# Valmet Oyj (VALMT.HE)

Canonical: https://gigainvestors.com/s/VALMT.HE

Analysis as of: 2026-10-16T07:37:15.991Z. Financial observations: FY2010–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 26.78 per share; close as of 2026-10-15.

Estimated value: low EUR 25.64 per share, central EUR 28.80 per share, high EUR 32.99 per share. Buy at or below the central value EUR 28.80 per share. Valuation as of 2026-10-16T07:37:15.991Z; scenarios are not confidence intervals.

Expected annual return: 10.6% at the stated quote. About 10.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; FI 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.06×

- FY2018: 0.06×

- FY2019: 0.08×

- FY2020: 0.09×

- FY2021: 0.10×

- FY2022: 0.09×

- FY2023: 0.08×

- FY2024: 0.08×

- FY2025: 0.10×

### moat: pass

- ROIC, median of available years: 35.6%

- ROIC, second-lowest year: 19.1%

- Typical minus recent gross margin: -2.4 pp

- Typical gross margin (annual median): 24.1%

- Recent gross margin (lower of latest and 3-year median): 26.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.2%

- ROIC including acquisitions, ten-year median: 14.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 29.3%

- FY2017: 58.8%

- FY2018: >100%

- FY2019: 80.2%

- FY2020: 41.9%

- FY2021: 58.9%

- FY2022: 24.7%

- FY2023: 19.1%

- FY2024: 18.0%

- FY2025: 23.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.18×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 1.8B

- Net income, five-year total: EUR 1.5B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -1.1 pp

- Working capital / revenue, final three-year average: 32.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.04×

- FY2022: 1.21×

- FY2023: 1.12×

- FY2024: 1.29×

- FY2025: 1.25×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 58.8% vs 19.1%

- Per-share earnings: 0.55 to 1.51 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.1%

- Ordinary dilution, 5-year annual growth: 4.2%

- Market cap gain: EUR 3.1B

- Cumulative retained earnings: EUR 802M

- Diluted shares, 10-year annual growth: 2.1%

- Diluted shares, 5-year annual growth: 4.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.6%

- Per-share value change: EUR 0.97

- Per-share value, starting three-year median: EUR 0.55

- Per-share value, ending three-year median: EUR 1.51

- Buybacks concentrated in cheaper years (correlation): 0.36

- Average buyback yield: 0.1%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: EUR 2.1B

- Cumulative net income, 10 years: EUR 2.3B

- ROIC, first three-year median: 58.8%

- ROIC, last three-year median: 19.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 0.55

- FY2017: EUR 0.85

- FY2018: EUR 1.00

- FY2019: EUR 1.34

- FY2020: EUR 1.54

- FY2021: EUR 1.97

- FY2022: EUR 1.83

- FY2023: EUR 1.94

- FY2024: EUR 1.51

- FY2025: EUR 1.51

### accounting: pass

- Sloan accruals: -4.6%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.08×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.10×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.5%

- FY2017: -5.5%

- FY2018: -4.4%

- FY2019: -2.7%

- FY2020: -7.6%

- FY2021: -4.2%

- FY2022: 4.8%

- FY2023: 0.1%

- FY2024: -4.0%

- FY2025: -4.6%

## Holders

## Price story

Down 29% since Dec 2021 · sales -3%

Story as of 2026-10-16T10:00:08.909Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.1% a year for ten years

### Sales · FY2024–2025

sales -3%; source https://filings.xbrl.org/213800D9O7FUQDH83V62/2025-12-31/ESEF/FI/0/213800D9O7FUQDH83V62-2025-12-31-fi/reports/213800D9O7FUQDH83V62-2025-12-31-fi.xhtml; observed 2026-03-04.

- FY2016: EUR 2.9B 

- FY2017: EUR 3.2B 

- FY2018: EUR 3.3B 

- FY2019: EUR 3.5B 

- FY2020: EUR 3.7B 

- FY2021: EUR 3.9B 

- FY2022: EUR 5.1B 

- FY2023: EUR 5.5B 

- FY2024: EUR 5.4B 

- FY2025: EUR 5.2B 

### Gross margin · FY2025

gross margin 26.5%; source https://filings.xbrl.org/213800D9O7FUQDH83V62/2025-12-31/ESEF/FI/0/213800D9O7FUQDH83V62-2025-12-31-fi/reports/213800D9O7FUQDH83V62-2025-12-31-fi.xhtml; observed 2026-03-04.

