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.

Rewards

Trading at 13.2% below its fair value

Earnings are forecast to grow 2.38% per year

Earnings grew by 129.8% over the past year

Pays a high and reliable dividend of 2.37%

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Outstanding track record with flawless balance sheet and pays a dividend.


Similar Companies

Eni

BIT:ENI

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

0.5%

NESTE

-0.9%

FI Oil and Gas

-2.8%

FI Market


1 Year Return

34.8%

NESTE

-3.7%

FI Oil and Gas

9.6%

FI Market

Return vs Industry: NESTE exceeded the Finnish Oil and Gas industry which returned -2.6% over the past year.

Return vs Market: NESTE exceeded the Finnish Market which returned 10.1% over the past year.


Shareholder returns

NESTEIndustryMarket
7 Day0.5%-0.9%-2.8%
30 Day14.5%-8.9%0.6%
90 Day25.2%-6.8%8.1%
1 Year37.2%34.8%2.0%-3.7%14.6%9.6%
3 Year262.4%234.7%29.7%11.0%32.1%16.3%
5 Year465.0%391.5%44.3%11.1%44.8%17.5%

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 compared to its fair value and its price relative to the market?

13.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NESTE (€38.75) is trading below our estimate of fair value (€44.65)

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 (16.6x) compared to the Oil and Gas industry average (10.8x).

PE vs Market: NESTE is good value based on its PE Ratio (16.6x) compared to the Finnish market (21.6x).


Price to Earnings Growth Ratio

PEG Ratio: NESTE is poor value based on its PEG Ratio (7x)


Price to Book Ratio

PB vs Industry: NESTE is overvalued based on its PB Ratio (5x) compared to the XE Oil and Gas industry average (0.9x).


Next Steps

Future Growth

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

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESTE's forecast earnings growth (2.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: NESTE's earnings (2.4% per year) are forecast to grow slower than the Finnish market (10% per year).

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

Revenue vs Market: NESTE's revenue (2% per year) is forecast to grow faster than the Finnish market (-0% per year).

High Growth Revenue: NESTE's revenue (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 (23.5%)


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 (11.3%) 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 (129.8%) exceeds its 5-year average (24.5% per year).

Earnings vs Industry: NESTE earnings growth over the past year (129.8%) exceeded the Oil and Gas industry -5.3%.


Return on Equity

High ROE: NESTE's Return on Equity (30.2%) is considered high.


Return on Assets


Return on Capital Employed


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 (16.9%) is considered satisfactory.

Reducing Debt: NESTE's debt to equity ratio has reduced from 65.3% to 16.9% over the past 5 years.

Debt Coverage: NESTE's debt is well covered by operating cash flow (145.2%).

Interest Coverage: NESTE's interest payments on its debt are well covered by EBIT (564x 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 5.3x debt).


Next Steps

Dividend

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

2.37%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.4%marketbottom25%2.1%markettop25%4.5%industryaverage6.3%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: NESTE's dividend (2.37%) is higher than the bottom 25% of dividend payers in the Finnish market (2.07%).

High Dividend: NESTE's dividend (2.37%) is low compared to the top 25% of dividend payers in the Finnish market (4.47%).


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 (51.3% payout ratio).


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Peter Z. Vanacker (53yo)

1.3yrs

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

Compensation vs Market: Peter Z.'s total compensation ($USD973.65K) is below average for companies of similar size in the Finnish market ($USD3.59M).

Compensation vs Earnings: Insufficient data to compare Peter Z.'s compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Z. Vanacker
President1.3yrs€900.04kno data
Jyrki Mäki-Kala
CFO & Member of the Executive Board6.8yrsno data0.0043% 1.3m
Hannele Jakosuo-Jansson
Senior VP of HR14.1yrsno data0.0052% 1.6m
Matti Lehmus
Executive Vice President of the Renewables Platform11.1yrsno data0.0047% 1.4m
Simo Honkanen
Senior VP of Sustainability11.1yrsno data0.0037% 1.1m
Lars Lindfors
Senior VP of Technology & Member of Executive Board11.1yrsno data0.0038% 1.1m
Panu Kopra
Executive VP of Marketing & Services and Member of Executive Board3.8yrsno data0.0016% 481.9k
Christian Ståhlberg
General Counsel & Member of the Executive Board2.6yrsno datano data
Thorsten Lange
Executive VP of Renewable Aviation & Member of Executive Committee0yrsno datano data
Tommi Tuovila
Chief Information Officer6.9yrsno datano data

6.9yrs

Average Tenure

53yo

Average Age

Experienced Management: NESTE's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matti Kahkonen
Independent Chairman of the Board1.8yrs€77.40k0.00089% 268.0k
Marco Wirén
Independent Vice Chair0.8yrs€55.20k0.00039% 117.5k
Willem Jan Antoon Schoeber
Independent Non-Executive Director6.8yrs€61.20k0.00078% 234.9k
Jean Baptiste Michel Renard
Independent Non-Executive Director5.8yrs€60.60k0.0030% 900.5k
Anne Kalmari
Chairman of Stakeholder Advisory Panel0yrsno datano data
Timo Harakka
Vice Chairman of Stakeholder Advisory Panel0yrsno datano data
Pekka Haavisto
Member of Stakeholder Advisory Panel0yrsno datano data
Teuvo Hakkarainen
Member of Stakeholder Advisory Panel0yrsno datano data
Harri Jaskari
Member of Stakeholder Advisory Panel0yrsno datano data
Sanna Lauslahti
Member of Stakeholder Advisory Panel0yrsno datano data

3.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: NESTE's board of directors are considered experienced (3.8 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: €30.116b
  • Shares outstanding: 767.68m
  • Website: https://www.neste.com

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
NEFXTRA (XETRA Trading Platform)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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 21:09
End of Day Share Price2020/02/18 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.