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.
|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|
|01Nov16 08:00||GNW||Metso continues to be ranked at the Leadership level in CDP's Climate Change evaluation|
|24Oct16 09:00||GNW||Boliden selects Metso to supply equipment for a new surface crushing station to Aitik copper mine in Sweden|
|21Oct16 07:00||GNW||Metso's Interim Review January 1 - September 30, 2016|
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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%).
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.