Company Overview
Outokumpu Oyj is a Finnish company that was founded in 1899 and has since grown into one of the largest steel producers in Europe. The company's name, Outokumpu, translates to "iron ore pit" in Finnish, reflecting its origins as a mining and smelting operation. Today, Outokumpu is part of the Outokumpu Group, which also includes other companies such as Outokumpu Stainless and Outokumpu Minerals.
Outokumpu's operations are centered around its production facilities in Finland, Sweden, and Norway, where it produces a range of steel products, including stainless steel, special steels, and nickel-based alloys. The company also has a significant presence in the global market, with exports to over 100 countries.
Primary Mission and Core Values
The primary mission of Outokumpu is to be a leading provider of high-quality steel products and innovative solutions that support the growth and success of its customers. This mission is guided by the company's core values, which include:
- Innovation: Outokumpu is committed to staying at the forefront of technological advancements in the steel industry.
- Quality: The company prioritizes quality in all aspects of its operations, from raw material sourcing to product delivery.
- Sustainability: Outokumpu aims to minimize its environmental impact and promote sustainable practices throughout its operations.
- Customer Focus: The company is dedicated to providing exceptional customer service and support.
Key Products/Services and Their Benefits
Outokumpu's product portfolio includes a range of steel products, such as:
- Stainless Steel: Outokumpu's stainless steel products are known for their high quality and corrosion resistance, making them ideal for applications in the food, pharmaceutical, and medical industries.
- Special Steels: The company's special steels are designed for specific industrial applications, such as heat treatment and wear resistance.
- Nickel-Based Alloys: Outokumpu's nickel-based alloys offer exceptional corrosion resistance and high-temperature properties, making them suitable for use in the aerospace and chemical industries.
The benefits of Outokumpu's products include:
- High Quality: Outokumpu's steel products are known for their exceptional quality and performance.
- Innovation: The company's commitment to innovation ensures that its products stay ahead of the curve in terms of technology and materials science.
- Sustainability: Outokumpu's focus on sustainability reduces its environmental impact and promotes eco-friendly practices throughout its operations.
Outokumpu Oyj presents an attractive investment opportunity for those seeking to capitalize on the growing demand for steel products in various industries. With its rich history, expertise, and commitment to innovation, Outokumpu is well-positioned to continue delivering high-quality steel products and innovative solutions that support the growth and success of its customers.
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 456.9 | 456.9 | 456.9 | 473.0 | 473.0 | 473.0 | 473.0 |
| Target Valuation (MEur) | 38163.7 | 34565.6 | 31883.9 | 31200.9 | 31109.2 | 31040.1 | 31040.1 |
