# Scanfil - Contract Manufacturer for the Portfolio
**URL:** https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397
**Category:** Osakkeet
**Tags:** scanfil
**Created:** [May 23, 2019, 11:46am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397 "2019-05-23T11:46:25Z")
**Posts on this page:** 20
**Page:** 3
### Author:  [@Petri\_Gostowski](https://forum.inderes.com/u/Petri_Gostowski)
#### Post date: [June 30, 2020, 12:31pm UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/44 "2020-06-30T12:31:15Z")
Yes, so by default P = EV, which assumes that the company does not have significant net debt or cash.
Calculated this way, the multiple is relatively moderate and below Scanfil’s own multiple. However, this is partly justified, as I explained in the text.
The overall valuation would likely not change even if the actual EV had been used, as I would estimate that it would not significantly alter the multiple or the final outcome of the overall valuation. That is, the view that due to the company’s good inorganic growth track record and the strengthened financial position through the arrangement, the stance on this arrangement is mildly positive.
e. added clarification
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### Author:  [@R-o-E](https://forum.inderes.com/u/R-o-E)
#### Post date: [June 30, 2020, 1:50pm UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/45 "2020-06-30T13:50:46Z")
Thanks, @Petri_Gostowski, for your well-reasoned and insightful response.
Now, the agreed-upon deal can also be examined using the P/S ratio, which is about 0.6 (= 18.4 / 29). Unless I miscalculated, Scanfil bought the loss-making Partnertech in 2015 with a P/S ratio of 0.2 (= 443 MSEK / 2239 MSEK).
[SCANFIL OYJ STOCK EXCHANGE RELEASE 25.5.2015 (pdf)](https://www.scanfil.fi/media/vanhat-porssitiedotteet/fi/2015/scanfil-oyj-ilmoittaa-tekeva-cc-88nsa-cc-88-partnertech-ab-n-osakkeenomistajille-hallituksen-suositteleman-ka-cc-88teisostotarjouksen-hintaan-35-ruotsin-kruunua-osakkeelta_25.5.2015.pdf)
In various ratios, EBIT is also a sensitive variable, as can be retrospectively noted regarding Partnertech, i.e., after Scanfil’s restructuring measures. 🙂
With Scanfil’s track record, I also have a positive view of the now agreed-upon deal, as Scanfil may well have “in its sights” some company to acquire (and restructure) in the Nordics or Central Europe. This would be in line with Scanfil’s strategy regarding inorganic growth.
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### Author:  [@Teisho](https://forum.inderes.com/u/Teisho)
#### Post date: [July 1, 2020, 8:49am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/46 "2020-07-01T08:49:47Z")
Scanfil Seeks More Efficiency by Moving Its Hamburg Unit’s Production Elsewhere in Germany and Poland:
> **[Puolen vuosisadan huippuosaamista valmistuksessa - Scanfil](https://www.scanfil.com/fi/)**
>
> Scanfil on luotettava valmistuskumppani. Se on teollisuuteen ja B2B-asiakkaisiin erikoistunut sopimusvalmistaja.
The most relevant part of the press release:
> If the plan is decided to be implemented, Scanfil will incur one-off restructuring costs of approximately six million euros, which will be recorded in the third quarter of 2020. The plan is expected to bring annual cost savings of approximately 2.5 million euros. The planned measures do not have a significant impact on Scanfil’s financial outlook for 2020. If implemented, the planned measures will further strengthen Scanfil’s competitiveness.
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### Author:  [@tupuna](https://forum.inderes.com/u/tupuna)
#### Post date: [August 7, 2020, 6:20am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/47 "2020-08-07T06:20:34Z")
Second quarter results release. Thanks for the hard work, Scanfil!
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### Author:  [@JNivala](https://forum.inderes.com/u/JNivala)
#### Post date: [August 7, 2020, 6:25am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/48 "2020-08-07T06:25:03Z")
Scanfil is a pretty idiot-proof stock for balancing a portfolio. The train is chugging along, and yesterday we got to enjoy new all-time-high numbers. I’m curious to see if Scanfil already has an acquisition target in mind? At least the balance sheet would allow it, with the sale of the Chinese unit and the closure of the Hamburg factory.
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### Author:  [@Winston](https://forum.inderes.com/u/Winston)
#### Post date: [August 10, 2020, 8:37am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/49 "2020-08-10T08:37:02Z")
https://www.youtube.com/embed/57u2XCMwmak
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### Author:  [@Winston](https://forum.inderes.com/u/Winston)
#### Post date: [August 25, 2020, 7:17am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/50 "2020-08-25T07:17:01Z")
Unfortunately, the article is behind a paywall:
> **[Vakaasti koronan läpi tarpova Scanfil henkilöityy Takasten sukuun: ”Peruspeli...](https://www.kauppalehti.fi/uutiset/a/4a172408-0b2f-4ff1-9c08-eb32226970ab)**
>
> Elektroniikan sopimusvalmistaja Scanfil ei näy säikähtäneen koronaa.
