Rankings Machinery & automation Valmet

Valmet

Machinery & automation · FinlandRank 349 of 829Prices 3 Nov 2026Model 1.4

A good business with a real question mark: the price, a crack, or both.

Biggest deductions

  • Order decline−5
  • Quality of growth−3
  • Margin−3

Strengths

  • Cost savings+1

How the score is built

From 100 to 65, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start
65Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price
28.96 EUR
Median analyst target
32.50 EUR
Upside to median
+12.2%
Analysts
6
Target range
28.00 – 36.50 EUR
52-week change
+4%
P/E (trailing)
18.8
Forward P/E
13.1
PEG
3.28

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 4 findings
−11 of −30
  • Quality of growth
    Revenue has fallen from EUR 5.53bn (2023) to 5.33bn (TTM), and 2026 guidance is flat revenue vs 2025 (5.20bn).
    −3
  • Margin
    Comparable EBITA margin 11.5% in Q2 (unchanged), operating margin 10.1% and net margin only 5.6% (TTM); gross margin 27%. The net margin has fallen from 7.5% in 2021.
    −3
  • ROIC and the Neles merger
    ROIC has halved from 24% (2021) to 11.4% (TTM) after the merger with Neles, which diluted shareholders (17.5% in 2022) and turned net cash of EUR 88m into net debt of 960m.
    −3
  • Future segment
    Demand for traditional paper is in structural decline, and the service business within biomaterials is expected to remain weak in the coming quarters. A large part of Valmet's customer base is shrinking.
    −2

Price

Today's multiples against the company's own history and its peers. · 2 findings
−4 of −35
  • Multiples vs own history
    Forward P/E 15.2 vs 10.0–18.2 in 2021–2025, EV/EBITDA 8.3 vs 8.0–11.5 and P/B 2.0 vs 1.6–4.2 – mid to low in the range, but on falling orders.
    −2
  • FCF yield
    P/FCF 15.7 (TTM) vs 9.1–10.5 in 2024–2025. FCF has fallen to EUR 324m (TTM) from 496m in 2025, and analysts expect only 327m in 2026 (FCF yield approx. 6.5%).
    −2

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings
−9 of −35
  • Order decline
    Order intake fell 10% in Q2 2026 and 14% in H1 (organic −12%), driven by fewer capital projects. Orders in Q4 2025 were almost halved, and customers are postponing investments.
    −5
  • Debt
    Net debt EUR 960m, debt/EBITDA 2.2x and Altman Z-score 2.04; the dividend corresponds to 77% of FCF and 83% of net profit.
    −2
  • Management change
    CFO Katri Hokkanen left the company at the end of September 2026; there is an interim CFO in October, and the new CFO starts on 1 November.
    −1
  • Macro and visibility
    The company itself says that geopolitical and economic uncertainty is high and reduces short-term visibility, and that the market for Process Performance Solutions is growing only slowly.
    −1

Plus

Only documented strengths. · 1 finding
+1 of +15
  • Cost savings
    Comparable EBITA rose 6% in Q2 to EUR 152m despite falling orders, helped by savings from the renewal of the operating model.
    +1

Caveats

What the score does not capture, or where the data is weak.
Treated as cyclical: orders for capital projects follow the investment cycle in the pulp and paper industry (similar to chip equipment for semiconductors), although service and automation dampen the swings. The merger with Neles in 2022 makes historical ROIC and share figures less comparable. Only 6 analysts. Not examined: insider trades, competition from Andritz and Chinese suppliers, and customer concentration on large projects.

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