Wärtsilä Oyj Abp
Wärtsilä Oyj Abp Fundamental Analysis
Wärtsilä Oyj Abp (WRTBF) shows moderate financial fundamentals with a PE ratio of 34.28, profit margin of 9.04%, and ROE of 23.92%. The company generates $7.0B in annual revenue with moderate year-over-year growth of 7.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.0/100 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 WRTBF's fundamental strength across five key dimensions:
Efficiency Score
WeakWRTBF struggles to generate sufficient returns from assets.
Valuation Score
WeakWRTBF trades at a premium to fair value.
Growth Score
ExcellentWRTBF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentWRTBF maintains a strong and stable balance sheet.
Profitability Score
ModerateWRTBF maintains healthy but balanced margins.
Key Financial Metrics
Is WRTBF Expensive or Cheap?
P/E Ratio
WRTBF trades at 34.28 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WRTBF's PEG of 8.25 indicates potential overvaluation.
Price to Book
The market values Wärtsilä Oyj Abp at 7.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 22.20 times EBITDA. This signals the market has high growth expectations.
How Well Does WRTBF Make Money?
Net Profit Margin
For every $100 in sales, Wärtsilä Oyj Abp keeps $9.04 as profit after all expenses.
Operating Margin
Core operations generate 12.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.92 in profit for every $100 of shareholder equity.
ROA
Wärtsilä Oyj Abp generates $7.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wärtsilä Oyj Abp produces operating cash flow of $1.62B, showing steady but balanced cash generation.
Free Cash Flow
Wärtsilä Oyj Abp generates strong free cash flow of $1.47B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.49 in free cash annually.
FCF Yield
WRTBF converts 6.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How WRTBF Stacks Against Its Sector Peers
| Metric | WRTBF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.28 | 26.49 | Worse (Expensive) |
| ROE | 23.92% | 1307.00% | Weak |
| Net Margin | 9.04% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.27 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.39 | 10.48 | Neutral |
| ROA | 7.38% | -1549793.00% (disorted) | Weak |
WRTBF 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 Wärtsilä Oyj Abp's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.30%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
132.84%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
423.03%
Industry Style: Cyclical, Value, Infrastructure
High Growth