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Wartsila Corp WRT1V

Morningstar Rating
€12.35 +0.11 (0.86%)
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Company Report

Wartsila Earnings: Rebound in Order Intake Persists in Late 2023; 19% FVE Lift on Analyst Transfer

Wartsila’s order intake remains robust in late 2023, with new orders in the third quarter rising 11% year on year, supporting earnings growth in 2024. Order intake in the marine power segment was particularly strong as demand from the cruise segment continued to rebound from the impact of the pandemic. We raise our fair value estimate by 19% to EUR 11, reflecting both a change of analyst and Wartsila’s strong order intake in late 2023. Shares in Wartsila trade at a slim 4% premium to our revised fair value estimate.

Price vs Fair Value

WRT1V is trading at a 11% premium.
Price
€12.24
Fair Value
€99.00
Uncertainty
High
1-Star Price
€16.55
5-Star Price
€8.90
Economic Moat
Lcfp
Capital Allocation
Fxmsdnjv

Bulls Say, Bears Say

Bulls

Wartsila’s marine aftermarket business is bouncing back after being hit hard during the coronavirus pandemic.

Bears

New shipbuilding activity has been subdued in recent times by inflated shipbuilding costs and a lack of clarity as to which zero-emission fuels will prove to be commercially viable.

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Trading Information

Previous Close Price
€12.24
Day Range
€12.1412.37
52-Week Range
€7.7212.37
Bid/Ask
€12.36 / €12.37
Market Cap
€7.27 Bil
Volume/Avg
648,502 / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
25.15
Price/Sales
1.19
Dividend Yield
2.12%
Dividend Yield (Forward)
2.12%
Total Yield
2.12%

Company Profile

Wartsila is a global manufacturer of critical equipment and services for the marine and energy markets with operations in over 70 countries. Approximately one half of the group’s sales are derived from the sale of services and spare parts through its network of 258 sales and service network locations. Wartsila is listed on the Nasdaq Helsinki exchange in Finland. Approximately 1 in 3 oceangoing vessels has a Wartsila solution on board, translating into an installed base of over 50,000 vessels and 10,000 customers.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Mid Growth
Total Number of Employees
17,696

Competitors

Valuation

Metric
WRT1V
ALFA
CAT
Price/Earnings (Normalized)
25.1520.9512.47
Price/Book Value
3.404.366.15
Price/Sales
1.192.591.92
Price/Cash Flow
21.7618.6110.27
Price/Earnings
WRT1V
ALFA
CAT

Financial Strength

Metric
WRT1V
ALFA
CAT
Quick Ratio
0.760.750.76
Current Ratio
1.211.241.45
Interest Coverage
8.1821.8423.92
Quick Ratio
WRT1V
ALFA
CAT

Profitability

Metric
WRT1V
ALFA
CAT
Return on Assets (Normalized)
4.58%7.66%12.24%
Return on Equity (Normalized)
14.69%17.98%58.01%
Return on Invested Capital (Normalized)
10.98%12.26%18.87%
Return on Assets
WRT1V
ALFA
CAT

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