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### Author:  [@Rakkaudesta\_Lajiin](https://forum.inderes.com/u/Rakkaudesta_Lajiin)
#### Post date: [August 26, 2020, 5:15am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/51 "2020-08-26T05:15:15Z")
A little cut from the beginning and middle:
"_Scanfil’s_ second quarter went better than expected, and according to CEO **Petteri Jokitalo** , demand for 5G network elements, camera surveillance systems, and elevator products, for example, was at a good level.
The company has been delivering impressive results for a long time. They have a streak of improving results, having improved their performance for five consecutive quarters.
“The question mark right now is really what the beginning of next year and beyond looks like, but so far the business environment appears quite healthy and balanced, especially considering the circumstances during the COVID-19 era,” says **Joonas Korkiakoski** , an analyst at _Inderes_.
Another part from the end:
"Scanfil’s stock has not been among the most expensive on the exchange, although it has risen somewhat recently. Can it still be considered somewhat undervalued, and if so, why?
“Yes, the company is still affordable relative to its proven quality and long-term value creation potential.”
One reason for the undervaluation is also that the contract manufacturing sector is typically seen as a somewhat difficult market, and companies have not historically been priced with very high multiples. However, Inderes believes that Scanfil could be accepted with higher multiples than the market currently accepts.
“In recent years, Scanfil has shown that it is capable of growing profitably even in quite difficult macroeconomic situations. They have achieved impressive results. We see no reason why this performance would not continue, especially when looking beyond COVID-19.”
My own opinion:
The pace is quite steady. The main owner is a family owner who develops the company with a long-term perspective. They have a really strong track record from recent years and corporate arrangements.
Perhaps interest is reduced by the industry and the relatively small number of freely traded shares?
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### Author:  [@Chuckecheese](https://forum.inderes.com/u/Chuckecheese)
#### Post date: [August 26, 2020, 6:29am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/52 "2020-08-26T06:29:43Z")
The stock market has generally risen to such an extent that interesting targets can be counted on one hand. I consider Scanfil one of the interesting targets precisely because of the company’s excellent track record and still relatively moderate valuation. The industry is, of course, challenging, and generally, the industry has had small margins, although Scanfil has been able to achieve better-than-average results.
Organic growth is becoming quite moderate, and true value creation, in my opinion, currently relies on successful acquisitions. That’s why I think this target is slightly riskier, even though the company has a strong track record of successful acquisitions in the past. This won’t become a stock rocket like QT or Revenio, but it perhaps falls more into the “boring is good” category, providing steady, moderate returns year after year.
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### Author:  [@Winston](https://forum.inderes.com/u/Winston)
#### Post date: [October 22, 2020, 7:01am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/55 "2020-10-22T07:01:54Z")
> **[Scanfil Q3 tiistaina: Odotamme peruspelin säilyneen tutussa kuosissa -...](https://www.inderes.fi/content/analyst-comments/scanfil-q3-tiistaina-odotamme-peruspelin-sailyneen-tutussa-kuosissa)**
>
> Scanfil julkaisee Q3-raporttinsa tiistaina. Odotamme Scanfilin operatiivisen pohjatekemisen säilyneen H1:n kurssissa, mutta liikevaihdon ja oikaistun liikevoiton jääneen hyvästä vertailukaudesta Kiinan ohutlevy-yksikön myynnin aiheuttamien...
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### Author:  [@turotski](https://forum.inderes.com/u/turotski)
#### Post date: [October 22, 2020, 9:08am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/56 "2020-10-22T09:08:05Z")
It seems like those 40,000 shares have now changed hands at a price of 5.20.
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### Author:  [@R-o-E](https://forum.inderes.com/u/R-o-E)
#### Post date: [October 22, 2020, 9:11am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/57 "2020-10-22T09:11:46Z")
Hi,
@Joonas_Korkiakoski (and @Antti_Viljakainen) I’m starting to get a little annoyed by the figures of speech and metaphors extensively used in your comments and company reports. Sometimes it’s really difficult to understand the sentences and phrases you write.
Example from your Scanfil comment this morning:
“From individual customer segments, we expect the headwind faced by Consumer Applications to have continued, but industrial segments to have compensated for this effect that flowed through from the more dynamic demand field of the consumer side (i.e., weakened end-demand from customers is reflected in volumes with short time lags).”
I’ve read the above sentence a few times now, still not sure I fully grasp your thoughts. And I’ve been following Scanfil for almost 20 years. It would be much more pleasant to read and understand your views if you wrote things a bit more simply, or at least more clearly, preferably using their proper names.
Best regards,
R-o-E
P.s. The same problem with, for example, Nokia Tyres analyses, which contain a lot of figures of speech and metaphors.
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### Author:  [@Joonas\_Korkiakoski](https://forum.inderes.com/u/Joonas_Korkiakoski)
#### Post date: [October 22, 2020, 10:55am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/58 "2020-10-22T10:55:12Z")
Hi R-o-E!
