Fondia Oyj (HLSE:FONDIA) - Share price, News & Analysis

FONDIA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	0/6
Financial Health	6/6
Dividends	1/6

FONDIA Stock Overview

Fondia Oyj provides legal services primarily in Finland, Sweden, Estonia, and Lithuania.

Rewards

Trading at 58.1% below our estimate of its fair value

Earnings are forecast to grow 36.74% per year

Risk Analysis

Dividend of 4.19% is not well covered by earnings or forecast to be in the next 3 years

High level of non-cash earnings

Profit margins (1.2%) are lower than last year (4.2%)

Does not have a meaningful market cap (€26M)

Fondia Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fondia Oyj
Historical stock prices
Current Share Price	€6.68
52 Week High	€8.28
52 Week Low	€5.64
Beta	0.73
1 Month Change	-1.48%
3 Month Change	-0.89%
1 Year Change	-14.14%
3 Year Change	-31.28%
5 Year Change	-34.12%
Change since IPO	-32.05%

Shareholder Returns

	FONDIA	FI Professional Services	FI Market
7D	2.1%	-0.9%	-1.6%
1Y	-14.1%	-26.8%	-19.8%

Return vs Industry: FONDIA exceeded the Finnish Professional Services industry which returned -26.8% over the past year.

Return vs Market: FONDIA exceeded the Finnish Market which returned -19.8% over the past year.

Price Volatility

Is FONDIA's price volatile compared to industry and market?
FONDIA volatility
FONDIA Average Weekly Movement	4.0%
Professional Services Industry Average Movement	4.9%
Market Average Movement	5.3%
10% most volatile stocks in FI Market	8.4%
10% least volatile stocks in FI Market	3.4%

Stable Share Price: FONDIA is less volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FONDIA's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2004	160	Harri Savolainen	https://fondia.com/en

Fondia Oyj provides legal services primarily in Finland, Sweden, Estonia, and Lithuania. The company offers legal department as a service; legal advisory services for public and private companies, real estate companies, investors, growth companies, associations, and trusts; and legal services in the area of taxation. It also provides dispute resolution services relating to employment, manager, and shareholder agreements; construction; delivery, service, and co-operation agreements; IT agreements; franchising agreements; sales, lease, and trade agreements; unfair trading and IPR cases; claims for damages; and various criminal cases.

Fondia Oyj Fundamentals Summary

How do Fondia Oyj's earnings and revenue compare to its market cap?
FONDIA fundamental statistics
Market Cap	€26.31m
Earnings (TTM)	€259.29k
Revenue (TTM)	€21.11m

101.5x

P/E Ratio

1.2x

P/S Ratio

Is FONDIA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FONDIA income statement (TTM)
Revenue	€21.11m
Cost of Revenue	€14.10m
Gross Profit	€7.00m
Other Expenses	€6.74m
Earnings	€259.29k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.066
Gross Margin	33.17%
Net Profit Margin	1.23%
Debt/Equity Ratio	0.0%

How did FONDIA perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

400%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is FONDIA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FONDIA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FONDIA. This is calculated by dividing FONDIA's market cap by their current preferred multiple.
What is FONDIA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€26.31m

FONDIA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	14.5x
PEG Ratio	2.8x

Price to Earnings Ratio vs Peers

How does FONDIA's PE Ratio compare to its peers?

FONDIA PE Ratio vs Peers

The above table shows the PE ratio for FONDIA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.4x

Forward PE

Price-To-Earnings vs Peers: FONDIA is expensive based on its Price-To-Earnings Ratio (101.5x) compared to the peer average (16.4x).

Price to Earnings Ratio vs Industry

How does FONDIA's PE Ratio compare vs other companies in the Professional Services Industry?

Price-To-Earnings vs Industry: FONDIA is expensive based on its Price-To-Earnings Ratio (101.5x) compared to the Finnish Professional Services industry average (19.8x)

Price to Earnings Ratio vs Fair Ratio

What is FONDIA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FONDIA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	101.5x
Fair PE Ratio	30.6x

Price-To-Earnings vs Fair Ratio: FONDIA is expensive based on its Price-To-Earnings Ratio (101.5x) compared to the estimated Fair Price-To-Earnings Ratio (30.6x).

Share Price vs Fair Value

What is the Fair Price of FONDIA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FONDIA (€6.68) is trading below our estimate of fair value (€15.94)

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

Price to Earnings Growth Ratio

PEG Ratio: FONDIA is poor value based on its PEG Ratio (2.8x)

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Future Growth

How is Fondia Oyj forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

36.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FONDIA's forecast earnings growth (36.7% per year) is above the savings rate (0.2%).

Earnings vs Market: FONDIA's earnings (36.7% per year) are forecast to grow faster than the Finnish market (8.1% per year).

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

Revenue vs Market: FONDIA's revenue (9.4% per year) is forecast to grow faster than the Finnish market (1.9% per year).

High Growth Revenue: FONDIA's revenue (9.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FONDIA's Return on Equity is forecast to be high in 3 years time (30.3%)

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Past Performance

How has Fondia Oyj performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-26.9%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: FONDIA's current net profit margins (1.2%) are lower than last year (4.2%).

Past Earnings Growth Analysis

Earnings Trend: FONDIA's earnings have declined by 26.9% per year over the past 5 years.

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

Earnings vs Industry: FONDIA had negative earnings growth (-68.7%) over the past year, making it difficult to compare to the Professional Services industry average (11.8%).

Return on Equity

High ROE: FONDIA's Return on Equity (5.1%) is considered low.

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Financial Health

How is Fondia Oyj's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FONDIA's short term assets (€6.7M) exceed its short term liabilities (€2.9M).

Long Term Liabilities: FONDIA's short term assets (€6.7M) exceed its long term liabilities (€1.2M).

Debt to Equity History and Analysis

Debt Level: FONDIA is debt free.

Reducing Debt: FONDIA has no debt compared to 5 years ago when its debt to equity ratio was 1.7%.

Debt Coverage: FONDIA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FONDIA has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FONDIA's dividend (4.19%) is higher than the bottom 25% of dividend payers in the Finnish market (2.54%).

High Dividend: FONDIA's dividend (4.19%) is low compared to the top 25% of dividend payers in the Finnish market (5.07%).

Stability and Growth of Payments

Stable Dividend: FONDIA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FONDIA has only been paying a dividend for 4 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (400%), FONDIA's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: FONDIA is paying a dividend but the company has no free cash flows.

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Management

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

3.0yrs

Average management tenure

CEO

Harri Savolainen (52 yo)

3yrs

Tenure

€141,288

Compensation

Mr. Harri Savolainen is CEO & Member of Management Board of Fondia Oyj from May 2022. He was Interim CEO, CFO & Member of Management Board of Fondia Oyj from December 01, 2021 to May 2022. He was CFO & Mem...

CEO Compensation Analysis

Compensation vs Market: Harri's total compensation ($USD149.04K) is below average for companies of similar size in the Finnish market ($USD285.33K).

Compensation vs Earnings: Insufficient data to compare Harri's compensation with company performance.

Leadership Team

Experienced Management: FONDIA's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: FONDIA's board of directors are considered experienced (4.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31