- FY2016: 22.8% 

- FY2017: 22.3% 

- FY2018: 23.0% 

- FY2019: 24.2% 

- FY2020: 24.0% 

- FY2021: 25.2% 

- FY2022: 24.0% 

- FY2023: 25.2% 

- FY2024: 27.6% 

- FY2025: 26.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are EUR 5.2 billion.

- Source: https://filings.xbrl.org/213800D9O7FUQDH83V62/2025-12-31/ESEF/FI/0/213800D9O7FUQDH83V62-2025-12-31-fi/reports/213800D9O7FUQDH83V62-2025-12-31-fi.xhtml (filed 2026-03-04); FY2025: revenue 5197000000; grossProfit 1376000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VALMT.HE: Valmet Oyj develops and supplies process technologies, automation, and services for the pulp, paper, and energy industries in North America, Latin America, EMEA, China, and Asia-Pacific. It operates through two segments: Process Performance Solutions and Biomaterial Solutions and Services. The Process Performance Solutions segment delivers flow control technologies and automation systems, ranging from individual measurements to full plant-wide solutions. The Biomaterial Solutions and Services segment serves global producers in the pulp, paper, packaging, tissue, and bioenergy industries, providing complete production lines, key process islands; and a full range of lifecycle services, enabling improvements in fiber yield, energy and water efficiency, emissions, and operational uptime. It offers automation systems, distributed control systems, industrial applications, analyzers and measurements, industrial internet solutions, automation services, valves, pumps, and valve automation soultions. The company also provides technologies for pulp, energy, circularity, packaging, paper, and tissue, including rebuilds, upgrades, conversions, and maintenance services. In addition, the company develops digital solutions for remote or on-site monitoring and predictive maintenance. It serves pulp, board and paper, energy and industrial gas, biomaterials and fuel, chemical, and mineral industries. Valmet Oyj was founded in 1750 and is headquartered in Espoo, Finland.

### Why customers stay

Margins ranged from 25.2% to 27.6% during 2023–25; it earns 35.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2023: grossProfit / revenue = 25.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2024: grossProfit / revenue = 27.6%.

- Source: https://filings.xbrl.org/213800D9O7FUQDH83V62/2025-12-31/ESEF/FI/0/213800D9O7FUQDH83V62-2025-12-31-fi/reports/213800D9O7FUQDH83V62-2025-12-31-fi.xhtml (filed 2026-03-04); FY2025: grossProfit / revenue = 26.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); 10-year return on capital observations [[2016,0.2930981595092024],[2017,0.5884297520661157],[2018,1.4485998193315268],[2019,0.8023237734462239],[2020,0.41852153456387986],[2021,0.5885776936110835],[2022,0.24669633022301238],[2023,0.19087026860254497],[2024,0.18006069815771497],[2025,0.23409303147320867]]; median 0.35580984703654117. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 24% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/213800D9O7FUQDH83V62/2025-12-31/ESEF/FI/0/213800D9O7FUQDH83V62-2025-12-31-fi/reports/213800D9O7FUQDH83V62-2025-12-31-fi.xhtml (filed 2026-03-04); Gross margin observations: [[2021,0.25228658536585363],[2022,0.23985021679148602],[2023,0.25234996384671005]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2016: growth capex 0; upkeep 60000000; owner earnings 109000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2017: growth capex 0; upkeep 66000000; owner earnings 142000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2018: growth capex 3000000; upkeep 76000000; owner earnings 152000000. Growth capex / owner earnings = 0.019736842105263157.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2019: growth capex 0; upkeep 79000000; owner earnings 214800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2020: growth capex 0; upkeep 89000000; owner earnings 235600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2021: growth capex 0; upkeep 97000000; owner earnings 307200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2022: growth capex 0; upkeep 112000000; owner earnings 408400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2023: growth capex 0; upkeep 125000000; owner earnings 399800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2024: growth capex 0; upkeep 107000000; owner earnings 360600000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/213800D9O7FUQDH83V62/2025-12-31/ESEF/FI/0/213800D9O7FUQDH83V62-2025-12-31-fi/reports/213800D9O7FUQDH83V62-2025-12-31-fi.xhtml (filed 2026-03-04); FY2025: growth capex 0; upkeep 103000000; owner earnings 349800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); Dividend observations: [[2016,52000000],[2017,63000000],[2018,82000000],[2019,97000000],[2020,120000000],[2021,135000000],[2022,179000000],[2023,239000000],[2024,249000000],[2025,249000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/213800D9O7FUQDH83V62/2025-12-31/ESEF/FI/0/213800D9O7FUQDH83V62-2025-12-31-fi/reports/213800D9O7FUQDH83V62-2025-12-31-fi.xhtml (filed 2026-03-04); FY2025: cash repurchases 3000000 EUR.

