Neste Oyj
Market Cap
€22.1b
Last Updated
2020/04/03 00:21 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
Outstanding track record with flawless balance sheet and pays a dividend.
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
Stable Share Price: NESTE's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-1.3%
NESTE
7.3%
FI Oil and Gas
0.09%
FI Market
1 Year Return
-12.5%
NESTE
-28.7%
FI Oil and Gas
-20.5%
FI Market
Return vs Industry: NESTE exceeded the Finnish Oil and Gas industry which returned -32.3% over the past year.
Return vs Market: NESTE exceeded the Finnish Market which returned -21.5% over the past year.
Shareholder returns
| NESTE | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.3% | 7.3% | 0.09% |
| 30 Day | -20.7% | -14.0% | -17.9% |
| 90 Day | -8.5% | -30.5% | -21.3% |
| 1 Year | -11.3%-12.5% | -24.5%-28.7% | -16.8%-20.5% |
| 3 Year | 145.4%134.8% | -2.2%-16.2% | -1.5%-13.1% |
| 5 Year | 291.2%249.5% | 8.0%-15.9% | 5.6%-14.3% |
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
2 weeks ago | Simply Wall St
How Does Neste Oyj's (HEL:NESTE) P/E Compare To Its Industry, After The Share Price Drop?2 weeks ago | Simply Wall St
Is Neste Oyj's (HEL:NESTE) 230% Share Price Increase Well Justified?1 month ago | Simply Wall St
What Can We Make Of Neste Oyj’s (HEL:NESTE) High Return On Capital?Valuation
Is Neste Oyj undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NESTE (€28.76) is trading below our estimate of fair value (€66.58)
Significantly Below Fair Value: NESTE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NESTE is poor value based on its PE Ratio (12.3x) compared to the Oil and Gas industry average (6x).
PE vs Market: NESTE is good value based on its PE Ratio (12.3x) compared to the Finnish market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: NESTE is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: NESTE is overvalued based on its PB Ratio (3.7x) compared to the XE Oil and Gas industry average (0.5x).
Next Steps
Future Growth
How is Neste Oyj forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
3.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NESTE's forecast earnings growth (3.1% per year) is above the savings rate (-0.1%).
Earnings vs Market: NESTE's earnings (3.1% per year) are forecast to grow slower than the Finnish market (9.1% per year).
High Growth Earnings: NESTE's earnings are forecast to grow, but not significantly.
Revenue vs Market: NESTE's revenue (4.2% per year) is forecast to grow faster than the Finnish market (2.8% per year).
High Growth Revenue: NESTE's revenue (4.2% 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 high in 3 years time (22.4%)
Next Steps
Past Performance
How has Neste Oyj performed over the past 5 years?
24.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NESTE has high quality earnings.
Growing Profit Margin: NESTE's current net profit margins (12.4%) are higher than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: NESTE's earnings have grown significantly by 24.5% per year over the past 5 years.
Accelerating Growth: NESTE's earnings growth over the past year (130.7%) exceeds its 5-year average (24.5% per year).
Earnings vs Industry: NESTE earnings growth over the past year (130.7%) exceeded the Oil and Gas industry -4.6%.
Return on Equity
High ROE: NESTE's Return on Equity (30.2%) is considered high.
Next Steps
Financial Health
How is Neste Oyj's financial position?
Financial Position Analysis
Short Term Liabilities: NESTE's short term assets (€5.3B) exceed its short term liabilities (€2.3B).
Long Term Liabilities: NESTE's short term assets (€5.3B) exceed its long term liabilities (€1.6B).
Debt to Equity History and Analysis
Debt Level: NESTE's debt to equity ratio (15.3%) is considered satisfactory.
Reducing Debt: NESTE's debt to equity ratio has reduced from 65.3% to 15.3% over the past 5 years.
Debt Coverage: NESTE's debt is well covered by operating cash flow (161.2%).
Interest Coverage: NESTE's interest payments on its debt are well covered by EBIT (61.6x coverage).
Balance Sheet
Inventory Level: NESTE has a high level of physical assets or inventory.
Debt Coverage by Assets: NESTE's debt is covered by short term assets (assets are 5.9x debt).
Next Steps
Dividend
What is Neste Oyj's current dividend yield, its reliability and sustainability?
