WRT1V:OMXHEXWartsila Oyj Abp Analysis

Technical outlook: The stock is trading at €30.05, notably below its 20‑day SMA of €31.86 and the 200‑day SMA of €31.80, signaling short‑term weakness. The RSI sits at 36.7, hinting at a mildly oversold condition, while the MACD remains bearish with the line under the signal. Volume has been decreasing, and 30‑day volatility is high at 35.8%, suggesting price swings may continue in the near term.
Fundamental backdrop: Despite a modest revenue dip of 0.3%, Wärtsilä delivers a solid gross margin of 46.9% and a ROE of 27%, underscoring strong profitability. The balance sheet is robust with €2.12 bn cash versus €0.55 bn debt, and free cash flow exceeds €1.1 bn. Valuation is roughly in line with peers – a PE of 27.3 versus the industry average of 30.9 – while the DCF target of €27.6 suggests the current price is slightly premium. The dividend yield of 1.78% and a payout ratio under 45% indicate a sustainable income stream.