Kesko Oyj
Market Cap
€5.1b
Last Updated
2020/04/03 21:09 UTC
Data Sources
Company Financials +
Executive Summary
Kesko Oyj provides trading sector services.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.09% per year for the next 3 years
Snowflake Analysis
Solid track record with adequate balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Kesko Oyj's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KESKOB's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.8%
KESKOB
3.4%
FI Consumer Retailing
1.8%
FI Market
1 Year Return
-6.0%
KESKOB
-6.6%
FI Consumer Retailing
-21.6%
FI Market
Return vs Industry: KESKOB exceeded the Finnish Consumer Retailing industry which returned -9.2% over the past year.
Return vs Market: KESKOB exceeded the Finnish Market which returned -20.5% over the past year.
Shareholder returns
| KESKOB | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | 3.4% | 1.8% |
| 30 Day | -19.2% | -4.7% | -19.1% |
| 90 Day | -18.0% | -7.3% | -22.1% |
| 1 Year | 0.7%-6.0% | -2.9%-6.6% | -18.2%-21.6% |
| 3 Year | 36.6%21.4% | 0.6%-9.2% | -2.8%-14.1% |
| 5 Year | 66.4%27.3% | -5.3%-19.8% | 2.2%-16.9% |
Price Volatility Vs. Market
How volatile is Kesko Oyj's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Why You Might Be Interested In Kesko Oyj (HEL:KESKOB) For Its Upcoming Dividend1 week ago | Simply Wall St
Can Kesko Oyj's (HEL:KESKOB) ROE Continue To Surpass The Industry Average?3 weeks ago | Simply Wall St
Is Kesko Oyj's (HEL:KESKOB) CEO Salary Justified?Valuation
Is Kesko Oyj undervalued compared to its fair value and its price relative to the market?
34.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KESKOB (€51.9) is trading below our estimate of fair value (€79.42)
Significantly Below Fair Value: KESKOB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KESKOB is good value based on its PE Ratio (15.7x) compared to the Consumer Retailing industry average (18.1x).
PE vs Market: KESKOB is poor value based on its PE Ratio (15.7x) compared to the Finnish market (15.4x).
Price to Earnings Growth Ratio
PEG Ratio: KESKOB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: KESKOB is overvalued based on its PB Ratio (2.5x) compared to the XE Consumer Retailing industry average (1.3x).
Next Steps
Future Growth
How is Kesko Oyj forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-0.09%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KESKOB's forecast earnings growth (-0.09% per year) is above the savings rate (-0.1%).
Earnings vs Market: KESKOB's earnings are forecast to decline over the next 3 years (-0.09% per year).
High Growth Earnings: KESKOB's earnings are forecast to decline over the next 3 years.
Revenue vs Market: KESKOB's revenue (1.5% per year) is forecast to grow slower than the Finnish market (2.8% per year).
High Growth Revenue: KESKOB's revenue (1.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KESKOB's Return on Equity is forecast to be low in 3 years time (14.4%).
Next Steps
Past Performance
How has Kesko Oyj performed over the past 5 years?
25.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KESKOB has high quality earnings.
Growing Profit Margin: KESKOB's current net profit margins (3.1%) are higher than last year (2.1%).
Past Earnings Growth Analysis
Earnings Trend: KESKOB's earnings have grown significantly by 25.2% per year over the past 5 years.
Accelerating Growth: KESKOB's earnings growth over the past year (53.2%) exceeds its 5-year average (25.2% per year).
Earnings vs Industry: KESKOB earnings growth over the past year (53.2%) exceeded the Consumer Retailing industry 2.2%.
Return on Equity
High ROE: KESKOB's Return on Equity (15.6%) is considered low.
Next Steps
Financial Health
How is Kesko Oyj's financial position?
Financial Position Analysis
Short Term Liabilities: KESKOB's short term assets (€2.3B) exceed its short term liabilities (€2.2B).
Long Term Liabilities: KESKOB's short term assets (€2.3B) do not cover its long term liabilities (€2.6B).
Debt to Equity History and Analysis
Debt Level: KESKOB's debt to equity ratio (28.7%) is considered satisfactory.
Reducing Debt: KESKOB's debt to equity ratio has increased from 21.5% to 28.7% over the past 5 years.
Debt Coverage: KESKOB's debt is well covered by operating cash flow (145.8%).
Interest Coverage: KESKOB's interest payments on its debt are well covered by EBIT (5x coverage).
Balance Sheet
Inventory Level: KESKOB has a high level of physical assets or inventory.
Debt Coverage by Assets: KESKOB's debt is covered by short term assets (assets are 3.7x debt).
Next Steps
Dividend
What is Kesko Oyj's current dividend yield, its reliability and sustainability?
