HLSE:NESTE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Neste Oyj's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.1%

HLSE:NESTE

-3.1%

FI Oil and Gas

-1.4%

FI Market


1 Year Return

22.9%

HLSE:NESTE

22.9%

FI Oil and Gas

-4.9%

FI Market

NESTE outperformed the Oil and Gas industry which returned -5.9% over the past year.

NESTE outperformed the Market in Finland which returned -5% over the past year.


Share holder returns

NESTEIndustryMarket
7 Day-3.1%-3.1%-1.4%
30 Day1.3%1.3%-1.1%
90 Day-6.2%-6.2%-1.6%
1 Year24.8%22.9%24.8%22.9%-0.6%-4.9%
3 Year149.5%133.6%149.5%133.6%26.4%11.9%
5 Year590.3%508.6%590.3%508.6%53.1%24.0%

Price Volatility Vs. Market

How volatile is Neste Oyj's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Neste Oyj undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Neste Oyj's share price is below the future cash flow value, and at a moderate discount (> 20%).

Neste Oyj's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Neste Oyj is overvalued based on earnings compared to the Europe Oil and Gas industry average.

Neste Oyj is overvalued based on earnings compared to the Finland market.


Price Based on Expected Growth

Neste Oyj is poor value based on expected growth next year.


Price Based on Value of Assets

Neste Oyj is overvalued based on assets compared to the Europe Oil and Gas industry average.


Next Steps

Future Growth

How is Neste Oyj expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Neste Oyj's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).

Neste Oyj's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).

Neste Oyj's revenue growth is positive but not above the Finland market average.

Neste Oyj's earnings growth is positive but not above the Finland market average.

Neste Oyj's earnings growth is expected to exceed the low risk savings rate of 0.5%.


Earnings per Share Growth Estimates


Future Return on Equity

Neste Oyj is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Neste Oyj performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Neste Oyj has delivered over 20% year on year earnings growth in the past 5 years.

Neste Oyj's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Neste Oyj's 1-year earnings growth is negative, it can't be compared to the Europe Oil and Gas industry average.


Return on Equity

Neste Oyj has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Neste Oyj used its assets more efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Neste Oyj has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Neste Oyj's financial position?


Financial Position Analysis

Neste Oyj is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Neste Oyj's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Neste Oyj's level of debt (24%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (60.9% vs 24% today).

Debt is well covered by operating cash flow (106%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 41.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.9x debt.


Next Steps

Dividend

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

3.21%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Neste Oyj before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Neste Oyj's pays a higher dividend yield than the bottom 25% of dividend payers in Finland (2.42%).

Neste Oyj's dividend is below the markets top 25% of dividend payers in Finland (5.33%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


Next Steps

Management

What is the CEO of Neste Oyj's salary, the management and board of directors tenure and is there insider trading?

7.1yrs

Average management tenure


CEO

Peter Z. Vanacker (53yo)

0.8yrs

Tenure

€900,040

Compensation

Mr. Peter Z. E. Vanacker has been President, CEO and Chairman of Executive Board at Neste Oyj since November 1, 2018. He served as the Chief Executive Officer of CABB Group Gmbh from April 2015 to August 2 ...


CEO Compensation Analysis

Peter Z.'s remuneration is about average for companies of similar size in Finland.

Insufficient data for Peter Z. to compare compensation growth.


Management Age and Tenure

7.1yrs

Average Tenure

53yo

Average Age

The average tenure for the Neste Oyj management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.3yrs

Average Tenure

60.5yo

Average Age

The tenure for the Neste Oyj board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Tommi Tuovila

    Chief Information Officer

    • Tenure: 6.4yrs
  • Juha-Pekka Kekäläinen (57yo)

    Vice President of Investor Relations

    • Tenure: 7.8yrs
  • Peter Z. Vanacker (53yo)

    President

    • Tenure: 0.8yrs
    • Compensation: 900.04k
  • Panu Kopra (47yo)

    Executive VP of Marketing & Services and Member of Executive Board

    • Tenure: 3.3yrs
  • Hannele Jakosuo-Jansson (53yo)

    Senior VP of Human Resources & Safety and Member of the Executive Board

    • Tenure: 13.6yrs
  • Jyrki Mäki-Kala (58yo)

    CFO & Member of the Executive Board

    • Tenure: 6.3yrs
  • Lars Lindfors (55yo)

    Senior VP of Technology & Member of Executive Board

    • Tenure: 10.6yrs
  • Simo Honkanen (61yo)

    Senior VP of Sustainability

    • Tenure: 10.6yrs
  • Matti Lehmus (45yo)

    Executive Vice President of the Renewables Platform

    • Tenure: 10.6yrs
  • Christian Ståhlberg (45yo)

    General Counsel & Member of the Executive Board

    • Tenure: 2.1yrs

Board Members

  • Timo Harakka

    Vice Chairman of Stakeholder Advisory Panel

  • Sanna Lauslahti

    Member of Stakeholder Advisory Panel

  • Anne Kalmari

    Chairman of Stakeholder Advisory Panel

  • Jean Baptiste Michel Renard (58yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: 60.60k
  • Matti Kähkönen (63yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: 77.40k
  • Pekka Haavisto

    Member of Stakeholder Advisory Panel

  • Teuvo Hakkarainen

    Member of Stakeholder Advisory Panel

  • Marco Wirén (53yo)

    Vice Chair

    • Tenure: 0.3yrs
    • Compensation: 55.20k
  • Willem Jan Antoon Schoeber (71yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: 61.20k
  • Harri Jaskari

    Member of Stakeholder Advisory Panel

Company Information

Neste Oyj's company bio, 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
  • Market Cap: €22.922b
  • Shares outstanding: 767.66m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NESTEHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURApr 2005
NEFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2005
NTOI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2005
0O46LSE (London Stock Exchange)YesOrdinary SharesGBEURApr 2005
NESTEHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURApr 2005
NTOI.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

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 segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 20:48
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.