Nokian Renkaat Oyj
Market Cap
€3.1b
Last Updated
2020/04/01 20:55 UTC
Data Sources
Company Financials +
Executive Summary
Nokian Renkaat Oyj develops and manufactures tires in Finland, Sweden, Norway, Russia, the rest of Europe, North America, and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -19.3% per year for the next 3 years
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: TYRES has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.0%
TYRES
-1.1%
FI Auto Components
7.9%
FI Market
1 Year Return
-38.9%
TYRES
-41.9%
FI Auto Components
-17.8%
FI Market
Return vs Industry: TYRES exceeded the Finnish Auto Components industry which returned -41.9% over the past year.
Return vs Market: TYRES underperformed the Finnish Market which returned -17.8% over the past year.
Shareholder returns
| TYRES | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | -1.1% | 7.9% |
| 30 Day | -18.1% | -26.7% | -15.0% |
| 90 Day | -25.4% | -39.1% | -19.0% |
| 1 Year | -35.7%-38.9% | -39.7%-41.9% | -13.9%-17.8% |
| 3 Year | -42.7%-50.0% | -52.0%-55.9% | 0.6%-11.7% |
| 5 Year | -16.3%-34.0% | -44.9%-51.2% | 8.3%-12.3% |
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
2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Nokian Renkaat Oyj's (HEL:TYRES) P/E Ratio4 weeks ago | Simply Wall St
Did You Manage To Avoid Nokian Renkaat Oyj's (HEL:TYRES) 37% Share Price Drop?1 month ago | Simply Wall St
Why Nokian Renkaat Oyj (HEL:TYRES) Looks Like A Quality CompanyValuation
Is Nokian Renkaat Oyj undervalued compared to its fair value and its price relative to the market?
28.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TYRES (€22.07) is trading below our estimate of fair value (€26.7)
Significantly Below Fair Value: TYRES is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: TYRES is good value based on its PE Ratio (7.6x) compared to the Auto Components industry average (8.3x).
PE vs Market: TYRES is good value based on its PE Ratio (7.6x) compared to the Finnish market (15.6x).
Price to Earnings Growth Ratio
PEG Ratio: TYRES's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: TYRES is overvalued based on its PB Ratio (1.7x) 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?
-19.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TYRES's earnings are forecast to decline over the next 3 years (-19.3% per year).
Earnings vs Market: TYRES's earnings are forecast to decline over the next 3 years (-19.3% per year).
High Growth Earnings: TYRES's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TYRES's revenue (1.4% per year) is forecast to grow slower than the Finnish market (2.9% per year).
High Growth Revenue: TYRES's revenue (1.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TYRES's Return on Equity is forecast to be low in 3 years time (13.5%).
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: TYRES has a high level of non-cash earnings.
Growing Profit Margin: TYRES's current net profit margins (25.1%) are higher than last year (18.5%).
Past Earnings Growth Analysis
Earnings Trend: TYRES's earnings have grown by 12.2% per year over the past 5 years.
Accelerating Growth: TYRES's earnings growth over the past year (35.5%) exceeds its 5-year average (12.2% per year).
Earnings vs Industry: TYRES earnings growth over the past year (35.5%) exceeded the Auto Components industry -5.1%.
Return on Equity
High ROE: TYRES'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: TYRES's short term assets (€1.2B) exceed its short term liabilities (€296.4M).
Long Term Liabilities: TYRES's short term assets (€1.2B) exceed its long term liabilities (€266.5M).
Debt to Equity History and Analysis
Debt Level: TYRES's debt to equity ratio (7.6%) is considered satisfactory.
Reducing Debt: TYRES's debt to equity ratio has reduced from 22.6% to 7.6% over the past 5 years.
Debt Coverage: TYRES's debt is well covered by operating cash flow (162.6%).
Interest Coverage: TYRES's interest payments on its debt are well covered by EBIT (64.1x coverage).
Balance Sheet
Inventory Level: TYRES has a high level of physical assets or inventory.
Debt Coverage by Assets: TYRES's debt is covered by short term assets (assets are 8.7x debt).
Next Steps
Dividend
What is Nokian Renkaat Oyj's current dividend yield, its reliability and sustainability?
4.11%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TYRES's dividend (3.58%) is higher than the bottom 25% of dividend payers in the Finnish market (3.17%).
High Dividend: TYRES's dividend (3.58%) is low compared to the top 25% of dividend payers in the Finnish market (6.35%).
Stability and Growth of Payments
Stable Dividend: TYRES's dividend payments have been volatile in the past 10 years.
Growing Dividend: TYRES's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.3%), TYRES's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TYRES's dividends in 3 years are forecast to be covered by earnings (85.3% 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 2.83yrs | no data | 0.034% €1.0m | |
| Chief Financial Officer | 1.75yrs | no data | 0.0051% €154.9k | |
| Plant Manager & Operations Director | 1.5yrs | no data | no data | |
| Director of Administration & Sales | no data | €4.80k | no data | |
| Senior Vice President of Investor Relations & Corporate Communications | 1.92yrs | no data | 0.00091% €27.9k | |
| Vice President of Products & Marketing | 1.25yrs | no data | 0.0032% €97.7k | |
| Executive VP and GM of Russia & Asia Business Area | 11.25yrs | no data | 0.050% €1.5m | |
| Senior Vice President of People & Culture | 2yrs | no data | 0.0022% €66.1k | |
| MD of Central Europe & Interim Head of Business Area - Central Europe | no data | no data | no data | |
| Senior Vice President of Central Europe | 0.75yr | no data | no data |
1.8yrs
Average Tenure
53yo
Average Age
Experienced Management: TYRES's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Chairman of the Board | 14yrs | €102.00k | 0.016% €492.6k | |
| Independent Director | 4yrs | €54.00k | 0.0019% €57.3k | |
| Independent Deputy Chairman | 2yrs | €75.90k | 0.0015% €46.5k | |
| Independent Director | 6yrs | €78.90k | 0.0036% €109.3k | |
| Director | 0.25yr | no data | no data | |
| Independent Director | 2yrs | €52.20k | 0.0010% €30.9k | |
| Independent Director | 6yrs | €54.00k | 0.0029% €87.9k | |
| Independent Director | 3yrs | €53.40k | 0.0014% €42.6k | |
| Independent Director | 4yrs | €57.00k | 0.0019% €57.3k |
4.0yrs
Average Tenure
62yo
Average Age
Experienced Board: TYRES's board of directors are considered experienced (3.9 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: TYRES
- Exchange: HLSE
- Founded: 1898
- Industry: Tires and Rubber
- Sector: Automobiles
- Market Cap: €3.062b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NKRK.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 1995 |
| TYRES | HLSE (OMX Nordic Exchange Helsinki) | Yes | Ordinary Shares | FI | EUR | Jun 1995 |
| NRE | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 1995 |
| 0FFY | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Jun 1995 |
| NRE1 | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Jun 1995 |
| NKRK.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Sep 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/01 20:55 |
| End of Day Share Price | 2020/04/01 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.