4.86%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KESKOB's dividend (4.86%) is higher than the bottom 25% of dividend payers in the Finnish market (3.19%).
High Dividend: KESKOB's dividend (4.86%) is low compared to the top 25% of dividend payers in the Finnish market (6.37%).
Stability and Growth of Payments
Stable Dividend: KESKOB's dividend payments have been volatile in the past 10 years.
Growing Dividend: KESKOB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (76.2%), KESKOB's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: KESKOB's dividends in 3 years are forecast to be covered by earnings (87% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Mikko Helander (59yo)
5.25s
Tenure
€2,633,100
Compensation
Mr. Mikko Helander, M.Sc. (Eng.), serves as Director at Stora Enso Oyj since March 14, 2019. He has been the Chairman of Management Board, Chief Executive Officer, President and Managing Director at Kesko ...
CEO Compensation Analysis
Compensation vs Market: Mikko's total compensation ($USD2.84M) is about average for companies of similar size in the Finnish market ($USD2.63M).
Compensation vs Earnings: Mikko's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Group Management Board | 5.25yrs | €2.63m | 0.056% €2.9m | |
| CFO, Executive VP & Member of Group Management Board | 8.42yrs | no data | 0.024% €1.2m | |
| President of Grocery Trade & Member of Group Management Board | 2.42yrs | no data | 0.010% €509.4k | |
| Executive VP of HR | 7.5yrs | no data | 0.015% €791.5k | |
| President of Building & Technical Trade | 7.17yrs | no data | 0.029% €1.5m | |
| Chief Digital Officer | 5yrs | no data | 0.011% €570.7k | |
| President of K Auto Oy & Member of Group Management Board | 3.25yrs | no data | 0.0074% €377.6k | |
| Chief Information Officer & VP of IT Management | 11.33yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Group General Counsel & Company Secretary | 0.25yr | no data | no data |
5.3yrs
Average Tenure
54yo
Average Age
Experienced Management: KESKOB's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Deputy Chairman | 2yrs | €67.00k | 0.0018% €91.5k | |
| Independent Director | 5yrs | €55.50k | 0.0016% €81.2k | |
| Chairman of the Board | 8yrs | €109.00k | 0.0026% €133.9k | |
| Independent Director | 4yrs | €72.00k | 0.0018% €91.5k | |
| Director | 8yrs | €49.50k | 0.00079% €40.4k | |
| Director | 2yrs | €53.50k | 0.00059% €30.1k | |
| Director | 4yrs | €50.00k | 0.0030% €153.8k |
4.0yrs
Average Tenure
58yo
Average Age
Experienced Board: KESKOB's board of directors are considered experienced (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.
Top Shareholders
Company Information
Kesko Oyj's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Kesko Oyj
- Ticker: KESKOB
- Exchange: HLSE
- Founded: 1940
- Industry: Food Retail
- Sector: Consumer Retailing
- Market Cap: €5.109b
- Shares outstanding: 99.18m
- Website: https://www.kesko.fi
Number of Employees
Location
- Kesko Oyj
- Mannerheimintie 117
- Helsinki
- 280
- Finland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KKOY.F | OTCPK (Pink Sheets LLC) | Yes | Series B Shares | US | USD | Jan 1992 |
| KEK | DB (Deutsche Boerse AG) | Yes | Series B Shares | DE | EUR | Jan 1992 |
| KESKOB | HLSE (OMX Nordic Exchange Helsinki) | Yes | Series B Shares | FI | EUR | Jan 1992 |
| 0BNT | LSE (London Stock Exchange) | Yes | Series B Shares | GB | EUR | Jan 1992 |
| KESKOA | HLSE (OMX Nordic Exchange Helsinki) | Series A Shares | FI | EUR | Jun 1999 | |
| 0BNS | LSE (London Stock Exchange) | Series A Shares | GB | EUR | Jun 1999 | |
| KKOY.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Oct 2008 |
Biography
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 wholesale and B2B trade of groceries; and the retail sale of home and specialty goods in Finland. This segment operates approximately 1,200 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, as well as trades in leisure goods. This segment operates through K-Rauta, Byggmakker, K-Senukai, OMA, Onninen, Intersport, Budget Sport, The Athlete’s Foot, Kookenkä, stores in Finland, Sweden, Norway, the Baltic countries, Poland, and Belarus; and online stores. The Car Trade segment imports and markets Volkswagen, Audi, SEAT, and Porsche passenger cars, as well as Volkswagen and MAN commercial vehicles in Finland; and Seat cars in Estonia and Latvia. It is also involved in new and used car retailing activities; and the provision of after-sales services at its retail outlets in the Greater Helsinki area, Turku, and Tampere. The company was founded in 1940 and is headquartered in Helsinki, Finland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 21:09 |
| End of Day Share Price | 2020/04/03 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.