HLSE:KESKOB

Stock Analysis Report

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Executive Summary

Kesko Oyj provides trading sector services. More Details


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 is less volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: KESKOB's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

KESKOB

-1.3%

FI Consumer Retailing

-0.2%

FI Market


1 Year Return

37.1%

KESKOB

2.6%

FI Consumer Retailing

15.3%

FI Market

Return vs Industry: KESKOB exceeded the Finnish Consumer Retailing industry which returned 2.6% over the past year.

Return vs Market: KESKOB exceeded the Finnish Market which returned 15.3% over the past year.


Shareholder returns

KESKOBIndustryMarket
7 Day-0.9%-1.3%-0.2%
30 Day-4.2%-8.2%-0.8%
90 Day-6.7%-3.0%5.2%
1 Year42.0%37.1%10.9%2.6%23.7%15.3%
3 Year102.9%78.8%15.5%-0.6%34.7%11.4%
5 Year180.2%120.5%13.9%-7.9%78.3%38.9%

Long-Term 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

Valuation

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

12.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KESKOB (€21.02) is trading below our estimate of fair value (€23.93)

Significantly Below Fair Value: KESKOB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KESKOB is good value based on its PE Ratio (19.2x) compared to the XE Consumer Retailing industry average (21.5x).

PE vs Market: KESKOB is good value based on its PE Ratio (19.2x) compared to the Finnish market (27.8x).


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 (3.8x) compared to the XE Consumer Retailing industry average (1.8x).


Next Steps

Future Growth

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

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KESKOB's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: KESKOB's earnings are forecast to decline over the next 3 years (-0.2% per year).

High Growth Earnings: KESKOB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KESKOB's revenue (1.3% per year) is forecast to grow slower than the Finnish market (3.5% per year).

High Growth Revenue: KESKOB's revenue (1.3% 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 (17.1%).


Next Steps

Past Performance

How has Kesko Oyj performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KESKOB has high quality earnings.

Growing Profit Margin: KESKOB's current net profit margins (4.1%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: KESKOB's earnings have grown significantly by 22.6% per year over the past 5 years.

Accelerating Growth: KESKOB's earnings growth over the past year (32.3%) exceeds its 5-year average (22.6% per year).

Earnings vs Industry: KESKOB earnings growth over the past year (32.3%) exceeded the Consumer Retailing industry -6.1%.


Return on Equity

High ROE: KESKOB's Return on Equity (19.9%) 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 (€2.2B) do not cover its short term liabilities (€2.3B).

Long Term Liabilities: KESKOB's short term assets (€2.2B) exceed its long term liabilities (€2.2B).


Debt to Equity History and Analysis

Debt Level: KESKOB's debt to equity ratio (27%) is considered satisfactory.

Reducing Debt: KESKOB's debt to equity ratio has increased from 19.2% to 27% over the past 5 years.

Debt Coverage: KESKOB's debt is well covered by operating cash flow (194.9%).

Interest Coverage: KESKOB's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.57%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: KESKOB's dividend (3.57%) is higher than the bottom 25% of dividend payers in the Finnish market (1.8%).

High Dividend: KESKOB's dividend (3.57%) is low compared to the top 25% of dividend payers in the Finnish market (3.87%).


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: With its reasonable payout ratio (68.6%), KESKOB's dividend 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 (79.9% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Mikko Helander (60 yo)

6.08yrs

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 ($USD3.22M) is about average for companies of similar size in the Finnish market ($USD3.93M).

Compensation vs Earnings: Mikko's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mikko Helander
Chairman of the Group Management Board6.08yrs€2.63m0.056%
€ 4.7m
Jukka Erlund
CFO, Executive VP & Member of Group Management Board9.25yrsno data0.024%
€ 2.0m
Ari Akseli
President of Grocery Trade & Member of Group Management Board3.25yrsno data0.010%
€ 833.3k
Matti Mettälä
Executive VP of HR8.33yrsno data0.015%
€ 1.3m
Jorma Rauhala
President of Building & Technical Trade8yrsno data0.029%
€ 2.4m
Anni Ronkainen
Chief Digital Officer5.83yrsno data0.011%
€ 933.6k
Karoliina Partanen
EVP of Communications0.33yrno datano data
Johan Friman
President of K Auto Oy & Member of Group Management Board4.08yrsno data0.0074%
€ 617.6k
Arto Hiltunen
Chief Information Officer & VP of IT Management12.17yrsno datano data
Hanna Jaakkola
Vice President of Investor Relationsno datano datano data
Lasse Luukkainen
Group General Counsel & Company Secretary1.08yrsno datano data
Mika Salmijärvi
Managing Director of Keslog Ltd15.33yrsno datano data

6.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: KESKOB's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Fagernäs
Independent Deputy Chairman2.83yrs€67.00k0.0018%
€ 149.6k
Matti Kyytsönen
Independent Director5.83yrs€55.50k0.0016%
€ 132.9k
Esa Kiiskinen
Chairman of the Board8.83yrs€109.00k0.0026%
€ 219.0k
Jannica Fagerholm
Independent Director4.83yrs€72.00k0.0018%
€ 149.6k
Toni Pokela
Director8.83yrs€49.50k0.00079%
€ 66.0k
Piia Karhu
Independent Director2.83yrs€53.50k0.00059%
€ 49.3k
Matti Naumanen
Director4.83yrs€50.00k0.0030%
€ 251.6k

4.8yrs

Average Tenure

59yo

Average Age

Experienced Board: KESKOB's board of directors are considered experienced (4.8 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: €8.358b
  • Shares outstanding: 396.73m
  • Website: https://www.kesko.fi

Number of Employees


Location

  • Kesko Oyj
  • TyOepajankatu 12
  • Helsinki
  • Uusimaa
  • 580
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KKOY.FOTCPK (Pink Sheets LLC)YesSeries B SharesUSUSDJan 1992
KEKDB (Deutsche Boerse AG)YesSeries B SharesDEEURJan 1992
KESKOBHLSE (OMX Nordic Exchange Helsinki)YesSeries B SharesFIEURJan 1992
0BNTLSE (London Stock Exchange)YesSeries B SharesGBEURJan 1992
KESKBHBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBEURJan 1992
KESKOAHLSE (OMX Nordic Exchange Helsinki)Series A SharesFIEURJun 1999
0BNSLSE (London Stock Exchange)Series A SharesGBEURJun 1999
KESKOHBATS-CHIXE (BATS 'Chi-X Europe')Series A SharesGBEURJun 1999
KKOY.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Kesko Oyj provides trading sector services. The company operates through Grocery Trade, Building and Technical Trade, and Car Trade segments. The company’s Grocery Trade segment is involved in the wholesal...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 18:30
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.