Fortum Oyj (HEL:FORTUM) Shares Could Be 38% Below Their Intrinsic Value Estimate
May 22
Finnish (OMX) Market Analysis & Valuation
UpdatedMay 22, 2024
DataAggregated Company Financials
Companies171
- 7D0.3%
- 3M5.5%
- 1Y-7.8%
- YTD2.7%
In the last week, the market has stayed flat, however the Utilities sector stood out, gaining 6.2%. Unfortunately though, the market is down 7.8% over the past year. Earnings are forecast to grow by 15% annually.
Trending IndustriesSoftware
Market Valuation and Performance
Has the Finnish Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 23 May 2024 | €232.3b | €190.9b | €10.0b | 18.4x | 23.2x | 1.2x |
| Sat, 20 Apr 2024 | €219.8b | €195.5b | €10.2b | 17.1x | 21.5x | 1.1x |
| Mon, 18 Mar 2024 | €218.1b | €195.0b | €10.2b | 17x | 21.5x | 1.1x |
| Wed, 14 Feb 2024 | €218.2b | €194.7b | €9.2b | 18.4x | 23.8x | 1.1x |
| Fri, 12 Jan 2024 | €229.2b | €202.7b | €12.9b | 18.8x | 17.8x | 1.1x |
| Sun, 10 Dec 2023 | €225.5b | €202.6b | €12.9b | 18.3x | 17.5x | 1.1x |
| Tue, 07 Nov 2023 | €214.1b | €203.2b | €13.2b | 17.5x | 16.2x | 1.1x |
| Thu, 05 Oct 2023 | €213.8b | €208.3b | €12.8b | 18.3x | 16.6x | 1x |
| Sat, 02 Sep 2023 | €226.7b | €209.1b | €12.9b | 19.1x | 17.6x | 1.1x |
| Mon, 31 Jul 2023 | €226.6b | €209.0b | €16.4b | 18.4x | 13.8x | 1.1x |
| Wed, 28 Jun 2023 | €228.1b | €210.8b | €17.3b | 18.4x | 13.2x | 1.1x |
| Fri, 26 May 2023 | €237.4b | €210.8b | €17.3b | 18.9x | 13.7x | 1.1x |
| Sun, 23 Apr 2023 | €246.8b | €209.4b | €17.0b | 18.9x | 14.5x | 1.2x |
| Tue, 21 Mar 2023 | €241.2b | €205.9b | €16.7b | 19.6x | 14.5x | 1.2x |
| Thu, 16 Feb 2023 | €260.4b | €314.2b | €16.0b | 16.9x | 16.3x | 0.8x |
| Sat, 14 Jan 2023 | €262.0b | €310.2b | €14.1b | 16.4x | 18.6x | 0.8x |
| Mon, 12 Dec 2022 | €260.6b | €309.6b | €14.1b | 16.1x | 18.5x | 0.8x |
| Wed, 09 Nov 2022 | €237.1b | €194.9b | €15.3b | 15.2x | 15.5x | 1.2x |
| Fri, 07 Oct 2022 | €227.1b | €186.3b | €15.5b | 15.6x | 14.6x | 1.2x |
| Sun, 04 Sep 2022 | €231.8b | €186.3b | €15.5b | 16.2x | 14.9x | 1.2x |
| Tue, 02 Aug 2022 | €257.5b | €321.3b | €13.4b | 17.5x | 19.2x | 0.8x |
| Thu, 30 Jun 2022 | €247.6b | €313.7b | €13.1b | 16.7x | 18.8x | 0.8x |
| Sat, 28 May 2022 | €263.8b | €313.6b | €13.1b | 17.7x | 20.1x | 0.8x |
| Mon, 25 Apr 2022 | €268.7b | €286.3b | €16.5b | 19.1x | 16.3x | 0.9x |
| Wed, 23 Mar 2022 | €268.0b | €284.1b | €14.7b | 19.6x | 18.2x | 0.9x |
| Fri, 18 Feb 2022 | €280.4b | €255.0b | €13.5b | 20.5x | 20.7x | 1.1x |
| Sun, 16 Jan 2022 | €302.1b | €247.4b | €8.8b | 24x | 34.3x | 1.2x |
| Tue, 14 Dec 2021 | €298.2b | €247.0b | €8.8b | 23.2x | 33.9x | 1.2x |
| Thu, 11 Nov 2021 | €301.3b | €237.2b | €9.7b | 23.5x | 31.1x | 1.3x |
| Sat, 09 Oct 2021 | €295.6b | €232.9b | €8.0b | 23.5x | 36.9x | 1.3x |
| Mon, 06 Sep 2021 | €321.8b | €232.9b | €8.0b | 25.7x | 40.1x | 1.4x |
| Wed, 04 Aug 2021 | €315.5b | €232.6b | €8.0b | 25.3x | 39.4x | 1.4x |
Price to Earnings Ratio
43.6x
Current Market PE
- Investors are relatively neutral on the Finnish market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 22.0x.
Past Earnings Growth
- The earnings for Finnish listed companies have grown 15% per year over the last three years.
- Meanwhile revenues for these companies have declined 5.1% per year.
- This means that less sales are being generated overall, but since the cost of doing business is lower, profits are increasing.
Sector Trends
Which sectors have driven the changes within the Finnish Market?
| FI Market | 0.28% | |
| Utilities | 6.23% | |
| Materials | 2.55% | |
| Financials | 2.18% | |
| Consumer Staples | 1.42% | |
| Industrials | 0.95% | |
| Telecom | 0.16% | |
| Real Estate | -0.24% | |
| Healthcare | -0.46% | |
| Tech | -1.32% | |
| Consumer Discretionary | -1.65% | |
| Energy | -11.29% | |
Sector PE
- Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 20.8x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 30.7% which is higher than its past year's earnings decline of 67.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Real Estate sector, expecting annual earnings growth of 62% over the next 5 years.
- However this is lower than its past earnings growth rate of 283% per year.
- In contrast, the Utilities sector is expected to see its earnings decline by 16% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| NESTE Neste Oyj | €20.03 | 6.1% +€883.4m | -45.4% | PE11.3x | Energy | |
| NOKIA Nokia Oyj | €3.64 | 2.9% +€568.8m | -2.2% | PE24.7x | Tech | |
| UPM UPM-Kymmene Oyj | €35.65 | 2.9% +€528.0m | 20.9% | PE39.3x | Materials | |
| FORTUM Fortum Oyj | €14.43 | 3.2% +€399.3m | 10.8% | PE9x | Utilities | |
| SAMPO Sampo Oyj | €40.65 | 1.4% +€281.0m | -5.5% | PE17.4x | Financials |
