Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Established in 1942 and based in Outokumpu, Finland, Piippo Oyj is a manufacturer providing a diverse range of products. The company primarily caters to Finnish farmers, supplying crucial baling solutions such as various net wraps, including their advanced hybrid edge master, alongside different baling twines suitable for round, conventional, and large square applications. Their agricultural offerings also encompass baling films. Beyond the farming sector, Piippo manufactures B2B industrial components like cable fillers and armouring yarns. Furthermore, they produce an extensive selection of consumer goods, ranging from synthetic and natural ropes and twines (including decorative, railing, towing, starting, and binding strap varieties) to household items and specific "rolleri" products.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is undervalued on P/FCF.