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Kesko Oyj

HLSE:KESKOB
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KESKOB
HLSE
€5B
Market Cap
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Last updated 2018/11/12 18:11
Company description

Kesko Oyj provides trading sector services. The last earnings update was 19 days ago. More info.

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KESKOB Share Price and Events
7 Day Returns
4.9%
HLSE:KESKOB
2.5%
Europe Consumer Retailing
-0.3%
FI Market
1 Year Returns
26.6%
HLSE:KESKOB
8.6%
Europe Consumer Retailing
4.7%
FI Market
KESKOB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kesko Oyj (KESKOB) 4.9% 18.5% 9.4% 26.6% 83.9% 118.7%
Europe Consumer Retailing 2.5% 7.3% 0.3% 8.6% 6.8% 4.9%
FI Market -0.3% 1.7% -3.8% 4.7% 29.8% 65%
1 Year Return vs Industry and Market
  • KESKOB outperformed the Consumer Retailing industry which returned 8.6% over the past year.
  • KESKOB outperformed the Market in Finland which returned 4.7% over the past year.
Price Volatility
KESKOB
Industry
5yr Volatility vs Market

Value

 Is Kesko Oyj undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kesko Oyj to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kesko Oyj.

HLSE:KESKOB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year FI Government Bond Rate 0.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for HLSE:KESKOB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year FI Govt Bond Rate 0.8%
Equity Risk Premium S&P Global 9.2%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.51
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.514 (1 + (1- 20%) (10.46%)) 		0.558
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.78% + (0.8 * 9.23%) 		8.16%

Discounted Cash Flow Calculation for HLSE:KESKOB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kesko Oyj is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

HLSE:KESKOB DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (EUR, Millions) 225.18 263.43 273.59 284.15 295.12
Source Analyst x5 Analyst x4 Est @ 3.86% Est @ 3.86% Est @ 3.86%
Present Value
Discounted (@ 8.16%) 		208.20 225.20 216.25 207.67 199.42
Present value of next 5 years cash flows €1,056.74
HLSE:KESKOB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= €295.12 × (1 + 0.78%) ÷ (8.16% – 0.78%) 		€4,029.95
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= €4,029.95 ÷ (1 + 8.16%)5 		€2,723.12
HLSE:KESKOB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= €1,056.74 + €2,723.12 		€3,779.86
Equity Value per Share
(EUR)		 = Total value / Shares Outstanding
= €3,779.86 / 99.02 		€38.17
HLSE:KESKOB Discount to Share Price
Calculation Result
Value per share (EUR) From above. €38.17
Current discount Discount to share price of €53.82
= -1 x (€53.82 - €38.17) / €38.17 		-41%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Kesko Oyj is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kesko Oyj's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kesko Oyj's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
HLSE:KESKOB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in EUR €2.05
HLSE:KESKOB Share Price ** HLSE (2018-11-09) in EUR €53.82
Europe Consumer Retailing Industry PE Ratio Median Figure of 34 Publicly-Listed Consumer Retailing Companies 17.65x
Finland Market PE Ratio Median Figure of 105 Publicly-Listed Companies 17.43x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kesko Oyj.

HLSE:KESKOB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= HLSE:KESKOB Share Price ÷ EPS (both in EUR)

= 53.82 ÷ 2.05

 26.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kesko Oyj is overvalued based on earnings compared to the Europe Consumer Retailing industry average.
  • Kesko Oyj is overvalued based on earnings compared to the Finland market.
Price based on expected Growth
Does Kesko Oyj's expected growth come at a high price?
Raw Data
HLSE:KESKOB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.22x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts		 14.5%per year
Europe Consumer Retailing Industry PEG Ratio Median Figure of 26 Publicly-Listed Consumer Retailing Companies 1.3x
Finland Market PEG Ratio Median Figure of 88 Publicly-Listed Companies 1.14x

*Line of best fit is calculated by linear regression .

