HLSE:SAA1V

Stock Analysis Report

Executive Summary

Sanoma Oyj operates as a media and learning company in Finland, the Netherlands, other European countries, and internationally.

Snowflake

Fundamentals

Good value with proven track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

SAA1V

2.1%

FI Media

2.1%

FI Market


1 Year Return

10.5%

SAA1V

8.7%

FI Media

5.9%

FI Market

Return vs Industry: SAA1V exceeded the Finnish Media industry which returned 8.7% over the past year.

Return vs Market: SAA1V exceeded the Finnish Market which returned 5.9% over the past year.


Shareholder returns

SAA1VIndustryMarket
7 Day3.4%2.1%2.1%
30 Day-1.2%-0.09%1.2%
90 Day14.9%11.4%1.7%
1 Year15.6%10.5%14.0%8.7%10.9%5.9%
3 Year22.3%11.7%28.2%15.7%29.3%13.9%
5 Year174.4%135.3%156.1%114.3%62.8%31.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sanoma Oyj undervalued compared to its fair value and its price relative to the market?

40.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAA1V (€10.05) is trading below our estimate of fair value (€16.85)

Significantly Below Fair Value: SAA1V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SAA1V is good value based on its PE Ratio (13.7x) compared to the Media industry average (14.7x).

PE vs Market: SAA1V is good value based on its PE Ratio (13.7x) compared to the Finnish market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: SAA1V is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: SAA1V is overvalued based on its PB Ratio (2.8x) compared to the FI Media industry average (1.5x).


Next Steps

Future Growth

How is Sanoma Oyj forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAA1V's forecast earnings growth (4.2% per year) is above the savings rate (0.5%).

Earnings vs Market: SAA1V's earnings (4.2% per year) are forecast to grow slower than the Finnish market (13.5% per year).

High Growth Earnings: SAA1V's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAA1V's revenue (3.1% per year) is forecast to grow faster than the Finnish market (2% per year).

High Growth Revenue: SAA1V's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAA1V's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has Sanoma Oyj performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SAA1V has become profitable over the past 5 years, growing earnings by 27.7% per year.

Accelerating Growth: SAA1V's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SAA1V had negative earnings growth (-0.7%) over the past year, making it difficult to compare to the Media industry average (-1.6%).


Return on Equity

High ROE: SAA1V's Return on Equity (20.4%) is considered high.


Return on Assets

ROA vs Industry: SAA1V has a higher Return on Assets than the Media industry average last year.


Return on Capital Employed

ROCE Improving: SAA1V has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sanoma Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: SAA1V's short term assets (€311.0M) do not cover its short term liabilities (€913.3M)

Long Term Liabilities: SAA1V's short term assets (311.0M) exceeds its long term liabilities (219.2M)


Debt to Equity History and Analysis

Debt Level: SAA1V's debt to equity ratio (72.4%) is considered high

Reducing Debt: SAA1V's debt to equity ratio has reduced from 85.5% to 72.4% over the past 5 years.

Debt Coverage: SAA1V's debt is well covered by operating cash flow (33.4%).

Interest Coverage: SAA1V's interest payments on its debt are well covered by EBIT (13.3x coverage).


Balance Sheet

Inventory Level: SAA1V has a low level of unsold assets or inventory.

Debt Coverage by Assets: SAA1V's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

4.48%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company4.5%marketbottom25%2.3%markettop25%5.0%industryaverage4.9%forecastin3Years5.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SAA1V's dividend (4.48%) is higher than the bottom 25% of dividend payers in the Finnish market (2.34%).

High Dividend: SAA1V's dividend (4.48%) is low compared to the top 25% of dividend payers in the Finnish market (5.01%).

Stable Dividend: SAA1V's dividend payments have been volatile in the past 10 years.

Growing Dividend: SAA1V's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.3%), SAA1V's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAA1V's dividends in 3 years are forecast to be covered by earnings (62.4% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Susan Duinhoven (54yo)

4yrs

Tenure

€1,071,053

Compensation

Ms. Susan Duinhoven has been the Chief Executive Officer and President of Sanoma Oyj since October 1, 2015 and was Interim CEO of Sanoma Media Netherlands from August 15, 2018 to January 01, 2019. Ms. Duin ...


CEO Compensation Analysis

Compensation vs. Market: Susan's total compensation ($USD1.19M) is about average for companies of similar size in the Finnish market ($USD1.40M).

Compensation vs Earnings: Susan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

58yo

Average Age

Experienced Management: SAA1V's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

62yo

Average Age

Experienced Board: SAA1V's board of directors are considered experienced (5.5 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

  • Jukka Nikkinen (57yo)

    Senior Vice President of Business Development-Rautakirja

    • Tenure: 0yrs
  • Raimo Kurri (66yo)

    Senior Vice President of Trade Services

    • Tenure: 0yrs
  • Markus Holm (52yo)

    CFO & COO

    • Tenure: 2.8yrs
  • Jarmo Oksaharju (58yo)

    Senior Vice President of Bookstores-Rautakirja

    • Tenure: 0yrs
  • Hellevi Kekäläinen (66yo)

    President of Sanoma Trade

    • Tenure: 0yrs
  • Pekka Laakeristo (64yo)

    President of Sanoma Data

    • Tenure: 0yrs
  • Susan Duinhoven (54yo)

    President & CEO

    • Tenure: 4yrs
    • Compensation: €1.07m
  • Kaisa Uurasmaa

    Head of Investor Relations & Corporate Social Responsibility

    • Tenure: 2yrs
  • Taka-Aho Kai

    Chief Technology Officer

    • Tenure: 4yrs
  • Gieta Veersma

    Chief HR Officer

    • Tenure: 3.8yrs

Board Members

  • Pekka Ala-Pietilä (62yo)

    Independent Chairman of the Board

    • Tenure: 3.8yrs
  • Antti Herlin (63yo)

    Independent Vice Chairman

    • Tenure: 3.8yrs
  • Mika Ihamuotila (55yo)

    Independent Director

    • Tenure: 6.5yrs
  • Anne Brunila (62yo)

    Independent Director

    • Tenure: 6.5yrs
  • Nils Ittonen (65yo)

    Independent Director

    • Tenure: 5.5yrs
  • Rafaela Seppälä (65yo)

    Independent Director

    • Tenure: 11.5yrs
  • Kai Öistämö (55yo)

    Independent Director

    • Tenure: 8.5yrs
  • Sebastian Langenskiöld (37yo)

    Independent Director

    • Tenure: 0.6yrs
  • Denise Koopmans (57yo)

    Independent Director

    • Tenure: 4.5yrs

Company Information

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


Key Information

  • Name: Sanoma Oyj
  • Ticker: SAA1V
  • Exchange: HLSE
  • Founded: 1889
  • Industry: Publishing
  • Sector: Media
  • Market Cap: €1.638b
  • Shares outstanding: 163.02m
  • Website: https://www.sanoma.com

Number of Employees


Location

  • Sanoma Oyj
  • Töölönlahdenkatu 2
  • Helsinki
  • Uusimaa
  • 100
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAA1VHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURMay 1999
SNQBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1999
0JLQLSE (London Stock Exchange)YesOrdinary SharesGBEURMay 1999
SAA1VHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 1999

Biography

Sanoma Oyj operates as a media and learning company in Finland, the Netherlands, other European countries, and internationally. It operates through two segments, Consumer Media and Learning. The company pu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:36
End of Day Share Price2019/10/21 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.