HLSE:CTY1S

Stock Analysis Report

Executive Summary

Citycon Oyj, a real estate investment company, owns, develops, and manages urban grocery-anchored shopping centers in Finland, Norway, Sweden, Estonia, and Denmark.


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CTY1S's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.2%

CTY1S

-0.6%

FI Real Estate

2.1%

FI Market


1 Year Return

-39.1%

CTY1S

-7.4%

FI Real Estate

-19.0%

FI Market

Return vs Industry: CTY1S underperformed the Finnish Real Estate industry which returned -9.3% over the past year.

Return vs Market: CTY1S underperformed the Finnish Market which returned -21.5% over the past year.


Shareholder returns

CTY1SIndustryMarket
7 Day3.2%-0.6%2.1%
30 Day-36.5%-18.7%-12.8%
90 Day-41.4%-18.8%-19.8%
1 Year-34.1%-39.1%-4.8%-7.4%-15.5%-19.0%
3 Year-38.8%-50.5%19.6%8.7%-0.6%-12.2%
5 Year-47.1%-63.2%42.3%19.7%4.0%-15.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

137.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CTY1S (€5.58) is trading above our estimate of fair value (€4.41)

Significantly Below Fair Value: CTY1S is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CTY1S is poor value based on its PE Ratio (137.9x) compared to the Real Estate industry average (10.5x).

PE vs Market: CTY1S is poor value based on its PE Ratio (137.9x) compared to the Finnish market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: CTY1S is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: CTY1S is good value based on its PB Ratio (0.4x) compared to the XE Real Estate industry average (0.9x).


Next Steps

Future Growth

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

44.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTY1S's forecast earnings growth (37.6% per year) is above the savings rate (-0.1%).

Earnings vs Market: CTY1S's earnings (37.6% per year) are forecast to grow faster than the Finnish market (9.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CTY1S's revenue (3.7% per year) is forecast to grow faster than the Finnish market (2.8% per year).

High Growth Revenue: CTY1S's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTY1S's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Citycon Oyj performed over the past 5 years?

-27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTY1S has a large one-off loss of €130.9M impacting its December 31 2019 financial results.

Growing Profit Margin: CTY1S's current net profit margins (2.5%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: CTY1S's earnings have declined by -27% per year over the past 5 years.

Accelerating Growth: CTY1S's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTY1S had negative earnings growth (-56.6%) over the past year, making it difficult to compare to the Real Estate industry average (6.5%).


Return on Equity

High ROE: CTY1S's Return on Equity (0.4%) is considered low.


Next Steps

Financial Health

How is Citycon Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: CTY1S's short term assets (€74.2M) do not cover its short term liabilities (€294.1M).

Long Term Liabilities: CTY1S's short term assets (€74.2M) do not cover its long term liabilities (€2.0B).


Debt to Equity History and Analysis

Debt Level: CTY1S's debt to equity ratio (78.2%) is considered high.

Reducing Debt: CTY1S's debt to equity ratio has increased from 70.9% to 78.2% over the past 5 years.

Debt Coverage: CTY1S's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: CTY1S's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

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

11.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTY1S's dividend (11.65%) is higher than the bottom 25% of dividend payers in the Finnish market (3.22%).

High Dividend: CTY1S's dividend (11.65%) is in the top 25% of dividend payers in the Finnish market (6.35%)


Stability and Growth of Payments

Stable Dividend: CTY1S's dividend payments have been volatile in the past 10 years.

Growing Dividend: CTY1S's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1606.9%), CTY1S's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTY1S's dividends in 3 years are forecast to be covered by earnings (76.2% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

F. Ball (58yo)

1.25s

Tenure

Mr. F. Scott Ball serves as Chief Executive Officer at Citycon Oyj since January 1, 2019. Mr. Ball served as President and Chief Operating Officer of Starwood Retail Partners, LLC until 2017. Mr. Ball had  ...


Leadership Team

NamePositionTenureCompensationOwnership
F. Ball
Chief Executive Officer1.25yrsno data0.019% 188.5k
Eero Sihvonen
Executive VP & CFO14.33yrsno data0.025% 248.1k
Henrica Ginström
Chief Operating Officer1.25yrsno data0.000080% 793.2
Kirsi Simola-Laaksonen
Chief Information Officer0.25yrno datano data
Valtteri Piri
Legal & Investor Relations Specialistno datano datano data
Peter Dimulkas
Vice President of Marketing0.58yrno datano data
Erik Lennhammar
Chief Development Officer0.67yrno datano data

1.0yrs

Average Tenure

51yo

Average Age

Experienced Management: CTY1S's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chaim Katzman
Chairman of the Board9.83yrsno data0.020% 199.3k
Ariella Zochovitzky
Deputy Chairman of the Board0.083yrno data0.0013% 13.0k
Per-Anders Ovin
Independent Director7.08yrsno data0.0042% 41.2k
Arnold de Haan
Independent Director5.83yrsno data0.046% 453.9k
David Lukes
Independent Director3.08yrsno data0.00099% 9.8k
Andrea Orlandi
Director5.83yrsno datano data
Ofer Stark
Director2.08yrsno datano data
Alexandre Koifman
Independent Director1.08yrsno datano data

4.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CTY1S's board of directors are considered experienced (4.5 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

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


Key Information

  • Name: Citycon Oyj
  • Ticker: CTY1S
  • Exchange: HLSE
  • Founded: 1988
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: €991.452m
  • Shares outstanding: 178.00m
  • Website: https://www.citycon.com

Number of Employees


Location

  • Citycon Oyj
  • Iso Omena
  • Suomenlahdentie 1
  • Espoo
  • Uusimaa
  • 2230
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTY1SHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURNov 1989
0A0FLSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1989
TY2BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1989

Biography

Citycon Oyj, a real estate investment company, owns, develops, and manages urban grocery-anchored shopping centers in Finland, Norway, Sweden, Estonia, and Denmark. The company owns 12 shopping centers in Finland and Estonia; 15 shopping centers in Norway; and 11 shopping centers in Sweden and Denmark, as well as 1 other retail property. It also leases and manages 10 shopping centers in Norway on behalf of other owners. Citycon Oyj was founded in 1988 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 Analysis2020/04/06 20:58
End of Day Share Price2020/04/06 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.