WBAG:NRE1

Stock Analysis Report

Executive Summary

Nokian Renkaat Oyj develops and manufactures tires in Finland, Sweden, Norway, Russia, the rest of Europe, North America, and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Nokian Renkaat Oyj's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NRE1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.8%

NRE1

14.2%

AT Auto Components

8.9%

AT Market


1 Year Return

n/a

NRE1

-39.6%

AT Auto Components

-26.8%

AT Market

Return vs Industry: Insufficient data to determine how NRE1 performed against the Austrian Auto Components industry.

Return vs Market: Insufficient data to determine how NRE1 performed against the Austrian Market.


Shareholder returns

NRE1IndustryMarket
7 Day9.8%14.2%8.9%
30 Day-3.8%-6.0%-3.4%
90 Day-25.0%-34.6%-27.0%
1 Yearn/a-37.4%-39.6%-24.2%-26.8%
3 Yearn/a-47.3%-51.6%-8.2%-16.2%
5 Yearn/a-40.9%-47.7%8.2%-6.8%

Price Volatility Vs. Market

How volatile is Nokian Renkaat Oyj's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nokian Renkaat Oyj undervalued compared to its fair value and its price relative to the market?

21.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NRE1 (€19.5) is trading below our estimate of fair value (€25.59)

Significantly Below Fair Value: NRE1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NRE1 is good value based on its PE Ratio (6.7x) compared to the Auto Components industry average (8.7x).

PE vs Market: NRE1 is good value based on its PE Ratio (6.7x) compared to the Austrian market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: NRE1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NRE1 is overvalued based on its PB Ratio (1.5x) compared to the XE Auto Components industry average (0.7x).


Next Steps

Future Growth

How is Nokian Renkaat Oyj forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRE1's earnings are forecast to decline over the next 3 years (-19.3% per year).

Earnings vs Market: NRE1's earnings are forecast to decline over the next 3 years (-19.3% per year).

High Growth Earnings: NRE1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NRE1's revenue (1.2% per year) is forecast to grow slower than the Austrian market (2% per year).

High Growth Revenue: NRE1's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NRE1's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has Nokian Renkaat Oyj performed over the past 5 years?

12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NRE1 has a high level of non-cash earnings.

Growing Profit Margin: NRE1's current net profit margins (25.1%) are higher than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: NRE1's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: NRE1's earnings growth over the past year (35.5%) exceeds its 5-year average (12.2% per year).

Earnings vs Industry: NRE1 earnings growth over the past year (35.5%) exceeded the Auto Components industry -5.1%.


Return on Equity

High ROE: NRE1's Return on Equity (22.6%) is considered high.


Next Steps

Financial Health

How is Nokian Renkaat Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: NRE1's short term assets (€1.2B) exceed its short term liabilities (€296.4M).

Long Term Liabilities: NRE1's short term assets (€1.2B) exceed its long term liabilities (€266.5M).


Debt to Equity History and Analysis

Debt Level: NRE1's debt to equity ratio (7.6%) is considered satisfactory.

Reducing Debt: NRE1's debt to equity ratio has reduced from 22.6% to 7.6% over the past 5 years.

Debt Coverage: NRE1's debt is well covered by operating cash flow (162.6%).

Interest Coverage: NRE1's interest payments on its debt are well covered by EBIT (64.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Nokian Renkaat Oyj's current dividend yield, its reliability and sustainability?

3.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NRE1's dividend (4.06%) is higher than the bottom 25% of dividend payers in the Austrian market (1.87%).

High Dividend: NRE1's dividend (4.06%) is low compared to the top 25% of dividend payers in the Austrian market (5.96%).


Stability and Growth of Payments

Stable Dividend: NRE1's dividend payments have been volatile in the past 10 years.

Growing Dividend: NRE1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.3%), NRE1's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NRE1's dividends in 3 years are forecast to be covered by earnings (84.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Hille Korhonen (58yo)

2.83s

Tenure

Ms. Hille Korhonen, Lic. Tech., has been the Chief Executive Officer and President of Nokian Renkaat Oyj since June 1, 2017. Ms. Korhonen served as the Chief Executive Officer and President of Alko Inc., u ...


Leadership Team

NamePositionTenureCompensationOwnership
Hille Korhonen
President & CEO2.83yrsno data0.034% 935.4k
Teemu Kangas-Kärki
Chief Financial Officer1.75yrsno data0.0051% 138.9k
Peter Chia
Plant Manager & Operations Director1.5yrsno datano data
Mitsuhira Shimazaki
Director of Administration & Salesno data€4.80kno data
Päivi Antola
Senior Vice President of Investor Relations & Corporate Communications1.92yrsno data0.00091% 25.0k
Jukka Kasi
Vice President of Products & Marketing1.25yrsno data0.0032% 87.6k
Andrei Pantioukhov
Executive VP and GM of Russia & Asia Business Area11.25yrsno data0.050% 1.4m
Tytti Bergman
Senior Vice President of People & Culture2yrsno data0.0022% 59.3k
Hannu Liitsola
MD of Central Europe & Interim Head of Business Area - Central Europeno datano datano data
Bahri Kurter
Senior Vice President of Central Europe0.75yrno datano data

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: NRE1's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Heikki Allonen
Independent Director4yrs€54.00k0.0019% 51.3k
Kari Alpo Jordan
Independent Deputy Chairman2yrs€75.90k0.0015% 41.7k
Raimo Lind
Independent Director6yrs€78.90k0.0036% 98.0k
Jukka Hienonen
Independent Chairman of the Boardno datano datano data
Pekka Vauramo
Independent Director2yrs€52.20k0.0010% 27.7k
Inka Mero
Independent Director6yrs€54.00k0.0029% 78.8k
George Rietbergen
Independent Director3yrs€53.40k0.0014% 38.2k
Veronica Lindholm
Independent Director4yrs€57.00k0.0019% 51.3k

4.0yrs

Average Tenure

60yo

Average Age

Experienced Board: NRE1's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nokian Renkaat Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nokian Renkaat Oyj
  • Ticker: NRE1
  • Exchange: WBAG
  • Founded: 1898
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: €2.745b
  • Shares outstanding: 138.72m
  • Website: https://www.nokiantyres.com

Number of Employees


Location

  • Nokian Renkaat Oyj
  • Pirkkalaistie 7
  • PO Box 20
  • Nokia
  • Pirkanmaa
  • 37101
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NKRK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1995
TYRESHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURJun 1995
NREDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1995
0FFYLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 1995
NRE1WBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 1995
NKRK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDSep 2011

Biography

Nokian Renkaat Oyj develops and manufactures tires in Finland, Sweden, Norway, Russia, the rest of Europe, North America, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vianor segments. The Passenger Car Tyres segment develops and produces summer and winter tires for cars and vans. The Heavy Tyres segment offers tires for forestry machinery; and special tires for agricultural machinery, tractors, and industrial machinery, as well as retreading materials and truck tires. The Vianor Tyre segment sells car and van tires, as well as truck tires under the Nokian brand, and other tire brands; and other automotive products and services. The company offers its products through its own Vianor service centers and service centers run by partners, the Nokian Tyres Authorized Dealer (NAD) partners, the N-Tyre retailers, and other tire and vehicle retailers, as well as online stores. As of December 31, 2019, it operated 1,170 Vianor service centers; 2,182 NAD stores; and 133 N-Tyre stores. The company was founded in 1898 and is headquartered in Nokia, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 05:29
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.