A new ranking of Helsinki-listed companies shows that quality is abundant, but attractively priced quality is not.
Arvopaperi Analyst Ari Rajala’s latest quality screen puts asset manager United Bankers first with 236 points, followed by electronics manufacturer Incap at 238, drugmaker Orion at 248, investment company Alexandria at 259, and marine and energy equipment maker Wärtsilä at 260, according to a report released today.
The methodology is deliberately structured and long-term. It evaluates companies across seven criteria that measure profitability, financial risk, growth, and the consistency of earnings. Key inputs include return on equity over a 10-year median, net debt to equity, revenue and earnings growth, and earnings volatility, measured through a coefficient of variation.
“The framework is built on three pillars: profitability, safety, and earnings quality,” Rajala says. “Together they define a company’s financial strength.” Stability plays a central role. “A stable and predictable earnings profile signals a structural competitive advantage,” he adds.
The top candidate, United Bankers, illustrates this well. The asset manager combines high returns on capital with steady growth and relatively low risk. Its capital light model, focused on wealth management and fee-based services, allows it to scale without tying up significant balance sheet resources. This efficiency translates into consistently strong returns on equity.
Incap, ranked second, stands out for its exceptional profitability. The electronics contract manufacturer has delivered unusually strong margins, reflecting operational efficiency and a focused production model. However, forecasts suggest some normalization in return on equity in the coming years, which tempers the overall picture.
Orion, in third place, represents a different kind of quality. The pharmaceutical company combines high profitability with modest leverage and steady earnings development. The nature of the industry supports predictability, but much of this stability is already reflected in a relatively high valuation.
The final question, then, is not which company is best, but which stock offers the best return. Rajala’s data suggests that the gap is widening. Many of the highest quality names trade on elevated multiples, reflecting market confidence in continued earnings growth. That confidence leaves little margin for error. Companies like Vaisala, for instance, score highly on quality, yet their expected returns remain modest at current valuations.
This is where selectivity becomes critical. The strongest opportunities tend to emerge when quality and reasonable pricing coincide, not when excellence is already fully priced in. On Rajala’s list, Konecranes and Evli stand out as examples where solid fundamentals meet more moderate valuation levels, offering a more balanced risk-return profile.
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