We see quite a discrepancy among the Baltic countries – in terms of economic development, in terms of firms’ results, in terms of performance. Lithuania appears to be much better positioned than its Baltic sisters and we see it influencing also the evaluation results, where fundamental quality and development tempo are in focus. Given that, we see 3 of 5 Lithuanian companies entering corporate excellence top, and 6 out of top 10.
Every year we conduct this evaluation globally, identifying the best corporate quality providers worldwide, including in the Baltics. Our assessment considers financial results and the quality of business models, using both current annual and historical data from companies listed on Baltic exchanges. This evaluation focuses on companies that have been publicly listed for over three years and applies a basic ESG filter to exclude the industries, which are usually non-compliant with sustainability mindset. Though fundamental quality usually correlates well with the companies’ return in Baltics, the valuation should be considered as well. The framework of the corporate excellence evaluation excludes valuation dimension.
TOP 5 Baltics 2025
Companies with less than three years data history are not included in the evaluation, includes companies from Main list and First North equity list
Source: Alphinox, Reuters
Telia Lietuva is an unquestionable leader among Baltic listed companies for several years in a row given its strict financial discipline, well-managed growth and also plausible development strategy. Despite extremely high saturation in the segment, Telia still manages to grow its mobile business segment, which has higher margin. Margin and cash flow improvement is also well-supported by the focus on the operational efficiency allowing it to
Merko remains in the corporate excellence top for the second year in a row. It is also one of the best long-term performer on Baltic stock exchanges, being able to show solid results also in a challenging market. The company enjoys strong tailwinds given Rail Baltica mega-project, defense infrastructure spending as well as continuous trend in the renewable energy sector, which all has resulted in the historically highest secured order book.
The newcomer to the top 3 and another best performing stocks on Baltic stock exchanges is Vilkyškiu Pienine, selling its products under Vilvi brand. Last year the company showed stellar earnings growth thanks to the favourable economic environment in the industry, with increased prices in its key product categories. To add, the company should be praised for the plausible corporate development strategy and thought-through business expansion.
For the first time the company from alternative First North list paved its way to the top 5 is Madara Cosmetics. The company has been always doing very well but its growth was stalled during the previous year. However, EPS landscape reversed towards more promising dynamics allowing it to enter the corporate excellence best selection.
This year we are adding to the evaluation universe also the bond issuers of the most liquid bonds on the Baltic stock exchanges to look into the corporate strength of the issuers, which are standing behind the bonds. Bond segment becomes increasingly popular among the retail investors and so is in the focus of attention at the moment.
With exception of Lithuanian building maintenance firm, Civinity, all other top companies are coming from Latvia. We see two SOEs among the companies with the highest fundamental quality, which are utilities companies mainly – Latevenergo and AST. Another utility company, which ranked as the best according to quantitative evaluation is waste management firm, CleanR. Food sector representative focusing on canned fish, Banga, made it to the high top 3 thanks to its solid financial position.
TOP 5 Baltic Bond Issuers 2025
Companies with less than three years data history are not included in the evaluation, includes companies from Main list and First North bond list, based on quantitative evaluation only
Source: Alphinox, Reuters
Coming back to the Baltic equity market, Baltic listed firms boast with higher profitability and more efficient use of capital as compared to MSCI Europe constituents. The top five deliver an average ROE of 28.3%, compared with 13.8% for the market and 12.8% for MSCI Europe, showing stronger earnings power. The TOP5’s equity-to-assets ratio of 0.60 is also higher than the Baltic market’s 0.32 and slightly above MSCI EU’s 0.53, indicating stronger balance sheets and lower dependence on debt. After the post-COVID recovery, Baltic companies continue to post healthy results while still trading at low valuations. The main list’s dividend yield of 6.13% YTD, more than double the MSCI EU’s 2.93%, shows their willingness and ability to reward investors with generous payouts, which often becomes main motivation for investors to invest in Baltic stocks.
The Baltic Corporate Excellence Award is not just an annual recognition — it also serves as a foundation for our Baltic Market Leaders Strategy, an equity portfolio built around the same evaluation framework. Each year, the portfolio reflects our conviction that companies demonstrating sustainable profitability, strong balance sheets, and transparent governance tend to outperform over time. Over the years, this approach has proved its merit — the portfolio, composed of the top-rated firms identified through our corporate excellence research, has consistently delivered solid returns supported by steady dividend payouts and resilience even in volatile markets.
Baltic Corporate Excellence Award: Since 2008 on a yearly basis Riga-based financial research company Alphinox, in cooperation with its partner, Hérens Quality Asset Management (Switzerland) and its academic partner, Riga Technical University (Latvia), evaluates the quality of the companies quoted on the Baltic stock exchanges. Both qualitative and quantitative assessment is applied to determine the best companies listed in the Baltic States, considering the companies included in the Baltic main list with trading history of at least three years. The quantitative screen contributes 50% to the overall assessment. It considers main fundamental ratios allowing to make a judgment on the strength of the balance sheet, profitability, capital efficiency, operating efficiency, earnings momentum. Another 50% of the decision is based on the qualitative assessment, which covers business model, corporate governance, social responsibility, quality of financial management and market environment. The Corporate Excellence Award recognizes historical fundamental performances (based on the result of FY 2023 and earlier) and ignores companies’ valuation. The results of the Baltic Corporate Excellence Award are not a stock recommendation.
https://www.alphinox.com/awards/
Disclaimer: This press release is for information purposes only and constitutes neither an offer nor a recommendation to undertake any type of transaction or to buy or sell securities or financial products in the broadest sense. Alphinox Quality AS offers no guarantee of the completeness, correctness or security of this press release. Alphinox Quality AS accepts no liability claims that might arise from the use or non-use of the content of this press release. Alphinox Quality AS employee has Telia Lietuva and Šiauliu Bankas in personal investment portfolio.
