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KESK

Kesko OyjHLSE:KESKOB Stock Report

Market Cap

€12.3b

7D

8.4%

1Y

39.6%

Updated

16 Oct, 2021

Data

Company Financials +
KESKOB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends4/6

KESKOB Overview

Kesko Oyj provides trading sector services.

Kesko Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kesko Oyj
Historical stock prices
Current Share Price€31.83
52 Week High€19.82
52 Week Low€37.72
Beta0.26
1 Month Change-0.93%
3 Month Change-5.13%
1 Year Change39.61%
3 Year Change170.09%
5 Year Change192.56%
Change since IPO1,852.34%

Recent News & Updates

Oct 17
A Look At The Intrinsic Value Of Kesko Oyj (HEL:KESKOB)

A Look At The Intrinsic Value Of Kesko Oyj (HEL:KESKOB)

Does the October share price for Kesko Oyj ( HEL:KESKOB ) reflect what it's really worth? Today, we will estimate the...

Sep 25
Kesko Oyj (HEL:KESKOB) Could Easily Take On More Debt

Kesko Oyj (HEL:KESKOB) Could Easily Take On More Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 16
Kesko Oyj (HEL:KESKOB) Is Looking To Continue Growing Its Returns On Capital

Kesko Oyj (HEL:KESKOB) Is Looking To Continue Growing Its Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to...

Shareholder Returns

KESKOBFI Consumer RetailingFI Market
7D8.4%0.5%2.0%
1Y39.6%9.5%17.9%

Return vs Industry: KESKOB exceeded the Finnish Consumer Retailing industry which returned 9.6% over the past year.

Return vs Market: KESKOB exceeded the Finnish Market which returned 17.9% over the past year.

Price Volatility

Is KESKOB's price volatile compared to industry and market?
KESKOB volatility
KESKOB Beta0.26
Industry Beta0.50
Market Beta1

Stable Share Price: KESKOB is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KESKOB's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194018,055Mikko Helanderhttps://www.kesko.fi

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 wholesale and B2B trade of groceries; and the retail sale of home and specialty goods in Finland.

Kesko Oyj Fundamentals Summary

How do Kesko Oyj's earnings and revenue compare to its market cap?
KESKOB fundamental statistics
Market Cap€12.28b
Earnings (TTM)€543.50m
Revenue (TTM)€10.84b

23.3x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KESKOB income statement (TTM)
Revenue€10.84b
Cost of Revenue€9.29b
Gross Profit€1.55b
Expenses€1.01b
Earnings€543.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 29, 2021

Earnings per share (EPS)1.37
Gross Margin14.32%
Net Profit Margin5.01%
Debt/Equity Ratio25.9%

How did KESKOB perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

55%

Payout Ratio

Valuation

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

18.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KESKOB (€31.83) is trading below our estimate of fair value (€38.86)

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 poor value based on its PE Ratio (23.3x) compared to the European Consumer Retailing industry average (17.8x).

PE vs Market: KESKOB is good value based on its PE Ratio (23.3x) compared to the Finnish market (23.8x).


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 (5.8x) compared to the XE Consumer Retailing industry average (2.3x).


Future Growth

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

-0.9%

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 (-0.9% per year).

Earnings vs Market: KESKOB's earnings are forecast to decline over the next 3 years (-0.9% per year).

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

Revenue vs Market: KESKOB's revenue (2.3% per year) is forecast to grow slower than the Finnish market (3.7% per year).

High Growth Revenue: KESKOB's revenue (2.3% 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 (19.5%).


Past Performance

How has Kesko Oyj performed over the past 5 years?

26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KESKOB has high quality earnings.

Growing Profit Margin: KESKOB's current net profit margins (5%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: KESKOB's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: KESKOB's earnings growth over the past year (57.7%) exceeds its 5-year average (26.9% per year).

Earnings vs Industry: KESKOB earnings growth over the past year (57.7%) exceeded the Consumer Retailing industry 39.4%.


Return on Equity

High ROE: KESKOB's Return on Equity (25%) is considered high.


Financial Health

How is Kesko Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: KESKOB's short term assets (€2.6B) do not cover its short term liabilities (€2.8B).

Long Term Liabilities: KESKOB's short term assets (€2.6B) exceed its long term liabilities (€2.1B).


Debt to Equity History and Analysis

Debt Level: KESKOB's debt to equity ratio (25.9%) is considered satisfactory.

Reducing Debt: KESKOB's debt to equity ratio has reduced from 30.7% to 25.9% over the past 5 years.

Debt Coverage: KESKOB's debt is well covered by operating cash flow (195.5%).

Interest Coverage: KESKOB's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet


Dividend

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

2.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KESKOB's dividend (2.36%) is higher than the bottom 25% of dividend payers in the Finnish market (1.66%).

High Dividend: KESKOB's dividend (2.36%) is low compared to the top 25% of dividend payers in the Finnish market (3.61%).


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 (54.8%), 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 (69.7% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Mikko Helander (61 yo)

6.75yrs

Tenure

€2,997,400

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 ($USD3.48M) is about average for companies of similar size in the Finnish market ($USD3.56M).

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


Leadership Team

Experienced Management: KESKOB's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: KESKOB's board of directors are considered experienced (3.5 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 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: €12.281b
  • Shares outstanding: 397.11m
  • Website: https://www.kesko.fi

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 17:54
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
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.