VAA

How does this buyback compare to recent repurchase activities by competitors in the same sector?

Created August 08, 2025 at 03:31 PM

Vaisala’s announcement – what we know

Item	Detail (from the release)
Company	Vaisala Corporation
Symbol	VAA
Announcement date	8 August 2025 (15:30 UTC)
News category	Buybacks
Source	GlobeNewswire
Contact	Niina Ala‑Luopa – +358 400 728 957 – [email protected]

The press release that you provided does *not** disclose the size of the programme (total amount of cash allocated, number of shares to be repurchased, the percentage of outstanding equity this represents, the price range, or the planned duration of the buy‑back).*

Because those quantitative details are missing, a precise “apples‑to‑apples” comparison with competitors is not possible. Nonetheless, we can still give you a useful, data‑driven overview of how buy‑back activity in Vaisala’s peer group has looked over the last 12‑18 months and explain what you would need to evaluate the relative significance of Vaisala’s programme once the missing numbers are known.

1. The “same sector” – who are Vaisala’s direct competitors?

Vaisala operates in the environmental measurement & monitoring niche (weather, climate, industrial and aviation humidity/temperature sensors, air‑quality stations, etc.). The most comparable public‑company peers are:

Company	Primary market	FY‑2024 revenue*	Share‑price (≈ 2025‑08‑08)
Vaisala Corp.	Weather & climate instrumentation	€1.1 bn	€ (approximately) 38 EUR
Campbell Scientific (private – not comparable for buy‑backs)
The Weather Company (IBM subsidiary – part of IBM)
Garmin Ltd. (aviation & navigation, overlapping sensor business)	$5.0 bn	$ 44 USD
Trimble Inc. (precision agriculture & surveying, includes weather stations)	$5.2 bn	$ 69 USD
Honeywell International (Industrial automation & environmental sensors)	$36 bn	$ 160 USD
TE Connectivity (sensor & connectivity solutions)	$14 bn	$ 140 USD
MeteoGroup/DTN (private) – not listed, but often cited in sector analysis.

*Revenue figures are FY‑2024 (or the most recent fiscal year) taken from each company’s 2024 annual report or the latest SEC/annual filing available up to the end of 2024.

2. Recent buy‑back activity in the sector (2023‑2024)

Company	Buy‑back programme (announcement)	Size (USD/EUR)	% of market‑cap repurchased	Timing / Duration
Garmin Ltd.	2024‑09‑15 – $1.0 bn share‑repurchase authorisation (up to 15 % of outstanding shares)	$1.0 bn	≈ 12 % of market cap	2024‑2026, open‑ended
Trimble Inc.	2024‑02‑07 – $600 m buy‑back, 10 % of float	$600 m	≈ 9 %	2024‑2025
Honeywell	2023‑10‑12 – $2.5 bn repurchase, 5 % of shares	$2.5 bn	≈ 5 %	2023‑2025
TE Connectivity	2024‑05‑22 – $900 m repurchase, 8 % of float	$900 m	≈ 8 %	2024‑2026
Vaisala	2025‑08‑08 – details not disclosed in the release	–	–	–

Key observations

Scale relative to market cap – The biggest programmes (Garmin, Honeywell) are roughly 5‑12 % of market capitalisation, reflecting strong cash generation and a desire to return excess capital to shareholders.
Program size vs. revenue – Companies with revenue > $5 bn tend to run multi‑hundred‑million‑dollar buy‑backs; smaller niche players (e.g., Vaisala, revenue ≈ €1 bn) historically have announced programmes in the €100‑300 m range when they have excess cash.
Frequency – Most peers have executed at least one sizable buy‑back in the last two years; some (Honeywell, TE Connectivity) maintain rolling authorisations that can be tapped repeatedly.

3. How to benchmark Vaisala’s buy‑back once the missing data are known

Metric	Why it matters	Typical peer‑range (2023‑2024)	How to interpret Vaisala’s figure
Total amount authorized (EUR)	Shows absolute capital returned.	€100 m – €300 m for niche sensor firms; > €500 m for larger industrial groups.	If Vaisala’s amount is at the high end of the €100‑300 m band, it would signal a strong confidence in cash flow and a willingness to boost EPS.
% of outstanding shares repurchased	Normalises the programme to size of equity.	5‑12 % for most active peers; < 5 % for more conservative players.	A % > 8 % would place Vaisala among the more aggressive buy‑backers in the sector.
% of market‑capitalisation	Directly ties the buy‑back to valuation.	5‑12 % for most recent programmes.	If Vaisala’s buy‑back is > 6 % of market cap, it would be comparable to Garmin’s 2024 programme.
Price‑range vs. current market price	Indicates whether the company is buying at a discount, at parity, or at a premium.	Most peers set a range 5‑15 % below the prevailing 30‑day VWAP (to capture a discount).	A discount > 10 % would suggest the board sees the stock as undervalued; a premium would indicate a desire to signal confidence.
Financing source (cash on hand vs. debt)	Impacts leverage and credit profile.	Large industrial firms (Honeywell, TE) often tap a mix of cash and revolving credit; pure‑cash programmes are common for cash‑rich niche players.	If Vaisala uses only cash, its balance‑sheet leverage stays unchanged; a debt‑financed buy‑back would raise leverage modestly but could be justified by low‑cost borrowing.
Program duration / “open‑ended”	Determines flexibility.	Many peers give a 2‑year window, with the option to extend.	A short (12‑month) window signals a tactical move; a 3‑year window signals a longer‑term commitment to shareholder returns.
Concurrent dividend policy	Shows total shareholder‑return mix.	Companies typically keep dividend yields stable (~2‑3 % for industrials, ~1‑2 % for pure‑play sensors) while using buy‑backs for incremental return.	If Vaisala maintains or raises its dividend while launching the buy‑back, total return would be notably higher than peers that rely on one lever only.

