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Extensive research

Rapala VMC: Hooked on turnaround

By Olli VilppoAnalyst
Rapala VMC
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Rapala's earnings growth has all preconditions to continue 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. We lowered our estimates slightly after cutting them clearly for the Russian market, whose importance has been rather limited for Rapala in recent years. These changes slow down 2022 earnings growth, but the expected return remains attractive (20% p.a.) relative to the moderate risk profile especially in the longer-term. The acquisition option also provides support for Rapala’s valuation.

Rapala VMC

7.3EUR11.04.2022, 18.00
8.20EURTarget price
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Recommendation updated:11.04.2022

Rapala VMC is a company focused on sport fishing products. The sale of fishing equipment takes place through the company’s distribution network and includes several brands. The product range includes lures as well as related gear such as rods, reels, hooks, and fishing knives. The company operateCorporations globally, with its largest markets in Europe and North America. The company’s headquarters is located in Helsinki, Finland

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Key Estimate Figures11.04.2022

202122e23e
Revenue294.3291.7298.9
growth-%12.6 %-0.9 %2.5 %
EBIT (adj.)32.730.532.5
EBIT-% (adj.)11.1 %10.4 %10.9 %
EPS (adj.)0.460.490.55
Dividend0.150.200.30
Dividend %1.7 %15.9 %23.9 %
P/E (adj.)19.12.62.3
EV/EBITDA9.02.72.4
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