### Are managers owners

Insiders own 22.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VALMT.HE SharesStats.PercentInsiders = 22.073 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 0.1% yearly over ten years; actual growth was 8.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); Ten-year compound average after fade. Initial solved rate -0.014337599118642835. Price 26.78; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.8333333333333334 → FY2025 1.898984656659991. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 13.53 per share

- 2016-11: EUR 14.41 per share

- 2016-12: EUR 13.98 per share

- 2017-01: EUR 14.63 per share

- 2017-02: EUR 14.53 per share

- 2017-03: EUR 14.57 per share

- 2017-04: EUR 16.73 per share

- 2017-05: EUR 17.32 per share

- 2017-06: EUR 17.01 per share

- 2017-07: EUR 15.40 per share

- 2017-08: EUR 15.93 per share

- 2017-09: EUR 16.63 per share

- 2017-10: EUR 16.65 per share

- 2017-11: EUR 15.48 per share

- 2017-12: EUR 16.44 per share

- 2018-01: EUR 18.07 per share

- 2018-02: EUR 17.59 per share

- 2018-03: EUR 16.28 per share

- 2018-04: EUR 15.76 per share

- 2018-05: EUR 15.74 per share

- 2018-06: EUR 16.52 per share

- 2018-07: EUR 17.75 per share

- 2018-08: EUR 18.89 per share

- 2018-09: EUR 19.21 per share

- 2018-10: EUR 20.12 per share

- 2018-11: EUR 19.01 per share

- 2018-12: EUR 17.95 per share

- 2019-01: EUR 19.65 per share

- 2019-02: EUR 21.90 per share

- 2019-03: EUR 22.56 per share

- 2019-04: EUR 24.50 per share

- 2019-05: EUR 20.66 per share

- 2019-06: EUR 21.92 per share

- 2019-07: EUR 17.61 per share

- 2019-08: EUR 16.46 per share

- 2019-09: EUR 17.81 per share

- 2019-10: EUR 20.04 per share

- 2019-11: EUR 20.32 per share

- 2019-12: EUR 21.36 per share

- 2020-01: EUR 19.59 per share

- 2020-02: EUR 21.36 per share

- 2020-03: EUR 17.87 per share

- 2020-04: EUR 20.90 per share

- 2020-05: EUR 23.38 per share

- 2020-06: EUR 23.23 per share

- 2020-07: EUR 23.71 per share

- 2020-08: EUR 22.92 per share

- 2020-09: EUR 21.13 per share

- 2020-10: EUR 20.48 per share

- 2020-11: EUR 21.21 per share

- 2020-12: EUR 23.36 per share

- 2021-01: EUR 26.45 per share

- 2021-02: EUR 27.82 per share

- 2021-03: EUR 31.01 per share

- 2021-04: EUR 34.76 per share

- 2021-05: EUR 35.22 per share

- 2021-06: EUR 36.78 per share

- 2021-07: EUR 35.13 per share

- 2021-08: EUR 33.96 per share

- 2021-09: EUR 31.34 per share

- 2021-10: EUR 35.10 per share

- 2021-11: EUR 36.20 per share

- 2021-12: EUR 37.72 per share

- 2022-01: EUR 33.63 per share

- 2022-02: EUR 31.10 per share

- 2022-03: EUR 28.21 per share

- 2022-04: EUR 25.66 per share

- 2022-05: EUR 26.25 per share

- 2022-06: EUR 23.41 per share

- 2022-07: EUR 27.08 per share

- 2022-08: EUR 25.30 per share

- 2022-09: EUR 20.83 per share

