Company Overview
Valmet is a global company with operations in over 70 countries, employing approximately 30,000 people. The company has a strong presence in the process industries, with a customer base that includes some of the world's leading companies.
Valmet's products and services are designed to meet the specific needs of its customers, providing innovative solutions that drive growth, efficiency, and sustainability. With a focus on digitalization, automation, and advanced technologies, Valmet is well-positioned to support its customers in their journey towards a sustainable future.
Valmet is a global leader in providing industrial automation, digitalization, and advanced technologies to the process industries. With over 130 years of experience, the company has established itself as a trusted partner for its customers, providing innovative solutions to improve efficiency, productivity, and sustainability.
As a leading provider of process industries' solutions, Valmet's mission is to "Create a sustainable future" by delivering cutting-edge technologies that enable its customers to optimize their operations, reduce costs, and minimize environmental impact. The company's core values are built around innovation, customer focus, and collaboration, ensuring that every solution meets the highest standards of quality and performance.
Key Products/Services
Pulp and Paper: Valmet offers a range of solutions for pulp and paper mills, including advanced automation systems, process optimization, and energy efficiency improvements. These solutions enable customers to increase productivity, reduce costs, and minimize environmental impact.
Process Industries: Valmet provides industrial automation, digitalization, and advanced technologies to the process industries, including oil & gas, chemicals, and biorefineries. The company's solutions help customers optimize their operations, improve efficiency, and reduce costs.
Power and Energy: Valmet offers a range of solutions for power plants, including automation systems, energy efficiency improvements, and emissions reduction technologies. These solutions enable customers to increase efficiency, reduce costs, and minimize environmental impact.
Benefits
Valmet's solutions offer numerous benefits to its customers, including:
- Increased productivity and efficiency
- Reduced costs and improved profitability
- Minimized environmental impact and emissions reduction
- Improved safety and reduced risk
- Enhanced competitiveness and market position
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 184.2 | 184.2 | 184.2 | 184.5 | 184.5 | 184.5 | 184.5 |
| Target Valuation (MEur) | 5080.3 | 5543.0 | 5416.0 | 5193.4 | 4875.8 | 4235.6 | 4235.6 |
| Targer Price | 27.58 | 30.1 | 29.41 | 28.14 | 26.42 | 22.95 | 22.95 |
| Potential, % | 9.6 | 15.3 | 25.4 | -0.7 | -3.3 | -16.0 | -16.0 |
| Recommendation | Hold | Hold | Buy | Hold | Hold | Hold | Hold |
| MCAP (MEur) | 4634.1 | 4808.4 | 4320.6 | 5227.7 | 5041.3 | 5041.3 | 5041.3 |
| Price | 25.16 | 26.11 | 23.46 | 28.33 | 27.32 | 27.32 | 27.32 |
| EV | 5136.0 | 5835.0 | 5353.0 | 6132.0 | 5852.0 | 5465.0 | 5040.0 |
| P/S | 0.91 | 0.87 | 0.81 | 1.01 | 0.96 | 0.89 | 0.87 |
| EV/S | 1.01 | 1.05 | 1.0 | 1.18 | 1.11 | 0.97 | 0.87 |
| EV/EBIT | 11.78 | 11.49 | 11.92 | 14.0 | 12.47 | 10.55 | 8.91 |
| P/E | 13.71 | 13.39 | 15.43 | 18.67 | 14.98 | 12.16 | 11.14 |
| P/B | 1.85 | 1.87 | 1.65 | 2.02 | 1.85 | 1.61 | 1.41 |
| P/OCF | 128.72 | 13.7 | 7.8 | 9.03 | 16.65 | 10.45 | 9.67 |
| EV/OCF | 142.67 | 16.63 | 9.66 | 10.59 | 19.33 | 11.33 | 9.67 |
| P/FCF | 82.75 | -26.57 | 13.67 | 10.89 | 22.34 | 13.05 | 11.86 |
| EV/FCF | 91.72 | -32.24 | 16.94 | 12.77 | 25.93 | 14.15 | 11.86 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 5074.0 | 5532.0 | 5359.0 | 5197.0 | 5271.3 | 5649.6 | 5790.1 |
| Rev. Growth, % | 28.9 | 9.0 | -3.1 | -3.0 | 1.4 | 7.2 | 2.5 |
| Ebit | 436.0 | 508.0 | 449.0 | 438.0 | 469.3 | 518.1 | 565.6 |
| Ebit Growth, % | 9.3 | 16.5 | -11.6 | -2.4 | 7.1 | 10.4 | 9.2 |
| Ebit, % | 8.6 | 9.2 | 8.4 | 8.4 | 8.9 | 9.2 | 9.8 |
| Profit | 338.0 | 359.0 | 280.0 | 280.0 | 336.5 | 414.5 | 452.5 |
| EPS | 1.84 | 1.95 | 1.52 | 1.52 | 1.82 | 2.25 | 2.45 |
| Profit Growth, % | 14.2 | 6.2 | -22.0 | 0.0 | 20.2 | 23.2 | 9.2 |
| Profit, % | 6.7 | 6.5 | 5.2 | 5.4 | 6.4 | 7.3 | 7.8 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 934.0 | 1049.0 | 903.0 | 884.0 | 980.1 | 970.5 | 974.8 |
| Acc. Receivable | 834.0 | 973.0 | 862.0 | 769.0 | 821.1 | 858.4 | 879.3 |
| Cash | 277.0 | 432.0 | 482.0 | 535.0 | 738.7 | 1125.0 | 1550.2 |
| Equity | 2501.0 | 2572.0 | 2614.0 | 2584.0 | 2719.5 | 3134.0 | 3586.4 |
| ROE, % | 13.5 | 14.0 | 10.7 | 10.8 | 12.4 | 13.2 | 12.6 |
| ROCE, % | 13.3 | 12.6 | 10.9 | 10.9 | 11.0 | 11.1 | 11.0 |
| Net Debt | 502.0 | 1027.0 | 1032.0 | 904.0 | 810.3 | 424.0 | -1.2 |
| Gearing, % | 20.1 | 39.9 | 39.5 | 35.0 | 29.8 | 13.5 | -0.0 |
| Equity ratio, % | 39.9 | 36.4 | 38.3 | 39.0 | 41.0 | 46.0 | 51.6 |
| Acc. Payable | 442.0 | 520.0 | 460.0 | 500.0 | 460.8 | 439.2 | 423.0 |
| Total Assets | 6273.0 | 7064.0 | 6832.0 | 6634.0 | 6634.6 | 6806.8 | 6954.2 |
| ROA, % | 5.4 | 5.1 | 4.1 | 4.2 | 5.1 | 6.1 | 6.5 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 36.0 | 351.0 | 554.0 | 579.0 | 302.7 | 482.3 | 521.1 |
| Investment Cash Flow | 20.0 | -532.0 | -238.0 | -99.0 | -77.0 | -96.0 | -96.0 |
| Free Cash Flow | 56.0 | -181.0 | 316.0 | 480.0 | 225.7 | 386.3 | 425.1 |
| OCF/CAPEX | 0.0 | 0.66 | 2.33 | 5.85 | 3.93 | 5.02 | 5.43 |
| Financial Cash Flow | -291.0 | 346.0 | -269.0 | -401.0 | -34.0 | 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.
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