Fact based stock research
Valmet (HLSE:VALMT)

FI4000074984

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Valmet stock research in summary

valmet.com

ANALYSIS: With an Obermatt Combined Rank of 25 (worse than 75% compared with investment alternatives), Valmet (Industrial Machinery, Finland) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Valmet are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives) but show below-average growth (Growth Rank of 10), and are riskily financed (Safety Rank of 49), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 25, is a hold recommendation based on Valmet's financial characteristics. As the company Valmet's key financial metrics exhibit good value (Obermatt Value Rank of 60) but low growth (Obermatt Growth Rank of 10) and risky financing practices (Obermatt Safety Rank of 49), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 60% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	60
Growth Rank	10
Safety Rank	49
Combined Rank	25

Country	Finland
Industry	Industrial Machinery
Index	OMX 25, Dividends Europe, Human Rights
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Valmet

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	72	67	70	60
GROWTH
GROWTH	37	63	19	10
SAFETY
SAFETY	34	51	61	49
SENTIMENT
SENTIMENT	n/a	43	92	^new
360° VIEW
360° VIEW	n/a	68	77	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Valmet is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	72	67	70	60
GROWTH
GROWTH	37	63	19	10
SAFETY
SAFETY	34	51	61	49
COMBINED
COMBINED	47	77	53	25

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Valmet the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 60 (better than 60% compared with alternatives), Valmet shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Valmet. Price-to-Sales is 50 which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value for Valmet's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 54% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 58. Compared with other companies in the same industry, dividend yields of Valmet are expected to be higher than for 88% of all competitors (a Dividend Yield rank of 88). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 60, is a buy recommendation based on Valmet's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Valmet based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	77	55	52	50
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	73	67	56	54
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	26	39	58	58
DIVIDEND YIELD
DIVIDEND YIELD	90	91	94	88
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	72	67	70	60

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Valmet; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 10 (better than 10% compared with alternatives), Valmet shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Valmet. Sales Growth has a below market rank of 11, which means that, currently, professionals expect the company to grow less than 89% of its competitors. The same is valid for Capital Growth, with a rank of 33, and Profit Growth, with a rank of 31. Currently, professionals expect the company to grow its profits less than 69% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 55, which means that the stock returns have recently been above 55% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 10, is a sell recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Valmet, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	16	72	8	11
PROFIT GROWTH
PROFIT GROWTH	71	34	67	31
CAPITAL GROWTH
CAPITAL GROWTH	n/a	30	18	33
STOCK RETURNS
STOCK RETURNS	74	71	47	55
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	37	63	19	10

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Valmet.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 49 (better than 49% compared with alternatives), the company Valmet has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Valmet is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Valmet. Liquidity is at 61, meaning the company generates more profit to service its debt than 61% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 49, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 51% of its competitors. Leverage is also high at a rank of 35, which means that the company has an above-average debt-to-equity ratio. It has more debt than 65% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 49 (worse than 51% compared with alternatives), Valmet has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	50	52	74	35
REFINANCING
REFINANCING	1	1	13	49
LIQUIDITY
LIQUIDITY	80	90	80	61
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	34	51	61	49

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Valmet and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	40	69	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	17	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	57	88	^new
MARKET PULSE
MARKET PULSE	n/a	77	62	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	43	92	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Valmet.
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