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Research

The glass is half full

By Antti ViljakainenHead of Research
Valmet
Download report (PDF)

We find the overall picture of Valmet’s Q1 report neutral, even though there was strong discord in the businesses, especially in terms of orders and demand outlook. However, we prefer to see the glass as half full, as the stable businesses that are important for Valmet's result and value develop at least reasonably, which compensates for the headwind caused by the weakness of the device businesses' orders and order outlook, especially for next year. After the report, the decreases in earnings forecasts were minor at Group level. We believe that the upside in Valmet's low valuation and the good dividend yield of nearly 6% still generate a higher expected return than the required return on a one-year scope.

Valmet supplies technologies, automation and lifecycle services to process industries globally, including pulp, paper and energy. The company operates globally and supports customers from initial capital equipment delivery through decades of operation. Its business model is based on a large installed base, long-term customer relationships and recurring services.

Read more on company page

Key Estimate Figures08.02.2024

202324e25e
Revenue5,532.05,423.55,267.2
growth-%9.0 %-2.0 %-2.9 %
EBIT (adj.)598.0593.5611.0
EBIT-% (adj.)10.8 %10.9 %11.6 %
EPS (adj.)2.312.192.30
Dividend1.351.401.45
Dividend %5.2 %4.9 %5.0 %
P/E (adj.)11.313.212.5
EV/EBITDA8.48.57.8

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