Fortum Oyj
Market Cap
€16.1b
Last Updated
2020/10/20 20:33 UTC
Data Sources
Company Financials +
Executive Summary
Fortum Oyj, together with its subsidiaries, engages in the generation and sale of electricity and heat in the Nordic countries, Russia, Poland, India, other parts of the Baltic Rim area, and internationally. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 12.2% per year for the next 3 years
Snowflake Analysis
6 star dividend payer and good value.
Similar Companies
Share Price & News
How has Fortum Oyj's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FORTUM has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.7%
FORTUM
-0.8%
FI Electric Utilities
0.2%
FI Market
1 Year Return
-18.3%
FORTUM
13.7%
FI Electric Utilities
5.6%
FI Market
Return vs Industry: FORTUM underperformed the Finnish Electric Utilities industry which returned 14.1% over the past year.
Return vs Market: FORTUM underperformed the Finnish Market which returned 6.4% over the past year.
Shareholder returns
| FORTUM | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.7% | -0.8% | 0.2% |
| 30 Day | 1.8% | 5.9% | 1.3% |
| 90 Day | -1.6% | -0.2% | 9.8% |
| 1 Year | -12.2%-18.3% | 18.0%13.7% | 14.4%5.6% |
| 3 Year | 18.9%-1.6% | 55.7%38.0% | 21.7%0.8% |
| 5 Year | 85.9%30.0% | 68.5%32.0% | 63.6%28.6% |
Price Volatility Vs. Market
How volatile is Fortum Oyj's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
How Much Of Fortum Oyj (HEL:FORTUM) Do Institutions Own?2 weeks ago | Simply Wall St
Fortum Oyj (HEL:FORTUM) Is Growing Earnings But Are They A Good Guide?4 weeks ago | Simply Wall St
Fortum Oyj (HEL:FORTUM) Takes On Some Risk With Its Use Of DebtValuation
Is Fortum Oyj undervalued compared to its fair value and its price relative to the market?
21.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FORTUM (€17.93) is trading below our estimate of fair value (€22.72)
Significantly Below Fair Value: FORTUM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FORTUM is good value based on its PE Ratio (9x) compared to the XE Electric Utilities industry average (11.8x).
PE vs Market: FORTUM is good value based on its PE Ratio (9x) compared to the Finnish market (23.9x).
Price to Earnings Growth Ratio
PEG Ratio: FORTUM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: FORTUM is overvalued based on its PB Ratio (1.2x) compared to the XE Electric Utilities industry average (0.7x).
Next Steps
Future Growth
How is Fortum Oyj forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-12.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FORTUM's earnings are forecast to decline over the next 3 years (-12.2% per year).
Earnings vs Market: FORTUM's earnings are forecast to decline over the next 3 years (-12.2% per year).
High Growth Earnings: FORTUM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: FORTUM's revenue (7% per year) is forecast to grow faster than the Finnish market (4.4% per year).
High Growth Revenue: FORTUM's revenue (7% per year) is forecast to grow slower than 20% 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 (7.4%).
Next Steps
Past Performance
How has Fortum Oyj performed over the past 5 years?
39.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FORTUM has a large one-off gain of €552.0M impacting its June 30 2020 financial results.
Growing Profit Margin: FORTUM's current net profit margins (9.6%) are lower than last year (21.7%).
Past Earnings Growth Analysis
Earnings Trend: FORTUM's earnings have grown significantly by 39% per year over the past 5 years.
Accelerating Growth: FORTUM's earnings growth over the past year (49.1%) exceeds its 5-year average (39% per year).
Earnings vs Industry: FORTUM earnings growth over the past year (49.1%) exceeded the Electric Utilities industry -4.3%.
Return on Equity
High ROE: FORTUM's Return on Equity (11.4%) is considered low.
Next Steps
Financial Health
How is Fortum Oyj's financial position?
Financial Position Analysis
Short Term Liabilities: FORTUM's short term assets (€22.3B) exceed its short term liabilities (€19.1B).
Long Term Liabilities: FORTUM's short term assets (€22.3B) do not cover its long term liabilities (€22.6B).
Debt to Equity History and Analysis
Debt Level: FORTUM's debt to equity ratio (57.8%) is considered high.
