Fortum Oyj
Market Cap
€11.6b
Last Updated
2020/03/30 20:38 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.
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer with solid track record.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.8%
FORTUM
7.9%
FI Electric Utilities
9.8%
FI Market
1 Year Return
-28.9%
FORTUM
-1.3%
FI Electric Utilities
-20.6%
FI Market
Return vs Industry: FORTUM underperformed the Finnish Electric Utilities industry which returned -2.4% over the past year.
Return vs Market: FORTUM underperformed the Finnish Market which returned -19.3% over the past year.
Shareholder returns
| FORTUM | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.8% | 7.9% | 9.8% |
| 30 Day | -32.0% | -16.2% | -18.6% |
| 90 Day | -40.4% | -12.7% | -22.3% |
| 1 Year | -22.5%-28.9% | 2.6%-1.3% | -16.6%-20.6% |
| 3 Year | 18.1%-10.8% | 38.2%21.0% | -3.2%-15.3% |
| 5 Year | 4.7%-27.8% | 27.3%-1.3% | 5.2%-15.0% |
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
3 days ago | Simply Wall St
What Is Fortum Oyj's (HEL:FORTUM) P/E Ratio After Its Share Price Tanked?4 days ago | Simply Wall St
Has Fortum Oyj (HEL:FORTUM) Been Employing Capital Shrewdly?2 weeks ago | Simply Wall St
3 Days To Buy Fortum Oyj (HEL:FORTUM) Before The Ex-Dividend DateValuation
Is Fortum Oyj undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FORTUM (€13.11) is trading below our estimate of fair value (€51.24)
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 (7.9x) compared to the Electric Utilities industry average (10.1x).
PE vs Market: FORTUM is good value based on its PE Ratio (7.9x) compared to the Finnish market (15x).
Price to Earnings Growth Ratio
PEG Ratio: FORTUM is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: FORTUM is overvalued based on its PB Ratio (0.9x) compared to the XE Electric Utilities industry average (0.8x).
Next Steps
Future Growth
How is Fortum Oyj forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
1.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FORTUM's forecast earnings growth (1.8% per year) is above the savings rate (-0.1%).
Earnings vs Market: FORTUM's earnings (1.8% per year) are forecast to grow slower than the Finnish market (8.8% per year).
High Growth Earnings: FORTUM's earnings are forecast to grow, but not significantly.
Revenue vs Market: FORTUM's revenue (28.6% per year) is forecast to grow faster than the Finnish market (0.4% per year).
High Growth Revenue: FORTUM's revenue (28.6% per year) is forecast to grow faster 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 (8.8%).
Next Steps
Past Performance
How has Fortum Oyj performed over the past 5 years?
21.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FORTUM has high quality earnings.
Growing Profit Margin: FORTUM's current net profit margins (26.8%) are higher than last year (15.8%).
Past Earnings Growth Analysis
Earnings Trend: FORTUM's earnings have grown significantly by 21.7% per year over the past 5 years.
Accelerating Growth: FORTUM's earnings growth over the past year (75.8%) exceeds its 5-year average (21.7% per year).
Earnings vs Industry: FORTUM earnings growth over the past year (75.8%) exceeded the Electric Utilities industry 7.2%.
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 (€3.8B) exceed its short term liabilities (€1.8B).
Long Term Liabilities: FORTUM's short term assets (€3.8B) do not cover its long term liabilities (€8.3B).
Debt to Equity History and Analysis
Debt Level: FORTUM's debt to equity ratio (50.7%) is considered high.
Reducing Debt: FORTUM's debt to equity ratio has reduced from 66.1% to 50.7% over the past 5 years.
Debt Coverage: FORTUM's debt is well covered by operating cash flow (30%).
Interest Coverage: FORTUM's interest payments on its debt are well covered by EBIT (8.9x coverage).
Balance Sheet
Inventory Level: FORTUM has a high level of physical assets or inventory.
Debt Coverage by Assets: FORTUM's debt is not covered by short term assets (assets are 0.6x debt).
Next Steps
Dividend
What is Fortum Oyj's current dividend yield, its reliability and sustainability?
8.39%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FORTUM's dividend (8.39%) is higher than the bottom 25% of dividend payers in the Finnish market (3.2%).
High Dividend: FORTUM's dividend (8.39%) is in the top 25% of dividend payers in the Finnish market (6.48%)
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 (65.9%), 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 (77.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Pekka Lundmark (56yo)
4.5s
Tenure
€2,666,000
Compensation
Mr. Pekka Ilmari Lundmark, M.Sc.(Eng.), has been President and Chief Executive Officer of Fortum Oyj since September 7, 2015 and serves as its Managing Director. Mr. Lundmark served as President and Chief ...
CEO Compensation Analysis
Compensation vs Market: Pekka's total compensation ($USD2.94M) is about average for companies of similar size in the Finnish market ($USD4.11M).
Compensation vs Earnings: Pekka's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.5yrs | €2.67m | 0.010% €1.2m | |
| Chief Financial Officer | 3yrs | no data | 0.0051% €593.9k | |
| Head of Corporate Financial Services Unit | 12.75yrs | no data | no data | |
| Vice President of Investor Relations & Financial Communications | no data | no data | no data | |
| Secretary to the Board & General Counsel | 5.5yrs | no data | 0.0014% €166.5k | |
| Head of Publicity & Communications | no data | no data | no data | |
| Senior VP of Strategy | 3.92yrs | no data | 0.0021% €243.4k | |
| Executive Vice President of City Solutions | 3yrs | no data | 0.0043% €501.9k | |
| Head of Markets | no data | no data | no data | |
| Managing Director of Fortum Värme | no data | no data | no data |
4.2yrs
Average Tenure
53yo
Average Age
Experienced Management: FORTUM's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Non-Executive Director | 7.92yrs | no data | 0.00045% €52.4k | |
| Independent Chairman | 2yrs | no data | 0.00017% €19.8k | |
| Independent Non-Executive Director | 2.92yrs | no data | no data | |
| Deputy Chairman | 2yrs | no data | no data | |
| Deputy Chairman | 3.92yrs | no data | 0.00034% €39.6k | |
| Director | 2yrs | no data | no data | |
| Independent Non-Executive Director | 5yrs | no data | no data | |
| Director | 1yr | no data | no data |
2.5yrs
Average Tenure
61yo
Average Age
Experienced Board: FORTUM's board of directors are not considered experienced ( 2.5 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: €11.646b
- 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 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. The company’s Consumer Solutions segment engages in electricity and gas retail businesses, including the provision of invoicing, debt collection, and customer services; and electricity and related value-added products, as well as digital services. This segment serves approximately 2.4 million customers. Its Russia segment generates and sells power and heat. The company was founded in 1998 and is headquartered in Espoo, Finland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 20:38 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| 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.