Fortum Oyj
Fortum Oyj Fundamental Analysis
Fortum Oyj (FOT.DE) shows weak financial fundamentals with a PE ratio of 25.73, profit margin of 15.31%, and ROE of 8.86%. The company generates $4.9B 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 FOT.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakFOT.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateFOT.DE shows balanced valuation metrics.
Growth Score
WeakFOT.DE faces weak or negative growth trends.
Financial Health Score
ExcellentFOT.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateFOT.DE maintains healthy but balanced margins.
Key Financial Metrics
Is FOT.DE Expensive or Cheap?
P/E Ratio
FOT.DE trades at 25.73 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FOT.DE's PEG of -2.25 indicates potential undervaluation.
Price to Book
The market values Fortum Oyj at 2.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.23 times EBITDA. This signals the market has high growth expectations.
How Well Does FOT.DE 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 $831.60M, showing steady but balanced cash generation.
Free Cash Flow
Fortum Oyj produces free cash flow of $362.34M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.41 in free cash annually.
FCF Yield
FOT.DE converts 1.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.94
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 FOT.DE Stacks Against Its Sector Peers
| Metric | FOT.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.73 | 20.53 | Worse (Expensive) |
| ROE | 8.86% | 890.00% | Weak |
| Net Margin | 15.31% | 799.00% | Weak |
| Debt/Equity | 0.57 | 1.54 | Strong (Low Leverage) |
| Current Ratio | 2.20 | 1.50 | Strong Liquidity |
| ROA | 4.65% | -350.00% (disorted) | Weak |
FOT.DE 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