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Research

Rapala VMC: Meager catch will improve in coming years

By Inderes
Rapala VMC
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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

5.77EUR15.07.2022, 18.00
6.50EURTarget price
Accumulate
Changed from:Accumulate
Recommendation updated:16.07.2022

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 Figures16.07.2022

202122e23e
Revenue294.3278.5294.2
growth-%12.6 %-5.4 %5.6 %
EBIT (adj.)32.716.027.9
EBIT-% (adj.)11.1 %5.8 %9.5 %
EPS (adj.)0.460.250.47
Dividend0.150.100.20
Dividend %1.7 %8.0 %15.9 %
P/E (adj.)19.14.92.7
EV/EBITDA9.05.22.9
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