HLSE:FORTUM

Stock Analysis Report

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Market Cap

€21.6b

Last Updated

2021/06/14 22:51 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, Germany, the United Kingdom, Russia, the Netherlands, the Baltic Rim area, and internationally. More Details


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 is less volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: FORTUM's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

FORTUM

1.1%

FI Electric Utilities

0.5%

FI Market


1 Year Return

39.9%

FORTUM

20.7%

FI Electric Utilities

32.1%

FI Market

Return vs Industry: FORTUM exceeded the Finnish Electric Utilities industry which returned 20.7% over the past year.

Return vs Market: FORTUM exceeded the Finnish Market which returned 32.1% over the past year.


Shareholder returns

FORTUMIndustryMarket
7 Day2.5%1.1%0.5%
30 Day6.5%0.4%4.1%
90 Day8.2%2.7%7.8%
1 Year47.0%39.9%24.8%20.7%38.5%32.1%
3 Year45.2%21.4%69.3%51.2%40.9%18.9%
5 Year130.8%68.0%113.5%72.8%90.6%52.3%

Long-Term 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

Valuation

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

20.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FORTUM (€24.28) is trading below our estimate of fair value (€30.63)

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 (10.9x) compared to the European Electric Utilities industry average (12.9x).

PE vs Market: FORTUM is good value based on its PE Ratio (10.9x) compared to the Finnish market (25.2x).


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 (1.5x) compared to the XE Electric Utilities industry average (0.9x).


Future Growth

How is Fortum Oyj forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-1.4%

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 (-1.4% per year).

Earnings vs Market: FORTUM's earnings are forecast to decline over the next 3 years (-1.4% per year).

High Growth Earnings: FORTUM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FORTUM's revenue is expected to decline over the next 3 years (-4% per year).

High Growth Revenue: FORTUM's revenue is forecast to decline over the next 3 years (-4% 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 (8.8%).


Past Performance

How has Fortum Oyj performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FORTUM has high quality earnings.

Growing Profit Margin: FORTUM's current net profit margins (2.9%) are lower than last year (40.5%).


Past Earnings Growth Analysis

Earnings Trend: FORTUM has become profitable over the past 5 years, growing earnings by 39.1% per year.

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

Earnings vs Industry: FORTUM had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (4.9%).


Return on Equity

High ROE: FORTUM's Return on Equity (12.9%) is considered low.


Financial Health

How is Fortum Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: FORTUM's short term assets (€26.5B) exceed its short term liabilities (€23.4B).

Long Term Liabilities: FORTUM's short term assets (€26.5B) exceed its long term liabilities (€22.8B).


Debt to Equity History and Analysis

Debt Level: FORTUM's debt to equity ratio (56.2%) is considered high.

Reducing Debt: FORTUM's debt to equity ratio has increased from 43.9% to 56.2% over the past 5 years.

Debt Coverage: FORTUM's debt is well covered by operating cash flow (29.2%).

Interest Coverage: Insufficient data to determine if FORTUM's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

4.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FORTUM's dividend (4.61%) is higher than the bottom 25% of dividend payers in the Finnish market (1.66%).

High Dividend: FORTUM's dividend (4.61%) is in the top 25% of dividend payers in the Finnish market (3.62%)


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 (50.1%), 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 (75% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Markus Heikki Rauramo (53 yo)

0.92

Tenure

€2,276,000

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 Heikki's total compensation ($USD2.76M) is about average for companies of similar size in the Finnish market ($USD3.72M).

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


Leadership Team

Experienced Management: FORTUM's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: FORTUM's board of directors are not considered experienced ( 1.2 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 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: €21.568b
  • 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


Biography

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, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 22:51
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.