Evli Oyj (EVLI.HE) | Investment Case

1. Company Snapshot

1.a. Company Description

Evli Plc, an investment services company, focuses on asset management and advisory services in Finland.Its products and services include private banking, institutional asset management, mutual funds, alternative investment funds, capital markets, structured products, corporate finance, rewards and incentive plans, and investment research.The company was founded in 1985 and is based in Helsinki, Finland.

Show Full description

1.b. Last Insights on EVLI

Evli Oyj's recent performance was driven by its robust long-term growth track record, with EPS growth averaging 7.5% annually over the past five years. The company's valuation at 19.1x earnings is above the European capital markets average, but slightly below direct peers. A one-off gain of €13.8 million was recorded, which may distort the view of core performance. According to recent reports, investors are focusing on Evli's stable growth narrative, while being cautious about potential volatility from non-recurring items.

1.c. Company Highlights

Last Price	21.9
Change Percentage	1.39%
Open	22.2
Previous Close	21.6
Market Cap ( Millions)	580
Volume	907
Year High	23.3
Year Low	15.25
M A 50	21.06
M A 200	19.36

FCF Yield	7.05%
Dividend Yield	5.39%
ROE	22.38%
Debt / Equity	84.86%
Net Debt / EBIDTA	223.17%
Price To Book	4.37
Price Earnings Ratio	18.89
Price To FCF	14.17
Price To sales	4.94
EV / EBITDA	13.71

2. Transcript Summary

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3. NewsRoom

Evli (HLSE:EVLI) Profit Margin Drops to 25.9% as One-Off Gain Challenges Earnings Quality Narrative

Oct -25

Source:

Three Undiscovered European Gems To Enhance Your Portfolio

Apr -09

Source:

3 Top Dividend Stocks Yielding Up To 6.7%

Feb -21

Source:

3 Dividend Stocks Offering Yields Up To 6.3%

Jan -21

Source:

Discovering 3 Undiscovered Gems with Promising Potential

Jan -03

Source:

Dividend Stocks To Consider In December 2024

Dec -23

Source:

Evli Plc’s Interim Report 1–9/2023

Oct -26

Source:

Change in Evli Plc’s Executive Group: Head of Institutional Clients Mona von Weissenberg appointed member of the Executive Group

Sep -29

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Wealth Management and Investor Clients

Expected Growth: 5.5%

Growing demand for personalized investment solutions, increasing high net worth individuals, and institutional investments drive the growth of Evli Oyj's wealth management and investor client services.

Advisory and Corporate Clients

Expected Growth: 5.5%

Growing demand for expert financial advisory services and tailored solutions among corporate clients, driven by increasing complexity in financial markets and regulatory requirements, fuels growth in Evli Oyj's advisory and corporate clients segment.

Group Operations

Expected Growth: 5.5%

The growth of Group Operations in Evli Oyj is driven by increasing demand for digitalization and automation in the financial sector, leading to investments in IT infrastructure and risk management systems. Additionally, the growing need for efficient finance functions and regulatory compliance will support the segment's growth.

7. Detailed Products

Wealth Management

Evli Oyj offers wealth management services to individuals, families, and institutions, providing personalized investment solutions and portfolio management.

Investment Funds

Evli Oyj provides a range of investment funds across various asset classes, including equities, fixed income, and alternatives.

Brokerage Services

Evli Oyj offers brokerage services, enabling clients to buy and sell securities, including stocks, bonds, and derivatives.

Corporate Finance Advisory

Evli Oyj provides corporate finance advisory services, including mergers and acquisitions, equity and debt capital markets, and restructuring.

Equity and Fixed Income Research

Evli Oyj provides research and analysis on Nordic equities and fixed income markets, offering insights and recommendations to investors.

8. Evli Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Evli Oyj operates in the financial services industry, which is characterized by a moderate level of substitutes. While there are alternative investment products and services available, Evli Oyj's strong brand reputation and diversified product offerings help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Evli Oyj's customers have limited bargaining power due to the company's strong market position and diversified customer base. Additionally, the company's focus on providing high-quality services and building long-term relationships with its customers helps to reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Evli Oyj has a diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company's strong financial position and long-term relationships with its suppliers help to mitigate the bargaining power of suppliers.

Threat Of New Entrants

The financial services industry is characterized by high barriers to entry, including regulatory requirements and capital requirements. This makes it difficult for new entrants to enter the market, reducing the threat of new entrants for Evli Oyj.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. Evli Oyj operates in a highly competitive market, which increases the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	45.81%
Debt Cost	3.95%
Equity Weight	54.19%
Equity Cost	5.63%
WACC	4.86%
Leverage	84.52%

11. Quality Control: Evli Oyj passed 7 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Evli

A-Score: 6.4/10

Value: 3.3

Growth: 4.3

Quality: 7.4

Yield: 8.8

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

Ratos

A-Score: 6.2/10

Value: 8.7

Growth: 4.4

Quality: 6.2

Yield: 5.6

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

AJ Bell

A-Score: 6.0/10

Value: 1.6

Growth: 8.7

Quality: 8.9

Yield: 4.4

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

MCI Capital

A-Score: 5.5/10

Value: 3.8

Growth: 2.2

Quality: 6.7

Yield: 6.2

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

Liontrust Asset Management

A-Score: 5.3/10

Value: 7.2

Growth: 4.2

Quality: 7.1

Yield: 10.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

Bridgepoint

A-Score: 4.2/10

Value: 3.7

Growth: 6.3

Quality: 3.8

Yield: 5.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.52%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.86%

Evli Oyj - FI4000513437

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EVLI

1.c. Company Highlights

Expensive

Better Quality

Average Yield

Earnings Miss

Revenues Beats

Higher Yield

Stable Momentum

Fairly Valued

Average Growth

Weak Momentum

Average Quality

Earnings Beats

Medium Volatility

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Wealth Management and Investor Clients

Expected Growth: 5.5%

Advisory and Corporate Clients

Expected Growth: 5.5%

Group Operations

Expected Growth: 5.5%

7. Detailed Products

Wealth Management

Investment Funds

Brokerage Services

Corporate Finance Advisory

Equity and Fixed Income Research

8. Evli Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Evli Oyj passed 7 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.9$

Current Price

21.9$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA