Huhtamaki: Bargain binned share stays in shopping cart
We reiterate our EUR 39.00 target price and Buy recommendation for Huhtamaki. Huhtamaki’s Q2 report was weaker than we and the market expected due to problems focusing on the Flexible Packaging division, but estimate changes are minor. Huhtamaki is valued clearly below its long-term average levels. Thus, we feel that the earnings growth we expect from the company next year, good 3% dividend yield and the upside in the valuation offer a clearly higher expected return than the required return, especially in the medium term. However, the share does not necessarily have fast growth drivers before a more concrete market pick up.
Huhtamäki
Huhtamäki is a manufacturing company. The company conducts operations in the packaging industry. The company's packaging is used for food products and includes fiber packaging, cartons, copper and other containers. The products are mainly delivered to customers in the food industry on a global level, mainly in Europe, South America and Asia. The company's head office is located in Espoo, Finland.
Read more on company pageKey Estimate Figures2023-07-20
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 4,479.0 | 4,252.9 | 4,406.0 |
growth-% | 25.29 % | -5.05 % | 3.60 % |
EBIT (adj.) | 395.1 | 366.7 | 400.0 |
EBIT-% (adj.) | 8.82 % | 8.62 % | 9.08 % |
EPS (adj.) | 2.49 | 2.12 | 2.34 |
Dividend | 1.00 | 1.02 | 1.05 |
Dividend % | 3.13 % | 3.08 % | 3.17 % |
P/E (adj.) | 12.86 | 15.59 | 14.12 |
EV/EBITDA | 7.83 | 8.68 | 7.72 |