Suominen Oyj

Suominen Oyj has a liquidity position that is medium in risk, with a current ratio of 1.39 and a debt-to-equity ratio of 0.81, indicating moderate leverage. The company reported negative net cash after subtracting total debt, which raises concerns about its short-term liquidity. Despite this, the company generated free cash flow of 862,000 EUR, which may provide some flexibility in managing its obligations.

The company's profitability is weak, with a return on equity of -0.8% and a return on assets of -0.32%, both significantly below the industry median for Textiles & Leather Goods. Operating income was only 99,000 EUR, and the company reported a net loss of 1,004,000 EUR, indicating a challenging operating environment. Gross profit of 8,143,000 EUR suggests some margin resilience, but it is insufficient to offset the broader cost pressures.

Suominen's revenue is concentrated in undisclosed segments, and the company does not provide detailed geographic breakdowns in the latest financial data. This lack of transparency makes it difficult to assess the geographic and segment-specific risks and opportunities. The company's exposure to cyclical demand in the automotive and construction sectors may amplify its vulnerability to macroeconomic shifts.

Looking ahead, Suominen is expected to face continued pressure, with no clear signs of improvement in the near term. The company's operating cash flow was negative at -2,228,000 EUR, and capital expenditures of -2,708,000 EUR suggest ongoing investment in operations. Analysts have not issued any strong buy or buy recommendations, with a mean recommendation of 4.00, indicating a neutral to bearish outlook.

The company's risk profile is elevated due to its weak profitability and liquidity position. The risk assessment highlights a key flag: net cash is negative after subtracting total debt, which could lead to liquidity stress if cash flow does not improve. The dilution risk is currently low, with no near-term pressure from share issuance or other dilutive events.

Recent filings and transcripts do not provide additional insights into the company's strategic direction or operational performance. The lack of analyst activity and the uniform price target of 1.10 EUR suggest limited investor interest and a lack of consensus on the company's future.

Operating margin improved to 0.09% in FY2025, signaling a potential stabilization of profitability trends after recent declines.

Debt-to-equity ratio of 0.81 is below the cohort median of 0.43, indicating relatively lower leverage compared to peers.

Cash conversion ratio of 2.22 exceeds the cohort median of 0.98, suggesting superior efficiency in generating cash from operations.

Analysts assign a mean price target of EUR 1.10, implying a 7.8% upside from the current market price of EUR 1.02.

Long-term debt decreased from EUR 149.1 million in FY2022 to EUR 101.8 million in FY2025, showing a trend of deleveraging.

Net margin of -0.88% places the company in the bottom quartile of the Textiles & Leather Goods cohort.

Return on equity of -0.8% ranks in the bottom quartile of the cohort, reflecting poor capital efficiency.

The company faces high credit risk and medium liquidity risk, posing significant financial stability concerns for investors.

Revenue €95.3M, −19,6% YoY; Operating income −472,1% YoY.

• ▍Revenue €95.3M, −19,6% YoY
• ▍Operating income −472,1% YoY
• ▍Net income −563,3% YoY
• ▍Free cash flow −4 659,3% YoY
• ▍Net margin -4.1%

Revenue €99.8M, −10,6% YoY; Operating income +44,9% YoY.

• ▍Revenue €99.8M, −10,6% YoY
• ▍Operating income +44,9% YoY
• ▍Net income +37,8% YoY
• ▍Free cash flow −143,6% YoY
• ▍Net margin -2.0%

Revenue €99.8M, −15,9% YoY; Operating income −96,3% YoY.

• ▍Revenue €99.8M, −15,9% YoY
• ▍Operating income −96,3% YoY
• ▍Net income −106,1% YoY
• ▍Free cash flow −10,5% YoY
• ▍Net margin -4.0%

Revenue €117.5M, +3,5% YoY; Operating income −394,9% YoY.

• ▍Revenue €117.5M, +3,5% YoY
• ▍Operating income −394,9% YoY
• ▍Net income −116,3% YoY
• ▍Free cash flow −445,0% YoY
• ▍Net margin -1.8%

Revenue €118.5M; Operating income €869.0k.

• ▍Revenue €118.5M
• ▍Operating income €869.0k
• ▍Net margin 0.7%

Revenue €111.6M; Operating income -€1.4M.

• ▍Revenue €111.6M
• ▍Operating income -€1.4M
• ▍Net margin -2.9%

Revenue €118.7M; Operating income -€816.0k.

• ▍Revenue €118.7M
• ▍Operating income -€816.0k
• ▍Net margin -1.6%

Revenue €113.6M; Operating income €99.0k.

• ▍Revenue €113.6M
• ▍Operating income €99.0k
• ▍Net margin -0.9%

Revenue €412.4M, −10,8% YoY; Operating income −369,7% YoY.

• ▍Revenue €412.4M, −10,8% YoY
• ▍Operating income −369,7% YoY
• ▍Net income −128,2% YoY
• ▍Free cash flow −197,4% YoY
• ▍Net margin -2.9%

Revenue €462.3M, +2,5% YoY; Operating income +83,3% YoY.

• ▍Revenue €462.3M, +2,5% YoY
• ▍Operating income +83,3% YoY
• ▍Net income +58,6% YoY
• ▍Free cash flow +36,5% YoY
• ▍Net margin -1.1%

Revenue €450.9M, −8,6% YoY; Operating income +16,1% YoY.

• ▍Revenue €450.9M, −8,6% YoY
• ▍Operating income +16,1% YoY
• ▍Net income +7,8% YoY
• ▍Free cash flow +29,6% YoY
• ▍Net margin -2.8%

Revenue €493.3M, +11,3% YoY; Operating income −133,2% YoY.

• ▍Revenue €493.3M, +11,3% YoY
• ▍Operating income −133,2% YoY
• ▍Net income −166,9% YoY
• ▍Free cash flow −234,4% YoY
• ▍Net margin -2.8%