Valmet Oyj (HLSE:VALMT) Could Be 13% Undervalued After China Board Line Order

Valmet Oyj (HLSE:VALMT) just secured a new order from Anhui Linping Circular Development for a complete board making line in China, including automation and lifecycle services. The deal highlights a deeper customer relationship focused on long-term production efficiency.

At a share price of €27.24, Valmet Oyj has seen a 90 day share price return of 22.7%, while the 1 year total shareholder return is 5.6% and the 3 year total shareholder return is 49.0%. This points to momentum that has been building over the medium term, even though the year to date share price return is down 3.7%.

Scan list of solid balance sheet and fundamentals (202 results) that, like Valmet Oyj, pair industrial know-how with robust finances for exposure to projects built around long-term contracts and capital-intensive equipment.

The Anhui contract has helped Valmet Oyj’s shares climb, yet the stock still trades below both analyst targets and an estimated intrinsic value. Is that discount caution well placed, or has pricing fallen behind fundamentals?

Most Popular Narrative: 13% Undervalued

Valmet Oyj last closed at €27.24 against a widely followed fair value estimate of €31.47. This frames the current Anhui contract news inside a broader story about mix, margins and corporate structure rather than just one order win.

The implementation of Valmet Oyj's new operating model, which simplifies structure and fosters faster decision-making and local accountability, is now supported by about €80 million of annual SG&A savings compared with 2024 and a reduction of SG&A to roughly 17% of net sales. This continues to underpin group EBITA margins and earnings.

See why 36 investors see Valmet Oyj as 13% undervalued.

Result: Fair Value of €31.47 (UNDERVALUED)

Still, the narrative around Valmet Oyj weakens quickly if cost savings fall short or if the Biomaterial services slowdown lasts longer than analysts expect.

Find out about the key risks to this Valmet Oyj narrative.

Next Steps

Mixed messages in the narrative so far, with both risks and bright spots in view, mean you should move quickly, review the evidence, and weigh the 5 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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