Valmet Oyj
Valmet Oyj Fundamental Analysis
Valmet Oyj (VLMTY) shows weak financial fundamentals with a PE ratio of 19.00, profit margin of 5.38%, and ROE of 11.33%. The company generates $5.2B in annual revenue with weak year-over-year growth of -3.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VLMTY's fundamental strength across five key dimensions:
Efficiency Score
WeakVLMTY struggles to generate sufficient returns from assets.
Valuation Score
ModerateVLMTY shows balanced valuation metrics.
Growth Score
WeakVLMTY faces weak or negative growth trends.
Financial Health Score
ExcellentVLMTY maintains a strong and stable balance sheet.
Profitability Score
WeakVLMTY struggles to sustain strong margins.
Key Financial Metrics
Is VLMTY Expensive or Cheap?
P/E Ratio
VLMTY trades at 19.00 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VLMTY's PEG of 11.05 indicates potential overvaluation.
Price to Book
The market values Valmet Oyj at 2.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.65 times EBITDA. This is generally considered low.
How Well Does VLMTY Make Money?
Net Profit Margin
For every $100 in sales, Valmet Oyj keeps $5.38 as profit after all expenses.
Operating Margin
Core operations generate 8.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.33 in profit for every $100 of shareholder equity.
ROA
Valmet Oyj generates $4.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Valmet Oyj produces operating cash flow of $581.77M, showing steady but balanced cash generation.
Free Cash Flow
Valmet Oyj produces free cash flow of $469.79M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.55 in free cash annually.
FCF Yield
VLMTY converts 8.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.003
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How VLMTY Stacks Against Its Sector Peers
| Metric | VLMTY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.00 | 26.76 | Better (Cheaper) |
| ROE | 11.33% | 1300.00% | Weak |
| Net Margin | 5.38% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.61 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.22 | 10.68 | Neutral |
| ROA | 4.20% | -1545134.00% (disorted) | Weak |
VLMTY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Valmet Oyj's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.78%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-1.98%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-11.37%
Industry Style: Cyclical, Value, Infrastructure
Declining