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

-1.1%

NESTE

-0.3%

FI Oil and Gas

0.8%

FI Market


1 Year Return

23.7%

NESTE

-3.8%

FI Oil and Gas

5.5%

FI Market

Return vs Industry: NESTE exceeded the Finnish Oil and Gas industry which returned -3.8% over the past year.

Return vs Market: NESTE exceeded the Finnish Market which returned 5.5% over the past year.


Shareholder returns

NESTEIndustryMarket
7 Day-1.1%-0.3%0.8%
30 Day-0.7%-2.0%0.6%
90 Day-5.3%-1.5%2.7%
1 Year25.8%23.7%1.8%-3.8%10.4%5.5%
3 Year135.1%117.2%43.5%22.7%29.6%14.2%
5 Year489.8%413.1%51.0%17.2%62.9%31.7%

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?

25.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NESTE (€29.06) is trading above our estimate of fair value (€28.09)

Significantly Undervalued: NESTE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NESTE is poor value based on its PE Ratio (25.2x) compared to the Oil and Gas industry average (9.4x).

PE vs Market: NESTE is poor value based on its PE Ratio (25.2x) compared to the Finnish market (20.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: NESTE is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: NESTE is overvalued based on its PB Ratio (4.8x) 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?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESTE's forecast earnings growth (8.4% per year) is above the savings rate (0.5%).

Earnings vs Market: NESTE's earnings (8.4% per year) are forecast to grow slower than the Finnish market (13.4% per year).

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

Revenue vs Market: NESTE's revenue (0.9% per year) is forecast to grow slower than the Finnish market (2.1% per year).

High Growth Revenue: NESTE's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

23.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NESTE's earnings have grown significantly by 23% 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 (-10.8%) over the past year, making it difficult to compare to the Oil and Gas industry average (10%).


Return on Equity

High ROE: NESTE's Return on Equity (19.1%) is considered low.


Return on Assets

ROA vs Industry: NESTE has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: NESTE has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Neste Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: NESTE's short term assets (€4.3B) exceeds its short term liabilities (€2.4B)

Long Term Liabilities: NESTE's short term assets (4.3B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: NESTE's debt to equity ratio (24%) is considered satisfactory

Reducing Debt: NESTE's debt to equity ratio has reduced from 60.9% to 24% over the past 5 years.

Debt Coverage: NESTE's debt is well covered by operating cash flow (106%).

Interest Coverage: NESTE's interest payments on its debt are well covered by EBIT (41.2x 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 3.894680x debt).


Next Steps

Dividend

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

2.62%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.2%markettop25%5.1%industryaverage6.0%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NESTE's dividend (2.62%) is higher than the bottom 25% of dividend payers in the Finnish market (2.24%).

High Dividend: NESTE's dividend (2.62%) is low compared to the top 25% of dividend payers in the Finnish market (5.06%).

Stable Dividend: NESTE's dividend payments have been volatile 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 reasonable payout ratio (65.9%), NESTE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NESTE's dividends in 3 years are forecast to be covered by earnings (51.4% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Peter Z. Vanacker (53yo)

0.9yrs

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. has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Finnish market.

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


Management Age and Tenure

7.3yrs

Average Tenure

53yo

Average Age

Experienced Management: NESTE's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: NESTE's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jyrki Mäki-Kala (58yo)

    CFO & Member of the Executive Board

    • Tenure: 6.4yrs
  • Lars Lindfors (55yo)

    Senior VP of Technology & Member of Executive Board

    • Tenure: 10.8yrs
  • Christian Ståhlberg (45yo)

    General Counsel & Member of the Executive Board

    • Tenure: 2.3yrs
  • Juha-Pekka Kekäläinen (57yo)

    Vice President of Investor Relations

    • Tenure: 8yrs
  • Hannele Jakosuo-Jansson (53yo)

    Senior VP of HR

    • Tenure: 13.8yrs
  • Peter Z. Vanacker (53yo)

    President

    • Tenure: 0.9yrs
    • Compensation: €900.04k
  • Matti Lehmus (45yo)

    Executive Vice President of the Renewables Platform

    • Tenure: 10.8yrs
  • Simo Honkanen (61yo)

    Senior VP of Sustainability

    • Tenure: 10.8yrs
  • Panu Kopra (47yo)

    Executive VP of Marketing & Services and Member of Executive Board

    • Tenure: 3.4yrs
  • Tommi Tuovila

    Chief Information Officer

    • Tenure: 6.6yrs

Board Members

  • Matti Kähkönen (63yo)

    Independent Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: €77.40k
  • Marco Wirén (53yo)

    Independent Vice Chair

    • Tenure: 0.5yrs
    • Compensation: €55.20k
  • Willem Jan Antoon Schoeber (71yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: €61.20k
  • Jean Baptiste Michel Renard (58yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: €60.60k
  • Anne Kalmari

    Chairman of Stakeholder Advisory Panel

    • Tenure: 0yrs
  • Timo Harakka

    Vice Chairman of Stakeholder Advisory Panel

    • Tenure: 0yrs
  • Pekka Haavisto

    Member of Stakeholder Advisory Panel

    • Tenure: 0yrs
  • Teuvo Hakkarainen

    Member of Stakeholder Advisory Panel

    • Tenure: 0yrs
  • Harri Jaskari

    Member of Stakeholder Advisory Panel

    • Tenure: 0yrs
  • Sanna Lauslahti

    Member of Stakeholder Advisory Panel

    • Tenure: 0yrs

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: €22.309b
  • 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
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 Analysis2019/10/19 20:49
End of Day Share Price2019/10/18 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.