Patience may yet be rewarded with a great catch
We have grown slightly more confident that, in the hands of new management, the execution of Rapala’s strategy will start to bear fruit and the EBIT margin may return closer to the company’s historical levels and the levels of its competitors. Extracting the latent potential of the brands will take more time, even in a good scenario, but the markets are currently not really pricing in the improvement of profit performance and we believe that the return/risk ratio is now in slightly positive territory.
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 Figures01.10.2020
2019 | 20e | 21e | |
---|---|---|---|
Revenue | 275.4 | 239.3 | 249.1 |
growth-% | 4.95 % | -13.09 % | 4.08 % |
EBIT (adj.) | 17.9 | 5.6 | 14.5 |
EBIT-% (adj.) | 6.50 % | 2.32 % | 5.83 % |
EPS (adj.) | 0.21 | -0.07 | 0.20 |
Dividend | 0.00 | 0.00 | 0.10 |
Dividend % | 3.41 % | ||
P/E (adj.) | 13.12 | - | 14.44 |
EV/EBITDA | 7.84 | 15.30 | 8.12 |