Company Overview
Wärtsilä is a Finnish multinational corporation that designs, builds, and delivers energy solutions for various industries. The company's primary focus is on providing sustainable and efficient energy solutions to its customers, with a strong emphasis on innovation, quality, and customer satisfaction.
Company Introduction
Wärtsilä was founded in 1871 and has since established itself as a leading global provider of energy solutions. With over 160 years of experience, the company has developed a strong reputation for its expertise in designing and delivering complex energy systems. Wärtsilä's portfolio includes a wide range of products and services, from power plants and propulsion systems to energy storage and grid management solutions.
Primary Mission and Core Values
The primary mission of Wärtsilä is to "Empower the Future of Energy" by providing innovative and sustainable energy solutions that meet the needs of its customers. The company's core values include a commitment to excellence, customer satisfaction, innovation, and sustainability.
Key Products/Services
Wärtsilä offers a wide range of key products and services, including:
- Power Plants: Wärtsilä designs and delivers power plants that are efficient, reliable, and environmentally friendly.
- Propulsion Systems: The company provides propulsion systems for ships, including diesel engines, gas turbines, and hybrid solutions.
- Energy Storage: Wärtsilä offers energy storage solutions that enable customers to store excess energy generated by renewable sources.
- Grid Management: The company provides grid management solutions that help utilities manage the flow of electricity in real-time.
The benefits of Wärtsilä's products and services include:
- Increased Efficiency: Wärtsilä's power plants and propulsion systems are designed to be efficient, reducing fuel consumption and emissions.
- Improved Reliability: The company's solutions are built to last, with a focus on reliability and uptime.
- Enhanced Sustainability: Wärtsilä's energy storage and grid management solutions help customers reduce their carbon footprint and meet sustainability targets.
Wärtsilä has a strong risk management framework in place, with a focus on identifying and mitigating potential risks to the company. The company's governance structure includes an independent board of directors, a supervisory board, and a number of committees that oversee various aspects of the business.
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 591.7 | 591.7 | 591.7 | 591.7 | 591.7 | 591.7 | 591.7 |
| Target Valuation (MEur) | 4846.4 | 5710.1 | 8393.3 | 11748.7 | 16772.3 | 23315.4 | 23315.4 |
| Target Price | 8.19 | 9.65 | 14.18 | 19.86 | 28.34 | 39.4 | 39.4 |
| Potential, % | 4.1 | -26.5 | -17.7 | -34.7 | -5.4 | 31.5 | 31.5 |
| Recommendation | Hold | Sell | Hold | Sell | Hold | Buy | Buy |
| MCAP (MEur) | 4655.7 | 7766.4 | 10195.4 | 17988.3 | 17728.0 | 17728.0 | 17728.0 |
| Price | 7.87 | 13.13 | 17.23 | 30.4 | 29.96 | 29.96 | 29.96 |
| EV | 5137.0 | 7801.0 | 9418.0 | 15982.0 | 14957.0 | 13170.0 | 11080.0 |
| P/S | 0.8 | 1.29 | 1.58 | 2.6 | 2.57 | 2.4 | 2.3 |
| EV/S | 0.88 | 1.3 | 1.46 | 2.31 | 2.17 | 1.78 | 1.44 |
| EV/EBIT | 29.35 | 19.36 | 13.15 | 19.21 | 16.9 | 13.33 | 10.24 |
| P/E | 46.1 | 28.87 | 20.07 | 28.55 | 25.81 | 22.43 | 20.49 |
| P/B | 2.17 | 3.48 | 4.04 | 6.25 | 6.07 | 4.78 | 3.88 |
| P/OCF | -76.32 | 9.45 | 8.45 | 11.26 | 10.89 | 9.17 | 7.93 |
| EV/OCF | -84.21 | 9.49 | 7.8 | 10.0 | 9.18 | 6.81 | 4.96 |
| P/FCF | -21.96 | 11.35 | 9.64 | 11.64 | 14.3 | 9.92 | 8.48 |
| EV/FCF | -24.23 | 11.41 | 8.9 | 10.34 | 12.06 | 7.37 | 5.3 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 5841.0 | 6015.0 | 6449.0 | 6913.0 | 6886.3 | 7388.1 | 7700.3 |
| Rev. Growth, % | 22.3 | 3.0 | 7.2 | 7.2 | -0.4 | 7.3 | 4.2 |
| Ebit | 175.0 | 403.0 | 716.0 | 832.0 | 885.2 | 988.1 | 1081.7 |
| Ebit Growth, % | -46.2 | 130.3 | 77.7 | 16.2 | 6.4 | 11.6 | 9.5 |
| Ebit, % | 3.0 | 6.7 | 11.1 | 12.0 | 12.9 | 13.4 | 14.0 |
| Profit | 101.0 | 269.0 | 508.0 | 630.0 | 686.8 | 790.5 | 865.4 |
| EPS | 0.17 | 0.45 | 0.86 | 1.06 | 1.16 | 1.34 | 1.46 |
| Profit Growth, % | -50.5 | 166.3 | 88.8 | 24.0 | 9.0 | 15.1 | 9.5 |
| Profit, % | 1.7 | 4.5 | 7.9 | 9.1 | 10.0 | 10.7 | 11.2 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 1361.0 | 1485.0 | 1483.0 | 1440.0 | 1424.1 | 1413.1 | 1413.2 |
| Acc. Receivable | 2174.0 | 991.0 | 1018.0 | 1793.0 | 1741.0 | 1713.2 | 1690.5 |
| Cash | 464.0 | 819.0 | 1557.0 | 2590.0 | 3322.9 | 5110.0 | 7200.1 |
| Equity | 2146.0 | 2232.0 | 2525.0 | 2877.0 | 2918.8 | 3709.3 | 4574.6 |
| ROE, % | 4.7 | 12.1 | 20.1 | 21.9 | 23.5 | 21.3 | 18.9 |
| ROCE, % | 5.7 | 13.1 | 21.7 | 24.0 | 25.5 | 23.2 | 21.1 |
| Net Debt | 481.0 | 35.0 | -777.0 | -2006.0 | -2770.9 | -4558.0 | -6648.1 |
| Gearing, % | 22.4 | 1.6 | -30.8 | -69.7 | -94.9 | -122.9 | -145.3 |
| Equity ratio, % | 32.5 | 32.8 | 32.8 | 34.0 | 32.5 | 37.5 | 41.8 |
| Acc. Payable | 1041.0 | 3292.0 | 3848.0 | 4123.0 | 4736.5 | 4875.3 | 4966.7 |
| Total Assets | 6606.0 | 6803.0 | 7694.0 | 8474.0 | 8981.0 | 9889.0 | 10931.5 |
| ROA, % | 1.5 | 4.0 | 6.6 | 7.4 | 7.6 | 8.0 | 7.9 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -61.0 | 822.0 | 1207.0 | 1598.0 | 1628.6 | 1932.5 | 2235.6 |
| Investment Cash Flow | -151.0 | -138.0 | -149.0 | -52.0 | -388.8 | -145.4 | -145.4 |
| Free Cash Flow | -212.0 | 684.0 | 1058.0 | 1546.0 | 1239.9 | 1787.1 | 2090.1 |
| OCF/CAPEX | 0.0 | 5.96 | 8.1 | 30.73 | 4.19 | 13.29 | 15.37 |
| Financial Cash Flow | -289.0 | -308.0 | -323.0 | -494.0 | -512.0 | 0.0 | 0.0 |
Disclaimer
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