HLSE:FIA1S

Stock Analysis Report

Executive Summary

Finnair Oyj provides passenger and cargo airline services to various destinations between Asia and Europe.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FIA1S has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-11.3%

FIA1S

-15.6%

FI Airlines

-5.1%

FI Market


1 Year Return

-37.9%

FIA1S

-14.4%

FI Airlines

3.0%

FI Market

Return vs Industry: FIA1S underperformed the Finnish Airlines industry which returned -14.4% over the past year.

Return vs Market: FIA1S underperformed the Finnish Market which returned 3% over the past year.


Shareholder returns

FIA1SIndustryMarket
7 Day-11.3%-15.6%-5.1%
30 Day-4.3%-13.4%-3.9%
90 Day-12.5%-11.0%2.6%
1 Year-35.7%-37.9%-10.8%-14.4%8.0%3.0%
3 Year32.4%21.8%8.7%-1.8%26.8%11.2%
5 Year80.7%66.1%17.2%2.0%38.0%11.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FIA1S (€5.18) is trading above our estimate of fair value (€1.78)

Significantly Below Fair Value: FIA1S is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FIA1S is poor value based on its PE Ratio (10.7x) compared to the Airlines industry average (8.8x).

PE vs Market: FIA1S is good value based on its PE Ratio (10.7x) compared to the Finnish market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: FIA1S is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: FIA1S is good value based on its PB Ratio (0.7x) compared to the XE Airlines industry average (1.7x).


Next Steps

Future Growth

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

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIA1S's forecast earnings growth (18.5% per year) is above the savings rate (-0.1%).

Earnings vs Market: FIA1S's earnings (18.5% per year) are forecast to grow faster than the Finnish market (9.6% per year).

High Growth Earnings: FIA1S's earnings are forecast to grow, but not significantly.

Revenue vs Market: FIA1S's revenue (3.7% per year) is forecast to grow faster than the Finnish market (0.05% per year).

High Growth Revenue: FIA1S'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: FIA1S's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Finnair Oyj performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIA1S has high quality earnings.

Growing Profit Margin: FIA1S's current net profit margins (2%) are lower than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: FIA1S has become profitable over the past 5 years, growing earnings by 33.6% per year.

Accelerating Growth: FIA1S's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FIA1S had negative earnings growth (-30.4%) over the past year, making it difficult to compare to the Airlines industry average (-17%).


Return on Equity

High ROE: FIA1S's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is Finnair Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: FIA1S's short term assets (€1.2B) exceed its short term liabilities (€1.2B).

Long Term Liabilities: FIA1S's short term assets (€1.2B) do not cover its long term liabilities (€1.7B).


Debt to Equity History and Analysis

Debt Level: FIA1S's debt to equity ratio (53.9%) is considered high.

Reducing Debt: FIA1S's debt to equity ratio has reduced from 59.5% to 53.9% over the past 5 years.

Debt Coverage: FIA1S's debt is well covered by operating cash flow (108.4%).

Interest Coverage: FIA1S's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: FIA1S has a high level of physical assets or inventory.

Debt Coverage by Assets: FIA1S's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

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

3.85%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 26 2020Ex Dividend DateMar 19 2020Dividend Pay DateApr 02 202014 days from Ex DividendBuy in the next 21 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: FIA1S's dividend (3.86%) is higher than the bottom 25% of dividend payers in the Finnish market (2.24%).

High Dividend: FIA1S's dividend (3.86%) is low compared to the top 25% of dividend payers in the Finnish market (4.85%).


Stability and Growth of Payments

Stable Dividend: FIA1S has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FIA1S's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.2%), FIA1S's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FIA1S's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Topi Manner (45yo)

1.1yrs

Tenure

€769,205

Compensation

Mr. Topi Manner has been Supervisory Board Member at Ilmarinen Mutual Pension Insurance Company since March 28, 2019. He has been President and Chief Executive Officer at Finnair Oyj since January 01, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Topi's total compensation ($USD834.91K) is above average for companies of similar size in the Finnish market ($USD606.55K).

Compensation vs Earnings: Insufficient data to compare Topi's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Topi Manner
President1.1yrs€769.21k0.012% 77.7k
Mika Stirkkinen
CFO & Member of Executive Board0.6yrsno data0.0066% 43.3k
Sami Kalle Sarelius
Senior VP9.5yrsno data0.043% 281.9k
Arja Suominen
Senior VP of Corporate Communications & Corporate Responsibility and Member of The Executive Board9.1yrsno data0.071% 471.1k
Piia Karhu
Senior VP of Customer Experience & Member of Executive Board0yrsno data0.0059% 38.7k
Jaakko Schildt
Senior VP of Operations & Member of Executive Board3.9yrsno data0.0051% 34.0k
Ole Orvér
Chief Commercial Officer & Member of Executive Board0.8yrsno datano data
Nicklas Ilebrand
Senior VP of Strategy & Member of Executive Board0.8yrsno datano data
Johanna Karppi
Senior VP of People & Culture and Member of Executive Board0.3yrsno datano data
Elina Stråhlman
Vice President of Group Accounting and Taxation0yrsno datano data

0.9yrs

Average Tenure

49yo

Average Age

Experienced Management: FIA1S's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Juha Marjamaki
Representative Member of Management Board & Chairman of The Finnairin Insinooritry0yrsno datano data
Leif Grundstrom
Representative Member of Management Board & Chairman of The Finnairin Tekniset Ry0yrsno datano data
Jouko Karvinen
Independent Chairman of the Board2.9yrs€77.91kno data
Colm Barrington
Independent Vice Chairman2.9yrs€55.98kno data
Jaana Tuominen
Independent Director5.9yrs€40.90kno data
Jukka Erlund
Director0.9yrs€29.70kno data
Mengmeng Du
Independent Director2.9yrs€44.78kno data
Mauri Haapanen
Chairman of the Finnairin Teknisetry0yrsno datano data
Henrik Kjellberg
Independent Director1.9yrs€47.40kno data
Montie Brewer
Independent Director1.9yrs€47.40kno data

2.9yrs

Average Tenure

59yo

Average Age

Experienced Board: FIA1S's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Finnair Oyj
  • Ticker: FIA1S
  • Exchange: HLSE
  • Founded: 1923
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: €660.884m
  • Shares outstanding: 127.58m
  • Website: https://company.finnair.com

Number of Employees


Location

  • Finnair Oyj
  • Tietotie 9 A
  • Helsinki Airport
  • Vantaa
  • Uusimaa
  • 1053
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FIA1SHLSE (OMX Nordic Exchange Helsinki)YesRegistered SharesFIEURJan 1992
FAIDB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1992
FNNN.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1992
0EG8LSE (London Stock Exchange)YesRegistered SharesGBEURJan 1992
FIA1SHBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURJan 1992

Biography

Finnair Oyj provides passenger and cargo airline services to various destinations between Asia and Europe. It also offers tours packages under its Aurinkomatkat and Finnair Holidays brands. As of December 31, 2019, the company operated a fleet of 59 aircraft, which included 32 owned by Finnair Aircraft Finance Oy, and 27 under lease. In addition, it provides technical, travel, catering, and financial business services. The company was founded in 1923 and is based in Vantaa, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 20:36
End of Day Share Price2020/02/26 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.