Aki’s 4+1 tips for digesting Cargotec as an investment case
Aki Vesikallio started as Cargotec's new IR Director in December 2019. During his first week, he needed to get to know the company and its businesses inside-out - not necessarily the easiest of tasks given our three business areas operating in complex and diverse environments. Here Aki shares his first week experiences on how anyone can quickly develop an understanding about Cargotec as an investment case.
- Get a quick overview. I think the best quick introduction is the Cargotec as an investment pages which that give a good overview of the company and its future prospects. This might interest you particularly if you do not know that much about the company yet.
- Dig deeper. Cargotec’s investor presentation is a comprehensive information package that we actually use when meeting analysts and institutional investors. Most of the discussions we have with the institutional investors are based on the information found here. Check also the IR Blog for reflections from our recent investor events.
- Listen to CEO and CFO insights. On-demand quarterly result webcasts provide more business insight, and I would especially recommend checking out the Q&A sessions in the end. Here, the CEO and the CFO are bombarded with the most topical questions from analysts and investors.
- Follow demand drivers. Each of our business areas has key demand drivers that investors can use as indicators. Demand for Kalmar’s solutions is driven by global container throughput. Meanwhile, the best proxy for HIAB’s demand is construction output in its main markets EMEA and Americas. MacGregor’s demand indicators, merchant ship and offshore contracting activity, are currently well below historical averages, but the forecast shows somewhat higher activity going forward.
All in all, my first impression is that Cargotec offers an interesting investment case as it is working on markets with long term growth potential supported by global megatrends such as globalisation, urbanisation and the growing middle class. Our company is the forerunner in automated and digital solutions and it has a broad eco-efficient offering. At the same time, increasing the share of service and software sales help to reduce earnings volatility in the cyclical business.