Company Overview
Metso Corporation is a global leader in the design, manufacture, and services of industrial process solutions for mining, oil & gas, power, and water industries. With over 140 years of experience, Metso has established itself as a trusted partner for its customers, providing innovative solutions that drive business growth and efficiency.
Metso's primary mission is to enable its customers to achieve their goals by providing them with the right solutions at the right time. The company's core values include innovation, customer focus, and operational excellence, which guide its decision-making and behavior. Metso is committed to delivering value to its customers through its products and services, while also creating long-term value for its shareholders.
Key Products/Services
Metso offers a wide range of products and services that cater to the needs of various industries. Some of its key products include:
- Crushing and screening solutions: Metso's crushing and screening solutions are designed to provide high-quality products with minimal waste, increasing efficiency and reducing costs.
- Pulp and paper processing equipment: Metso's pulp and paper processing equipment is used in the production of paper, tissue, and packaging materials.
- Mineral processing equipment: Metso's mineral processing equipment is designed to extract minerals from ore, providing a reliable and efficient solution for mining companies.
- Power plant equipment: Metso's power plant equipment is used in the generation of electricity, providing a reliable and efficient solution for power companies.
- Water treatment solutions: Metso's water treatment solutions are designed to provide clean and safe water for communities and industries.
Metso's products and services are designed to provide customers with increased efficiency, productivity, and profitability. By leveraging its expertise and technology, Metso helps its customers to reduce costs, improve quality, and increase competitiveness in their respective markets.
Benefits
Metso's products and services offer numerous benefits to its customers, including:
- Increased efficiency: Metso's solutions are designed to optimize production processes, reducing downtime and increasing productivity.
- Improved quality: Metso's products and services are designed to provide high-quality products with minimal waste, improving the overall quality of its customers' products.
- Reduced costs: Metso's solutions are designed to reduce costs by minimizing waste, reducing energy consumption, and optimizing production processes.
- Increased competitiveness: By leveraging Metso's expertise and technology, customers can improve their competitiveness in their respective markets.
Metso's commitment to innovation, customer focus, and operational excellence ensures that its products and services meet the evolving needs of its customers. With a global presence and a reputation for delivering value, Metso is an attractive investment opportunity for those looking to capitalize on the company's growth potential.
