency, reduced costs, and enhanced sustainability. By partnering with Kesla, customers can tap into the company's expertise and innovation to achieve their goals and reduce environmental impact.
Market Position and Outlook
Kesla operates in a competitive market with fluctuating demand and prices. The company's strategy focuses on diversifying its product portfolio, expanding into new markets, and investing in research and development to stay ahead of the competition.
The global forestry and wood products market is expected to grow steadily over the next few years, driven by increasing demand for sustainable forest-based products and solutions. Kesla is well-positioned to capitalize on this trend, with its strong brand reputation, diverse product portfolio, and commitment to innovation and sustainability.
Risk Management
Kesla recognizes the importance of risk management in its operations. The company has established a robust risk management framework that includes:
Identifying and assessing risks: Kesla identifies and assesses potential risks to its business, including market fluctuations, currency exchange rates, and changes in demand.
Implementing risk mitigation strategies: Kesla implements risk mitigation strategies to minimize the impact of identified risks, such as diversifying its product portfolio and investing in research and development.
Monitoring and reporting risks: Kesla regularly monitors and reports on its risks, ensuring that management is aware of potential issues and can take prompt action to mitigate them.
Conclusion
Kesla is a well-established company with a rich history and a strong brand reputation. The company's primary mission is to develop new technologies, products, and services that enable its customers to achieve sustainable growth and success. Kesla's core values include innovation, customer focus, and responsible operations, which guide the company's strategic decisions and daily activities.
The company offers a range of products and services that cater to various industries, including forestry, wood processing, and equipment manufacturing. Kesla's financial performance has been impacted by market fluctuations and changes in demand, but the company remains committed to delivering strong financial performance and creating value for its shareholders.
Valuation
| 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|
| Number of Shares (million) | 3.4 | 3.4 | 3.4 | 3.4 | 3.4 | 3.4 |
| Target Valuation (MEur) | 29.3 | 24.2 | 15.8 | 15.4 | 26.6 | 26.6 |
| Targer Price | 8.66 | 7.17 | 4.66 | 4.55 | 7.85 | 7.85 |
| Potential, % | 110.8 | 128.3 | 102.6 | 8.5 | 87.3 | 87.3 |
| Recommendation | Buy | Buy | Buy | Hold | Buy | Buy |
| MCAP (MEur) | 13.9 | 10.6 | 7.8 | 14.2 | 14.2 | 14.2 |
| Price | 4.11 | 3.13 | 2.31 | 4.2 | 4.2 | 4.2 |
| EV | 27.0 | 22.0 | 18.0 | 19.0 | 15.0 | 12.0 |
| P/S | 0.27 | 0.23 | 0.23 | 0.37 | 0.29 | 0.25 |
| EV/S | 0.52 | 0.49 | 0.53 | 0.5 | 0.31 | 0.22 |
| EV/EBIT | 19.45 | 587.1 | -3.73 | -79.5 | 23.23 | 3.03 |
| P/E | 27.14 | -20.39 | -1.74 | -17.16 | 27.26 | 4.44 |
| P/B | 1.08 | 0.89 | 1.04 | 2.13 | 1.97 | 1.37 |
| P/OCF | 3.35 | 3.74 | 6.95 | 2.54 | 3.17 | 3.95 |
| EV/OCF | 6.51 | 7.86 | 16.44 | 3.49 | 3.43 | 3.36 |
| P/FCF | 3.96 | 5.74 | 7.24 | 2.67 | 3.42 | 4.35 |
| EV/FCF | 7.69 | 12.05 | 17.13 | 3.67 | 3.7 | 3.7 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 45.9 | 51.9 | 45.9 | 34.4 | 38.6 | 48.8 | 56.1 |
| Rev. Growth, % | 0.0 | 13.1 | -11.6 | -25.1 | 12.2 | 26.4 | 15.0 |
| Ebit | -1.3 | 1.4 | 0.0 | -4.9 | -0.2 | 0.7 | 4.0 |
| Ebit Growth, % | 0.0 | 207.7 | nan | 0.0 | 95.9 | 450.0 | 471.4 |
| Ebit, % | -2.8 | 2.7 | 0.0 | -14.2 | -0.5 | 1.4 | 7.1 |
| Profit | -1.7 | 0.5 | -0.5 | -4.5 | -0.8 | 0.5 | 3.2 |
| EPS | -0.5 | 0.15 | -0.15 | -1.33 | -0.24 | 0.15 | 0.95 |
| Profit Growth, % | 0.0 | 129.4 | -200.0 | -800.0 | 82.2 | 162.5 | 540.0 |
| Profit, % | -3.7 | 1.0 | -1.1 | -13.1 | -2.1 | 1.0 | 5.7 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 22.0 | 17.9 | 14.8 | 12.1 | 14.8 | 15.9 | 17.7 |
| Acc. Receivable | 6.2 | 7.4 | 7.2 | 3.7 | 1.5 | 2.7 | 4.5 |
| Cash | 0.5 | 0.4 | -2.5 | -4.0 | 2.3 | 6.4 | 9.7 |
| Equity | 12.3 | 12.8 | 11.9 | 7.5 | 6.7 | 7.2 | 10.4 |
| ROE, % | -13.8 | 3.9 | -4.2 | -60.0 | -11.9 | 6.9 | 30.8 |
| ROCE, % | -4.4 | 5.3 | 0.0 | -34.8 | -1.4 | 4.7 | 22.2 |
| Net Debt | 16.5 | 13.1 | 11.7 | 10.6 | 5.3 | 1.2 | -2.1 |
| Gearing, % | 134.1 | 102.1 | 97.9 | 141.8 | 79.6 | 16.1 | -20.2 |
| Equity ratio, % | 30.8 | 35.4 | 37.6 | 30.4 | 26.0 | 28.1 | 38.7 |
| Acc. Payable | 9.6 | 8.7 | 7.2 | 6.1 | 13.7 | 20.0 | 23.2 |
| Total Assets | 40.0 | 36.2 | 31.7 | 24.6 | 25.6 | 25.6 | 26.8 |
| ROA, % | -4.2 | 1.4 | -1.6 | -18.3 | -3.1 | 2.0 | 11.9 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -5.4 | 4.1 | 2.8 | 1.1 | 5.6 | 4.5 | 3.6 |
| Investment Cash Flow | -1.5 | -0.6 | -1.0 | -0.0 | -0.3 | -0.3 | -0.3 |
| Free Cash Flow | -6.9 | 3.5 | 1.9 | 1.1 | 5.3 | 4.1 | 3.3 |
| OCF/CAPEX | 0.0 | 6.52 | 2.88 | 24.87 | 21.19 | 13.63 | 10.95 |
| Financial Cash Flow | 5.6 | -3.6 | -3.4 | -2.6 | 1.0 | 0.0 | 0.0 |
Disclaimer
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