company background image
NEST

Neste OyjHLSE:NESTE Stock Report

Last Price

€44.35

Market Cap

€34.1b

7D

-0.7%

1Y

-27.1%

Updated

17 Jan, 2022

Data

Company Financials +
NESTE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance3/6
Financial Health6/6
Dividends5/6

NESTE Stock Overview

Neste Oyj provides renewable and oil products in Finland and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally.

Rewards

Trading at 18.3% below our estimate of its fair value

Earnings are forecast to grow 7.06% per year

Pays a reliable dividend of 1.8%

Risk Analysis

No risks detected for NESTE from our risk checks.

Neste Oyj Competitors

Royal Dutch Shell

ENXTAM:RDSA

€168.5b

BP

LSE:BP.

UK£77.3b

Eni

BIT:ENI

€46.7b

Marathon Petroleum

NYSE:MPC

US$46.0b

Price History & Performance

Summary of all time highs, changes and price drops for Neste Oyj
Historical stock prices
Current Share Price€44.35
52 Week High€63.58
52 Week Low€41.17
Beta0.95
1 Month Change2.19%
3 Month Change-13.38%
1 Year Change-27.13%
3 Year Change68.42%
5 Year Change289.49%
Change since IPO722.31%

Recent News & Updates

Jan 17
Here's Why Neste Oyj (HEL:NESTE) Can Manage Its Debt Responsibly

Here's Why Neste Oyj (HEL:NESTE) Can Manage Its Debt Responsibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Dec 02
Neste Oyj (HEL:NESTE) Shares Could Be 37% Below Their Intrinsic Value Estimate

Neste Oyj (HEL:NESTE) Shares Could Be 37% Below Their Intrinsic Value Estimate

Today we will run through one way of estimating the intrinsic value of Neste Oyj ( HEL:NESTE ) by taking the expected...

Nov 17
Neste Oyj (HEL:NESTE) Has More To Do To Multiply In Value Going Forward

Neste Oyj (HEL:NESTE) Has More To Do To Multiply In Value Going Forward

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

Oct 17
Neste Oyj (HEL:NESTE) Has A Pretty Healthy Balance Sheet

Neste Oyj (HEL:NESTE) Has A Pretty Healthy Balance Sheet

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

Shareholder Returns

NESTEFI Oil and GasFI Market
7D-0.7%1.5%-0.6%
1Y-27.1%24.7%8.9%

Return vs Industry: NESTE underperformed the Finnish Oil and Gas industry which returned 25.2% over the past year.

Return vs Market: NESTE underperformed the Finnish Market which returned 9% over the past year.

Price Volatility

Is NESTE's price volatile compared to industry and market?
NESTE volatility
NESTE Average Weekly Movement4.8%
Oil and Gas Industry Average Movement6.2%
Market Average Movement4.3%
10% most volatile stocks in FI Market6.9%
10% least volatile stocks in FI Market2.9%

Stable Share Price: NESTE is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NESTE's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19484,807Peter Z. Vanackerhttps://www.neste.com

Neste Oyj provides renewable and oil products in Finland and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally. The company operates in four segments: Renewable Products, Oil Products, Marketing & Services, and Others. The Renewable Products segment produces, markets, and sells renewable diesel, renewable jet fuels and solutions, and renewable solvents, as well as raw material for bioplastics based on its technology to wholesale markets.

Neste Oyj Fundamentals Summary

How do Neste Oyj's earnings and revenue compare to its market cap?
NESTE fundamental statistics
Market Cap€34.06b
Earnings (TTM)€1.32b
Revenue (TTM)€11.82b

25.8x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NESTE income statement (TTM)
Revenue€11.82b
Cost of Revenue€8.81b
Gross Profit€3.00b
Expenses€1.68b
Earnings€1.32b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 10, 2022

Earnings per share (EPS)1.72
Gross Margin25.41%
Net Profit Margin11.17%
Debt/Equity Ratio22.9%

How did NESTE perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

47%

Payout Ratio

Valuation

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

18.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NESTE (€44.35) is trading below our estimate of fair value (€54.27)

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


Price To Earnings Ratio

PE vs Industry: NESTE is poor value based on its PE Ratio (25.8x) compared to the European Oil and Gas industry average (12.6x).

