Scanfil Oyj

Scanfil maintains a conservative capital structure with a debt-to-equity ratio of 0.26, indicating a relatively low reliance on debt financing. The company holds 40.2 million euros in cash and equivalents, but after subtracting long-term debt of 69.5 million euros, the net cash position is negative. This suggests a potential liquidity risk, as the company's cash reserves are insufficient to cover its long-term obligations.

Profitability metrics show a return on equity (ROE) of 4.01% and a return on assets (ROA) of 2.13%, both below the industry median for electronic equipment and parts. The company's operating margin is 7.11% (13.9 million EUR operating income on 195.5 million EUR revenue), which is modest compared to peers. The net profit margin of 5.57% (10.9 million EUR net income) reflects a relatively efficient cost structure, but the low ROE suggests limited leverage of equity capital.

Scanfil's revenue is concentrated in a few key markets, with the defense and security sectors representing the majority of its business. The company operates primarily in Europe, with a significant portion of its revenue derived from Finland and other Nordic countries. This geographic concentration may expose the company to regional economic and political risks.

Looking ahead, Scanfil is expected to maintain a stable revenue trajectory, with no significant growth or contraction projected in the next fiscal year. The company's capital expenditures have been modest, with a negative 8.1 million EUR in the latest period, suggesting a focus on cost control rather than expansion. The company's free cash flow of 13.0 million EUR provides some flexibility for dividends or strategic investments.

The company faces moderate liquidity risk due to its negative net cash position and a current ratio of 1.86, which is slightly above the industry median. While the risk of dilution is currently low, the company has not issued new shares in the recent period, and there is no indication of imminent share buybacks or dividends. The risk assessment highlights the need for continued monitoring of the company's cash flow and debt management.

Recent filings and transcripts indicate that Scanfil is focused on maintaining operational efficiency and expanding its product portfolio in the defense and security markets. The company has not disclosed any major new projects or acquisitions in the latest period, but it has emphasized the importance of innovation and customer satisfaction in its strategic outlook.

Cash conversion ratio of 4.3 is best-in-class, vastly outperforming the 1.04 cohort median and demonstrating exceptional cash generation efficiency.

Net income CAGR of 8.3% over four years demonstrates consistent earnings growth, outpacing the 3.5% revenue growth rate.

Return on equity of 4.0% beats the 2.4% cohort median, reflecting efficient use of shareholder capital compared to peers.

Free cash flow grew 18.9% year-over-year to EUR 34.6 million, highlighting strong liquidity generation despite modest revenue growth.

Revenue growth slowed to just 2.2% year-over-year, suggesting limited top-line expansion momentum in the current fiscal period.

Medium liquidity risk flags indicate potential challenges in trading volume or market depth, which could impact price stability.

Long-term debt increased to EUR 88.0 million in FY0, reversing the reduction seen in FY2 and adding leverage pressure.

Medium credit risk flags suggest potential concerns regarding the company's ability to meet its financial obligations under stress.

Revenue €229.1M, +18,9% YoY; Operating income +19,3% YoY.

• ▍Revenue €229.1M, +18,9% YoY
• ▍Operating income +19,3% YoY
• ▍Net income +18,1% YoY
• ▍Free cash flow +13,4% YoY
• ▍Net margin 4.3%

Revenue €211.0M, −0,6% YoY; Operating income +19,9% YoY.

• ▍Revenue €211.0M, −0,6% YoY
• ▍Operating income +19,9% YoY
• ▍Net income +40,0% YoY
• ▍Free cash flow +29,8% YoY
• ▍Net margin 6.1%

Revenue €191.3M, +10,4% YoY; Operating income +4,1% YoY.

• ▍Revenue €191.3M, +10,4% YoY
• ▍Operating income +4,1% YoY
• ▍Net income +4,5% YoY
• ▍Free cash flow +14,8% YoY
• ▍Net margin 4.8%

Revenue €202.2M, +3,4% YoY; Operating income −4,3% YoY.

• ▍Revenue €202.2M, +3,4% YoY
• ▍Operating income −4,3% YoY
• ▍Net income −3,7% YoY
• ▍Free cash flow −13,8% YoY
• ▍Net margin 5.2%

Revenue €192.6M; Operating income €11.9M.

• ▍Revenue €192.6M
• ▍Operating income €11.9M
• ▍Net margin 4.3%

Revenue €212.2M; Operating income €13.8M.

• ▍Revenue €212.2M
• ▍Operating income €13.8M
• ▍Net margin 4.3%

Revenue €173.3M; Operating income €12.1M.

• ▍Revenue €173.3M
• ▍Operating income €12.1M
• ▍Net margin 5.1%

Revenue €195.5M; Operating income €13.9M.

• ▍Revenue €195.5M
• ▍Operating income €13.9M
• ▍Net margin 5.6%

Revenue €797.1M, +2,2% YoY; Operating income +3,3% YoY.

• ▍Revenue €797.1M, +2,2% YoY
• ▍Operating income +3,3% YoY
• ▍Net income +5,9% YoY
• ▍Free cash flow +18,9% YoY
• ▍Net margin 5.1%

Revenue €779.9M, −13,5% YoY; Operating income −14,2% YoY.

• ▍Revenue €779.9M, −13,5% YoY
• ▍Operating income −14,2% YoY
• ▍Net income −19,9% YoY
• ▍Free cash flow −7,8% YoY
• ▍Net margin 5.0%

Revenue €901.6M, +6,8% YoY; Operating income +35,1% YoY.

• ▍Revenue €901.6M, +6,8% YoY
• ▍Operating income +35,1% YoY
• ▍Net income +37,6% YoY
• ▍Free cash flow +48,7% YoY
• ▍Net margin 5.3%

Revenue €843.8M, +21,3% YoY; Operating income +14,7% YoY.

• ▍Revenue €843.8M, +21,3% YoY
• ▍Operating income +14,7% YoY
• ▍Net income +17,8% YoY
• ▍Free cash flow −0,2% YoY
• ▍Net margin 4.2%