Metso Outotec Oyj
Metso Outotec Oyj Fundamental Analysis
Metso Outotec Oyj (OUKPY) shows weak financial fundamentals with a PE ratio of 54.48, profit margin of 8.19%, and ROE of 16.39%. The company generates $5.2B in annual revenue with moderate year-over-year growth of 7.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OUKPY's fundamental strength across five key dimensions:
Efficiency Score
WeakOUKPY struggles to generate sufficient returns from assets.
Valuation Score
WeakOUKPY trades at a premium to fair value.
Growth Score
ExcellentOUKPY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentOUKPY maintains a strong and stable balance sheet.
Profitability Score
ModerateOUKPY maintains healthy but balanced margins.
Key Financial Metrics
Is OUKPY Expensive or Cheap?
P/E Ratio
OUKPY trades at 54.48 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, OUKPY's PEG of 4.89 indicates potential overvaluation.
Price to Book
The market values Metso Outotec Oyj at 8.32 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.85 times EBITDA. This signals the market has high growth expectations.
How Well Does OUKPY Make Money?
Net Profit Margin
For every $100 in sales, Metso Outotec Oyj keeps $8.19 as profit after all expenses.
Operating Margin
Core operations generate 14.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.39 in profit for every $100 of shareholder equity.
ROA
Metso Outotec Oyj generates $5.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Metso Outotec Oyj produces operating cash flow of $635.14M, showing steady but balanced cash generation.
Free Cash Flow
Metso Outotec Oyj produces free cash flow of $478.18M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.14 in free cash annually.
FCF Yield
OUKPY converts 2.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
54.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How OUKPY Stacks Against Its Sector Peers
| Metric | OUKPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 54.48 | 26.04 | Worse (Expensive) |
| ROE | 16.39% | 1282.00% | Weak |
| Net Margin | 8.19% | -38546.00% (disorted) | Weak |
| Debt/Equity | 0.55 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 1.52 | 10.55 | Neutral |
| ROA | 5.89% | -1499346.00% (disorted) | Weak |
OUKPY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Metso Outotec Oyj's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
40.66%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
173.10%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
41.35%
Industry Style: Cyclical, Value, Infrastructure
High Growth