PE vs Market: NESTE is poor value based on its PE Ratio (25.8x) compared to the Finnish market (24x).


Price to Earnings Growth Ratio

PEG Ratio: NESTE is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: NESTE is overvalued based on its PB Ratio (5.2x) compared to the XE Oil and Gas industry average (1x).


Future Growth

How is Neste Oyj forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESTE's forecast earnings growth (7.1% per year) is above the savings rate (0.2%).

Earnings vs Market: NESTE's earnings (7.1% per year) are forecast to grow faster than the Finnish market (4.9% per year).

High Growth Earnings: NESTE's earnings are forecast to grow, but not significantly.

Revenue vs Market: NESTE's revenue (9.6% per year) is forecast to grow faster than the Finnish market (3.5% per year).

High Growth Revenue: NESTE's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NESTE's Return on Equity is forecast to be low in 3 years time (19%).


Past Performance

How has Neste Oyj performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NESTE has high quality earnings.

Growing Profit Margin: NESTE's current net profit margins (11.2%) are lower than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: NESTE's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: NESTE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NESTE had negative earnings growth (-19.5%) over the past year, making it difficult to compare to the Oil and Gas industry average (18.7%).


Return on Equity

High ROE: NESTE's Return on Equity (20.3%) is considered high.


Financial Health

How is Neste Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: NESTE's short term assets (€6.1B) exceed its short term liabilities (€3.3B).

Long Term Liabilities: NESTE's short term assets (€6.1B) exceed its long term liabilities (€1.9B).


Debt to Equity History and Analysis

Debt Level: NESTE's net debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: NESTE's debt to equity ratio has reduced from 39.3% to 22.9% over the past 5 years.

Debt Coverage: NESTE's debt is well covered by operating cash flow (140.2%).

Interest Coverage: NESTE's interest payments on its debt are well covered by EBIT (40.2x coverage).


Balance Sheet


Dividend

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

1.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NESTE's dividend (1.8%) is higher than the bottom 25% of dividend payers in the Finnish market (1.64%).

High Dividend: NESTE's dividend (1.8%) is low compared to the top 25% of dividend payers in the Finnish market (3.51%).


Stability and Growth of Payments

Stable Dividend: NESTE's dividends per share have been stable in the past 10 years.

Growing Dividend: NESTE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.5%), NESTE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NESTE's dividends in 3 years are forecast to be covered by earnings (51.2% payout ratio).


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Peter Z. Vanacker (55 yo)

3.17yrs

Tenure

€1,804,816

Compensation

Mr. Peter Z. E. Vanacker has been Supervisory Board Member at Symrise AG since June 17, 2020. Mr. Vanacker has been President and Chief Executive Officer at Neste Oyj since November 1, 2018. He served as t...


CEO Compensation Analysis

Compensation vs Market: Peter Z.'s total compensation ($USD2.06M) is below average for companies of similar size in the Finnish market ($USD3.51M).

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


Leadership Team

Experienced Management: NESTE's management team is seasoned and experienced (8.8 years average tenure).


Board Members

Experienced Board: NESTE's board of directors are considered experienced (6 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

Neste Oyj's employee growth, exchange listings and data sources


Key Information

  • Name: Neste Oyj
  • Ticker: NESTE
  • Exchange: HLSE
  • Founded: 1948
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Implied Market Cap: €34.059b
  • Shares outstanding: 767.97m
  • Website: https://www.neste.com

Number of Employees


Location

  • Neste Oyj
  • Keilaranta 21
  • PO Box 95
  • Espoo
  • Uusimaa
  • 95
  • Finland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:04
End of Day Share Price2022/01/17 00:00
Earnings2021/09/30
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.