Suominen: Good position when entering raw material turbulence
The Q1 report released by Suominen yesterday was operationally better than we expected. The outlook for the near term is strong in terms of demand but increasing raw material prices will act as a break in the next few quarters. We see the upside in the share’s low valuation and 4% dividend yield offer a good expected return for investors even though we do not expect the result to grow from last year’s high level in the next couple of years.
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 Figures2021-04-28
2020 | 21e | 22e | |
---|---|---|---|
Revenue | 458.9 | 474.6 | 491.2 |
growth-% | 11.54 % | 3.43 % | 3.50 % |
EBIT (adj.) | 39.5 | 37.8 | 34.6 |
EBIT-% (adj.) | 8.61 % | 7.96 % | 7.04 % |
EPS (adj.) | 0.52 | 0.47 | 0.41 |
Dividend | 0.20 | 0.22 | 0.24 |
Dividend % | 3.94 % | 8.49 % | 9.27 % |
P/E (adj.) | 9.69 | 5.55 | 6.34 |
EV/EBITDA | 5.49 | 2.83 | 2.64 |