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1. Company Snapshot

1.a. Company Description

Incap Oyj, together with its subsidiaries, provides electronics manufacturing services in Europe, North America, and Asia.The company produces inverters, UPS devices and printed circuit board (PCBs) for fuel dispensers and sustainable energy products.It also offers PCB assembly, mass production, final assembly, design, and production of prototypes, as well as design for manufacturing feedback, testing, magnetic assemblies, and cable harnesses.


In addition, the company manufactures electronics and box-build products, as well as specializes in volume production, prototypes, and pre-series products.The company serves industrial customers such as automation, power generation, and telecommunications industries.Incap Oyj was incorporated in 1985 and is headquartered in Helsinki, Finland.

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1.b. Last Insights on ICP1V

Incap Oyj's recent performance was negatively impacted by the global market volatility following the "red sweep" in the U.S. elections, which led to a decline in investor optimism. The company's strong Q3 2024 earnings, with a 23.4% year-on-year revenue increase and robust profitability, were overshadowed by the market's cautious sentiment. Additionally, the company's exploration of strategic opportunities and industry pressures may have contributed to the negative market reaction.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.46%)

6. Segments

Taxonomy-eligible - Renewable Energy Technologies

Expected Growth: 12%

Incap Oyj's 12% growth in Taxonomy-eligible Renewable Energy Technologies is driven by increasing demand for clean energy, government incentives, and declining production costs. Additionally, the company's focus on energy storage and grid integration solutions, as well as its expansion into emerging markets, contribute to its rapid growth.

Taxonomy-non-eligible

Expected Growth: 8%

Incap Oyj's non-eligible taxonomy segment growth of 8% is driven by increasing demand for electronics in industrial automation, rising adoption of IoT devices, and growing need for efficient manufacturing processes. Additionally, Incap's strategic expansion into new markets and focus on operational efficiency contribute to the segment's growth.

Taxonomy-eligible - Installation, Maintenance and Repair of instruments and Devices for Measuring, Regulation and Controlling Energy Performance of Buildings

Expected Growth: 10%

Incap Oyj's 10% growth in Installation, Maintenance and Repair of instruments and Devices for Measuring, Regulation and Controlling Energy Performance of Buildings is driven by increasing demand for energy-efficient buildings, government incentives for sustainable infrastructure, and rising adoption of IoT-based building management systems.

Taxonomy-eligible - Low Carbon Technologies for Transport

Expected Growth: 13%

Incap Oyj's Low Carbon Technologies for Transport, with 13% growth, is driven by increasing adoption of electric vehicles, government incentives for eco-friendly transportation, and rising demand for sustainable logistics solutions. Additionally, advancements in battery technology, decreasing production costs, and growing investments in clean energy infrastructure also contribute to this growth.

Taxonomy-eligible - Storage of Electricity

Expected Growth: 11%

Incap Oyj's storage of electricity, with 11% growth, is driven by increasing demand for renewable energy, government incentives for energy storage, and declining battery costs. Additionally, the growing need for grid resilience and stability, as well as the rising adoption of electric vehicles, contribute to this growth.

Taxonomy-eligible - Data Processing, Hosting and Related Activities

Expected Growth: 14%

Incap Oyj's 14% growth in Data Processing, Hosting and Related Activities is driven by increasing demand for cloud-based services, digital transformation, and IoT adoption. Additionally, the rise of remote work and online transactions fuels the need for secure and efficient data processing, hosting, and related activities, contributing to the segment's growth.

Taxonomy-eligible - Electricity Generation from Nuclear Energy in Existing Installations

Expected Growth: 9%

Nuclear energy's low operating costs, carbon-free generation, and increasing global demand drive growth. Existing installations benefit from established infrastructure, reducing costs and environmental impact. Incap Oyj's expertise in nuclear energy and commitment to sustainability contribute to the 9% growth rate.

Taxonomy-eligible - Transmission and Distribution of Electricity

Expected Growth: 12%

Incap Oyj's Transmission and Distribution of Electricity segment is driven by increasing demand for renewable energy, grid modernization, and electrification of transportation. Growing investments in smart grids, energy storage, and decentralized power generation also contribute to the 12% growth. Additionally, government incentives and regulations supporting the transition to a low-carbon economy further boost the segment's expansion.