HLSE:KESKOB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.22x ÷ 14.5%

 1.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kesko Oyj is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Kesko Oyj's assets?
Raw Data
HLSE:KESKOB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in EUR €20.77
HLSE:KESKOB Share Price * HLSE (2018-11-09) in EUR €53.82
Europe Consumer Retailing Industry PB Ratio Median Figure of 42 Publicly-Listed Consumer Retailing Companies 1.54x
Finland Market PB Ratio Median Figure of 139 Publicly-Listed Companies 2.07x
HLSE:KESKOB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= HLSE:KESKOB Share Price ÷ Book Value per Share (both in EUR)

= 53.82 ÷ 20.77

 2.59x

* Primary Listing of Kesko Oyj.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kesko Oyj is overvalued based on assets compared to the Europe Consumer Retailing industry average.
X
Value checks
We assess Kesko Oyj's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
    5. Kesko Oyj has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Kesko Oyj expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kesko Oyj expected to grow at an attractive rate?
  • Kesko Oyj's earnings growth is expected to exceed the low risk savings rate of 0.8%.
Growth vs Market Checks
  • Kesko Oyj's earnings growth is positive but not above the Finland market average.
  • Kesko Oyj's revenue growth is positive but not above the Finland market average.
Annual Growth Rates Comparison
Raw Data
HLSE:KESKOB Future Growth Rates Data Sources
Data Point Source Value (per year)
HLSE:KESKOB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 14.5%
HLSE:KESKOB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 2%
Europe Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 12.4%
Europe Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.6%
Finland Market Earnings Growth Rate Market Cap Weighted Average 18.5%
Finland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
HLSE:KESKOB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
HLSE:KESKOB Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 11,278 1
2021-12-31 11,057 1
2020-12-31 10,790 455 280 6
2019-12-31 10,582 421 266 6
2018-12-31 10,350 461 212 6
HLSE:KESKOB Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-09-30 10,487 402 204
2018-06-30 10,441 394 191
2018-03-31 10,531 432 268
2017-12-31 10,676 302 258
2017-09-30 10,682 294 177
2017-06-30 10,877 272 173
2017-03-31 10,725 209 93
2016-12-31 10,180 170 99
2016-09-30 9,581 185 160
2016-06-30 8,993 190 141
2016-03-31 8,610 255 239
2015-12-31 8,679 276 102

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kesko Oyj's earnings are expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).
  • Kesko Oyj's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
HLSE:KESKOB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Kesko Oyj Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

HLSE:KESKOB Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 2.81 3.00 2.64 6.00
2019-12-31 2.67 2.84 2.55 6.00
2018-12-31 2.25 2.45 1.77 5.00
HLSE:KESKOB Past Financials Data
Date (Data in EUR Millions) EPS *
2018-09-30 2.05
2018-06-30 1.92
2018-03-31 2.69
2017-12-31 2.59
2017-09-30 1.77
2017-06-30 1.74
2017-03-31 0.93
2016-12-31 0.99
2016-09-30 1.61
2016-06-30 1.40
2016-03-31 2.41
2015-12-31 1.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kesko Oyj is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kesko Oyj's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kesko Oyj has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Kesko Oyj performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kesko Oyj's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kesko Oyj's year on year earnings growth rate has been positive over the past 5 years.
  • Kesko Oyj's 1-year earnings growth exceeds its 5-year average (15.4% vs 12.8%)
  • Kesko Oyj's earnings growth has exceeded the Europe Consumer Retailing industry average in the past year (15.4% vs 7.8%).
Earnings and Revenue History
Kesko Oyj's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kesko Oyj Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

