Vaisala Oyj (HLSE:VAIAS) delivered another robust earnings performance, with profits expanding at 16.7% over the past year and a five-year compound annual growth rate of 12.8%. The company’s net profit margin rose to 10.9% from last year’s 10.1%, underscoring improved efficiency. Revenue growth of 6.1% per year continues to outpace the broader Finnish market. With forward earnings growth projected at 13.8% per year and no notable risks flagged, investors are likely to focus on the momentum in margins and the sustainability of this positive trend.
See our full analysis for Vaisala Oyj.
Next up, we’ll put the latest numbers head-to-head with the current narratives, breaking down where sentiment aligns with the data and where surprises might emerge.
See what the community is saying about Vaisala Oyj
HLSE:VAIAS Earnings & Revenue History as at Oct 2025
Vaisala’s current share price of €44.95 trades below its DCF fair value estimate of €49.76, signaling about an 11% discount to modeled intrinsic worth.
According to analysts’ consensus view, broader value discussions also reference a Price-To-Earnings ratio of 25.7x. This is just below the European Electronic industry average of 26x and above the peer group’s 21.4x.
This sector-relative valuation is seen as reasonable, especially since earnings have expanded by 12.8% per year over the past five years. Consensus believes this trend supports the view that Vaisala’s quality and growth justifies its mild premium to local peers.
At the same time, consensus highlights potential upside, noting the current share price remains 17.3% below the latest analyst price target of €53.60.
See what else analysts are tracking in Vaisala’s growth and value story: 📊 Read the full Vaisala Oyj Consensus Narrative.
Rapid growth in digital services, such as subscription-based offerings, has driven segment-level sales expansion. Recurring software revenues (e.g., Xweather) saw 53% year-on-year growth, raising hopes for additional gross margin upside as these higher-margin business lines scale.
Consensus narrative spotlights diversification into digital and industrial segments as a catalyst for dependable, broad-based margin growth.
With analysts forecasting profit margins to rise from 10.9% to 12.3% over three years, the consensus story emphasizes these gains could make earnings quality more resilient, especially as digitalization and R&D outlays underpin proprietary advantages for Vaisala.
This long-term thesis leans on proven agility in managing price increases and coping with tariff impacts, providing some protection in an unpredictable environment.
Shifting government budgets and projects in sectors like meteorology and renewable energy, combined with currency headwinds tied to the US dollar and renminbi, create risk to stable revenue growth and profit maintenance.
Consensus narrative flags that, although Vaisala’s revenue is forecast to outpace the overall Finnish market (6.1% vs 4.1% per year), persistent cuts or delays in public investment, as recently seen in the US and China, could offset diversification benefits, increasing exposure to cyclical pressure and earnings volatility.
Despite diversification, continued reliance on legacy higher-margin projects means evolving industry investment priorities could compress gross margin and overall earnings if public-sector softness endures.
Consensus analysts argue that for the company to meet the 2028 price target of €53.60, it must overcome these headwinds and sustain high-teens earnings growth in a shifting policy environment.
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Vaisala Oyj on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
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A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Vaisala Oyj.
Despite strong recent growth, Vaisala’s reliance on public sector spending and exposure to volatile macro conditions raise concerns over the consistency of future earnings.
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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.
Companies discussed in this article include VAIAS.HE.
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