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FORT

Fortum Oyj HLSE:FORTUM Stock Report

Last Price

€15.20

Market Cap

€14.2b

7D

-6.8%

1Y

-36.2%

Updated

27 Jun, 2022

Data

Company Financials +
FORTUM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends5/6

FORTUM Stock Overview

Fortum Oyj, together with its subsidiaries, engages in the generation and sale of electricity and heat in the Nordic countries, Germany, the United Kingdom, Russia, the Netherlands, the Baltic Rim area, and internationally.

Fortum Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fortum Oyj
Historical stock prices
Current Share Price€15.20
52 Week High€27.96
52 Week Low€14.14
Beta1.22
1 Month Change-13.42%
3 Month Change-10.06%
1 Year Change-36.16%
3 Year Change-22.26%
5 Year Change8.77%
Change since IPO167.67%

Recent News & Updates

Shareholder Returns

FORTUMFI Electric UtilitiesFI Market
7D-6.8%1.0%-1.6%
1Y-36.2%-7.9%-19.8%

Return vs Industry: FORTUM underperformed the Finnish Electric Utilities industry which returned -7.9% over the past year.

Return vs Market: FORTUM underperformed the Finnish Market which returned -19.8% over the past year.

Price Volatility

Is FORTUM's price volatile compared to industry and market?
FORTUM volatility
FORTUM Average Weekly Movement7.0%
Electric Utilities Industry Average Movement6.2%
Market Average Movement5.3%
10% most volatile stocks in FI Market8.4%
10% least volatile stocks in FI Market3.4%

Stable Share Price: FORTUM is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FORTUM's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Finnish stocks.

About the Company

FoundedEmployeesCEOWebsite
199819,260Markus Rauramohttps://www.fortum.com

Fortum Oyj, together with its subsidiaries, engages in the generation and sale of electricity and heat in the Nordic countries, Germany, the United Kingdom, Russia, the Netherlands, the Baltic Rim area, and internationally. The company’s Generation segment generates power through nuclear, hydro, wind, and thermal resources; and provides power portfolio optimization, trading, and industrial intelligence, as well as nuclear services. Its City Solutions develops solutions in the areas of heating, cooling, waste-to-energy, biomass, and other circular economy solutions, as well as solar power production.

Fortum Oyj Fundamentals Summary

How do Fortum Oyj's earnings and revenue compare to its market cap?
FORTUM fundamental statistics
Market Cap€14.17b
Earnings (TTM)-€2.57b
Revenue (TTM)€134.53b

0.1x

P/S Ratio

-5.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FORTUM income statement (TTM)
Revenue€134.53b
Cost of Revenue€129.30b
Gross Profit€5.23b
Other Expenses€7.81b
Earnings-€2.57b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 12, 2022

Earnings per share (EPS)-2.90
Gross Margin3.89%
Net Profit Margin-1.91%
Debt/Equity Ratio160.0%

How did FORTUM perform over the long term?

See historical performance and comparison

Dividends

7.5%

Current Dividend Yield

-39%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is FORTUM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FORTUM?

Other financial metrics that can be useful for relative valuation.

FORTUM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA10.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does FORTUM's PS Ratio compare to its peers?

FORTUM PS Ratio vs Peers
The above table shows the PS ratio for FORTUM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.9x
NRG NRG Energy
0.3x0.9%US$9.1b
600116 Chongqing Three Gorges Water Conservancy and Electric Power
1.9x17.2%CN¥19.5b
H Hydro One
2.7x2.1%CA$20.3b
ELET6 Centrais Elétricas Brasileiras - Eletrobrás
2.5x-2.8%R$97.2b
FORTUM Fortum Oyj
0.1x-9.8%€14.2b

Price-To-Sales vs Peers: FORTUM is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (1.9x).


Price to Earnings Ratio vs Industry

How does FORTUM's PE Ratio compare vs other companies in the European Electric Utilities Industry?

Price-To-Sales vs Industry: FORTUM is good value based on its Price-To-Sales Ratio (0.1x) compared to the European Electric Utilities industry average (0.4x)


Price to Sales Ratio vs Fair Ratio

What is FORTUM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FORTUM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.1x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate FORTUM's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of FORTUM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FORTUM (€15.2) is trading below our estimate of fair value (€36.71)

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


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FORTUM's PEG Ratio to determine if it is good value.


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Future Growth

How is Fortum Oyj forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FORTUM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: FORTUM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FORTUM is expected to become profitable in the next 3 years.

Revenue vs Market: FORTUM's revenue is expected to decline over the next 3 years (-9.8% per year).

High Growth Revenue: FORTUM's revenue is forecast to decline over the next 3 years (-9.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FORTUM's Return on Equity is forecast to be low in 3 years time (11%).


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Past Performance

How has Fortum Oyj performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FORTUM is currently unprofitable.

Growing Profit Margin: FORTUM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FORTUM is unprofitable, and losses have increased over the past 5 years at a rate of 4.5% per year.

Accelerating Growth: Unable to compare FORTUM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FORTUM is unprofitable, making it difficult to compare its past year earnings growth to the Electric Utilities industry (7.4%).


Return on Equity

High ROE: FORTUM has a negative Return on Equity (-48.56%), as it is currently unprofitable.


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Financial Health

How is Fortum Oyj's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FORTUM's short term assets (€138.4B) do not cover its short term liabilities (€147.2B).

Long Term Liabilities: FORTUM's short term assets (€138.4B) exceed its long term liabilities (€50.5B).


Debt to Equity History and Analysis

Debt Level: FORTUM's net debt to equity ratio (82%) is considered high.

Reducing Debt: FORTUM's debt to equity ratio has increased from 36% to 160% over the past 5 years.

Debt Coverage: FORTUM's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: FORTUM's interest payments on its debt are well covered by EBIT (12.8x coverage).


Balance Sheet


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Dividend

What is Fortum Oyj current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


7.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FORTUM's dividend (7.5%) is higher than the bottom 25% of dividend payers in the Finnish market (2.54%).

High Dividend: FORTUM's dividend (7.5%) is in the top 25% of dividend payers in the Finnish market (5.07%)


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: FORTUM is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (66.5%), FORTUM's dividend payments are covered by cash flows.


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Management

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

7.3yrs

Average management tenure


CEO

Markus Rauramo (53 yo)

1.92yrs

Tenure

€3,683,000

Compensation

Mr. Markus Heikki Erdem Rauramo, M.Sc. (Econ. and Pol. Hist.), serves as the Chairman of Supervisory Board at Uniper SE since March 29, 2021.He has been Independent Director of Sampo Oyj since May 19, 202...


CEO Compensation Analysis

Compensation vs Market: Markus's total compensation ($USD3.91M) is about average for companies of similar size in the Finnish market ($USD4.21M).

Compensation vs Earnings: Markus's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: FORTUM's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: FORTUM's board of directors are not considered experienced ( 2.2 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

Fortum Oyj's employee growth, exchange listings and data sources


Key Information

  • Name: Fortum Oyj
  • Ticker: FORTUM
  • Exchange: HLSE
  • Founded: 1998
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: €14.173b
  • Shares outstanding: 888.29m
  • Website: https://www.fortum.com

Number of Employees


Location

  • Fortum Oyj
  • CD Building
  • Keilalahdentie 2-4
  • Espoo
  • Uusimaa
  • 2150
  • Finland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.