HLSE:KESKOB Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 10,486.90 203.80 1,382.60
2018-06-30 10,440.90 190.80 1,385.60
2018-03-31 10,530.90 267.80 1,405.60
2017-12-31 10,675.90 257.80 1,432.60
2017-09-30 10,682.40 176.60 1,449.10
2017-06-30 10,877.40 172.60 1,473.10
2017-03-31 10,725.40 92.60 1,459.10
2016-12-31 10,180.40 98.60 1,400.10
2016-09-30 9,580.90 159.60 1,353.60
2016-06-30 8,992.90 140.60 1,286.60
2016-03-31 8,609.90 238.60 1,244.60
2015-12-31 8,678.90 101.60 1,252.60
2015-09-30 8,779.60 97.00 1,328.30
2015-06-30 8,881.60 94.00 1,342.30
2015-03-31 9,023.60 -3.00 1,362.30
2014-12-31 9,070.60 96.00 1,374.30
2014-09-30 9,166.20 138.10 1,358.50
2014-06-30 9,234.20 151.10 1,358.50
2014-03-31 9,285.20 151.10 1,357.50
2013-12-31 9,315.20 173.10 1,354.50
2013-09-30 9,411.90 137.40 1,406.30
2013-06-30 9,487.90 133.40 1,409.30
2013-03-31 9,526.90 119.40 1,410.30
2012-12-31 9,685.90 124.40 1,409.30
2012-09-30 9,708.40 151.50 1,401.70
2012-06-30 9,663.40 154.50 1,390.70
2012-03-31 9,675.40 172.50 1,377.70
2011-12-31 9,460.40 181.50 1,363.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kesko Oyj has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kesko Oyj used its assets less efficiently than the Europe Consumer Retailing industry average last year based on Return on Assets.
  • Kesko Oyj has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Show me more strong past performing companies in the Consumer Retailing industry
X
Past performance checks
We assess Kesko Oyj's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kesko Oyj has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Kesko Oyj's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kesko Oyj's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kesko Oyj is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kesko Oyj's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kesko Oyj's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kesko Oyj Company Filings, last reported 1 month ago.

HLSE:KESKOB Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 2,166.00 548.00 317.00
2018-06-30 2,070.00 592.00 444.00
2018-03-31 2,238.00 540.00 563.00
2017-12-31 2,232.10 533.90 397.90
2017-09-30 2,175.00 530.00 370.00
2017-06-30 2,100.00 561.00 366.00
2017-03-31 2,184.00 591.00 364.00
2016-12-31 2,126.40 514.70 391.40
2016-09-30 2,161.00 545.00 245.00
2016-06-30 2,102.00 656.00 327.00
2016-03-31 2,287.00 435.00 747.00
2015-12-31 2,242.00 439.10 887.10
2015-09-30 2,198.00 464.00 858.00
2015-06-30 2,179.00 483.00 842.00
2015-03-31 2,189.00 548.00 506.00
2014-12-31 2,265.50 498.90 598.00
2014-09-30 2,282.00 500.00 503.00
2014-06-30 2,241.00 538.00 461.00
2014-03-31 2,331.00 557.00 532.00
2013-12-31 2,352.50 554.40 680.90
2013-09-30 2,288.00 568.00 537.00
2013-06-30 2,223.00 587.00 474.00
2013-03-31 2,289.00 644.00 411.00
2012-12-31 2,272.10 624.40 489.10
2012-09-30 2,242.00 650.00 356.00
2012-06-30 2,182.00 573.00 253.00
2012-03-31 2,256.00 466.00 292.00
2011-12-31 2,233.10 400.10 367.30
  • Kesko Oyj's level of debt (25.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (24.8% vs 25.3% today).
  • Debt is well covered by operating cash flow (73.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 77.4x coverage).
Show me more healthy companies in the Consumer Retailing industry
X
Financial health checks
We assess Kesko Oyj's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Kesko Oyj has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.09%
Current annual income from Kesko Oyj dividends. Estimated to be 4.67% next year.
If you bought €2,000 of Kesko Oyj shares you are expected to receive €82 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kesko Oyj's pays a higher dividend yield than the bottom 25% of dividend payers in Finland (2.53%).
  • Kesko Oyj's dividend is below the markets top 25% of dividend payers in Finland (4.98%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
HLSE:KESKOB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Europe Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 35 Stocks 3.5%
Finland Market Average Dividend Yield Market Cap Weighted Average of 97 Stocks 4.1%
Finland Minimum Threshold Dividend Yield 10th Percentile 1.6%
Finland Bottom 25% Dividend Yield 25th Percentile 2.5%
Finland Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