My sincerest apologies that you’ve had to wrestle with a poorly argued sentence. In that particular section, we aimed to highlight how changes in the operating environment can very quickly shake customers’ end demands in consumer applications (Scanfil’s portfolio includes various self-service devices, for example) and, consequently, Scanfil’s own supply flows. A recent example of this is the Q2 period, when the revenue of Consumer Applications decreased by over 25%. In industrial segments, customers’ own order books are, on the other hand, reasonably long. Due to this, changes in the operating environment typically do not immediately affect their own demand and thus Scanfil’s demand/deliveries; instead, any potential changes become visible only over a longer period. It is precisely because of this underlying logic that we believe the demand pictures for consumer and industrial sectors can be examined through the dynamic vs. static axis.
Thank you again for your excellent feedback regarding the use of idioms. One often becomes somewhat blind to one’s own output and doesn’t always manage to critically assess the comprehensibility of the text. After all, it certainly doesn’t serve any investor following the company if the core messages of comments and reports are clear only to the authors!
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### Author:  [@Winston](https://forum.inderes.com/u/Winston)
#### Post date: [October 27, 2020, 7:58am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/59 "2020-10-27T07:58:30Z")
> **[Scanfil Q3: Vakaan tekemisen kvartaali ja ohjeistuksen odotusten mukainen...](https://www.inderes.fi/content/analyst-comments/scanfil-q3-vakaan-tekemisen-kvartaali-ja-ohjeistuksen-odotusten-mukainen-tarkennus)**
>
> Scanfil julkisti Q3-raporttinsa aamulla. Scanfilin operatiivinen suoritus oli vakaa ja operatiiviset numerot olivat lähes täysin odotustemme mukaisia. Kuluvan vuoden ohjeistustaan yhtiö tarkensi, mutta meidän ja konsensuksen ennusteet olivat jo ennen...
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### Author:  [@spekulantti1](https://forum.inderes.com/u/spekulantti1)
#### Post date: [October 27, 2020, 8:11am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/60 "2020-10-27T08:11:46Z")
What could cause Scanfil’s low valuation to break out? Now, a poorly performing factory was sold at a profit, the track record is excellent, capital generates very good returns, and dividends are growing. Additionally, the customer base is broad, and they are not reliant on just three clients like the hyped Incap. I bought more shares at the opening. The pricing over the past month seems somewhat peculiar when considering that there isn’t excessive uncertainty.
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### Author:  [@Gadus](https://forum.inderes.com/u/Gadus)
#### Post date: [October 27, 2020, 8:39am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/61 "2020-10-27T08:39:22Z")
If we look at the balance sheet, we haven’t been at such strong levels in quite some time. Gearing has crept close to zero, and there’s over 70 million in limits plus cash reserves. Surely, something to acquire will be found soon. We can boost the earnings level once again to well over 40 million and move forward.
There’s no need to rush with this. Slow and steady wins the race.
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### Author:  [@spekulantti1](https://forum.inderes.com/u/spekulantti1)
#### Post date: [October 27, 2020, 8:53am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/62 "2020-10-27T08:53:05Z")
You are right, there’s no need to rush. Few investments allow you to recover your capital as quickly as this one, even though traditional value investing isn’t very fashionable right now. This anomaly still puzzles me; perhaps a sector rotation from growth to value would boost Scanfil’s multiples as well.
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### Author:  [@Gadus](https://forum.inderes.com/u/Gadus)
#### Post date: [October 27, 2020, 9:05am UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/63 "2020-10-27T09:05:30Z")
The company’s valuation level is based on the sector’s “acceptable” multiples, which currently happen to be very low.
This market behavior is interesting in itself because the company’s earnings growth has been at the top of the stock exchange for a long time, but this acceptable valuation multiple is below the stock exchange average. On the other hand, if growth continues and the valuation level remains constant, the total return will remain at a very comfortable level, especially since the risk level is clearly relatively low.
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### Author:  [@Chuckecheese](https://forum.inderes.com/u/Chuckecheese)
#### Post date: [October 27, 2020, 12:47pm UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/64 "2020-10-27T12:47:27Z")
Good points. I think that when earnings growth is strongly tied to successful acquisitions, the company won’t easily be valued very highly. Even though Scanfil has shown it primarily makes good deals, there are always significantly more risks involved compared to organic growth.
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### Author:  [@Teisho](https://forum.inderes.com/u/Teisho)
#### Post date: [October 27, 2020, 4:39pm UTC](https://forum.inderes.com/t/scanfil-sopimusvalmistaja-salkun-taytteeksi/1397/65 "2020-10-27T16:39:49Z")
From the middle of the video, OP’s concise comments on Scanfil (and before that, comments on Vaisala). In OP’s opinion, Scanfil’s stock valuation is _very attractive_.
[ ](https://www.youtube.com/watch?v=ZrHxAXXOxkU)
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