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.

Rewards

Trading at 25% below its fair value

Earnings are forecast to grow 6.97% per year

Earnings grew by 46% over the past year

Pays a high and reliable dividend of 3.93%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record established dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

KEMIRA

0.4%

FI Chemicals

-0.5%

FI Market


1 Year Return

27.7%

KEMIRA

12.1%

FI Chemicals

9.2%

FI Market

Return vs Industry: KEMIRA exceeded the Finnish Chemicals industry which returned 13.2% over the past year.

Return vs Market: KEMIRA exceeded the Finnish Market which returned 12.5% over the past year.


Shareholder returns

KEMIRAIndustryMarket
7 Day1.7%0.4%-0.5%
30 Day2.7%-1.6%3.5%
90 Day-4.9%2.4%7.1%
1 Year33.8%27.7%16.0%12.1%14.2%9.2%
3 Year31.6%14.2%15.2%4.8%32.4%16.4%
5 Year71.5%35.4%36.8%16.4%51.2%22.2%

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?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KEMIRA (€13.48) is trading below our estimate of fair value (€17.98)

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 (16x) compared to the Chemicals industry average (16.9x).

PE vs Market: KEMIRA is good value based on its PE Ratio (16x) compared to the Finnish market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: KEMIRA is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: KEMIRA is overvalued based on its PB Ratio (1.7x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

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

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KEMIRA's forecast earnings growth (7% per year) is above the savings rate (-0.1%).

Earnings vs Market: KEMIRA's earnings (7% per year) are forecast to grow slower than the Finnish market (14.6% per year).

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

Revenue vs Market: KEMIRA's revenue (2.3% per year) is forecast to grow slower than the Finnish market (2.5% per year).

High Growth Revenue: KEMIRA's revenue (2.3% 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 (11.5%).


Next Steps

Past Performance

How has Kemira Oyj performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KEMIRA has high quality earnings.

Growing Profit Margin: KEMIRA's current net profit margins (4.8%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: KEMIRA's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: KEMIRA's earnings growth over the past year (46%) exceeds its 5-year average (9.5% per year).

Earnings vs Industry: KEMIRA earnings growth over the past year (46%) exceeded the Chemicals industry 2.4%.


Return on Equity

High ROE: KEMIRA's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kemira Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: KEMIRA's short term assets (€839.7M) exceed its short term liabilities (€668.5M).

Long Term Liabilities: KEMIRA's short term assets (€839.7M) do not cover its long term liabilities (€980.6M).


Debt to Equity History and Analysis

Debt Level: KEMIRA's debt to equity ratio (68.4%) is considered high.

Reducing Debt: KEMIRA's debt to equity ratio has increased from 50.3% to 68.4% over the past 5 years.

Debt Coverage: KEMIRA's debt is well covered by operating cash flow (39.6%).

Interest Coverage: KEMIRA's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: KEMIRA's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

3.86%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.1%markettop25%4.7%industryaverage3.0%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: KEMIRA's dividend (3.93%) is higher than the bottom 25% of dividend payers in the Finnish market (2.13%).

High Dividend: KEMIRA's dividend (3.93%) is low compared to the top 25% of dividend payers in the Finnish market (4.68%).


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: With its reasonable payout ratio (62.9%), KEMIRA's dividend 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 (52.2% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Jari Rosendal (54yo)

5.7yrs

Tenure

€1,021,520

Compensation

Mr. Jari Rosendal, M.Sc. (Eng.) serves as Director of Neste Oyj since April 5, 2018. He has been the Chief Executive Officer and President of Kemira Oyj since May 1, 2014 and serves as its Chairman of Mana ...


CEO Compensation Analysis

Compensation vs Market: Jari's total compensation ($USD1.14M) is about average for companies of similar size in the Finnish market ($USD1.40M).

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


Management Age and Tenure

4.4yrs

Average Tenure

56yo

Average Age

Experienced Management: KEMIRA's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: KEMIRA's board of directors are considered experienced (5.8 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.


Recent Insider Transactions

Sell€39,60016 Sep 19
Antti Salminen
EntityIndividual
Role
Member of Management Board
Member of Mgmt. Board
Shares3,000
Max Price€13.20
Buy€54,00011 Feb 19
Jari Rosendal
EntityIndividual
Role
Chief Executive Officer
Chairman of Mgmt. Board
Shares5,000
Max Price€10.80

Ownership Breakdown

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


Management Team

  • Antti Salminen (48yo)

    Member of Mgmt. Board

    • Tenure: 2.6yrs
  • Jukka Hakkila (59yo)

    Deputy CEO

    • Compensation: €329.94k
  • Jari Rosendal (54yo)

    Chairman of Mgmt. Board

    • Tenure: 5.7yrs
    • Compensation: €1.02m
  • M. A. Salonen (59yo)

    Executive VP of Human Resources & Member of Management Board

    • Tenure: 11.6yrs
  • Tero Huovinen

    Senior Vice President of Communications & Corporate Responsibility

    • Tenure: 4.4yrs
  • Kim Poulsen (53yo)

    Member of Mgmt. Board

    • Tenure: 4.2yrs
  • Petri Castrén (57yo)

    CFO, Member of Management Board & President of Americas

    • Tenure: 6.3yrs
  • Esa-Matti Puputti (60yo)

    Executive VP of Operational Excellence & Member of Management Board

    • Tenure: 4.7yrs
  • Matthew Pixton (55yo)

    CTO & Member of the Management Board

    • Tenure: 2yrs
  • Mikko Pohjala

    Vice President of Investor Relations

    • Tenure: 0.08yrs

Board Members

  • Jari Paasikivi (65yo)

    Chairman

    • Tenure: 5.8yrs
    • Compensation: €91.49k
  • Kerttu Tuomas (62yo)

    Vice Chairman

    • Tenure: 5.8yrs
    • Compensation: €57.09k
  • Timo Lappalainen (57yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: €60.69k
  • Wolfgang Büchele (60yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: €48.35k
  • Shirley Cunningham (59yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: €57.95k
  • Kaisa Hietala (48yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: €47.15k

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: €2.096b
  • Shares outstanding: 152.65m
  • 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 Analysis2020/01/25 20:41
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
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.