Rapala: Big fish caught in the net of those with patience
Rapala’s H2’21 fell clearly short of our high expectations as some key orders were received already in H1’21 as stores ensured availability. 2021 net sales improved by 50% to EUR 32.7 million and thus the company heads into 2022 from a lower earnings level than we expected. However, we still believe in preconditions for continued earnings growth also in the next few years despite the fishing boom slowing down as the journey to reach the full potential of the Rapala brand and the rod & reel category has only started. The valuation is cheap despite our estimate revisions.
Rapala VMC
Rapala VMC is active in recreational fishing. Sales of fishing equipment take place via the company's distribution network and include a number of brands. The product range consists of fishing clothes as well as associated equipment such as fishing rods, metal locks, baits and fishing knives. Operations are conducted worldwide, with the largest presence in Europe and North America. The company is headquartered in Helsinki.
Read more on company pageKey Estimate Figures13.02.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 294.3 | 296.2 | 303.6 |
growth-% | 12.63 % | 0.64 % | 2.50 % |
EBIT (adj.) | 32.7 | 32.7 | 34.0 |
EBIT-% (adj.) | 11.11 % | 11.03 % | 11.21 % |
EPS (adj.) | 0.46 | 0.53 | 0.57 |
Dividend | 0.15 | 0.20 | 0.30 |
Dividend % | 1.72 % | 10.00 % | 15.00 % |
P/E (adj.) | 19.09 | 3.79 | 3.48 |
EV/EBITDA | 9.02 | 3.18 | 2.98 |