HLSE:KEMIRA

Stock Analysis Report

Executive Summary

Kemira Oyj operates as a chemicals company in Europe, the Middle East, Africa, the Americas, and the Asia Pacific.


Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KEMIRA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

KEMIRA

1.7%

FI Chemicals

5.4%

FI Market


1 Year Return

-21.5%

KEMIRA

-16.4%

FI Chemicals

-19.3%

FI Market

Return vs Industry: KEMIRA underperformed the Finnish Chemicals industry which returned -13.9% over the past year.

Return vs Market: KEMIRA underperformed the Finnish Market which returned -16.3% over the past year.


Shareholder returns

KEMIRAIndustryMarket
7 Day-0.6%1.7%5.4%
30 Day-29.7%-19.3%-23.2%
90 Day-35.8%-23.6%-23.1%
1 Year-18.8%-21.5%-13.8%-16.4%-15.3%-19.3%
3 Year-14.3%-24.8%-12.9%-20.7%-3.8%-15.8%
5 Year-7.0%-25.7%-3.5%-17.6%4.8%-15.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kemira 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: KEMIRA (€8.66) is trading below our estimate of fair value (€19.36)

Significantly Below Fair Value: KEMIRA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KEMIRA is good value based on its PE Ratio (12x) compared to the Chemicals industry average (12.7x).

PE vs Market: KEMIRA is good value based on its PE Ratio (12x) compared to the Finnish market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: KEMIRA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: KEMIRA is good value based on its PB Ratio (1.1x) compared to the XE Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Kemira Oyj forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEMIRA's forecast earnings growth (6.5% per year) is above the savings rate (-0.1%).

Earnings vs Market: KEMIRA's earnings (6.5% per year) are forecast to grow slower than the Finnish market (8.8% per year).

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

Revenue vs Market: KEMIRA's revenue (1.3% per year) is forecast to grow faster than the Finnish market (0.3% per year).

High Growth Revenue: KEMIRA's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KEMIRA's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Kemira Oyj performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEMIRA has high quality earnings.

Growing Profit Margin: KEMIRA's current net profit margins (4.1%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: KEMIRA's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: KEMIRA's earnings growth over the past year (23.7%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: KEMIRA earnings growth over the past year (23.7%) exceeded the Chemicals industry 5.8%.


Return on Equity

High ROE: KEMIRA's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Kemira Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: KEMIRA's short term assets (€800.9M) exceed its short term liabilities (€723.6M).

Long Term Liabilities: KEMIRA's short term assets (€800.9M) do not cover its long term liabilities (€936.4M).


Debt to Equity History and Analysis

Debt Level: KEMIRA's debt to equity ratio (66.6%) is considered high.

Reducing Debt: KEMIRA's debt to equity ratio has increased from 51.9% to 66.6% over the past 5 years.

Debt Coverage: KEMIRA's debt is well covered by operating cash flow (47.1%).

Interest Coverage: KEMIRA's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

Inventory Level: KEMIRA has a high level of physical assets or inventory.

Debt Coverage by Assets: KEMIRA's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

6.47%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 28 2020Ex Dividend DateOct 27 2020Dividend Pay DateNov 04 20208 days from Ex DividendBuy in the next 212 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: KEMIRA's dividend (6.47%) is higher than the bottom 25% of dividend payers in the Finnish market (3.07%).

High Dividend: KEMIRA's dividend (6.47%) is in the top 25% of dividend payers in the Finnish market (6.45%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.6%), KEMIRA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KEMIRA's dividends in 3 years are forecast to be covered by earnings (63.4% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Jari Rosendal (54yo)

5.83s

Tenure

€1,109,879

Compensation

Mr. Jari Rosendal, M.Sc. (Eng.) serves as Independent Director of Neste Oyj. He served as Director of Neste Oyj since April 5, 2018. He has been the Chief Executive Officer and President of Kemira Oyj sinc ...


CEO Compensation Analysis

Compensation vs Market: Jari's total compensation ($USD1.23M) is about average for companies of similar size in the Finnish market ($USD1.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jari Rosendal
Chairman of Management Board5.83yrs€1.11m0.065% 855.5k
Jukka Hakkila
Deputy CEOno data€314.05k0.049% 652.9k
Petri Castrén
CFO & Member of Management Board6.5yrsno data0.018% 243.1k
M. A. Salonen
Executive VP of Human Resources & Member of Management Board11.75yrsno data0.029% 382.2k
Antti Salminen
President of Industry & Water and Member of Management Board2.75yrsno data0.015% 199.1k
Esa-Matti Puputti
Executive VP of Operational Excellence & Member of Management Board4.83yrsno data0.011% 152.1k
Kim Poulsen
President of Pulp & Paper and Member of Management Board4.33yrsno data0.012% 159.1k
Matthew Pixton
CTO & Member of the Management Board2.17yrsno data0.0038% 50.0k
Mikko Pohjala
Vice President of Investor Relations0.25yrno datano data
Tero Huovinen
Senior Vice President of Communications & Corporate Responsibility4.58yrsno datano data

4.6yrs

Average Tenure

56yo

Average Age

Experienced Management: KEMIRA's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jari Paasikivi
Chairman6yrs€102.20k0.15% 2.0m
Kerttu Tuomas
Independent Vice Chairman6yrs€62.80k0.010% 137.5k
Timo Lappalainen
Independent Director6yrs€65.20k0.0062% 81.7k
Wolfgang Büchele
Independent Director6yrs€54.80k0.071% 934.9k
Shirley Cunningham
Independent Director3yrs€65.60k0.0027% 36.3k
Kaisa Hietala
Independent Director4yrs€51.80k0.0037% 49.1k

6.0yrs

Average Tenure

59.5yo

Average Age

Experienced Board: KEMIRA'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: KEMIRA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kemira Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kemira Oyj
  • Ticker: KEMIRA
  • Exchange: HLSE
  • Founded: 1920
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: €1.323b
  • Shares outstanding: 152.92m
  • Website: https://www.kemira.com

Number of Employees


Location

  • Kemira Oyj
  • Energiakatu 4
  • PO Box 330
  • Helsinki
  • Uusimaa
  • 101
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KEMIRAHLSE (OMX Nordic Exchange Helsinki)YesRegistered SharesFIEURNov 1994
KEMDB (Deutsche Boerse AG)YesRegistered SharesDEEURNov 1994
0MGGLSE (London Stock Exchange)YesRegistered SharesGBEURNov 1994
KOYJ.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDNov 1994
KEMIRHBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURNov 1994

Biography

Kemira Oyj operates as a chemicals company in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates in two segments, Pulp & Paper and Industry & Water. The Pulp & Paper segment develops and commercializes pulp, paper, and packaging chemicals, as well as a range of products for paper wet-end, including packaging and board, and tissue products. The Industry & Water segment offers coagulants, polyacrylamide polymers, and other water treatment chemicals for raw water, waste water and sludge treatment, and shale and conventional oil recovery applications. The company was founded in 1920 and is headquartered in Helsinki, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 20:37
End of Day Share Price2020/03/27 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.