Outokumpu - A continuous rollercoaster or a serious investment?

I wouldn’t interpret those numbers quite so pessimistically. I had to listen to Kati’s Inderes presentation again, with time. Outokumpu does have a clear “strategy” for improving margins. It also requires investments. The numbers are expected to improve.

AI-calculated scenario.

:chart_increasing: 2) Realistic scenario – EVOLVE partially succeeds

Assumptions

P/BV rises 0.5 → 0.7–0.8

EBITDA grows +150…200 M€

Dividend 4–6 % / year

Average economic cycle

ROI estimate

A. Increase in valuation multiple:

0.5 → 0.75 = +50 %

B. Dividends over 10 years:

≈ 5 % / year → +50 % total (assuming dividends are reinvested, return could be up to +60–70 %)

:pushpin: Total return 10y:

≈ +100…+140 %

:pushpin: Annual return:

≈ 7–9 % / year

This is the “most likely” long-term scenario held by many analysts

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