- 2022-10: EUR 23.03 per share

- 2022-11: EUR 24.52 per share

- 2022-12: EUR 25.16 per share

- 2023-01: EUR 28.77 per share

- 2023-02: EUR 31.27 per share

- 2023-03: EUR 29.84 per share

- 2023-04: EUR 30.62 per share

- 2023-05: EUR 27.53 per share

- 2023-06: EUR 25.48 per share

- 2023-07: EUR 24.11 per share

- 2023-08: EUR 23.50 per share

- 2023-09: EUR 21.66 per share

- 2023-10: EUR 21.16 per share

- 2023-11: EUR 24.47 per share

- 2023-12: EUR 26.14 per share

- 2024-01: EUR 26.25 per share

- 2024-02: EUR 24.21 per share

- 2024-03: EUR 24.39 per share

- 2024-04: EUR 23.46 per share

- 2024-05: EUR 24.66 per share

- 2024-06: EUR 26.69 per share

- 2024-07: EUR 26.17 per share

- 2024-08: EUR 25.90 per share

- 2024-09: EUR 28.76 per share

- 2024-10: EUR 23.51 per share

- 2024-11: EUR 22.19 per share

- 2024-12: EUR 23.33 per share

- 2025-01: EUR 26.35 per share

- 2025-02: EUR 27.00 per share

- 2025-03: EUR 24.95 per share

- 2025-04: EUR 26.84 per share

- 2025-05: EUR 28.73 per share

- 2025-06: EUR 26.27 per share

- 2025-07: EUR 31.71 per share

- 2025-08: EUR 29.67 per share

- 2025-09: EUR 28.28 per share

- 2025-10: EUR 28.21 per share

- 2025-11: EUR 28.11 per share

- 2025-12: EUR 28.33 per share

- 2026-01: EUR 28.93 per share

- 2026-02: EUR 28.47 per share

- 2026-03: EUR 24.37 per share

- 2026-04: EUR 22.22 per share

- 2026-05: EUR 23.32 per share

- 2026-06: EUR 21.12 per share

- 2026-07: EUR 26.12 per share

- 2026-08: EUR 28.68 per share

- 2026-09: EUR 28.14 per share

- 2026-10: EUR 26.66 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 9.17 per share, central EUR 10.26 per share, high EUR 11.72 per share

- FY2017: low EUR 10.16 per share, central EUR 11.35 per share, high EUR 12.92 per share

- FY2018: low EUR 12.52 per share, central EUR 13.92 per share, high EUR 15.79 per share

- FY2019: low EUR 13.54 per share, central EUR 15.14 per share, high EUR 17.27 per share

- FY2020: low EUR 15.45 per share, central EUR 18.88 per share, high EUR 21.73 per share

- FY2021: low EUR 20.60 per share, central EUR 23.00 per share, high EUR 26.19 per share

- FY2022: low EUR 20.84 per share, central EUR 24.51 per share, high EUR 28.35 per share

- FY2023: low EUR 27.49 per share, central EUR 33.45 per share, high EUR 38.70 per share

- FY2024: low EUR 26.81 per share, central EUR 32.38 per share, high EUR 37.38 per share

- FY2025: low EUR 24.76 per share, central EUR 27.84 per share, high EUR 31.93 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:42:56.101Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800D9O7FUQDH83V62/2025-12-31/ESEF/FI/0/213800D9O7FUQDH83V62-2025-12-31-fi/reports/213800D9O7FUQDH83V62-2025-12-31-fi.xhtml); period 2025-12-31, filed 2026-03-04.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations