olivLaw · European equity research
Honkarakenne Oyj HONBS.HE
Finland · Nasdaq Helsinki · Vertical: Listed companies from Finland
Honkarakenne Oyj is a Finnish manufacturer of solid-wood houses, based in Karstula, selling mainly in Finland and in selected export markets. The company is going through a difficult period, with revenue falling sharply in 2023 and guidance for 2024 that keeps revenue at the prior year's level, so demand for housing is being watched closely. The exact figures are in the fig lines above.
At the close of 05 Nov 2026, Honkarakenne Oyj (HONBS.HE) stock was 2.43 EUR (−2.41% on the day), with market capitalisation 14.5 m EUR, dividend yield 10.14%, beta 0.39, 52-week range 2.22–3.15 EUR.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 47.7
- neutral
- Bollinger (20, 2)
- 2.36 – 2.53
- in the lower half of the band · %B 0.40 · band width 7.0%
- SMA 50 / 200
- 2.44 / 2.50
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- 0.01 / 0.00
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.4% | +0.4% | +0.0 pp | — |
| 3 months | −5.8% | −3.3% | −2.6 pp | — |
| 6 months | +3.4% | +4.0% | −0.6 pp | — |
| Year to date | −15.6% | +8.1% | −23.7 pp | — |
| 1 year | −7.3% | +10.7% | −17.9 pp | −1.2% |
| 3 years | −16.2% | +50.1% | −66.3 pp | +6.8% |
| 5 years | −65.8% | +43.6% | −109.4 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2021 | 2022 | 2023 |
|---|---|---|---|
| Revenue | 69.7 m | 73.7 m | 46.3 m |
| Revenue YoY | unavailable | +5.8% | −37.2% |
| Net income | 3.3 m | 2.8 m | -239.0 k |
| Net income YoY | unavailable | −16.1% | −108.6% |
| Diluted EPS | 0.56 | 0.47 | -0.04 |
| Diluted EPS YoY | unavailable | −16.1% | −108.5% |
| net % | 4.7% | 3.8% | -0.5% |
| Free cash flow | 6.2 m | 3.7 m | -3.8 m |
Balance sheet & financial health
Fiscal year 2023 · 31 Dec 2023
- Cash
- 5.3 m EUR
- Financial debt
- 3.4 m EUR
- Net debt
- -2.0 m EUR
- Equity
- 16.5 m EUR
- Total assets
- 30.0 m EUR
- Debt / equity
- 0.20x
- Current ratio
- 1.44x
- ROE
- -1.4%
- ROA
- -0.7%
- FCF margin
- -8.2%
Financial statements (source on every figure)
Revenue and net income (EUR)
Margins
Income statement · EUR
| Line | 2021 | 2022 | 2023 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 69.7 m | 73.7 m | 46.3 m | esef· 26 Mar 2024verified |
| Operating income | 3.7 m | 4.2 m | -142.0 k | esef· 26 Mar 2024verified |
| Depreciation & amortisation | 2.3 m | 2.1 m | 2.2 m | esef· 26 Mar 2024verified |
| EBITDA | 6.0 m ≈ | 6.3 m ≈ | 2.1 m ≈ | esef· 26 Mar 2024derived |
| Interest expense | 256.0 k | 746.0 k | 250.0 k | esef· 26 Mar 2024verified |
| Pre-tax income | 3.6 m | 3.6 m | -286.0 k | esef· 26 Mar 2024verified |
| Income tax | 297.0 k | 819.0 k | -47.0 k | esef· 26 Mar 2024verified |
| Net income | 3.3 m | 2.8 m | -239.0 k | esef· 26 Mar 2024verified |
| Diluted EPS | 0.56 | 0.47 | -0.04 | esef· 26 Mar 2024verified |
| Dividend per share | — | — | 0.25 | esef· 26 Mar 2024derived |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · EUR
| Line | 2021 | 2022 | 2023 | Source (latest year) |
|---|---|---|---|---|
| Cash | 6.9 m | 5.8 m | 5.3 m | esef· 26 Mar 2024verified |
| Receivables | 5.1 m | 3.8 m | 3.8 m | esef· 26 Mar 2024verified |
| Inventories | 6.5 m | 6.5 m | 5.3 m | esef· 26 Mar 2024verified |
| Current assets | 23.9 m | 22.9 m | 15.4 m | esef· 26 Mar 2024verified |
| Property, plant & equipment, net | 12.2 m | 11.4 m | 12.2 m | esef· 26 Mar 2024verified |
| Goodwill | 72.0 k | 72.0 k | 72.0 k | esef· 26 Mar 2024verified |
| Intangibles (excl. goodwill) | 500.0 k | 453.0 k | 527.0 k | esef· 26 Mar 2024verified |
| Total assets | 38.6 m | 36.6 m | 30.0 m | esef· 26 Mar 2024verified |
| Accounts payable | 17.7 m | 14.7 m | 9.9 m | esef· 26 Mar 2024verified |
| Short-term debt | 723.0 k | 746.0 k | 812.0 k | esef· 26 Mar 2024verified |
| Long-term debt | 2.6 m | 2.1 m | 2.5 m | esef· 26 Mar 2024verified |
| Current liabilities | 18.5 m | 15.9 m | 10.7 m | esef· 26 Mar 2024verified |
| Total liabilities | 21.7 m | 18.4 m | 13.6 m | esef· 26 Mar 2024verified |
| Equity | 16.9 m | 18.2 m | 16.5 m | esef· 26 Mar 2024verified |
| Shares outstanding at year end | 5.9 m | 5.9 m | 6.0 m | esef· 26 Mar 2024derived |
Cash flow · EUR
| Line | 2021 | 2022 | 2023 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 7.2 m | 4.6 m | -2.3 m | esef· 26 Mar 2024verified |
| Capex | 974.0 k | 938.0 k | 1.5 m | esef· 26 Mar 2024verified |
| Free cash flow | 6.2 m ≈ | 3.7 m ≈ | -3.8 m ≈ | esef· 26 Mar 2024derived |
| Investing cash flow | -421.0 k | -1.1 m | -1.6 m | esef· 26 Mar 2024verified |
| Financing cash flow | -1.8 m | -2.2 m | -2.3 m | esef· 26 Mar 2024verified |
| Dividends paid | — | — | 1.5 m | esef· 26 Mar 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 46 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 14.5 m EUR
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
- Quality13
- Balance sheet53
- Valuation48
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.46 – 4.57 EUR.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (EUR per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the base of the ratio is not positive
- Peers: EV/EBITDA2.46 – 2.55 (Mid 2.46)5 companies used · median multiple 6.1x · quartiles 6.1x – 6.4xANORA.HE, ETTE.HE, HARVIA.HE, ICP1V.HE, KAMUX.HE
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)3.35 – 4.57 (Mid 3.87)
Assumptions (illustrative, editorial)
- Risk-free rate
- 3.0%
- Equity risk premium
- 5.5%
- Beta (default)
- 1.00
- Cost of equity
- 8.5%
- Terminal growth
- 2.0%
Factor scorecard
Neutral profile · Score 46/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -0.8% | 8 (vs peers) | 17% |
| Net margin · Quality | -0.5% | 21 (vs peers) | 10% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | -0.9x | 86 (vs peers) | 17% |
| Interest coverage · Balance sheet | -0.6x | 0 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 1.4x | 53 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | 6.0x | 86 (vs peers) | 17% |
| FCF yield · Valuation | -26.0% | 0 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 10.1% | 100 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet53/100 · 3/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality13/100 · 2/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation48/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Honkarakenne Oyj (HONBS.HE). Latest full fiscal year: 2023; data up to 2023-12-31.
Figures computed from the financial statements: revenue 46.3 m EUR in 2023; YoY growth -37.2%; net margin -0.5%; ROE -1.4%; net debt/EBITDA -0.9x.
The estimated value range is 2.90–3.56 EUR per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 3.17 EUR, the price of 2.43 EUR leaves a potential of 30.3% (value / price − 1) and a margin of safety of 23.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 46/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net debt / EBITDA: -0.9x
- EV/EBITDA: 6.0x
- Shareholder yield (distributions): 10.1%
- The price is below the estimated value range
What contradicts it
- ROIC: -0.8%
- Net margin: -0.5%
- Interest coverage: -0.6x
- FCF yield: -26.0%
Not assessed (insufficient data or a ratio without meaning): FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, P/E (TTM), Payout ratio (FCF).
Versus the vertical median
Listed companies from Finland · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| FORTUM.HEFortum Oyj | 20.8 bn | 27.2 | 8.7% | 15.3% | −14.0% | +32% / +81% |
| ELISA.HEElisa Oyj | 5.6 bn | 16.3 | 27.0% | 15.2% | +3.0% | −8% / −15% |
| KEMIRA.HEKemira Oyj | 2.5 bn | 13.6 | 10.5% | 6.6% | −6.6% | −17% / +4% |
| KALMAR.HEKalmar Oyj | 2.4 bn | 14.7 | 24.1% | 9.4% | +1.2% | +0% / unavailable |
| KCR.HEKonecranes Oyj | 2.2 bn | 5.6 | 20.3% | 9.5% | −0.9% | −4% / +134% |
| EXEL.HEExel Composites Oyj | 1.8 bn | — | -18.5% | -5.3% | +3.6% | +163% / +74% |
| BITTI.HEBittium Oyj | 1.2 bn | 55.8 | 17.5% | 17.9% | +40.1% | +73% / +603% |
| ALMA.HEAlma Media Oyj | 1.2 bn | 21.2 | 23.0% | 16.9% | +4.6% | +9% / +57% |
| FIA1S.HEFinnair Oyj | 927.4 m | 50.4 | 2.9% | 0.6% | +1.9% | +54% / +22% |
| GRK.HEGRK Infra Oyj | 788.5 m | 18.3 | 27.8% | 4.9% | +19.7% | +52% / unavailable |
| HARVIA.HEHarvia Oyj | 768.7 m | 29.3 | 21.0% | 13.3% | +13.5% | −1% / +64% |
| ATRAV.HEAtria Oyj | 451.7 m | 11.1 | 9.8% | 2.2% | +3.3% | +13% / +57% |
| ANORA.HEAnora Group Oyj | 317.6 m | 57.8 | 1.4% | 0.8% | −4.9% | +26% / +11% |
| CAPMAN.HECapMan Oyj | 300.2 m | 23.1 | 6.8% | 20.9% | +9.4% | −8% / −20% |
| ICP1V.HEIncap Oyj | 261.0 m | 18.7 | 10.4% | 6.5% | −6.7% | −3% / +37% |
| FSECURE.HEF-Secure Oyj | 243.7 m | 10.9 | 43.4% | 15.3% | −0.4% | −17% / −23% |
| ASPO.HEAspo Oyj | 219.4 m | 9.3 | 15.4% | 5.0% | +2.1% | +2% / +9% |
| ETTE.HEEtteplan Oyj | 173.7 m | 16.4 | 8.8% | 2.9% | +0.1% | −27% / −51% |
| DIGIA.HEDigia Oyj | 131.6 m | 10.5 | 14.5% | 5.9% | +5.5% | −16% / −12% |
| ILKKA.HEIlkka Oyj | 93.8 m | 8.1 | 6.2% | 30.8% | +22.6% | +0% / +21% |
| CONSTI.HEConsti Oyj | 77.4 m | 11.6 | 15.3% | 2.0% | +2.9% | −8% / −6% |
| APETIT.HEApetit Oyj | 75.6 m | 8.4 | 8.2% | 5.4% | +3.1% | −14% / −3% |
| ESENSE.HEEnersense International Oyj | 74.9 m | 74.7 | 3.1% | 0.4% | −27.7% | +12% / +9% |
| CTH1V.HEComponenta Oyj | 66.1 m | 324.0 | 0.8% | 0.2% | −4.6% | +49% / +182% |
| KAMUX.HEKamux Oyj | 47.4 m | 10.3 | 4.2% | 0.5% | +0.8% | −40% / −77% |
1- and 3-year price returns: for HONBS.HE from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (EUR)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Honkarakenne Oyj is a Finnish manufacturer of solid-wood houses, based in Karstula, selling mainly in Finland and in selected export markets. The company is going through a difficult period, with revenue falling sharply in 2023 and guidance for 2024 that keeps revenue at the prior year's level, so demand for housing is being watched closely. The exact figures are in the fig lines above.
SWOT
Strengths
- The Honka brand has strong recognition in Finland, associated with Nordic wood and healthy construction.
- The company has an integrated structure with its own production at Karstula and a network of subsidiaries in several countries.
- Electricity used at its own sites comes from renewable sources, supporting its image as ecological production.
Weaknesses
- Revenue fell significantly in 2023, and the group reported a negative operating result.
- Dependence on Finnish residential demand makes the company vulnerable to swings in the economic cycle.
- The two-class share structure, with very different voting rights, limits the influence of class B shareholders.
Opportunities
- Priority export markets could support more profitable growth if demand recovers.
- Reorganisation and investment in production lines could lower costs and improve quality.
- Demand for ecological and wooden construction could rise if building rules favour these solutions.
Threats
- High interest rates and costlier financing can delay construction decisions by clients.
- Economic uncertainty in Finland can reduce new orders and affect production planning.
- Price competition from local and international manufacturers can compress margins.
Risks
- Weak residential demandhigh
If demand for new construction stays low, revenue could keep declining, as happened in 2023 1.
- Negative profitabilityhigh
The negative operating result in 2023 shows that the cost structure is sensitive to lower volumes 1.
- Access to financingmedium
If financing for clients becomes even more expensive, building decisions could be postponed or cancelled 1.
- Geographic concentrationmedium
Activity is concentrated in Finland, so a local shock could affect most of the revenue 1.
- Low share liquiditylow
Trading in class B shares is limited, so the price may react sharply to new information 1.
Investment thesis
What would need to be true (bull case)
- If demand for wooden houses recovers, the company could quickly regain volumes, given its established production capacity and brand 1.
- Reorganisation and cost reduction measures could improve profitability if revenue stabilises 1.
- Priority export markets could become a source of more profitable growth than the domestic market in the coming period 1.
What would break the thesis
- If interest rates stay high, housing demand could remain weak for a long time and revenue could keep falling 1.
- The negative operating result shows that cost adjustments may not be enough if volumes do not return 1.
- Concentration on a single market and price competition could limit margins even after demand recovers 1.
What to watch
- Delivery against the 2024 revenue guidance of 43 to 50 million euro2024
- Development of the operating result against the 2024 guidance2024
- Effect of the non-settling log beam line investment on production costs2024
- New orders and demand trends in priority export marketsnext annual report
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Honkarakenne Oyj is the parent company of the Honkarakenne group, with its head office and production plant in Karstula, Finland, where most of the personnel work. The group develops production, services and product ranges for wooden homes under the Honka brand, and states its commitment to healthy and ecological construction 1. Subsidiaries include Alajärven Hirsitalot Oy and Honka-Kodit Oy in Finland, Honka Japan Inc. in Japan, Honka Blockhaus GmbH in Germany and Honkarakenne SARL in France 1.
In 2023 the group ended with a negative operating result, and management launched a reorganisation programme to improve customer experience and profitability 1. The company also cut staff through change negotiations, which ended the employment of 9 production workers and 13 office employees 1. Management said it aims to develop priority export markets, which it sees as having potential for profitable growth 1.
Class B shares are listed on the Nasdaq Helsinki Small Cap list under the ticker HONBS, and the two-class share structure gives class A shareholders far more votes 1. Beyond these points, after the close of fiscal 2023 the company signed an investment agreement for a production line for non-settling log beams 1.
Segments
Wooden houses (Finland and export)
The main segment is the production and sale of solid-wood houses, made mainly at Karstula, with deliveries in the Finnish market and in a few export markets, notably Japan, Germany and France through dedicated subsidiaries 1. Revenue in this segment fell in 2023, reflecting weaker demand for new construction 1.
Services and distribution in Finland
The group also has subsidiaries that distribute and build homes in Finland, such as Honka-Kodit Oy and Alajärven Hirsitalot Oy, and it runs sales offices in several Finnish cities as well as a customer service centre in Tuusula 1. These activities depend directly on the building decisions of private and professional clients 1.
Market context
The core market is Finnish residential construction, where demand depends on high interest rates, access to financing and consumer confidence 1. Management states that uncertainty about the domestic economy and high interest rates could negatively affect both private and professional builders 1.
In export markets the company sees potential for growth in certain priority areas, but results depend on its ability to win back orders and on financing conditions in those countries 1. It also operates in an environment where construction commitments can be postponed, which reduces revenue visibility 1.
Trends
- High interest rates and costlier financingheadwind
High interest rates and harder access to financing could reduce demand for new homes and delay construction decisions, which is reflected in management's cautious outlook 1.
- Economic uncertainty in Finlandheadwind
Uncertainty about the domestic economy limits order visibility, and management prepared staff adjustment measures in this context 1.
- Reorganisation and efficiency programmemixed
The reorganisation launched at the start of 2023 and the changes in staffing could improve profitability if volumes stabilise 1.
- Growth potential in export marketstailwind
Management believes priority export markets can support profitable growth, though this advantage depends on external demand and financing conditions 1.
Competitive position
Honkarakenne competes with other solid-wood house makers and with home builders in Finland and abroad, including suppliers offering prefabricated solutions or houses built from other materials. The sources provided do not describe competitors' positions in detail, so the relative analysis is limited to what the annual report says 1.
The company attributes its strengths to the Honka brand and its association with Nordic wood, but price and cost competition can limit margins, especially when demand is weak 1.
- Other Finnish solid-wood house makers
Direct competitors in the Finnish wooden house market; the sources do not name them and do not allow a detailed comparison.
- Local residential builders
Compete for the same housing projects, especially new construction, where decisions depend on financing.
- International prefabricated house manufacturers
Active in export markets, offering alternatives in other materials or building systems.
- Solid-wood house makers in Japan and Germany
Local competitors in the markets where the group has subsidiaries; their market shares are not detailed in the source.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202326 Mar 2024
- Annual report 202326 Mar 2024
- Annual report 202228 Mar 2023
Sources
- [1] Annual report, fiscal year ended 2023-12-31 (ESEF) · SEC / Honkarakenne Oyj · 31 Dec 2023
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.