HLSE:KESKOB Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 2.66 6.00
2019-12-31 2.53 6.00
2018-12-31 2.36 6.00
HLSE:KESKOB Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2018-02-01 2.200 4.517
2017-02-02 2.000 4.494
2016-04-04 2.500 6.157
2015-04-13 1.500 4.476
2014-04-08 1.400 4.563
2013-02-14 1.200 4.816
2013-02-05 1.200 4.896
2012-02-02 1.200 5.323
2011-02-03 1.300 4.626
2010-02-05 0.900 2.946
2009-03-30 1.000 4.843
2008-11-13 1.600 9.239

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Kesko Oyj's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Kesko Oyj's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kesko Oyj afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Kesko Oyj has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mikko Helander
COMPENSATION €1,316,760
AGE 58
TENURE AS CEO 3.8 years
CEO Bio

Mr. Mikko Helander, M.Sc. (Eng.), has been the Chairman of Management Board, Chief Executive Officer, President and Managing Director at Kesko Oyj since January 1, 2015 and has been its Member of Group Management Board since October 1, 2014. Mr. Helander served as Deputy Managing Director of Kesko Oyj from October 1, 2014 to January 1, 2015 and its Executive Vice President from 2014 to January 1, 2015. Mr. Helander served as the Chief Executive Officer at Metsä Board Kemi Oy. Mr. Helander served as the Chief Executive Officer of Metsä Board Oyj at Metsäliitto Cooperative and Metsä Group from October 18, 2006 to December 2014 and served as its and Chairman of Management Board from 2006 to December 2014, Executive Officer since October 1, 2014 and Head of Other Papers business area since January 2009. He served as Management Board Member at Valmet Corporation from 1999 to 2003. He served as Vice President for Calender Business Unit from 1997 to 1999, He served as Head of Project Department at Valmet Jarvenpää from 1993 to 1994. He served as Production Manager of Valmet Järvenpää at Valmet Paper Machinery Inc. from 1987 to 1990. He served as at Valmet Corporation as Head of Converting Machinery Division (UK). Mr. Helander served as the President of the Valmet Converting Group headquartered in the United Kingdom since 1999. He served as the Chief Executive Officer of M-Real Corporation since 2006. Mr. Helander served from 1984 to 1987 as a Project Engineer at Metso Corporation where he served in various managerial positions until 1990. From 1990 to 1993, he served as the Managing Director for Kasten Hövik. In 1993, he returned to Metso Corporation as the Head of Projects, Coaters and Calanders. From 1994 to 1997, he headed the Operations for Valmet Rotomec S.p.a. in Italy. In 1997 Mr. Helander became Metso Corporation’s Calander business area’s Vice President and Chief Executive. Mr. Helander served as the Chief Executive Officer Metsä Tissue Corporation from 2003 to 2006. He serves as a Member of Executive Board of M-real Oyj. He has been Chairman of the Board at Ilmarinen Mutual Pension Insurance Company since January 22, 2016. He serves as the Chairman of the Board of Directors at Kesko Food Ltd. He served as Vice Chairman of the Board at Finnish Forest Industries Federation from 2007 to 2012 He has been Board member of German Pulp and Paper Association (VDP) since 2008. He has been a Director of Ilmarinen Mutual Pension Insurance Company since January 1, 2015. He has been Board member of Myllykoski Paper Oy since 2013. He served as a Director of Metsä Fibre Oy. He served as Board member of Finnish Forest Industries Federation from 2007 to 2011. Mr. Helander holds a Master of Science degree in Engineering.

