Outokumpu OUT1V.HE
FinlandBasic Materials · SteelNasdaq Helsinki · EUR
5.96 EUR (+20.3%)
12 analysts
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Outokumpu Oyj is a Finnish stainless steel producer, with integrated operations ranging from melting and rolling to distribution, selling mainly to industrial customers in Europe and the Americas.
Listed on Nasdaq Helsinki · Symbol OUT1V.HE · HEL: OUT1V · Currency EUR
Key points
from its scores- ✕Little competitive advantage2.5
- ✕Unfavourable risk and backdrop3.9
- ✕Poor share-price trend4.5
AI analysis
bottom line, main risk, context and newsThe valuation looks cheap, but quality and profitability are too weak to justify an entry without a clear improvement in operating margin.
Outokumpu trades at a forward P/E of 10.15 and a P/S of 0.43, but its quality is poor (ROE -2.37%, gross margin 4.74%) and its financial health is mediocre (ND/EBITDA 1.98, operating margin 2.4%). Revenue growth of 6.5% does not offset the structural weakness of the business in an environment of rising European rates and uncertain energy costs.
The main risk is the structurally weak operating margin (2.4%) in an energy-intensive cyclical sector: any spike in European gas prices or ECB rates would squeeze an already very thin result.
Context and risks
Outokumpu is a Finnish steel producer with very weak margins (operating margin of 2.4%) and limited cash conversion. The rising rate environment in Europe (the ECB hiked rates and the market prices another hike) makes refinancing its debt (ND/EBITDA of 1.98) more expensive and pressures an energy-intensive cyclical sector. In addition, the rewritten US tariff regime (Section 301) adds uncertainty to steel trade flows, although the EU has a 15% cap.
Is Outokumpu stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades 127% above the Basic Materials median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 22.6 | 10.0 | +127% |
| Price / book | 0.7 | 2.3 | −70% |
| Price / sales | 0.4 | 2.2 | −81% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 5.96 EUR, +20.3% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 2.5 (sector 5.1), Growth 5.5 (sector 6.8).
Classic formulas with standard assumptions (5.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- Forward P/E
- 10.1
- EV / EBITDA
- 22.6
- Price / book
- 0.7
- Price / sales
- 0.4
- PEG
- 2.18
- Market cap
- 2.3B EUR
- Enterprise value
- 2.6B EUR
Profitability
- ROE
- −2.4%
- ROA
- −0.7%
- ROIC (approx.)
- 3.3%
- Gross margin
- 4.7%
- Operating margin
- 2.4%
- Net margin
- −1.5%
- Free cash flow
- 57.2M EUR
- FCF yield
- 2.5%
- Cash conversion
- 51%
Solvency
- Total debt
- 594.0M EUR
- Net debt
- 224.0M EUR
- Cash
- 370.0M EUR
- EBITDA
- 113.0M EUR
- Net debt / EBITDA
- 1.98
- Debt / equity
- 17.32
- Current ratio
- 1.53
- Quick ratio
- 0.55
Growth
- Revenue growth
- +6.5%
- EPS (TTM)
- −0.17 EUR
- EPS (forward)
- 0.49 EUR
Dividend
- Dividend yield
- 2.8%
- Payout
- 25.5%
Risk and market
- Beta
- 1.47
- Analyst consensus
- Buy (12)
- Target price
- 5.96 EUR
- 52-week range
- 3.53 – 6.23
Recent news
All OUT1V.HE news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about Outokumpu
Is Outokumpu stock cheap or expensive?
On EV / EBITDA, it trades 127% above the Basic Materials median. Valuation score: 5.0 out of 10 (median for Basic Materials: 5.8). Average analyst target: 5.96 EUR, +20.3% versus the price. This is not investment advice.
What score does Outokumpu get on MeridIAn Screener?
It scores 4.5 out of 10, rank 1,881 of 2,130 (better than 11% of the companies analysed). Its strongest category is Dividend (6.4) and its weakest, Quality / Moat (2.5). Analysis of 08/10/2026.
How much is Outokumpu worth on the stock market?
Its market capitalisation is 2.3B EUR and its enterprise value, debt included, is 2.6B EUR.
How much debt does Outokumpu have?
Its net debt (debt minus cash) is 224.0M EUR. That is 1.98 times its EBITDA; the Basic Materials median is 1.41.
Does Outokumpu pay a dividend?
Yes: its dividend yield is 2.83% and it pays out 26% of its earnings.
How has Outokumpu stock performed over the last year?
It has risen 18.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 3.53 and 6.23 EUR. Past performance does not guarantee future results.
What do analysts think of Outokumpu?
12 analysts cover it; their average recommendation is “Buy” and their average target is 5.96 EUR (+20.3% versus the price). It is an estimate, not market data.