3.20%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NESTE's dividend (3.2%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (3.22%).
High Dividend: NESTE's dividend (3.2%) is low compared to the top 25% of dividend payers in the Finnish market (6.35%).
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 (39.5%), 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 (52.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.8yrs
Average management tenure
CEO
Peter Z. Vanacker (53yo)
1.42s
Tenure
€2,131,982
Compensation
Mr. Peter Z. E. Vanacker has been President and Chief Executive Officer at Neste Oyj since November 1, 2018. He served as the Chief Executive Officer of CABB Group Gmbh from April 2015 to August 27, 2018. ...
CEO Compensation Analysis
Compensation vs Market: Peter Z.'s total compensation ($USD2.33M) is below average for companies of similar size in the Finnish market ($USD4.11M).
Compensation vs Earnings: Peter Z.'s compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 1.42yrs | €2.13m | no data | |
| Chief Financial Officer | 6.92yrs | no data | 0.0043% €949.6k | |
| Senior Vice President of Human Resources | 14.25yrs | no data | 0.0052% €1.2m | |
| Senior Vice President of Innovation | 11.25yrs | no data | 0.0038% €836.9k | |
| Chief Information Officer | 7.08yrs | no data | no data | |
| Vice President of Investor Relations | 8.5yrs | no data | no data | |
| General Counsel | 2.75yrs | no data | no data | |
| Senior Vice President of Sustainability | no data | no data | 0.0037% €828.1k | |
| Executive Vice President of Marketing & Services | no data | no data | 0.0016% €353.3k | |
| Executive Vice President of the Renewables Platform | 11.25yrs | no data | 0.0047% €1.0m |
7.8yrs
Average Tenure
53yo
Average Age
Experienced Management: NESTE's management team is seasoned and experienced (7.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Chairman of the Board | 2yrs | €78.00k | 0.00089% €196.5k | |
| Independent Vice Chair | 1yr | €50.45k | 0.00039% €86.1k | |
| Independent Non-Executive Director | 7yrs | €55.80k | 0.00078% €172.2k | |
| Independent Non-Executive Director | 6yrs | €52.80k | 0.0030% €660.3k | |
| Chairman of Stakeholder Advisory Panel | no data | no data | no data | |
| Vice Chairman of Stakeholder Advisory Panel | no data | no data | no data | |
| Member of Stakeholder Advisory Panel | no data | no data | no data | |
| Member of Stakeholder Advisory Panel | no data | no data | no data | |
| Member of Stakeholder Advisory Panel | no data | no data | no data | |
| Member of Stakeholder Advisory Panel | no data | no data | no data |
4.0yrs
Average Tenure
60.5yo
Average Age
Experienced Board: NESTE'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
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: €22.083b
- Shares outstanding: 767.84m
- Website: https://www.neste.com
Number of Employees
Location
- Neste Oyj
- Keilaranta 21
- PO Box 95
- Espoo
- Uusimaa
- 95
- Finland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NESTE | HLSE (OMX Nordic Exchange Helsinki) | Yes | Ordinary Shares | FI | EUR | Apr 2005 |
| NEF | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Apr 2005 |
| NEF | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Apr 2005 |
| NTOI.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Apr 2005 |
| 0O46 | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Apr 2005 |
| NESTEH | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Apr 2005 |
| NTOI.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Oct 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 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 to retailers; wholesale customers, such as professional transportation companies and municipalities, fleets, and chemical industry producers; and brand owners and oil companies. The Oil Products segment produces, markets, and sells diesel fuel, gasoline, aviation and marine fuels, light and heavy fuel oils, base oils, gasoline components, small engine gasoline, solvents, liquid gases, and bitumen. It serves oil and petrochemicals companies; and companies marketing oil, fuels, lubricants, and other special products. The Marketing & Services segment markets and sells petroleum products and associated services to private motorists, industry, transport companies, farmers, and heating oil customers through a network of 800 service station, as well as direct sales. The Others segment offers engineering and technology solutions. The company also manufactures raw materials for polymers and chemicals materials. The company was formerly known as Neste Oil Oyj and changed its name to Neste Oyj in June 2015. Neste Oyj was founded in 1948 and is headquartered in Espoo, Finland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 00:21 |
| End of Day Share Price | 2020/04/02 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.