CEO Compensation
  • Mikko's compensation has increased by more than 20% in the past year.
  • Mikko's remuneration is higher than average for companies of similar size in Finland.
Management Team Tenure

Average tenure and age of the Kesko Oyj management team in years:

3.8
Average Tenure
53
Average Age
  • The tenure for the Kesko Oyj management team is about average.
Management Team

Mikko Helander

TITLE
Chairman of the Group Management Board
COMPENSATION
€1M
AGE
58
TENURE
3.8 yrs

Jukka Erlund

TITLE
CFO, Executive VP & Member of Group Management Board
AGE
44
TENURE
7 yrs

Ari Akseli

TITLE
Executive VP of Grocery Trade Division & Member of Group Management Board
AGE
46
TENURE
1 yrs

Mika Majoinen

TITLE
Executive VP
AGE
55
TENURE
0.8 yrs

Matti Mettälä

TITLE
Executive VP of HR
AGE
55
TENURE
6.1 yrs

Jorma Rauhala

TITLE
Dep. to President & CEO
AGE
53
TENURE
5.8 yrs

Anna-Maria Ronkainen

TITLE
Chief Digital Officer
AGE
52
TENURE
3.6 yrs

Johan Friman

TITLE
Executive VP of Car Trade & Member of the Group Management Board
AGE
53
TENURE
1.8 yrs

Arto Hiltunen

TITLE
Chief Information Officer and Vice President of IT Management
AGE
60
TENURE
9.9 yrs

Kia Aejmelaeus

TITLE
Vice President of Investor Relations
Board of Directors Tenure

Average tenure and age of the Kesko Oyj board of directors in years:

2.6
Average Tenure
57
Average Age
  • The average tenure for the Kesko Oyj board of directors is less than 3 years, this suggests a new board.
Board of Directors

Esa Kiiskinen

TITLE
Chairman of the Board
COMPENSATION
€88K
AGE
55
TENURE
6.6 yrs

Peter Fagernäs

TITLE
Deputy Chairman
AGE
66
TENURE
0.6 yrs

Jannica Fagerholm

TITLE
Independent Director
COMPENSATION
€34K
AGE
57
TENURE
2.6 yrs

Matti Kyytsönen

TITLE
Independent Director
COMPENSATION
€46K
AGE
69
TENURE
3.6 yrs

Toni Pokela

TITLE
Director
COMPENSATION
€43K
AGE
45
TENURE
6.6 yrs

Matti Naumanen

TITLE
Director
COMPENSATION
€31K
AGE
61
TENURE
2.6 yrs

Piia Karhu

TITLE
Independent Director
AGE
42
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Kesko Oyj's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Kesko Oyj has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Read This Before Buying Kesko Oyj (HEL:KESKOB) For Its Dividend

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, Kesko Oyj (HEL:KESKOB) has been paying a dividend to shareholders. … Here's how I find good dividend stocks

Simply Wall St - –

Kesko Oyj (HEL:KESKOB): Financial Strength Analysis

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Kesko Oyj (HEL:KESKOB) with a market-capitalization of €4.8b, rarely draw their attention. … Don’t forget that this is a general and concentrated examination of Kesko Oyj's financial health, so you should conduct further analysis. … Check out our latest analysis for Kesko Oyj

Simply Wall St - –

Do You Know Kesko Oyj’s (HEL:KESKOB) Cash Situation?

I will take you through Kesko Oyj’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Kesko Oyj generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … The two ways to assess whether Kesko Oyj’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St - –

What Should You Know About Kesko Oyj's (HEL:KESKOB) Return On Capital?

and want to begin learning the link between Kesko Oyj (HEL:KESKOB)’s return fundamentals and stock market performance. … Therefore, looking at how efficiently Kesko Oyj is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St - –

Is Kesko Oyj (HEL:KESKOB) A Financially Strong Company?

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Kesko Oyj (HEL:KESKOB) with a market-capitalization of €5.12b, rarely draw their attention. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.

Simply Wall St - –

Is Kesko Oyj (HEL:KESKOB) An Attractive Dividend Stock?

