Sanoma: Stability and strength in the books
The learning business generates good 2/3 of Sanoma’s result, which makes a majority of income flows defensive and their risk level is low. We expect these characteristics to strengthen in the future, as we expect the company to continue acquisition-driven growth in the learning business. We estimate that the expected return for the next few years consists of attractive dividend yield and moderate earnings growth. This, together with Sanoma’s low risk level creates in our view a good risk/return ratio. The learning business generates good 2/3 of Sanoma’s result, which makes a majority of income flows defensive and their risk level is low. We expect these characteristics to strengthen in the future, as we expect the company to continue acquisition-driven growth in the learning business. We estimate that the expected return for the next few years consists of attractive dividend yield and moderate earnings growth. This, together with Sanoma’s low risk level creates in our view a good risk/return ratio.
Sanoma is an innovative and agile learning and media company with two business segments: Learning and Media Finland. Learning's educational products and services reach 25 million students in K-12 education in 12 European countries. Media Finland has Finland's leading multichannel media offering (digital and print newspapers, magazines, TV and streaming services, and radio and audio services), through which it reaches 97% of Finns every week, enabling effective marketing solutions for corporate clients. The company's operations have a positive impact on the lives of millions of people every day.
Read more on company pageKey Estimate Figures2022-04-12
| 2021 | 22e | 23e | |
|---|---|---|---|
| Revenue | 1,251.6 | 1,292.6 | 1,334.6 |
| growth-% | 17.9 % | 3.3 % | 3.2 % |
| EBIT (adj.) | 158.2 | 162.9 | 181.2 |
| EBIT-% (adj.) | 12.6 % | 12.6 % | 13.6 % |
| EPS (adj.) | 0.71 | 0.72 | 0.82 |
| Dividend | 0.54 | 0.58 | 0.60 |
| Dividend % | 4.0 % | 6.5 % | 6.7 % |
| P/E (adj.) | 19.1 | 12.4 | 10.9 |
| EV/EBITDA | 8.1 | 5.5 | 5.0 |
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