| Targer Price | 83.53 | 75.66 | 69.79 | 65.96 | 65.77 | 65.62 | 65.62 |
| Potential, % | 1665.6 | 1587.3 | 2276.9 | 1372.4 | 1104.5 | 1101.8 | 1101.8 |
| Recommendation | Buy | Buy | Buy | Buy | Buy | Buy | Buy |
| MCAP (MEur) | 2161.5 | 2048.6 | 1341.4 | 2119.1 | 2582.7 | 2582.7 | 2582.7 |
| Price | 4.73 | 4.48 | 2.94 | 4.48 | 5.46 | 5.46 | 5.46 |
| EV | 2151.0 | 1989.0 | 1530.0 | 2384.0 | 2698.0 | 2511.0 | 2446.0 |
| P/S | 0.22 | 0.29 | 0.23 | 0.39 | 0.44 | 0.46 | 0.53 |
| EV/S | 0.22 | 0.29 | 0.26 | 0.44 | 0.46 | 0.45 | 0.5 |
| EV/EBIT | 2.01 | 12.13 | -30.01 | -17.66 | 14.17 | 15.93 | 158.45 |
| P/E | 2.53 | 12.97 | -36.25 | -15.47 | 17.94 | 20.48 | 209.12 |
| P/B | 0.52 | 0.54 | 0.36 | 0.62 | 0.73 | 0.7 | 0.7 |
| P/OCF | 2.78 | 6.32 | 9.13 | 27.17 | 7.5 | 7.13 | 10.76 |
| EV/OCF | 2.77 | 6.14 | 10.41 | 30.57 | 7.83 | 6.93 | 10.19 |
| P/FCF | 3.49 | 7.09 | -18.63 | -46.07 | 16.18 | 13.82 | 39.89 |
| EV/FCF | 3.48 | 6.88 | -21.26 | -51.83 | 16.9 | 13.43 | 37.78 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 9945.0 | 6961.0 | 5942.0 | 5468.0 | 5908.6 | 5591.5 | 4913.4 |
| Rev. Growth, % | 29.0 | -30.0 | -14.6 | -8.0 | 8.1 | -5.4 | -12.1 |
| Ebit | 1068.0 | 164.0 | -51.0 | -135.0 | 190.4 | 157.6 | 15.4 |
| Ebit Growth, % | 51.9 | -84.6 | -131.1 | -164.7 | 241.0 | -17.2 | -90.2 |
| Ebit, % | 10.7 | 2.4 | -0.9 | -2.5 | 3.2 | 2.8 | 0.3 |
| Profit | 856.0 | 158.0 | -37.0 | -137.0 | 144.0 | 126.1 | 12.3 |
| EPS | 1.87 | 0.35 | -0.08 | -0.29 | 0.3 | 0.27 | 0.03 |
| Profit Growth, % | 55.1 | -81.5 | -123.4 | -270.3 | 205.1 | -12.4 | -90.2 |
| Profit, % | 8.6 | 2.3 | -0.6 | -2.5 | 2.4 | 2.3 | 0.3 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 1783.0 | 1581.0 | 1764.0 | 1608.0 | 1690.4 | 1692.4 | 1686.4 |
| Acc. Receivable | 767.0 | 636.0 | 508.0 | 471.0 | 377.1 | 259.2 | 136.5 |
| Cash | 644.0 | 502.0 | 313.0 | 362.0 | 503.6 | 690.5 | 755.3 |
| Equity | 4119.0 | 3762.0 | 3748.0 | 3405.0 | 3546.9 | 3673.0 | 3685.4 |
| ROE, % | 20.8 | 4.2 | -1.0 | -4.0 | 4.1 | 3.4 | 0.3 |
| ROCE, % | 22.5 | 3.9 | -1.2 | -3.3 | 4.6 | 3.7 | 0.4 |
| Net Debt | -10.0 | -60.0 | 189.0 | 265.0 | 115.4 | -71.5 | -136.3 |
| Gearing, % | -0.2 | -1.6 | 5.0 | 7.8 | 3.3 | -1.9 | -3.7 |
| Equity ratio, % | 59.0 | 63.5 | 62.8 | 59.7 | 60.9 | 63.1 | 63.8 |
| Acc. Payable | 1581.0 | 1307.0 | 1399.0 | 1327.0 | 1382.7 | 1296.0 | 1249.2 |
| Total Assets | 6983.0 | 5927.0 | 5965.0 | 5705.0 | 5823.9 | 5824.0 | 5774.0 |
| ROA, % | 12.3 | 2.7 | -0.6 | -2.4 | 2.5 | 2.2 | 0.2 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 778.0 | 324.0 | 147.0 | 78.0 | 344.5 | 362.2 | 240.0 |
| Investment Cash Flow | -159.0 | -35.0 | -219.0 | -124.0 | -184.9 | -175.2 | -175.2 |
| Free Cash Flow | 619.0 | 289.0 | -72.0 | -46.0 | 159.6 | 186.9 | 64.8 |
| OCF/CAPEX | 4.89 | 9.26 | 0.67 | 0.63 | 1.86 | 2.07 | 1.37 |
| Financial Cash Flow | -271.0 | -430.0 | -117.0 | 96.0 | -19.0 | 0.0 | 0.0 |
Disclaimer
Risk Disclosure: Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
The data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes.
Contact: quant@quantfactory.eu