Taxonomy-eligible - Construction, Extension and Operation of Waste Water Collection and Treatment

Expected Growth: 10%

Incap Oyj's wastewater collection and treatment segment is driven by increasing environmental regulations, growing urbanization, and rising demand for sustainable infrastructure. The 10% growth rate is fueled by government investments in wastewater management, population growth, and the need for efficient treatment technologies to reduce environmental impact.

Taxonomy-eligible - Infrastructure for Rail Transport

Expected Growth: 11%

Incap Oyj's Infrastructure for Rail Transport growth is driven by increasing demand for efficient rail networks, government investments in rail infrastructure, and rising adoption of digitalization and automation in rail transport. Additionally, growing concerns about climate change and environmental sustainability are boosting demand for rail transport, a relatively low-carbon mode of transportation.

Taxonomy-eligible - Construction, Extension and Operation of Water Collection, Treatment and Supply Systems

Expected Growth: 12%

Incap Oyj's 12% growth in Water Collection, Treatment and Supply Systems is driven by increasing global demand for clean water, urbanization, and government investments in infrastructure development. Additionally, stringent regulations and rising concerns over water scarcity are propelling the adoption of efficient water management systems, further fueling growth in this segment.

7. Detailed Products

Electronics Manufacturing Services (EMS)

Incap Oyj provides Electronics Manufacturing Services (EMS) to original equipment manufacturers (OEMs) in various industries, including industrial, medical, and telecommunications.

Box Build and System Integration

Incap Oyj offers box build and system integration services, including the assembly of complete systems and sub-systems.

PCB Assembly

Incap Oyj provides printed circuit board (PCB) assembly services, including surface mount technology (SMT) and through-hole technology (THT).

Cable and Harness Assembly

Incap Oyj offers cable and harness assembly services, including the design and manufacturing of custom cables and harnesses.

Mechanical Assembly

Incap Oyj provides mechanical assembly services, including the assembly of mechanical components and sub-assemblies.

Design and Engineering Services

Incap Oyj offers design and engineering services, including product design, prototyping, and testing.

Supply Chain Management

Incap Oyj provides supply chain management services, including procurement, inventory management, and logistics.

8. Incap Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Incap Oyj operates in the electronics manufacturing industry, where substitutes are limited. However, the company's products can be substituted with similar products from other manufacturers, which poses a moderate threat.

Bargaining Power Of Customers

Incap Oyj's customers are mainly OEMs and EMS companies, which have limited bargaining power due to the company's specialized products and services.

Bargaining Power Of Suppliers

Incap Oyj relies on a few key suppliers for components and materials, which gives them some bargaining power. However, the company's diversified supplier base and long-term relationships mitigate this risk.

Threat Of New Entrants

The electronics manufacturing industry has high barriers to entry, including significant capital investments and technical expertise. This makes it difficult for new entrants to compete with Incap Oyj.

Intensity Of Rivalry

The electronics manufacturing industry is highly competitive, with many established players competing for market share. Incap Oyj faces intense rivalry from companies such as Foxconn, Flex, and Jabil.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.49%
Debt Cost 6.19%
Equity Weight 79.51%
Equity Cost 13.36%
WACC 11.89%
Leverage 25.77%

11. Quality Control: Incap Oyj passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Barco

A-Score: 5.8/10

Value: 6.7

Growth: 4.7

Quality: 6.4

Yield: 5.6

Momentum: 7.0

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Vaisala

A-Score: 4.9/10

Value: 4.4

Growth: 6.1

Quality: 6.8

Yield: 3.8

Momentum: 3.0

Volatility: 5.3

1-Year Total Return ->

Stock-Card
Incap

A-Score: 4.7/10

Value: 6.8

Growth: 8.6

Quality: 7.0

Yield: 0.0

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

Stock-Card
Eltek

A-Score: 4.5/10

Value: 5.4

Growth: 4.2

Quality: 6.1

Yield: 3.1

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

Stock-Card
TT Electronics

A-Score: 4.1/10

Value: 8.6

Growth: 2.8

Quality: 2.7

Yield: 3.1

Momentum: 7.5

Volatility: 0.0

1-Year Total Return ->

Stock-Card
NCAB

A-Score: 3.7/10

Value: 1.1

Growth: 7.2

Quality: 5.6

Yield: 5.0

Momentum: 2.0

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.2$

Current Price

10.2$

Potential

-0.00%

Expected Cash-Flows