HLSE:FONDIA

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 33.8% below its fair value

Earnings are forecast to grow 50.42% per year

Risk Analysis

Dividend of 4.15% is not well covered by earnings

Profit margins (4.1%) are lower than last year (11%)

Does not have a meaningful market cap (€35M)



Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FONDIA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.4%

FONDIA

-2.0%

FI Professional Services

0.9%

FI Market


1 Year Return

-33.4%

FONDIA

29.7%

FI Professional Services

8.5%

FI Market

Return vs Industry: FONDIA underperformed the Finnish Professional Services industry which returned 29.7% over the past year.

Return vs Market: FONDIA underperformed the Finnish Market which returned 8.5% over the past year.


Shareholder returns

FONDIAIndustryMarket
7 Day5.4%-2.0%0.9%
30 Day-6.1%-4.7%-0.2%
90 Day8.0%11.4%1.0%
1 Year-31.3%-33.4%34.3%29.7%13.5%8.5%
3 Yearn/a98.4%77.8%25.8%10.7%
5 Yearn/a87.0%62.5%54.5%24.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FONDIA (€8.92) is trading below our estimate of fair value (€13.47)

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


Price To Earnings Ratio

PE vs Industry: FONDIA is poor value based on its PE Ratio (41.9x) compared to the Professional Services industry average (36.7x).

PE vs Market: FONDIA is poor value based on its PE Ratio (41.9x) compared to the Finnish market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: FONDIA is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: FONDIA is overvalued based on its PB Ratio (5.6x) compared to the FI Professional Services industry average (1.5x).


Next Steps

Future Growth

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

50.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FONDIA's forecast earnings growth (50.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: FONDIA's earnings (50.4% per year) are forecast to grow faster than the Finnish market (14.2% per year).

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

Revenue vs Market: FONDIA's revenue (10.9% per year) is forecast to grow faster than the Finnish market (2.1% per year).

High Growth Revenue: FONDIA's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FONDIA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Fondia Oyj performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FONDIA has high quality earnings.

Growing Profit Margin: FONDIA's current net profit margins (4.1%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: FONDIA's earnings have grown by 13.1% 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 (-60.9%) over the past year, making it difficult to compare to the Professional Services industry average (36.1%).


Return on Equity

High ROE: FONDIA's Return on Equity (13.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fondia Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: FONDIA's short term assets (€8.5M) exceed its short term liabilities (€4.2M).

Long Term Liabilities: FONDIA's short term assets (€8.5M) exceed its long term liabilities (€535.0K).


Debt to Equity History and Analysis

Debt Level: FONDIA is debt free.

Reducing Debt: FONDIA had no debt 5 years ago.

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

Inventory Level: FONDIA has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if FONDIA's debt is covered by short term assets.


Next Steps

Dividend

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

4.15%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.3%markettop25%4.9%industryaverage3.0%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: FONDIA's dividend (4.15%) is higher than the bottom 25% of dividend payers in the Finnish market (2.25%).

High Dividend: FONDIA's dividend (4.15%) is low compared to the top 25% of dividend payers in the Finnish market (4.85%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FONDIA has been paying a dividend for less than 10 years.

Growing Dividend: FONDIA's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (173.7%), FONDIA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FONDIA's dividends in 3 years are forecast to be covered by earnings (74.5% payout ratio).


Next Steps

Management

What is the CEO of Fondia Oyj's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Leena Hellfors 0

0yrs

Tenure

0

Ms. Leena Hellfors is the Chief Executive Officer at Fondia Oyj. 


Management Age and Tenure

0.7yrs

Average Tenure

Experienced Management: FONDIA's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Insider Trading

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.


Management Team

  • Salla Vainio (50yo)

    Chairwoman of the Management Board

    • Tenure: 0yrs
    • Compensation: €214.19k
  • Marianne Saarikko-Janson

    Director of Sales & Marketing

    • Tenure: 0yrs
  • Pirta Karlsson

    Director of HR & Member of the Management Board

    • Tenure: 0yrs
  • Susanne Mattsson

    Executive Director

    • Tenure: 1yrs
  • Leena Hellfors

    Chief Executive Officer

    • Tenure: 0yrs
  • Harri Savolainen

    CFO & Member of Management Board

    • Tenure: 0.5yrs
  • Anti Kodar

    Managing Director of Baltics & Member of Management Board

    • Tenure: 0.7yrs
  • Jurgita Vaiciulioniene

    Managing Director of Fondia Lithuania

    • Tenure: 0.6yrs
  • Monica Söderlund

    MD & Member of Management Board

    • Tenure: 0yrs
  • Bradley Mitchell

    Service Delivery Manager & Compliance Officer

    • Tenure: 0.9yrs

Board Members

  • Tuomo Lähdesmäki (62yo)

    Vice-Chairman of the Board

    • Tenure: 0yrs
  • Johan Hammarén (50yo)

    Director

    • Tenure: 0yrs
  • Juha Sarsama (54yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Joséphine Mickwitz (51yo)

    Director

    • Tenure: 0yrs
  • Lara Saulo

    Director

    • Tenure: 0yrs
  • Marianne Saarikko-Janson

    Director of Sales & Marketing

    • Tenure: 0yrs
  • Susanne Mattsson

    Executive Director

    • Tenure: 1yrs

Company Information

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


Key Information

  • Name: Fondia Oyj
  • Ticker: FONDIA
  • Exchange: HLSE
  • Founded: 2004
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: €35.109m
  • Shares outstanding: 3.94m
  • Website: https://fondia.com/en

Number of Employees


Location

  • Fondia Oyj
  • Lönnrotinkatu 5
  • Helsinki
  • Uusimaa
  • 120
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FONDIAHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURApr 2017

Biography

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 est ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 22:36
End of Day Share Price2019/12/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.