Reducing Debt: FORTUM's debt to equity ratio has increased from 46.5% to 57.8% over the past 5 years.
Debt Coverage: FORTUM's debt is not well covered by operating cash flow (16.9%).
Interest Coverage: FORTUM's interest payments on its debt are well covered by EBIT (10.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Fortum Oyj current dividend yield, its reliability and sustainability?
6.14%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FORTUM's dividend (6.14%) is higher than the bottom 25% of dividend payers in the Finnish market (1.93%).
High Dividend: FORTUM's dividend (6.14%) is in the top 25% of dividend payers in the Finnish market (4.54%)
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55%), FORTUM's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FORTUM'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?
8.5yrs
Average management tenure
CEO
Markus Heikki Rauramo (52 yo)
0.25
Tenure
Mr. Markus Heikki Erdem Rauramo, M.Sc. (Econ. and Pol. Hist.), has been Shareholder Representative Deputy Chairman of Supervisory Board since August 22, 2018 and as its Member of Supervisory Board since Ju ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 0.25yr | no data | 0.0051% € 819.5k | |
| Acting Chief Financial Officer | 0.25yr | €372.00k | no data | |
| Head of Corporate Financial Services Unit | 13.33yrs | no data | no data | |
| Vice President of Investor Relations & Financial Communications | no data | no data | no data | |
| Secretary to the Board & General Counsel | 6.08yrs | no data | 0.0014% € 229.8k | |
| Head of Publicity & Communications | no data | no data | no data | |
| Senior Vice President of Strategy | 4.5yrs | no data | 0.0021% € 335.8k | |
| Executive Vice President of City Solutions | 11.75yrs | no data | 0.0043% € 692.6k | |
| Head of Markets | no data | no data | no data | |
| Managing Director of Fortum Värme | no data | no data | no data | |
| Head of Customer Services Unit | 13.33yrs | no data | no data | |
| Executive Vice President of Russia Division | 11yrs | no data | 0.0025% € 398.5k |
8.5yrs
Average Tenure
54.5yo
Average Age
Experienced Management: FORTUM's management team is seasoned and experienced (8.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 0.50yr | no data | no data | |
| Independent Chairman | 2.58yrs | no data | 0.00017% € 27.3k | |
| Independent Non-Executive Director | 3.5yrs | no data | no data | |
| Independent Director | 2.75yrs | no data | no data | |
| Independent Deputy Chairman | 0.50yr | no data | 0.00034% € 54.6k | |
| Independent Director | 2.58yrs | no data | no data | |
| Independent Non-Executive Director | 5.58yrs | no data | 0% € 0 | |
| Independent Director | 1.58yrs | no data | no data | |
| Independent Director | 0.50yr | no data | no data |
2.6yrs
Average Tenure
58yo
Average Age
Experienced Board: FORTUM's board of directors are not considered experienced ( 2.6 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Fortum Oyj
- Ticker: FORTUM
- Exchange: HLSE
- Founded: 1998
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: €16.069b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FOJC.F | OTCPK (Pink Sheets LLC) | Yes | Registered Shares | US | USD | Dec 1998 |
| FORTUM | HLSE (OMX Nordic Exchange Helsinki) | Yes | Registered Shares | FI | EUR | Dec 1998 |
| 0HAH | LSE (London Stock Exchange) | Yes | Registered Shares | GB | EUR | Dec 1998 |
| FOT | DB (Deutsche Boerse AG) | Yes | Registered Shares | DE | EUR | Dec 1998 |
| FOT | XTRA (XETRA Trading Platform) | Yes | Registered Shares | DE | EUR | Dec 1998 |
| FORTMH | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Registered Shares | GB | EUR | Dec 1998 |
| FOT | ETLX (Eurotlx) | Yes | Registered Shares | IT | EUR | Dec 1998 |
| FOJC.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Oct 2008 |
Biography
Fortum Oyj, together with its subsidiaries, engages in the generation and sale of electricity and heat in the Nordic countries, Russia, Poland, India, other parts of the Baltic Rim area, and internationall ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/20 20:33 |
| End of Day Share Price | 2020/10/20 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.