Rapala VMC: Hooked on turnaround
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
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 Figures11.04.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 294.3 | 291.7 | 298.9 |
growth-% | 12.63 % | -0.89 % | 2.46 % |
EBIT (adj.) | 32.7 | 30.5 | 32.5 |
EBIT-% (adj.) | 11.11 % | 10.44 % | 10.87 % |
EPS (adj.) | 0.46 | 0.49 | 0.55 |
Dividend | 0.15 | 0.20 | 0.30 |
Dividend % | 1.72 % | 10.00 % | 15.00 % |
P/E (adj.) | 19.09 | 4.11 | 3.67 |
EV/EBITDA | 9.02 | 3.36 | 3.11 |