HLSE:YIT

Stock Analysis Report

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Executive Summary

YIT Oyj provides construction services for industrial and public sectors, and residential customers primarily in Finland, Russia, the Baltic countries, the Czech Republic, Poland, and Slovakia.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.3%

YIT

6.9%

FI Construction

4.6%

FI Market


1 Year Return

3.0%

YIT

-7.6%

FI Construction

3.9%

FI Market

Return vs Industry: YIT exceeded the Finnish Construction industry which returned -7.6% over the past year.

Return vs Market: YIT matched the Finnish Market which returned 3.9% over the past year.


Shareholder returns

YITIndustryMarket
7 Day3.3%6.9%4.6%
30 Day-0.5%6.1%7.3%
90 Day-18.9%-10.3%-0.4%
1 Year6.1%3.0%-5.7%-7.6%7.3%3.9%
3 Year-26.4%-34.6%-9.4%-17.2%7.4%-3.7%
5 Year-6.5%-22.9%19.2%-0.5%36.4%12.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: YIT (€4.97) is trading below our estimate of fair value (€6.66)

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


Price To Earnings Ratio

PE vs Industry: YIT is poor value based on its PE Ratio (77.8x) compared to the Construction industry average (11x).

PE vs Market: YIT is poor value based on its PE Ratio (77.8x) compared to the Finnish market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: YIT is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: YIT is overvalued based on its PB Ratio (1.1x) compared to the XE Construction industry average (1x).


Next Steps

Future Growth

How is YIT Oyj forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

42.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YIT's forecast earnings growth (42.1% per year) is above the savings rate (0.4%).

Earnings vs Market: YIT's earnings (42.1% per year) are forecast to grow faster than the Finnish market (14.5% per year).

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

Revenue vs Market: YIT's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: YIT's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: YIT's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has YIT Oyj performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YIT has a large one-off gain of €83.3M impacting its March 31 2020 financial results.

Growing Profit Margin: YIT's current net profit margins (0.4%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: YIT's earnings have declined by -21.2% per year over the past 5 years.

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

Earnings vs Industry: YIT had negative earnings growth (-71.7%) over the past year, making it difficult to compare to the Construction industry average (6.9%).


Return on Equity

High ROE: YIT's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

How is YIT Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: YIT's short term assets (€2.7B) exceed its short term liabilities (€1.9B).

Long Term Liabilities: YIT's short term assets (€2.7B) exceed its long term liabilities (€728.0M).


Debt to Equity History and Analysis

Debt Level: YIT's debt to equity ratio (99.4%) is considered high.

Reducing Debt: YIT's debt to equity ratio has reduced from 137.4% to 99.4% over the past 5 years.

Debt Coverage: YIT's debt is not well covered by operating cash flow (2.7%).

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


Balance Sheet


Next Steps

Dividend

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

5.63%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: YIT's dividend (5.63%) is higher than the bottom 25% of dividend payers in the Finnish market (2.45%).

High Dividend: YIT's dividend (5.63%) is in the top 25% of dividend payers in the Finnish market (5.05%)


Stability and Growth of Payments

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

Growing Dividend: YIT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (437.7%), YIT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: YIT's dividends in 3 years are forecast to be covered by earnings (66.2% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Kari Kauniskangas (45yo)

6.92yrs

Tenure

€841,824

Compensation

Mr. Kari Kauniskangas, M.Sc. (Eng.), B.Sc. (Econ.) serves as the Supervisory Board member of Keskinäinen työeläkevakuutusyhtiö Varma since March 15, 2018. He serves as the Chairman of Management Board and  ...


CEO Compensation Analysis

Compensation vs Market: Kari's total compensation ($USD0.00) is below average for companies of similar size in the Finnish market ($USD689.82K).

Compensation vs Earnings: Kari's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kari Kauniskangas
Chairman of Management Board6.92yrs€841.82k0.048% 495.0k
Ilkka Salonen
CFO, Member of Management Board and Deputy to President & CEO2.33yrsno data0.028% 294.4k
Juha Kostiainen
Executive VP of Urban development & Member of Group Management Board3.67yrsno data0.0023% 23.5k
Pii Raulo
Executive VP of Human Resources & Member of Management Board8.5yrsno data0.011% 111.5k
Juhani Nummi
Executive VP of Operations Development & Member of Management Board6.92yrsno data0.0092% 95.4k
Teemu Helppolainen
Executive VP of Housing Russia Segment & Member of Management Boardno datano data0.014% 142.3k
Antti Inkilä
Executive VP of Housing Finland & CEE Segment and Member of Management Board5.42yrsno data0.010% 107.3k
Esa Neuvonen
EVP of Partnership Properties Segment & Member of Management Board3.58yrsno data0.00030% 3.1k
Harri Kailasalo
Executive VP of Infrastructure Projects Segment & Member of Management Boardno datano data0.0098% 101.9k
Tom Ekman
Executive VP of Business Premises Segment & Member of Management Board0.083yrno datano data

4.5yrs

Average Tenure

52yo

Average Age

Experienced Management: YIT's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander Ehrnrooth
Director1.25yrsno data0.0018% 18.4k
Harri-Pekka Kaukonen
Independent Chairman2.25yrsno data0.016% 162.6k
Tiina Tuomela
Independent Director3.25yrs€54.50k0.0047% 48.5k
Frank Hyldmar
Independent Director1.25yrsno data0.0018% 18.4k
Kristina Walzel
Independent Director2.33yrsno data1.32% 13.6m
Eero Heliövaara
Independent Vice Chairman2.25yrsno data0.011% 113.1k
Olli-Petteri Lehtinen
Independent Director2.25yrsno data0.0042% 43.2k
Barbara Topolska
Independent Director1.25yrsno data0.0018% 18.4k

2.3yrs

Average Tenure

56yo

Average Age

Experienced Board: YIT's board of directors are not considered experienced ( 2.3 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

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


Key Information

  • Name: YIT Oyj
  • Ticker: YIT
  • Exchange: HLSE
  • Founded: 1912
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: €1.035b
  • Shares outstanding: 209.06m
  • Website: https://www.yitgroup.com

Number of Employees


Location

  • YIT Oyj
  • Panuntie 11
  • PO Box 36
  • Helsinki
  • Uusimaa
  • 621
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YITY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1994
YITHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURMay 1994
YITDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1994
0GKALSE (London Stock Exchange)YesOrdinary SharesGBEURMay 1994
YITHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 1994
YITY.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

YIT Oyj provides construction services for industrial and public sectors, and residential customers primarily in Finland, Russia, the Baltic countries, the Czech Republic, Poland, and Slovakia. It operates through three segments: Housing Finland and CEE, Housing Russia, and Business Premises and Infrastructure. The company develops and constructs housing, holiday homes, apartments, and various residential areas, as well as offices, shopping malls, public facilities and buildings, assisted living facilities, production and logistics premises, and other business premises; maintains property; undertakes renovation projects; and provides road and street maintenance services. It also constructs roads, bridges, tunnels, rail and metro stations, ports, and parking facilities, as well as energy, water supply, and industrial plants; offers mining and reinforcement, and tunneling services, as well as undertakes civil engineering, earthworks, and foundation works; and produces asphalt, and re-used asphalt pavements and surfaces, as well as provides solutions for the paving industry. In addition, the company offers construction machinery and equipment rental, and IT services. YIT Oyj was founded in 1912 and is headquartered in Helsinki, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 21:35
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
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.