Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on METSO OYJ. We currently have 7 research reports from 1 professional analysts.
|09Feb17 13:00||GNW||Notification according to chapter 9, section 5 and 6 of the Securities Market Act: BlackRock Inc.'s holding in Metso|
|09Feb17 12:00||GNW||Metso to support WWF Finland's work to protect Saimaa ringed seal and John Nurminen Foundation's Baltic Sea protection work|
|08Feb17 11:30||GNW||Notification according to chapter 9, section 5 and 6 of the Securities Market Act: BlackRock Inc.'s holding in Metso|
|07Feb17 12:00||GNW||Notification according to chapter 9, section 5 and 6 of the Securities Market Act: BlackRock Inc.'s holding in Metso|
|03Feb17 07:15||GNW||Notice to the Annual General Meeting|
|03Feb17 07:00||GNW||Metso's Financial Statements Review January 1 - December 31, 2016|
Frequency of research reports
Research reports on
Disappointing Q4 and cautious guidance for 2017
03 Feb 17
Metso reported its Q4 16 figures, which were disappointing and below market expectations. - Q4 orders received reached €672m (vs €758m in Q4 15), of which €442m (vs €441m in Q4 15) was services orders. - Revenue reached €676m (vs €754m in Q4 15), of which services accounted for €442m (vs €481m in Q4 15). - Adjusted EBITDA reached €64m, which represents 9.4% of sales (vs €91m, 12% in Q4 15). The drop in EBITDA is due to lower volumes, project overturn costs and warranty costs in Minerals. - The free cash flow has risen by 64% (€97m vs €59m in Q4 15). - Demand for aggregates equipment improved and demand for mining services stabilised during the quarter. A globally positive development in demand for equipment in the US, Northern Europe and India.
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%.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
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.
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
15 Feb 17
At the current market capitalisation of £29m, we believe the shares are significantly undervalued. We estimate that the highly profitable Maritime business is alone worth at least £40m. With net cash of £9m at end-2016, this implies that the market is currently ascribing a combined negative value of £17m to the rest of the group, which together account for c.54% of group revenues. This is very harsh given the management actions to transform TP Group to a profit-driven Tier 2 specialist services and engineering company are bearing fruits across the divisions. TPG Managed Solutions is expected to more than double its profits in 2017, while TPG Engineering and Design & Technology are on course to deliver sustainable profits from 2019. Even if we ascribe zero value to Engineering, Design & Technology and Managed Solutions, the shares are worth 9.5p a share, a 38% upside from the current share price. BUY.