Fortum Oyj
Fortum Oyj Fundamental Analysis
Fortum Oyj (FOJCF) shows weak financial fundamentals with a PE ratio of 23.95, profit margin of 15.31%, and ROE of 8.86%. The company generates $5.0B in annual revenue with weak year-over-year growth of -13.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FOJCF's fundamental strength across five key dimensions:
Efficiency Score
WeakFOJCF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFOJCF trades at attractive valuation levels.
Growth Score
WeakFOJCF faces weak or negative growth trends.
Financial Health Score
ExcellentFOJCF maintains a strong and stable balance sheet.
Profitability Score
ModerateFOJCF maintains healthy but balanced margins.
Key Financial Metrics
Is FOJCF Expensive or Cheap?
P/E Ratio
FOJCF trades at 23.95 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FOJCF's PEG of -2.42 indicates potential undervaluation.
Price to Book
The market values Fortum Oyj at 2.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.22 times EBITDA. This signals the market has high growth expectations.
How Well Does FOJCF Make Money?
Net Profit Margin
For every $100 in sales, Fortum Oyj keeps $15.31 as profit after all expenses.
Operating Margin
Core operations generate 18.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.86 in profit for every $100 of shareholder equity.
ROA
Fortum Oyj generates $4.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fortum Oyj produces operating cash flow of $840.23M, showing steady but balanced cash generation.
Free Cash Flow
Fortum Oyj produces free cash flow of $334.08M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.37 in free cash annually.
FCF Yield
FOJCF converts 1.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How FOJCF Stacks Against Its Sector Peers
| Metric | FOJCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.95 | 19.71 | Worse (Expensive) |
| ROE | 8.86% | 899.00% | Weak |
| Net Margin | 15.31% | 8904.00% | Weak |
| Debt/Equity | 0.57 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 2.20 | 1.52 | Strong Liquidity |
| ROA | 4.65% | -6254.00% (disorted) | Weak |
FOJCF outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fortum Oyj's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.42%
Industry Style: Defensive, Dividend, Income
GrowingEPS CAGR
-22.24%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-31.61%
Industry Style: Defensive, Dividend, Income
Declining