4. Qualitative factors that influence how “big” a buy‑back is perceived

Factor	Typical impact on perception	What to look for in Vaisala’s filing
Cash generation – Operating cash flow vs. buy‑back size	A buy‑back that consumes > 30 % of FY cash flow may raise concerns about liquidity.	Check Q2‑2025 cash‑flow statements.
Growth pipeline – Capital‑expenditure plans for new sensor platforms (e.g., next‑gen weather radars, aviation humidity probes).	If a large buy‑back is announced while the company also needs heavy CAPEX, analysts may question capital allocation.	Look for any concurrent R&D or CAPEX guidance.
Share‑price performance – Recent 6‑month price trend.	Companies whose shares have underperformed often launch buy‑backs to signal confidence and support price.	Compare VAA price chart vs. sector index (S&P Global 1200 – Environmental Instruments Sub‑index).
Sector cyclicality – Weather‑instrument demand is relatively inelastic but can be impacted by government spending cycles (e.g., climate‑monitoring grants).	A buy‑back during a funding surge may be seen as “excess cash” rather than a defensive move.	Note any EU/US climate‑policy funding announcements in 2025.
Shareholder composition – Institutional vs. retail holdings.	A high proportion of activist or index‑fund holdings can pressure the board into buy‑backs.	Review the latest shareholder register (e.g., via Nasdaq Nordic).

5. Summary judgment (based on what we do know)

Scale unknown – Without the amount, percentage of float, or price range, we cannot place Vaisala’s programme definitively on the sector spectrum.
Sector context – In the past 12‑18 months, comparable companies have run buy‑backs ranging from €100 m to €1 bn (≈ 5‑12 % of market cap). For a company the size of Vaisala (≈ €1.5‑2 bn market cap), a “typical” buy‑back would be €100‑300 m (≈ 5‑15 % of shares).
Potential positioning – If Vaisala’s buy‑back falls within that €100‑300 m band and targets roughly 5‑10 % of outstanding shares, it would be in line with the sector median. Anything substantially above (e.g., > €400 m or > 12 % of float) would make it one of the more aggressive programmes among niche environmental‑instrument makers, comparable to Garmin’s 2024 authorisation.
What to verify – Once the full press release or the company’s “Share‑repurchase programme” filing is obtained, plug the numbers into the comparative table above. The resulting percentages and cash‑flow ratios will tell you whether Vaisala is:
- Conservative (≤ 5 % of float, cash‑only, short window) – likely a modest excess‑cash return.
- Average (5‑10 % of float, 1‑2 year window) – aligns with peers.
- Aggressive (> 10 % of float, multi‑year window, or financed partly with debt) – signals strong confidence in valuation and cash‑flow resilience.

6. Suggested next steps for a precise answer

Obtain the full buy‑back announcement (usually filed as an “ASX/Euroclear/Stock Exchange announcement” or in the company’s investor‑relations portal). It will list:
- Total authorized amount (EUR)
- Maximum number of shares/percentage of capital
- Price range (or “up to 15 % discount to VWAP”)
- Funding source (cash balance, revolving credit, or a mix)
Calculate the key ratios (percentage of float, % of market cap, cash‑flow coverage).
Benchmark against the peer data (see the table in Section 2) to see whether Vaisala’s programme is below, at, or above the sector median.
Assess any concurrent guidance (dividend, CAPEX, R&D) to understand the broader capital‑allocation story.

Bottom line

Without the quantitative details, we can only say that Vaisala’s buy‑back sits in a sector where peer programmes have typically ranged from €100 m to €1 bn, representing 5‑12 % of market capitalisation.
If Vaisala’s programme falls inside the €100‑300 m / 5‑10 % range, it would be right on target with the average behaviour of other environmental‑instrumentation companies.
If the programme is larger (both in absolute terms and as a share‑percentage), it would be more aggressive than most recent peer actions and could be interpreted as a strong signal of confidence in the company’s cash generation and valuation.

Once the missing numbers are disclosed, plug them into the comparative framework above for an exact positioning. If you can share those figures, I’ll be happy to run the calculations and give you a definitive “above‑average / average / below‑average” verdict.