Company Overview
Ponsse is a Finnish multinational company that specializes in forestry, wood products, and technology. With a rich history dating back to 1837, the company has evolved into a global leader in the industry, providing innovative solutions for sustainable forest management and wood product production. Ponsse's primary mission is to create long-term value for its customers, employees, and shareholders by delivering high-quality products and services while maintaining a strong commitment to sustainability and social responsibility.
At the heart of Ponsse's values are its core principles: innovation, customer focus, and operational excellence. The company strives to be a leader in its field through continuous investment in research and development, as well as its commitment to improving the efficiency and sustainability of its operations. Ponsse's products and services cater to various industries, including construction, packaging, and paper production.
Ponsse's product portfolio includes a range of wood products, such as sawn timber, engineered wood, and pulp, which are used in various applications, from building frames to packaging materials. The company also offers forestry management services, including sustainable forest management and reforestation programs. Additionally, Ponsse provides technology solutions for the forestry industry, including precision forestry and wood processing systems.
Ponsse's commitment to sustainability is evident in its efforts to reduce its environmental impact through initiatives such as energy efficiency improvements, waste reduction, and the use of renewable energy sources. The company also prioritizes social responsibility by promoting safe working conditions, fair labor practices, and community engagement.
With a strong presence in over 30 countries worldwide, Ponsse has established itself as a trusted partner for customers seeking high-quality wood products and forestry services. As an investment opportunity, Ponsse offers a compelling combination of growth potential, sustainability, and social responsibility, making it an attractive choice for investors seeking long-term value creation.
Key Products/Services:
Ponsse's product portfolio includes:
- Sawn timber and engineered wood products
- Forestry management services, including sustainable forest management and reforestation programs
- Precision forestry and wood processing systems
- Renewable energy solutions
These products and services cater to various industries, including construction, packaging, and paper production.
Benefits:
Ponsse's products and services offer several benefits, including:
- High-quality wood products for various applications
- Sustainable forestry management practices
- Energy efficiency improvements and renewable energy solutions
- Precision forestry and wood processing systems for increased productivity
- Commitment to social responsibility and fair labor practices
By investing in Ponsse, investors can tap into the company's growth potential, sustainability initiatives, and commitment to social responsibility, making it an attractive choice for long-term value creation.
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 28.0 | 28.0 | 28.0 | 28.0 | 28.0 | 28.0 | 28.0 |
| Target Valuation (MEur) | 389.1 | 272.7 | 196.2 | 204.3 | 126.7 | 26.5 | 26.5 |
| Targer Price | 13.9 | 9.74 | 7.01 | 7.3 | 4.52 | 0.95 | 0.95 |
| Potential, % | -45.1 | -56.9 | -65.7 | -71.8 | -80.1 | -95.8 | -95.8 |
| Recommendation | Sell | Sell | Sell | Sell | Sell | Sell | Sell |
| MCAP (MEur) | 708.4 | 632.8 | 571.2 | 725.2 | 635.6 | 635.6 | 635.6 |
| Price | 25.3 | 22.6 | 20.4 | 25.9 | 22.7 | 22.7 | 22.7 |
| EV | 728.0 | 678.0 | 574.0 | 746.0 | 664.0 | 644.0 | 640.0 |
| P/S | 0.92 | 0.77 | 0.76 | 0.97 | 0.98 | 1.07 | 1.18 |
| EV/S | 0.94 | 0.83 | 0.77 | 0.99 | 1.02 | 1.09 | 1.18 |
| EV/EBIT | 14.53 | 14.39 | 15.63 | 17.91 | 39.54 | 45.37 | 99.63 |
| P/E | 18.42 | 21.07 | 45.67 | 23.78 | 41.57 | 54.84 | 122.7 |
| P/B | 2.2 | 1.97 | 1.75 | 2.14 | 1.8 | 1.74 | 1.72 |
| P/OCF | -39.48 | 20.82 | 6.72 | 31.16 | 46.69 | 15.76 | 25.76 |
| EV/OCF | -40.58 | 22.32 | 6.76 | 32.04 | 48.75 | 15.96 | 25.93 |
| P/FCF | -10.94 | -111.47 | 8.93 | 909.91 | -96.34 | 31.99 | 151.31 |
| EV/FCF | -11.24 | -119.48 | 8.98 | 935.63 | -100.6 | 32.4 | 152.27 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 772.7 | 821.8 | 750.4 | 749.9 | 651.1 | 591.5 | 540.3 |
| Rev. Growth, % | 3.0 | 6.4 | -8.7 | -0.1 | -13.2 | -9.2 | -8.7 |
| Ebit | 50.1 | 47.2 | 36.8 | 41.6 | 16.8 | 14.2 | 6.4 |
| Ebit Growth, % | -33.2 | -5.8 | -22.0 | 13.0 | -59.6 | -15.5 | -54.9 |
| Ebit, % | 6.5 | 5.7 | 4.9 | 5.5 | 2.6 | 2.4 | 1.2 |
| Profit | 38.5 | 30.0 | 12.5 | 30.5 | 15.3 | 11.6 | 5.2 |
| EPS | 1.38 | 1.07 | 0.45 | 1.09 | 0.55 | 0.41 | 0.19 |
| Profit Growth, % | -32.6 | -22.1 | -58.3 | 144.0 | -49.8 | -24.2 | -55.2 |
| Profit, % | 5.0 | 3.7 | 1.7 | 4.1 | 2.3 | 2.0 | 1.0 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 229.6 | 240.8 | 219.1 | 240.0 | 254.8 | 253.1 | 259.0 |
| Acc. Receivable | 62.3 | 69.1 | 54.1 | 63.5 | 61.4 | 60.9 | 61.1 |
| Cash | 76.5 | 74.0 | 83.6 | 58.1 | 41.3 | 61.1 | 65.4 |
| Equity | 321.8 | 321.8 | 327.2 | 338.2 | 353.6 | 365.2 | 370.4 |
| ROE, % | 12.0 | 9.3 | 3.8 | 9.0 | 4.3 | 3.2 | 1.4 |
| ROCE, % | 12.0 | 10.7 | 8.9 | 10.0 | 4.0 | 3.3 | 1.5 |
| Net Debt | 19.8 | 45.5 | 3.3 | 20.5 | 28.1 | 8.2 | 4.0 |
| Gearing, % | 6.2 | 14.1 | 1.0 | 6.1 | 7.9 | 2.3 | 1.1 |
| Equity ratio, % | 54.7 | 53.1 | 58.1 | 59.2 | 63.4 | 66.4 | 67.0 |
| Acc. Payable | 153.5 | 141.4 | 121.8 | 135.1 | 128.3 | 121.3 | 120.3 |
| Total Assets | 588.6 | 606.0 | 563.1 | 571.4 | 557.5 | 550.2 | 552.8 |
| ROA, % | 6.5 | 5.0 | 2.2 | 5.3 | 2.7 | 2.1 | 0.9 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -17.9 | 30.4 | 85.0 | 23.3 | 13.6 | 40.3 | 24.7 |
| Investment Cash Flow | -46.8 | -36.1 | -21.0 | -22.5 | -20.2 | -20.5 | -20.5 |
| Free Cash Flow | -64.8 | -5.7 | 64.0 | 0.8 | -6.6 | 19.9 | 4.2 |
| OCF/CAPEX | 0.0 | 0.84 | 4.04 | 1.04 | 0.67 | 1.97 | 1.21 |
| Financial Cash Flow | 20.2 | 3.3 | -54.9 | -27.3 | -9.7 | 0.0 | 0.0 |
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