Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on METSO OYJ. We currently have 6 research reports from 1 professional analysts.
|14Dec16 07:00||GNW||Victor Tapia appointed President, Metso's Minerals Capital business area|
|13Dec16 04:25||GNW||Metso's Board of Directors decides to continue the long-term incentive plan for senior management|
|13Dec16 08:00||GNW||Heljo Laukkala from Metso chosen as Risk Manager of the Year|
|05Dec16 07:00||GNW||Metso head office has moved to new premises|
|14Nov16 02:35||GNW||Notification according to chapter 9, section 5 and 6 of the Securities Market Act: BlackRock Inc.'s holding in Metso|
|10Nov16 07:00||GNW||Notification according to chapter 9, section 5 and 6 of the Securities Market Act: BlackRock Inc.'s holding in Metso|
|03Nov16 09:00||GNW||Metso receives comprehensive valve order for new Kilpilahti Power Plant in Porvoo|
Frequency of research reports
Research reports on
A summer report without relief
26 Oct 16
Metso reported Q3 16 figures; the main facts are: Orders received reached €628m, a -3% decrease yoy led by weak Flow Control demand (-21% yoy). The Q3 revenue was €638m, -6% versus Q3 15 including -5% for Minerals revenue and -10% for Flow Control’s revenues. Services accounted for €413m. Profitability was on track with expectations, as the EBITA margin reached 12.1% (versus 13.6% in Q3 15. The free cash flow was €106m (versus €117m in Q3 15). The market environment is unchanged and remains challenging. The company expects 2016 trading conditions to be weaker than in 2015. Some 2016 deliveries are to be postponed to 2017 due to current market conditions.
A light at the end of the tunnel
21 Jul 16
Metso reported its Q2 figures. Main facts: > Mining equipment orders increased by 6% yoy > Q2 orders received totalled €761m (€823m), of which €444m (€495m) were services orders. > Q2 net sales totalled €671m vs est. €681m (Q2 15 €756m), of which services accounted for €439m (€483m) > Q2 adjusted EBITA totalled €77m, or 11.5% of net sales (versus €94m, 12.4%) > Q2 operating profit reached €70m > Q2 free cash flow totalled €74m (€78m)
Strong execution not enough to offset falling demand
22 Apr 16
Q116 results, main facts: Metso reported orders at a low level in Q116: €663m (of which €433m for services) corresponding to a -10% yoy decline (-6% ex.fx) led by services (-15% y/y but -9% ex. fx). Revenue declined by 18% y/y (-14% ex.fx) and reached €601m led by the fall in Equipment revenue EBITA at €56m decreased by 28% y/y, corresponding to a 9.3% margin (versus 10.6% in Q115) leading to EPS of €0.18 (versus €0.25 in Q115) FCF reached €62m (vs €87m in Q115). Metso’s overall trading conditions in 2016 will be somewhat weaker compared to 2015. The company expects restructuring costs to be at the same level as in 2015 (previously: lower than 2015) and capex and net financial costs are expected to be lower than in 2015 (previously: at the same level).
Top line pressure set to continue in 2016
04 Feb 16
Q415 orders reached €758m (versus €721m excluding PAS) corresponding to a +5% increase, of which €440m (vs. €446m excluding PAS) were services orders (-1% yoy). Net sales were €754m (vs. €921 million ex. PAS), of which €481m in services (€525m ex. PAS). For the whole fiscal year, net sales decreased by 13% from €3,363m to €2,923m. These results are even worse if we erase all FX tailwinds the company benefited from during FY15. Without currency impact, net sales decreased by c.16% yoy. In Q415, EBITA before non-recurring items was €91m while margin was 12.0% (vs. €120m and 13% in Q414). On a yearly basis, orders decreased by 52% during Q4 in China (-22% for FY15). South and Central America orders decreased by 11% in Q4 and 7% in FY15 while orders in Asia-Pacific increased by 82% in Q4 and 14% in 2015. North America and Europe orders also increased: +5% for Q4 in North America (+3% FY15) and +12% in Europe (+0%). Finally, Africa and Middle East have seen their orders decrease by 33% during Q4 (25% for FY15). EPS was EUR2.95 in 2015 (€1.25 ex. PAS selling) versus €1.25 last year. The Board proposed a dividend of €1.05, in line with last year’s dividend. This represents a payout ratio of 84% (36% taking SAP cash inflow into account). The firm reaffirmed it will maintain its dividend policy, keeping a payout ratio above 50% of total EPS. The company decided for the first time not to give any numerical figures for FY16 guidance.
Profitability remains strong despite weak demand
23 Oct 15
Metso reported a mixed set of Q315 figures, as weak commodity prices continued to weigh on demand but the company managed to achive a strong level of profitability thanks to cost cutting measures and a favorable sales mix. Q315 order intake reached €647m (-11% yoy ex. PAS),of which €436m in services orders (67%) as low commodity prices continued to have a negative impact on the demand for capital equipment in the mining and oil & gas industries. Sales came in at €680m, a -16% yoy decrease, but profitability remainsed very strong with the EBITA at €92m, corresponding to a 13.6% margin (vs 12.4% in Q314). This good performance reflects the cost-cutting measures taken across the group, the high proportion of the services business in the sales mix leading the gross margin improvement while SG&A costs are continuously declining. As a result, EPS increased to €0.29 from €0.26, while free cash flow surged to €117m from €46m in Q314. The company confirmed its guidance of sales between €3.0 to 3.2 bn and an EBITA margin of between 12% and 13%.
Guidance revised slightly down amidst difficult markets
23 Jul 15
FY15 guidance is updated to the lower end of the range. Orders were down 13% yoy to €823m but like-for like (ex. PAS) was only -1% thanks to some large mining Equipment orders, sales decreased sharply by -21% yoy to €756m primarily due to lower mining Equipment sales. Demand for customers’ capex projects remained soft during the quarter but demand for services was stable. Metso reported that equipment pricing was under pressure despite the order increase to around €140m in Q2 which should not be extrapolated, while services prices were holding up better. The softening in the oil & gas market had fortunately only slight impacts on the valve business due to the company's sound positioning in the mid and downstream markets. The EBITA margin was satisfactory at 12.4% (13.7% ex. PAS). But this is too little to maintain the initial guidance. Sales are now estimated between €3,000m and €3,200m (versus between €3,000m and €3,300m) with an EBITA margin at around 12.5% of sales (12-13%) versus previous expectations of around 13% (12.5-13.5%).
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Small-cap quantitative research - Momentum screen refresh + 10 focus stocks
12 Jan 17
We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of measurement appears correlated with significant share price falls since selection. We shall monitor this factor with the new screen, albeit there are only two such stocks showing this pattern, namely Lamprell (not rated) and Gear4music (not rated).
N+1 Singer - Morning Song 12-01-2017
12 Jan 17
As anticipated, the second half has again been stronger than H1 and results will be broadly in line with expectations. In line with this, the order book has continued to grow and is at record levels. This confirms that significant progress has been made in the Group’s shift towards its Technology Products division which, as targeted, contributed c.60% of group revenue in FY16. The small acquisition of Cable Power also gives a complementary boost to the product range. It is also worth noting the significant reduction in net debt, £1.0m ahead of our forecast. We remain supportive of the Group’s strategy and continue to see a bright future as this transition towards a design led technology solutions business continues. We look forward to more detail in March at the final results.
N+1 Singer - Best Ideas 2017 - Top picks
04 Jan 17
Today we publish our Best Ideas for 2017 - 12 stocks that we believe have excellent prospects in the current year together with a detailed discussion of what we see as the key sector and market themes for 2017. Our top picks are Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec and Severfield.