Kesko Oyj
Market Cap
€5.8b
Last Updated
2020/01/22 20:46 UTC
Data Sources
Company Financials +
Executive Summary
Kesko Oyj provides trading sector services.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record average dividend payer.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-9.1%
KESKOB
-1.6%
FI Consumer Retailing
1.2%
FI Market
1 Year Return
16.2%
KESKOB
-1.2%
FI Consumer Retailing
11.1%
FI Market
Return vs Industry: KESKOB exceeded the Finnish Consumer Retailing industry which returned 4.8% over the past year.
Return vs Market: KESKOB exceeded the Finnish Market which returned 12.5% over the past year.
Shareholder returns
| KESKOB | Industry | Market | |
|---|---|---|---|
| 7 Day | -9.1% | -1.6% | 1.2% |
| 30 Day | -5.0% | -3.1% | 3.8% |
| 90 Day | 1.4% | -1.7% | 7.5% |
| 1 Year | 21.2%16.2% | 2.7%-1.2% | 16.2%11.1% |
| 3 Year | 45.1%26.4% | 2.2%-8.0% | 31.9%16.0% |
| 5 Year | 135.5%85.0% | 11.2%-5.9% | 48.7%20.2% |
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
2 days ago | Simply Wall St
Is Kesko Oyj's (HEL:KESKOB) High P/E Ratio A Problem For Investors?2 weeks ago | Simply Wall St
Here's Why Kesko Oyj (HEL:KESKOB) Can Manage Its Debt Responsibly4 weeks ago | Simply Wall St
Can We See Significant Institutional Ownership On The Kesko Oyj (HEL:KESKOB) Share Register?Valuation
Is Kesko Oyj undervalued compared to its fair value and its price relative to the market?
47.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KESKOB (€64.84) is trading below our estimate of fair value (€133.7)
Significantly Below Fair Value: KESKOB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KESKOB is poor value based on its PE Ratio (21.8x) compared to the Consumer Retailing industry average (19.2x).
PE vs Market: KESKOB is good value based on its PE Ratio (20.1x) compared to the Finnish market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: KESKOB is poor value based on its PEG Ratio (10.6x)
Price to Book Ratio
PB vs Industry: KESKOB is overvalued based on its PB Ratio (3.3x) compared to the XE Consumer Retailing industry average (1.6x).
Next Steps
Future Growth
How is Kesko Oyj forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
2.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KESKOB's forecast earnings growth (2.1% per year) is above the savings rate (-0.1%).
Earnings vs Market: KESKOB's earnings (2.1% per year) are forecast to grow slower than the Finnish market (14.6% per year).
High Growth Earnings: KESKOB's earnings are forecast to grow, but not significantly.
Revenue vs Market: KESKOB's revenue (2.8% per year) is forecast to grow faster than the Finnish market (1.9% per year).
High Growth Revenue: KESKOB's revenue (2.8% 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 (15.1%).
Next Steps
Past Performance
How has Kesko Oyj performed over the past 5 years?
22.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KESKOB has high quality earnings.
Growing Profit Margin: KESKOB's current net profit margins (2.8%) are higher than last year (2.1%).
Past Earnings Growth Analysis
Earnings Trend: KESKOB's earnings have grown significantly by 22.8% per year over the past 5 years.
Accelerating Growth: KESKOB's earnings growth over the past year (35.7%) exceeds its 5-year average (22.8% per year).
Earnings vs Industry: KESKOB earnings growth over the past year (35.7%) exceeded the Consumer Retailing industry 0.5%.
Return on Equity
High ROE: KESKOB's Return on Equity (14.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Kesko Oyj's financial position?
Financial Position Analysis
Short Term Liabilities: KESKOB's short term assets (€2.4B) do not cover its short term liabilities (€2.5B).
Long Term Liabilities: KESKOB's short term assets (€2.4B) do not cover its long term liabilities (€2.4B).
Debt to Equity History and Analysis
Debt Level: KESKOB's debt to equity ratio (30.9%) is considered satisfactory.
Reducing Debt: KESKOB's debt to equity ratio has increased from 21.3% to 30.9% over the past 5 years.
Debt Coverage: KESKOB's debt is well covered by operating cash flow (81.8%).
Interest Coverage: KESKOB earns more interest than it pays, so coverage of interest payments is not a concern.
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 3.8x debt).
Next Steps
Dividend
What is Kesko Oyj's current dividend yield, its reliability and sustainability?
3.91%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: KESKOB's dividend (3.61%) is higher than the bottom 25% of dividend payers in the Finnish market (2.13%).
High Dividend: KESKOB's dividend (3.61%) is low compared to the top 25% of dividend payers in the Finnish market (4.68%).
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 (78.7%), 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 (83.9% payout ratio).
Next Steps
Management
What is the CEO of Kesko Oyj's salary, the management and board of directors tenure and is there insider trading?
6.0yrs
Average management tenure
CEO
Mikko Helander (59yo)
5yrs
Tenure
€2,299,656
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 ($USD2.56M) is above average for companies of similar size in the Finnish market ($USD1.50M).
Compensation vs Earnings: Mikko's compensation has been consistent with company performance over the past year.
Management Age and Tenure
6.0yrs
Average Tenure
54yo
Average Age
Experienced Management: KESKOB's management team is seasoned and experienced (6 years average tenure).
Board Age and Tenure
3.8yrs
Average Tenure
58yo
Average Age
Experienced Board: KESKOB's board of directors are considered experienced (3.8 years average tenure).
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
Mikko Helander (59yo)
Chairman of the Group Management Board
- Tenure: 5yrs
- Compensation: €2.30m
Ari Akseli (47yo)
President of Grocery Trade & Member of Group Management Board
- Tenure: 2.2yrs
Arto Hiltunen (61yo)
Chief Information Officer & VP of IT Management
- Tenure: 11.1yrs
Hanna Jaakkola
Vice President of Investor Relations
Jorma Rauhala (54yo)
President of Building & Technical Trade
- Tenure: 6.9yrs
Jukka Erlund (45yo)
CFO, Executive VP & Member of Group Management Board
- Tenure: 8.2yrs
Johan Friman (54yo)
President of K Auto Oy & Member of Group Management Board
- Tenure: 3yrs
Matti Mettälä (56yo)
Executive VP of HR
- Tenure: 7.3yrs
Anna-Maria Ronkainen (53yo)
Chief Digital Officer
- Tenure: 4.8yrs
Lasse Luukkainen (40yo)
Group General Counsel & Company Secretary
Board Members
Peter Fagernäs (67yo)
Deputy Chairman
- Tenure: 1.8yrs
- Compensation: €63.00k
Matti Kyytsönen (70yo)
Independent Director
- Tenure: 4.8yrs
- Compensation: €61.80k
Esa Kiiskinen (56yo)
Chairman of the Board
- Tenure: 7.8yrs
- Compensation: €126.50k
Jannica Fagerholm (58yo)
Independent Director
- Tenure: 3.8yrs
- Compensation: €79.30k
Toni Pokela (46yo)
Director
- Tenure: 7.8yrs
- Compensation: €59.30k
Piia Karhu (43yo)
Director
- Tenure: 1.8yrs
- Compensation: €49.50k
Matti Naumanen (62yo)
Director
- Tenure: 3.8yrs
- Compensation: €59.30k
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: €5.784b
- Shares outstanding: 99.09m
- 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 | 2020/01/22 20:46 |
| End of Day Share Price | 2020/01/22 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.