XTRA:FRU

Stock Analysis Report

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Executive Summary

Ferratum Oyj, together with its subsidiaries, provides mobile banking, and digital consumer and small business loans to retail and business clients. More Details


Snowflake Analysis

Undervalued with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FRU is more volatile than 75% of German stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: FRU's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of German stocks.


Market Performance


7 Day Return

-5.6%

FRU

-2.4%

DE Consumer Finance

0.5%

DE Market


1 Year Return

-39.4%

FRU

1.2%

DE Consumer Finance

21.5%

DE Market

Return vs Industry: FRU underperformed the German Consumer Finance industry which returned 1.6% over the past year.

Return vs Market: FRU underperformed the German Market which returned 21.5% over the past year.


Shareholder returns

FRUIndustryMarket
7 Day-5.6%-2.4%0.5%
30 Day2.7%1.1%-1.4%
90 Day31.7%18.6%6.5%
1 Year-39.4%-39.4%2.8%1.2%25.2%21.5%
3 Year-77.7%-78.2%-20.5%-30.3%14.7%4.7%
5 Year-72.6%-73.5%-33.1%-50.1%45.1%24.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRU (€6.06) is trading below our estimate of fair value (€12.33)

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


Price To Earnings Ratio

PE vs Industry: FRU is poor value based on its PE Ratio (16.1x) compared to the XE Consumer Finance industry average (13.8x).

PE vs Market: FRU is good value based on its PE Ratio (16.1x) compared to the German market (25.3x).


Price to Earnings Growth Ratio

PEG Ratio: FRU is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: FRU is good value based on its PB Ratio (0.7x) compared to the XE Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is Ferratum Oyj forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

95.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRU's forecast earnings growth (95.3% per year) is above the savings rate (0.07%).

Earnings vs Market: FRU's earnings (95.3% per year) are forecast to grow faster than the German market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FRU's revenue (19.3% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: FRU's revenue (19.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FRU's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Ferratum Oyj performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRU has high quality earnings.

Growing Profit Margin: FRU's current net profit margins (5.6%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: FRU's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: FRU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FRU had negative earnings growth (-69.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (-21.7%).


Return on Equity

High ROE: FRU's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is Ferratum Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: FRU's short term assets (€632.4M) exceed its short term liabilities (€387.9M).

Long Term Liabilities: FRU's short term assets (€632.4M) exceed its long term liabilities (€177.2M).


Debt to Equity History and Analysis

Debt Level: FRU's debt to equity ratio (137.2%) is considered high.

Reducing Debt: FRU's debt to equity ratio has increased from 65.7% to 137.2% over the past 5 years.

Debt Coverage: FRU's debt is well covered by operating cash flow (102%).

Interest Coverage: Insufficient data to determine if FRU's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Ferratum Oyj current dividend yield, its reliability and sustainability?

2.66%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FRU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FRU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FRU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FRU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FRU is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FRU's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Jorma Jokela (41 yo)

16.17yrs

Tenure

€216,000

Compensation

Mr. Jorma Jokela serves as the President of the Management Board at Ferratum Capital Poland S.A. Mr. Jokela is a Founder of Ferratum Oyj. Mr. Jokela has been Chief Executive Officer at Ferratum Oyj (Ferrat...


CEO Compensation Analysis

Compensation vs Market: Jorma's total compensation ($USD257.33K) is below average for companies of similar size in the German market ($USD589.23K).

Compensation vs Earnings: Jorma's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jorma Jokela
Founder16.17yrs€216.00k55.42%
€ 72.5m
Lea Liigus
Head of Legal & Compliance and Director15.17yrs€180.00k0.79%
€ 1.0m
Bernd Egger
Chief Financial Officer1.58yrsno data0.037%
€ 48.5k
Ari Tiukkanen
Chief Operations Officerno datano data0.32%
€ 424.2k
Saku Eero Timonen
Chief Commercial Officerno datano data0.68%
€ 892.6k
Paul Wasastjerna
Head of Investor Relations - Fixed-Income6yrsno datano data
Adam Hansson-Tönning
Head of Financial Planning & Analysis2.5yrsno data0.087%
€ 113.2k
Antti Kumpulainen
CCO & Deputy CEO of Ferratum Bank2.17yrsno data0.058%
€ 75.9k
Sami Kalliola
Head of Strategic Partnerships2.5yrsno data0.097%
€ 127.0k
Lilita Gribonika
Head of Risk & Fraud Controlno datano datano data
Petri Rahja
Chief Product Officerno datano datano data
David Kalosi
Chief Architectno datano datano data

2.5yrs

Average Tenure

48yo

Average Age

Experienced Management: FRU's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jorma Jokela
Founder16.17yrs€216.00k55.42%
€ 72.5m
Lea Liigus
Head of Legal & Compliance and Director15.17yrs€180.00k0.79%
€ 1.0m
Michael Cusumano
Independent Director1.92yrs€17.00kno data
Juhani Vanhala
Chairman of the Board1.92yrs€33.00k0.39%
€ 511.8k
Clemens-Matthias Krause
Director0.75yrno data0.48%
€ 630.2k
Christopher Wang
Independent Director3.83yrs€23.00kno data
Goutam Challagalla
Independent Director1.92yrs€17.00kno data
Frederik Strange
Independent Director1.92yrs€17.00kno data

1.9yrs

Average Tenure

52yo

Average Age

Experienced Board: FRU's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Ferratum Oyj
  • Ticker: FRU
  • Exchange: XTRA
  • Founded: 2005
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: €130.761m
  • Shares outstanding: 21.58m
  • Website: https://www.ferratumgroup.com

Number of Employees


Location

  • Ferratum Oyj
  • Ratamestarinkatu 11 A
  • Helsinki
  • Uusimaa
  • 520
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2015
FRUXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 2015
FRUdBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 2015
0R4WLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 2015
FRUETLX (Eurotlx)YesOrdinary SharesITEURJan 2015

Biography

Ferratum Oyj, together with its subsidiaries, provides mobile banking, and digital consumer and small business loans to retail and business clients. Its loan portfolio consists of microloans, PLUS loans, P...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 20:01
End of Day Share Price2021/03/05 00:00
Earnings2020/09/30
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.