Rapala VMC: Meager catch will improve in coming years
Result-wise Rapala's H1 report brought no joy and H2 will also remain very modest. In the longer term, earnings growth has clear steps to continue as the journey to reach the full potential of the Rapala brand and the rod & reel category has only started. We cut our 2022 estimates in particular, but also made slight cuts to our estimates for the next few years, as the strategy has progressed in the background. Especially the longer-term expected return remains attractive in a relatively defensive share. 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 Figures16.07.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 294.3 | 278.5 | 294.2 |
growth-% | 12.63 % | -5.35 % | 5.62 % |
EBIT (adj.) | 32.7 | 16.0 | 27.9 |
EBIT-% (adj.) | 11.11 % | 5.75 % | 9.50 % |
EPS (adj.) | 0.46 | 0.25 | 0.47 |
Dividend | 0.15 | 0.10 | 0.20 |
Dividend % | 1.72 % | 5.00 % | 10.00 % |
P/E (adj.) | 19.09 | 7.85 | 4.29 |
EV/EBITDA | 9.02 | 6.36 | 3.66 |