Orthex: Growth efforts will eventually bear fruit
The revenue of Orthex, a manufacturer of everyday consumer goods, returned to clear growth in Q4, setting the stage for further earnings growth. In our view, the company's production facilities are capable of supporting a much higher revenue load than today, which means that revenue growth has the potential to increase the already high returns on capital.
Orthex is a Finnish manufacturer and supplier of household products. The company offers products such as plastic storage boxes, cutting boards, pots, bowls and other kitchen accessories. The majority of the range is accessed digitally via the company's e-commerce platform, and the products are also offered through licensed retailers. The largest operations are found in the Nordic market.
Read more on company pageKey Estimate Figures2024-04-21
| 2023 | 24e | 25e | |
|---|---|---|---|
| Revenue | 85.9 | 90.8 | 96.6 |
| growth-% | 2.2 % | 5.6 % | 6.4 % |
| EBIT (adj.) | 10.0 | 12.3 | 13.5 |
| EBIT-% (adj.) | 11.7 % | 13.6 % | 14.0 % |
| EPS (adj.) | 0.35 | 0.47 | 0.53 |
| Dividend | 0.21 | 0.25 | 0.27 |
| Dividend % | 3.9 % | 5.7 % | 6.1 % |
| P/E (adj.) | 15.5 | 9.3 | 8.2 |
| EV/EBITDA | 7.9 | 5.8 | 5.1 |
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