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
Sanoma is a media group. The group publishes several newspapers and operates several TV channels and radio stations. In addition to the main activities, online services and training platforms are offered within the work area. Sanoma operates mainly in the European market. The company was originally founded in 1889 and is headquartered in Helsinki.
Read more on company pageKey Estimate Figures2022-04-12
| 2021 | 22e | 23e | |
|---|---|---|---|
| Revenue | 1,251.6 | 1,292.6 | 1,334.6 |
| growth-% | 17.88 % | 3.28 % | 3.25 % |
| EBIT (adj.) | 158.2 | 162.9 | 181.2 |
| EBIT-% (adj.) | 12.64 % | 12.61 % | 13.58 % |
| EPS (adj.) | 0.71 | 0.72 | 0.82 |
| Dividend | 0.54 | 0.58 | 0.60 |
| Dividend % | 3.96 % | 7.49 % | 7.75 % |
| P/E (adj.) | 19.08 | 10.73 | 9.41 |
| EV/EBITDA | 8.08 | 4.95 | 4.48 |