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … Over the past 10 years, Kesko Oyj (HEL:KESKOB) has returned an average of 5.00% per year to shareholders in terms of dividend yield. … Let's dig deeper into whether Kesko Oyj should have a place in your portfolio.

Simply Wall St - –

Is Kesko Oyj (HEL:KESKOB) A Financially Strong Company?

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Kesko Oyj (HEL:KESKOB), with a market capitalization of €4.95b, rarely draw their attention from the investing community. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … Check out our latest analysis for Kesko Oyj

Simply Wall St - –

Intrinsic Calculation For Kesko Oyj (HLSE:KESKOB) Shows Investors Are Overpaying

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St - –

What You Must Know About Kesko Oyj's (HEL:KESKOB) Major Investors

General Public Ownership The general public holds a substantial 61.35% stake in KESKOB, making it a highly popular stock among retail investors. … With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. … Thus, investors should dig deeper into KESKOB's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: KESKOB's considerably high level of institutional ownership calls for further analysis into its margin of safety.

Simply Wall St - –

Is It Time To Buy Kesko Oyj (HEL:KESKOB)?

Another thing to keep in mind is that Kesko Oyj’s share price is quite stable relative to the rest of the market, as indicated by its low beta. … This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … KESKOB’s future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St - –

Company Info

Map
Description

Kesko Oyj provides trading sector services. The company operates through Grocery Trade, Building and Technical Trade, and Car Trade segments. The Grocery Trade segment is involved in the retail, wholesale, and B2B trade of groceries in Finland. This segment operates approximately 1,500 K-food store chains, including K-Citymarket, K-Supermarket, K-Market, and Neste K. The Building and Technical Trade segment engages in the retail, wholesale, and B2B trade of building and home improvement, and electrical and HEPAC products. This segment is also involved in the trade of furniture; construction, environmental, agricultural, and recreational machinery; sports equipment; and leisure goods. It also imports and sells, as well as provides after-sales services for construction, materials handling, environmental, and agricultural machinery; and recreational machinery. This segment operates through K-Rauta, Byggmakker, K-Senukai, OMA, Onninen, K-maatalous, Konekesko, Intersport, Budget Sport, The Athlete’s Foot, Kookenkä, Asko, and Sotka stores in Finland, Sweden, Norway, the Baltic countries, the Russian Federation, and Belarus; and online stores, such as Intersport.fi, Budgetsport.fi, theathletesfoot.fi, and Kookenka.fi. The Car Trade segment imports and markets Volkswagen, Audi, SEAT, and Porsche passenger cars, as well as Volkswagen commercial vehicles in Finland; and Seat vehicles in Estonia and Latvia. It is also involved in car retailing activities; and the provision of after-sales services at its retail outlets in the Greater Helsinki area and Turku. The company was founded in 1940 and is headquartered in Helsinki, Finland.

Details
Name: Kesko Oyj
KESKOB
Exchange: HLSE
Founded: 1940
€5,239,669,398
99,018,353
Website: http://www.kesko.fi
Address: Kesko Oyj
Mannerheimintie 117,
Helsinki,
00280,
Finland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
HLSE KESKOB Series B Shares OMX Nordic Exchange Helsinki FI EUR 02. Jan 1992
DB KEK Series B Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0BNT Series B Shares London Stock Exchange GB EUR 02. Jan 1992
OTCPK KKOY.Y UNSPONSORED ADR Pink Sheets LLC US USD 20. Oct 2008
HLSE KESKOA Series A Shares OMX Nordic Exchange Helsinki FI EUR 01. Jun 1999
LSE 0BNS Series A Shares London Stock Exchange GB EUR 01. Jun 1999
Number of employees
Current staff
Staff numbers
22,904
Kesko Oyj employees.
Industry
Food Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/12 18:11
End of day share price update: 2018/11/09 00:00
Last estimates confirmation: 2018/10/26
Last earnings filing: 2018/10/24
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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