A review of some of my Swedish and Finnish stocks using growth rates. As well as a fair price calculation using Rule 1 investing method.
Axfood Current price: 199.10 SEK
Yearly average
10 year
5 year
1 year
ROIC
34%
37%
30%
Sales Growth Rate
4%
5%
1%
EPS Growth Rate
8%
5%
6%
Equity Growth Rate
3%
-3%
-6%
Cash Growth Rate
11%
9%
32%
P/E
6
19.66
Calculated Price
16
52
Margin of Safety (50%)
8
26
Calculated prices based on P/E based on Equity growth rate and average 10 year historic P/E
Cargotec Current price: 19.96 EUR
Yearly average
10 year
5 year
1 year
ROIC
9%
9%
7%
Sales Growth Rate
4%
0%
11%
EPS Growth Rate
2%
-11%
-16%
Equity Growth Rate
3%
2%
0%
Cash Growth Rate
-8%
-10%
-74%
P/E
6
20.75
Calculated Price
3
10
Margin of Safety (50%)
1.5
5
Calculated prices based on P/E based on Equity growth rate and average 10 year historic P/E
Fortum Current price 16.70 EUR
Yearly average
10 year
5 year
1 year
ROIC
12%
10%
10%
Sales Growth Rate
-2%
10%
4%
EPS Growth Rate
2%
-23%
76%
Equity Growth Rate
5%
-2%
10%
Cash Growth Rate
4%
10%
26%
P/E
10
12.1
Calculated Price
7
9
Margin of Safety (50%)
3.5
4.5
Calculated prices based on P/E based on Equity growth rate and average 10 year historic P/E
Nokian Tyres Current price: 20.54 EUR
Yearly average
10 year
5 year
1 year
ROIC
22%
21%
23%
Sales Growth Rate
5%
4%
0%
EPS Growth Rate
9%
13%
34%
Equity Growth Rate
6%
8%
18%
Cash Growth Rate
-4%
-6%
-59%
P/E
12
16.31
Calculated Price
16
21
Margin of Safety (50%)
8
10.5
Calculated prices based on P/E based on Equity growth rate and average 10 year historic P/E
Valmet Current price: 23.19 EUR
Yearly average
8 year
5 year
1 year
ROIC
12%
16%
23%
Sales Growth Rate
2%
5%
7%
EPS Growth Rate
15%
28%
34%
Equity Growth Rate
4%
5%
10%
Cash Growth Rate
131%
39%
4%
P/E
4
21.66
Calculated Price
2
11
Margin of Safety (50%
1
5.5
Calculated prices based on P/E based on Equity growth rate and average 10 year historic P/E
If the numbers are correct they suggest that the stocks are overvalued. They also indicate that some growth rates could be better.
I have starter positions in each. I will sell them once the markets opens. I’m not willing to hold them for 10 years or add to them. They could be good dividend stocks but I will wait for a better valuations and do some more research.