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 825.6 | 826.3 | 827.3 | 829.0 | 829.0 | 829.0 | 829.0 |
| Target Valuation (MEur) | 5647.6 | 6865.8 | 6997.0 | 6733.7 | 6285.3 | 5536.5 | 5536.5 |
| Targer Price | 6.84 | 8.31 | 8.46 | 8.12 | 7.58 | 6.68 | 6.68 |
| Potential, % | -28.8 | -9.4 | -6.7 | -45.8 | -50.3 | -56.2 | -56.2 |
| Recommendation | Sell | Hold | Hold | Sell | Sell | Sell | Sell |
| MCAP (MEur) | 7936.0 | 7577.4 | 7500.4 | 12418.0 | 12641.8 | 12641.8 | 12641.8 |
| Price | 9.61 | 9.17 | 9.07 | 14.98 | 15.25 | 15.25 | 15.25 |
| EV | 8620.0 | 8461.0 | 8673.0 | 13510.0 | 13562.0 | 13167.0 | 12911.0 |
| P/S | 1.55 | 1.41 | 1.54 | 2.41 | 2.3 | 2.27 | 2.28 |
| EV/S | 1.68 | 1.57 | 1.78 | 2.62 | 2.46 | 2.36 | 2.33 |
| EV/EBIT | 13.34 | 10.52 | 11.91 | 18.46 | 19.62 | 17.52 | 17.29 |
| P/E | 18.85 | 13.9 | 13.99 | 25.45 | 23.68 | 21.02 | 21.17 |
| P/B | 3.39 | 2.89 | 2.88 | 4.66 | 3.92 | 3.31 | 2.86 |
| P/OCF | 62.49 | 25.09 | 22.59 | 15.94 | 34.25 | 21.12 | 27.61 |
| EV/OCF | 67.87 | 28.02 | 26.12 | 17.34 | 36.74 | 22.0 | 28.2 |
| P/FCF | -1984.0 | 61.61 | 69.45 | 24.79 | 73.35 | 31.94 | 49.51 |
| EV/FCF | -2155.0 | 68.79 | 80.31 | 26.97 | 78.69 | 33.27 | 50.57 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 5120.0 | 5391.0 | 4863.0 | 5157.0 | 5503.2 | 5567.9 | 5548.5 |
| Rev. Growth, % | 20.9 | 5.3 | -9.8 | 6.0 | 6.7 | 1.2 | -0.3 |
| Ebit | 646.0 | 804.0 | 728.0 | 732.0 | 691.2 | 751.7 | 746.6 |
| Ebit Growth, % | 52.0 | 24.5 | -9.5 | 0.5 | -5.6 | 8.8 | -0.7 |
| Ebit, % | 12.6 | 14.9 | 15.0 | 14.2 | 12.6 | 13.5 | 13.5 |
| Profit | 421.0 | 545.0 | 536.0 | 488.0 | 533.9 | 601.4 | 597.3 |
| EPS | 0.51 | 0.66 | 0.65 | 0.59 | 0.64 | 0.73 | 0.72 |
| Profit Growth, % | 23.5 | 29.5 | -1.7 | -9.0 | 9.4 | 12.6 | -0.7 |
| Profit, % | 8.2 | 10.1 | 11.0 | 9.5 | 9.7 | 10.8 | 10.8 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 1846.0 | 1951.0 | 1900.0 | 1903.0 | 2146.9 | 2015.7 | 1694.7 |
| Acc. Receivable | 799.0 | 855.0 | 900.0 | 1051.0 | 1118.9 | 1090.6 | 962.1 |
| Cash | 601.0 | 638.0 | 431.0 | 511.0 | 621.4 | 1017.1 | 1272.5 |
| Equity | 2342.0 | 2618.0 | 2601.0 | 2663.0 | 3220.9 | 3822.3 | 4419.5 |
| ROE, % | 18.0 | 20.8 | 20.6 | 18.3 | 16.6 | 15.7 | 13.5 |
| ROCE, % | 17.8 | 19.4 | 17.3 | 17.2 | 14.5 | 14.0 | 12.5 |
| Net Debt | 684.0 | 884.0 | 1173.0 | 1092.0 | 920.6 | 524.9 | 269.5 |
| Gearing, % | 29.2 | 33.8 | 45.1 | 41.0 | 28.6 | 13.7 | 6.1 |
| Equity ratio, % | 34.7 | 36.6 | 37.1 | 36.9 | 43.3 | 47.0 | 50.5 |
| Acc. Payable | 787.0 | 675.0 | 581.0 | 671.0 | 662.9 | 623.4 | 764.3 |
| Total Assets | 6754.0 | 7156.0 | 7015.0 | 7215.0 | 7447.1 | 8137.2 | 8758.6 |
| ROA, % | 6.2 | 7.6 | 7.6 | 6.8 | 7.2 | 7.4 | 6.8 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 127.0 | 302.0 | 332.0 | 779.0 | 369.1 | 598.6 | 457.8 |
| Investment Cash Flow | -131.0 | -179.0 | -224.0 | -278.0 | -196.8 | -202.8 | -202.4 |
| Free Cash Flow | -4.0 | 123.0 | 108.0 | 501.0 | 172.4 | 395.8 | 255.3 |
| OCF/CAPEX | 0.97 | 1.69 | 1.48 | 2.8 | 1.88 | 2.95 | 2.26 |
| Financial Cash Flow | 127.0 | -77.0 | -314.0 | -403.0 | -69.0 | 0.0 | 0.0 |
Disclaimer
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