Pieces falling in place at record speed
Rapala's H1 result was very strong as high-margin sales was efficiently reflected in the lower rows. Sales was clearly helped by the fishing boom generated by the pandemic and good weather but, in our opinion, the main background factor is that the company has been solving its chronic problems. Earnings growth has all preconditions to continue in coming years as there is still a distance to full potential and valuation is also cheap after we raised our estimates.
Rapala VMC
Rapala VMC is active in recreational fishing. Sales of fishing equipment take place via the company's distribution network and include a number of brands. The product range consists of fishing clothes as well as associated equipment such as fishing rods, metal locks, baits and fishing knives. Operations are conducted worldwide, with the largest presence in Europe and North America. The company is headquartered in Helsinki.
Read more on company pageKey Estimate Figures17.07.2021
2020 | 21e | 22e | |
---|---|---|---|
Revenue | 261.3 | 294.6 | 289.0 |
growth-% | -5.12 % | 12.73 % | -1.89 % |
EBIT (adj.) | 21.5 | 38.6 | 35.8 |
EBIT-% (adj.) | 8.23 % | 13.11 % | 12.40 % |
EPS (adj.) | 0.31 | 0.60 | 0.61 |
Dividend | 0.00 | 0.20 | 0.30 |
Dividend % | 7.04 % | 10.56 % | |
P/E (adj.) | 14.14 | 4.73 | 4.68 |
EV/EBITDA | 9.94 | 3.37 | 3.42 |