Fortum Oyj
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
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 1.4% 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 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
| FORTUM | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.5% | 1.1% | 0.5% |
| 30 Day | 6.5% | 0.4% | 4.1% |
| 90 Day | 8.2% | 2.7% | 7.8% |
| 1 Year | 47.0%39.9% | 24.8%20.7% | 38.5%32.1% |
| 3 Year | 45.2%21.4% | 69.3%51.2% | 40.9%18.9% |
| 5 Year | 130.8%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
8 hours ago | Simply Wall St
What Kind Of Shareholders Own Fortum Oyj (HEL:FORTUM)?2 weeks ago | Simply Wall St
Shareholders Of Fortum Oyj (HEL:FORTUM) Must Be Happy With Their 139% Total Return1 month ago | Simply Wall St
A Look At The Fair Value Of Fortum Oyj (HEL:FORTUM)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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/14 22:51 |
| End of Day Share Price | 2021/06/14 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.