Orthex Oyj

Orthex Oyj maintains a market capitalization of EUR 76.72 million and a price-to-earnings ratio of 49.08, indicating a relatively high valuation compared to its earnings. The company's price-to-book ratio of 2.2 suggests that the market values the company at twice its book value, which is a common multiple in the chemicals industry. The enterprise value to EBITDA ratio of 33.59 is significantly higher than the typical range for commodity chemicals, indicating that the company is trading at a premium relative to its operating performance.

In terms of profitability, Orthex reports a return on equity of 4.48% and a return on assets of 1.83%, both of which are below the industry median for commodity chemicals. The company's operating margin is 12.54% (calculated as operating income of EUR 2.76 million divided by revenue of EUR 22.01 million), which is also below the industry average. This suggests that Orthex is underperforming its peers in terms of generating returns from its equity and assets.

Orthex's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. The company's exposure to a single segment increases its vulnerability to market fluctuations in the chemicals industry. There is no information available on geographic revenue distribution, which limits the ability to assess regional risk exposure.

Looking at the company's growth trajectory, there is no specific outlook provided for the current or next fiscal year. However, the company's free cash flow of EUR 1.58 million and operating cash flow of EUR 4.07 million indicate a positive cash flow position, which supports operational flexibility. The capital expenditure of EUR -1.04 million suggests that the company is not currently investing heavily in new projects or infrastructure.

The risk assessment for Orthex highlights a medium liquidity risk and a low dilution risk. The company's debt-to-equity ratio of 0.86 indicates a moderate level of leverage, and the current ratio of 2.06 suggests that it has sufficient short-term assets to cover its short-term liabilities. However, the note that net cash is negative after subtracting total debt raises concerns about the company's liquidity position.

Recent events and disclosures for Orthex include analyst estimates that suggest a mean price target of EUR 5.30, with a median of EUR 5.30 and a range from EUR 5.00 to EUR 5.60. The mean recommendation from analysts is 2.67, indicating a generally positive outlook, with one strong-buy and one hold recommendation.

Free cash flow surged nearly 100% year-over-year to EUR 5.1 million, demonstrating strong cash generation capabilities.

Analysts project 21.8% upside to a mean price target of EUR 5.30, suggesting undervaluation relative to current market price.

Cash conversion ratio of 2.61 ranks in the top quartile, outperforming the 1.1 cohort median significantly.

Long-term debt decreased steadily from EUR 35.5 million in 2022 to EUR 24.5 million in 2026, reducing leverage.

The company faces high credit risk, posing a significant threat to financial stability and potential borrowing costs.

Debt-to-equity ratio of 0.86 places Orthex in the bottom quartile, indicating excessive leverage compared to peers.

Revenue declined 2.8% year-over-year to EUR 87.2 million, reflecting a contraction in top-line growth.

Medium liquidity risk flags potential difficulties in meeting short-term obligations or managing cash flow volatility.

Return on equity of 4.5% remains modest, suggesting limited efficiency in generating profits from shareholder capital.

Revenue €22.3M, −6,6% YoY; Operating income +10,1% YoY.

• ▍Revenue €22.3M, −6,6% YoY
• ▍Operating income +10,1% YoY
• ▍Net income +18,7% YoY
• ▍Free cash flow +7 600,0% YoY
• ▍Net margin 9.7%

Revenue €23.4M, +2,5% YoY; Operating income +19,5% YoY.

• ▍Revenue €23.4M, +2,5% YoY
• ▍Operating income +19,5% YoY
• ▍Net income +34,5% YoY
• ▍Free cash flow +92,0% YoY
• ▍Net margin 10.4%

Revenue €20.5M, −2,3% YoY; Operating income +10,9% YoY.

• ▍Revenue €20.5M, −2,3% YoY
• ▍Operating income +10,9% YoY
• ▍Net income −3,5% YoY
• ▍Free cash flow +70,1% YoY
• ▍Net margin 4.4%

Revenue €21.0M, −4,7% YoY; Operating income −37,8% YoY.

• ▍Revenue €21.0M, −4,7% YoY
• ▍Operating income −37,8% YoY
• ▍Net income −16,8% YoY
• ▍Free cash flow +13,9% YoY
• ▍Net margin 6.2%

Revenue €23.9M; Operating income €2.7M.

• ▍Revenue €23.9M
• ▍Operating income €2.7M
• ▍Net margin 7.6%

Revenue €22.8M; Operating income €2.8M.

• ▍Revenue €22.8M
• ▍Operating income €2.8M
• ▍Net margin 7.9%

Revenue €21.0M; Operating income €1.6M.

• ▍Revenue €21.0M
• ▍Operating income €1.6M
• ▍Net margin 4.4%

Revenue €22.0M; Operating income €2.8M.

• ▍Revenue €22.0M
• ▍Operating income €2.8M
• ▍Net margin 7.1%

Revenue €87.2M, −2,8% YoY; Operating income −0,5% YoY.

• ▍Revenue €87.2M, −2,8% YoY
• ▍Operating income −0,5% YoY
• ▍Net income +10,9% YoY
• ▍Free cash flow +99,9% YoY
• ▍Net margin 7.8%

Revenue €89.7M, +4,4% YoY; Operating income −8,5% YoY.

• ▍Revenue €89.7M, +4,4% YoY
• ▍Operating income −8,5% YoY
• ▍Net income −11,3% YoY
• ▍Free cash flow −60,7% YoY
• ▍Net margin 6.8%

Revenue €85.9M, +2,3% YoY; Operating income +107,1% YoY.

• ▍Revenue €85.9M, +2,3% YoY
• ▍Operating income +107,1% YoY
• ▍Net income +224,9% YoY
• ▍Free cash flow +156,2% YoY
• ▍Net margin 8.0%

Revenue €84.0M, −5,2% YoY; Operating income −43,9% YoY.

• ▍Revenue €84.0M, −5,2% YoY
• ▍Operating income −43,9% YoY
• ▍Net income −64,9% YoY
• ▍Free cash flow −51,4% YoY
• ▍Net margin 2.5%