FORTUM OYJ (1FORT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1FORT - FI0009007132 - Common Stock
18.96 EUR
+0.82 (+4.55%)
Taking everything into account, 1FORT scores 4 out of 10 in our fundamental rating. 1FORT was compared to 29 industry peers in the Electric Utilities industry. 1FORT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 1FORT has a expensive valuation and it also scores bad on growth. 1FORT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- 1FORT had positive earnings in the past year.
- 1FORT had a positive operating cash flow in the past year.
- In multiple years 1FORT reported negative net income over the last 5 years.
- Of the past 5 years 1FORT 4 years had a positive operating cash flow.
1.2 Ratios
- 1FORT's Return On Assets of 5.44% is fine compared to the rest of the industry. 1FORT outperforms 65.38% of its industry peers.
- 1FORT has a Return On Equity (10.67%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 5.88%, 1FORT is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1FORT is above the industry average of 6.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 10.67% | ||
| ROIC | 5.88% |
ROA(3y)-4.84%
ROA(5y)-2.18%
ROE(3y)-14.4%
ROE(5y)-4.6%
ROIC(3y)8.5%
ROIC(5y)6.34%
1.3 Margins
- The Profit Margin of 1FORT (17.33%) is better than 88.46% of its industry peers.
- In the last couple of years the Profit Margin of 1FORT has declined.
- 1FORT has a Operating Margin of 18.67%. This is comparable to the rest of the industry: 1FORT outperforms 57.69% of its industry peers.
- In the last couple of years the Operating Margin of 1FORT has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 42.49%, 1FORT is doing worse than 65.38% of the companies in the same industry.
- 1FORT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.67% | ||
| PM (TTM) | 17.33% | ||
| GM | 42.49% |
OM growth 3Y-2.97%
OM growth 5Y-1.45%
PM growth 3Y20.37%
PM growth 5Y-5.9%
GM growth 3Y-2.61%
GM growth 5Y-2.9%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1FORT is still creating some value.
- The number of shares outstanding for 1FORT remains at a similar level compared to 1 year ago.
- The number of shares outstanding for 1FORT has been increased compared to 5 years ago.
- Compared to 1 year ago, 1FORT has an improved debt to assets ratio.
2.2 Solvency
- 1FORT has an Altman-Z score of 2.54. This is not the best score and indicates that 1FORT is in the grey zone with still only limited risk for bankruptcy at the moment.
- 1FORT has a Altman-Z score of 2.54. This is amongst the best in the industry. 1FORT outperforms 88.46% of its industry peers.
- 1FORT has a debt to FCF ratio of 9.79. This is a negative value and a sign of low solvency as 1FORT would need 9.79 years to pay back of all of its debts.
- 1FORT's Debt to FCF ratio of 9.79 is amongst the best of the industry. 1FORT outperforms 80.77% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that 1FORT is not too dependend on debt financing.
- 1FORT has a Debt to Equity ratio of 0.50. This is amongst the best in the industry. 1FORT outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 9.79 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.86
WACC6.8%
2.3 Liquidity
- 1FORT has a Current Ratio of 2.18. This indicates that 1FORT is financially healthy and has no problem in meeting its short term obligations.
- 1FORT has a Current ratio of 2.18. This is amongst the best in the industry. 1FORT outperforms 96.15% of its industry peers.
- A Quick Ratio of 1.99 indicates that 1FORT should not have too much problems paying its short term obligations.
- 1FORT has a better Quick ratio (1.99) than 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
- The earnings per share for 1FORT have decreased strongly by -36.13% in the last year.
- The earnings per share for 1FORT have been decreasing by -11.71% on average. This is quite bad
- 1FORT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.96%.
- The Revenue has been growing slightly by 1.26% on average over the past years.
EPS 1Y (TTM)-36.13%
EPS 3Y-21.84%
EPS 5Y-11.71%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)-19.96%
Revenue growth 3Y-3.34%
Revenue growth 5Y1.26%
Sales Q2Q%-15.08%
3.2 Future
- Based on estimates for the next years, 1FORT will show a small growth in Earnings Per Share. The EPS will grow by 1.96% on average per year.
- Based on estimates for the next years, 1FORT will show a decrease in Revenue. The Revenue will decrease by -1.34% on average per year.
EPS Next Y-14.89%
EPS Next 2Y-4.15%
EPS Next 3Y-4.42%
EPS Next 5Y1.96%
Revenue Next Year-10.59%
Revenue Next 2Y-4.07%
Revenue Next 3Y-3.12%
Revenue Next 5Y-1.34%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.28 indicates a quite expensive valuation of 1FORT.
- 1FORT's Price/Earnings ratio is rather expensive when compared to the industry. 1FORT is more expensive than 80.77% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. 1FORT is around the same levels.
- Based on the Price/Forward Earnings ratio of 20.68, the valuation of 1FORT can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, 1FORT is valued a bit more expensive than 76.92% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1FORT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.28 | ||
| Fwd PE | 20.68 |
4.2 Price Multiples
- 80.77% of the companies in the same industry are cheaper than 1FORT, based on the Enterprise Value to EBITDA ratio.
- 65.38% of the companies in the same industry are more expensive than 1FORT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.58 | ||
| EV/EBITDA | 14.53 |
4.3 Compensation for Growth
- A cheap valuation may be justified as 1FORT's earnings are expected to decrease with -4.42% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.15%
EPS Next 3Y-4.42%
5. Dividend
5.1 Amount
- 1FORT has a Yearly Dividend Yield of 4.62%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.10, 1FORT pays a better dividend. On top of this 1FORT pays more dividend than 80.77% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1FORT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
5.2 History
- The dividend of 1FORT has a limited annual growth rate of 0.90%.
Dividend Growth(5Y)0.9%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1FORT pays out 204.87% of its income as dividend. This is not a sustainable payout ratio.
- 1FORT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP204.87%
EPS Next 2Y-4.15%
EPS Next 3Y-4.42%
FORTUM OYJ / 1FORT.MI FAQ
What is the ChartMill fundamental rating of FORTUM OYJ (1FORT.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1FORT.MI.
What is the valuation status for 1FORT stock?
ChartMill assigns a valuation rating of 2 / 10 to FORTUM OYJ (1FORT.MI). This can be considered as Overvalued.
What is the profitability of 1FORT stock?
FORTUM OYJ (1FORT.MI) has a profitability rating of 4 / 10.
What are the PE and PB ratios of FORTUM OYJ (1FORT.MI) stock?
The Price/Earnings (PE) ratio for FORTUM OYJ (1FORT.MI) is 25.28 and the Price/Book (PB) ratio is 2.1.
How sustainable is the dividend of FORTUM OYJ (1FORT.MI) stock?
The dividend rating of FORTUM OYJ (1FORT.MI) is 7 / 10 and the dividend payout ratio is 204.87%.