HLSE:ELISA

Stock Analysis Report

Executive Summary

Elisa Oyj, together with its subsidiaries, provides telecommunications, and ICT and online services in Finland, Estonia, rest of Europe, and internationally.

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ELISA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

ELISA

-0.6%

FI Telecom

-1.5%

FI Market


1 Year Return

32.0%

ELISA

2.5%

FI Telecom

8.1%

FI Market

Return vs Industry: ELISA exceeded the Finnish Telecom industry which returned 2.5% over the past year.

Return vs Market: ELISA exceeded the Finnish Market which returned 8.1% over the past year.


Shareholder returns

ELISAIndustryMarket
7 Day-0.5%-0.6%-1.5%
30 Day-0.1%-3.0%0.4%
90 Day7.9%5.5%4.3%
1 Year37.9%32.0%7.7%2.5%13.2%8.1%
3 Year88.7%65.2%14.0%0.2%32.6%16.6%
5 Year166.9%112.2%3.6%-16.3%51.7%22.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ELISA (€48.87) is trading above our estimate of fair value (€38.71)

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


Price To Earnings Ratio

PE vs Industry: ELISA is poor value based on its PE Ratio (25.8x) compared to the Telecom industry average (21.1x).

PE vs Market: ELISA is poor value based on its PE Ratio (25.8x) compared to the Finnish market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ELISA is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: ELISA is overvalued based on its PB Ratio (7.3x) compared to the XE Telecom industry average (1.9x).


Next Steps

Future Growth

How is Elisa Oyj forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELISA's forecast earnings growth (5% per year) is above the savings rate (0.5%).

Earnings vs Market: ELISA's earnings (5% per year) are forecast to grow slower than the Finnish market (14% per year).

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

Revenue vs Market: ELISA's revenue (1.5% per year) is forecast to grow faster than the Finnish market (1.2% per year).

High Growth Revenue: ELISA's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELISA's Return on Equity is forecast to be high in 3 years time (29%)


Next Steps

Past Performance

How has Elisa Oyj performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELISA has high quality earnings.

Growing Profit Margin: ELISA's current net profit margins (16.6%) are lower than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: ELISA's earnings have grown by 8% per year over the past 5 years.

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

Earnings vs Industry: ELISA had negative earnings growth (-1.6%) over the past year, making it difficult to compare to the Telecom industry average (1.3%).


Return on Equity

High ROE: Whilst ELISA's Return on Equity (28.33%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Elisa Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: ELISA's short term assets (€643.1M) exceeds its short term liabilities (€625.7M)

Long Term Liabilities: ELISA's short term assets (€643.1M) do not cover its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: ELISA's debt to equity ratio (120.9%) is considered high.

Reducing Debt: ELISA's debt to equity ratio has reduced from 126.9% to 120.9% over the past 5 years.

Debt Coverage: ELISA's debt is well covered by operating cash flow (42.8%).

Interest Coverage: ELISA's interest payments on its debt are well covered by EBIT (17.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: ELISA's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

3.58%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.2%markettop25%4.8%industryaverage4.8%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: ELISA's dividend (3.58%) is higher than the bottom 25% of dividend payers in the Finnish market (2.2%).

High Dividend: ELISA's dividend (3.58%) is low compared to the top 25% of dividend payers in the Finnish market (4.81%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.3%), ELISA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ELISA's dividends in 3 years are not forecast to be well covered by earnings (95.5% payout ratio).


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

Veli-Matti Mattila (58yo)

0yrs

Tenure

€618,882

Compensation

Mr. Veli-Matti Johannes Mattila is a Chief Economist at Federation of Finnish Financial Services. Mr. Mattila serves as Chief Executive Officer and President at Elisa Oyj (formerly Elisa Communications Oyj ...


CEO Compensation Analysis

Compensation vs Market: Veli-Matti's total compensation ($USD0.00) is below average for companies of similar size in the Finnish market ($USD884.80K).

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


Management Age and Tenure

11.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: ELISA's management team is seasoned and experienced (11.8 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

56yo

Average Age

Experienced Board: ELISA's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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

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


Management Team

  • Sami Ylikortes (52yo)

    Executive VP of Administration & Member of the Executive Board

    • Tenure: 16.8yrs
  • Veli-Matti Mattila (58yo)

    CEO, President & Member of Executive Board

    • Tenure: 0yrs
    • Compensation: €618.88k
  • Asko Känsälä (62yo)

    Deputy CEO

    • Tenure: 16.8yrs
  • Jari Kinnunen (57yo)

    CFO & Member of Executive Board

    • Tenure: 13.9yrs
  • Pasi Mäenpää (54yo)

    Executive VP of New Business Development & Member of Executive Board

    • Tenure: 13.8yrs
  • Timo Katajisto (51yo)

    Executive VP of Corporate Customers & Member of the Executive Board

    • Tenure: 11.8yrs
  • Katiye Vuorela (51yo)

    Executive VP of Corporate Communications & Member of Executive Board

    • Tenure: 11.1yrs
  • Merja Ranta-Aho (53yo)

    Executive VP of Human Resources & Member of Executive Board

    • Tenure: 6.8yrs
  • Vesa-Pekka Nikula (55yo)

    Executive VP of Consumer Customers & Member of Executive Board

    • Tenure: 5.8yrs
  • Henri Korpi (46yo)

    Executive VP of International Digital Services & Member of Corporate Executive Board

    • Tenure: 2.1yrs

Board Members

  • Anssi Vanjoki (63yo)

    Chairman

    • Tenure: 0.6yrs
    • Compensation: €81.10k
  • Kim Ignatius (63yo)

    Director

    • Tenure: 0.6yrs
  • Seija Turunen (66yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: €81.90k
  • Antti Vasara (54yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: €70.60k
  • Leena Niemistö (56yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: €69.20k
  • Clarisse Berggårdh (52yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: €70.60k
  • Petteri Koponen (49yo)

    Deputy Chairman

    • Tenure: 0.6yrs
    • Compensation: €68.70k

Company Information

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


Key Information

  • Name: Elisa Oyj
  • Ticker: ELISA
  • Exchange: HLSE
  • Founded: 1882
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €7.814b
  • Shares outstanding: 159.90m
  • Website: https://elisa.fi

Number of Employees


Location

  • Elisa Oyj
  • Ratavartijankatu 5
  • Helsinki
  • Uusimaa
  • 520
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELMU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1999
ELISAHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURJul 1999
EIADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999
0I8YLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1999
ELISAHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1999
ELMU.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Elisa Oyj, together with its subsidiaries, provides telecommunications, and ICT and online services in Finland, Estonia, rest of Europe, and internationally. It operates through Consumer Customers and Corp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 20:33
End of Day Share Price2019/11/19 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.