Suominen: Not convincing
Suominen’s Q2 result fell short of expectations, although it improved slightly from the weak comparison period. The company reiterated its guidance of an improving full-year result, but the earnings turnaround has not materialized so far. Due to the weak result, we clearly lowered our estimates for 2023-25. Even with the 2025 earnings level, the valuation remains highish and the expected return is weak. We lower the target price to EUR 2.6 (previously EUR 2.8) and our recommendation to Sell (previously Reduce).
Suominen
Suominen is a manufacturing company. The company manufactures and develops a wide range of napkins, hygiene products, and medical applications. The production is based on non-woven fabrics that can be used for various purposes. Customers are found in a number of industries, with the largest operations in Europe and North America. The company is headquartered in Helsinki.
Read more on company pageKey Estimate Figures09.08.2023
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 493.3 | 466.3 | 461.6 |
growth-% | 11.30 % | -5.48 % | -1.00 % |
EBIT (adj.) | -4.2 | 1.3 | 15.5 |
EBIT-% (adj.) | -0.84 % | 0.29 % | 3.36 % |
EPS (adj.) | -0.16 | -0.08 | 0.16 |
Dividend | 0.10 | 0.10 | 0.15 |
Dividend % | 3.34 % | 3.83 % | 5.75 % |
P/E (adj.) | - | - | 16.44 |
EV/EBITDA | 15.83 | 13.19 | 6.71 |