Ponsse’s main competitors, Deere & Co and Komatsu, have both performed significantly better over the last 10 years. On the other hand, as Aapeli defended in today’s video, this isn’t a completely fair comparison, as these companies also have many other business lines. There was also reflection on whether the stock chart would look different if Russia hadn’t invaded Ukraine and if the Brazilian Full Service agreement had never been made.
And it must also be remembered that Ponsse has been paying dividends and performed excellently before this most recent 10-year period. Now, however, some tailwind from a market recovery is needed. If and when the market recovers, the corrective move could initially be very fast and powerful.
More on the subject in the video filmed today:
Ponsse’s share price has been stagnating (mörninyt) for the last 10 years, facing headwinds from both Russia and Brazil. Is the company’s competitiveness still intact, or are the main competitors catching up? Analyst Aapeli Pursimo reflects on this in the video.
Topics:
00:00 Stock stagnating for 10 years
03:20 Are Ponsse’s products still competitive?
08:47 Outlook for the rest of the year
10:43 Market recovery is key
15:21 Valuation at a neutral level
17:09 Is Ponsse still a quality company?