OTCPK:NKRK.F

Stock Analysis Report

Executive Summary

Nokian Renkaat Oyj develops and manufactures tires in Finland, Sweden, Norway, Russia, the rest of Europe, North America, and internationally.

Snowflake

Fundamentals

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

How has Nokian Renkaat Oyj's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

NKRK.F

3.5%

US Auto Components

0.4%

US Market


1 Year Return

n/a

NKRK.F

-2.3%

US Auto Components

6.9%

US Market


Shareholder returns

NKRK.FIndustryMarket
7 Day0%3.5%0.4%
30 Day0%2.5%-1.1%
90 Dayn/a2.8%-0.5%
1 Yearn/a-0.8%-2.3%9.3%6.9%
3 Yearn/a11.2%-0.3%45.8%36.4%
5 Year-23.4%-23.4%19.4%3.0%62.9%45.1%

Price Volatility Vs. Market

How volatile is Nokian Renkaat Oyj's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

7.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NKRK.F ($29.55) is trading above our estimate of fair value ($29.3)

Significantly Undervalued: NKRK.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NKRK.F is good value based on its PE Ratio (8x) compared to the Auto Components industry average (16.5x).

PE vs Market: NKRK.F is good value based on its PE Ratio (8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: NKRK.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NKRK.F is overvalued based on its PB Ratio (2.1x) compared to the US Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Nokian Renkaat Oyj forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NKRK.F's earnings are forecast to decline over the next 3 years (-14.1% per year).

Earnings vs Market: NKRK.F's earnings are forecast to decline over the next 3 years (-14.1% per year).

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

Revenue vs Market: NKRK.F's revenue (4.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NKRK.F's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Nokian Renkaat Oyj performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NKRK.F's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: NKRK.F's earnings growth over the past year (79.3%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: NKRK.F earnings growth over the past year (79.3%) exceeded the Auto Components industry 8.1%.


Return on Equity

High ROE: NKRK.F's Return on Equity (26.6%) is considered high.


Return on Assets

ROA vs Industry: NKRK.F has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: NKRK.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Nokian Renkaat Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: NKRK.F's short term assets (€1.2B) exceeds its short term liabilities (€400.2M)

Long Term Liabilities: NKRK.F's short term assets (1.2B) exceeds its long term liabilities (275.5M)


Debt to Equity History and Analysis

Debt Level: NKRK.F's debt to equity ratio (14.6%) is considered satisfactory

Reducing Debt: NKRK.F's debt to equity ratio has reduced from 23.2% to 14.6% over the past 5 years.

Debt Coverage: NKRK.F's debt is well covered by operating cash flow (126.1%).

Interest Coverage: NKRK.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

What is Nokian Renkaat Oyj's current dividend yield, its reliability and sustainability?

6.36%

Current Dividend Yield


Dividend Yield vs Market

company6.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years6.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NKRK.F's dividend (6.36%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NKRK.F's dividend (6.36%) is in the top 25% of dividend payers in the US market (3.73%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.6%), NKRK.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NKRK.F's dividends in 3 years are forecast to be covered by earnings (76% payout ratio).


Next Steps

Management

What is the CEO of Nokian Renkaat Oyj's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Hille Korhonen (58yo)

2.3yrs

Tenure

0

Ms. Hille Korhonen, Lic. Tech., has been the Chief Executive Officer and President of Nokian Renkaat Oyj since June 1, 2017. Ms. Korhonen served as the Chief Executive Officer and President of Alko Inc., u ...


CEO Compensation Analysis

Information is not available.

Compensation vs Earnings: Hille's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

53yo

Average Age

Experienced Management: NKRK.F's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NKRK.F's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jukka Kasi (53yo)

    Vice President of Products & Technologies

    • Tenure: 0.9yrs
  • Hille Korhonen (58yo)

    President & CEO

    • Tenure: 2.3yrs
  • Päivi Antola (48yo)

    Senior Vice President of Investor Relations & Corporate Communications

    • Tenure: 1.3yrs
  • Teemu Kangas-Kärki (53yo)

    Chief Financial Officer

    • Tenure: 1.2yrs
  • Mike Shimazaki (61yo)

    Director of Administration & Sales

    • Tenure: 0yrs
    • Compensation: €4.80k
  • Andrei Pantioukhov (47yo)

    Executive VP and GM of Russia & Asia Business Area

    • Tenure: 10.7yrs
  • Antti-Jussi Tähtinen (54yo)

    Vice President of Marketing

    • Tenure: 0yrs
  • Tytti Bergman (50yo)

    Senior Vice President of People & Culture

    • Tenure: 1.4yrs
  • Susanna Tusa (47yo)

    VP of Legal & Compliance and Secretary

    • Tenure: 0yrs
  • Peter Chia

    Plant Manager & Operations Director

    • Tenure: 0.9yrs

Board Members

  • Petteri Walldén (71yo)

    Chairman of the Board

    • Tenure: 13.4yrs
    • Compensation: €102.00k
  • Heikki Allonen (65yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: €54.00k
  • Kari Alpo Jordan (63yo)

    Deputy Chairman

    • Tenure: 1.4yrs
    • Compensation: €75.90k
  • Raimo Lind (66yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: €78.90k
  • Pekka Vauramo (62yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: €52.20k
  • Inka Mero (43yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: €54.00k
  • George Rietbergen (55yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: €53.40k
  • Veronica Lindholm (49yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: €57.00k

Company Information

Nokian Renkaat Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nokian Renkaat Oyj
  • Ticker: NKRK.F
  • Exchange: OTCPK
  • Founded: 1898
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: €3.444b
  • Listing Market Cap: €3.797b
  • Shares outstanding: 138.71m
  • Website: https://www.nokiantyres.com

Number of Employees


Location

  • Nokian Renkaat Oyj
  • Pirkkalaistie 7
  • PO Box 20
  • Nokia
  • Pirkanmaa
  • 37101
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NKRK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1995
TYRESHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURJun 1995
NREDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1995
0FFYLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 1995
NRE1WBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 1995
NKRK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDSep 2011

Biography

Nokian Renkaat Oyj develops and manufactures tires in Finland, Sweden, Norway, Russia, the rest of Europe, North America, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vian ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/04 23:53
End of Day Share Price2019/06/07 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.