HLSE:KESKOB

Stock Analysis Report

Executive Summary

Kesko Oyj provides trading sector services.


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

KESKOBIndustryMarket
7 Day4.8%3.4%1.8%
30 Day-19.2%-4.7%-19.1%
90 Day-18.0%-7.3%-22.1%
1 Year0.7%-6.0%-2.9%-6.6%-18.2%-21.6%
3 Year36.6%21.4%0.6%-9.2%-2.8%-14.1%
5 Year66.4%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

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

NamePositionTenureCompensationOwnership
Mikko Helander
Chairman of the Group Management Board5.25yrs€2.63m0.056% 2.9m
Jukka Erlund
CFO, Executive VP & Member of Group Management Board8.42yrsno data0.024% 1.2m
Ari Akseli
President of Grocery Trade & Member of Group Management Board2.42yrsno data0.010% 509.4k
Matti Mettälä
Executive VP of HR7.5yrsno data0.015% 791.5k
Jorma Rauhala
President of Building & Technical Trade7.17yrsno data0.029% 1.5m
Anni Ronkainen
Chief Digital Officer5yrsno data0.011% 570.7k
Johan Friman
President of K Auto Oy & Member of Group Management Board3.25yrsno data0.0074% 377.6k
Arto Hiltunen
Chief Information Officer & VP of IT Management11.33yrsno datano data
Hanna Jaakkola
Vice President of Investor Relationsno datano datano data
Lasse Luukkainen
Group General Counsel & Company Secretary0.25yrno datano 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

NamePositionTenureCompensationOwnership
Peter Fagernäs
Independent Deputy Chairman2yrs€67.00k0.0018% 91.5k
Matti Kyytsönen
Independent Director5yrs€55.50k0.0016% 81.2k
Esa Kiiskinen
Chairman of the Board8yrs€109.00k0.0026% 133.9k
Jannica Fagerholm
Independent Director4yrs€72.00k0.0018% 91.5k
Toni Pokela
Director8yrs€49.50k0.00079% 40.4k
Piia Karhu
Director2yrs€53.50k0.00059% 30.1k
Matti Naumanen
Director4yrs€50.00k0.0030% 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

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
KESKOAHLSE (OMX Nordic Exchange Helsinki)Series A SharesFIEURJun 1999
0BNSLSE (London Stock Exchange)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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 21:09
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.