Kesko Oyj
Kesko Oyj Fundamental Analysis
Kesko Oyj (KKOYY) shows weak financial fundamentals with a PE ratio of 40.17, profit margin of 3.24%, and ROE of 15.45%. The company generates $12.5B in annual revenue with weak year-over-year growth of 1.16%.
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 KKOYY's fundamental strength across five key dimensions:
Efficiency Score
WeakKKOYY struggles to generate sufficient returns from assets.
Valuation Score
WeakKKOYY trades at a premium to fair value.
Growth Score
WeakKKOYY faces weak or negative growth trends.
Financial Health Score
WeakKKOYY carries high financial risk with limited liquidity.
Profitability Score
ModerateKKOYY maintains healthy but balanced margins.
Key Financial Metrics
Is KKOYY Expensive or Cheap?
P/E Ratio
KKOYY trades at 40.17 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KKOYY's PEG of 5.45 indicates potential overvaluation.
Price to Book
The market values Kesko Oyj at 5.80 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.47 times EBITDA. This signals the market has high growth expectations.
How Well Does KKOYY Make Money?
Net Profit Margin
For every $100 in sales, Kesko Oyj keeps $3.24 as profit after all expenses.
Operating Margin
Core operations generate 5.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.45 in profit for every $100 of shareholder equity.
ROA
Kesko Oyj generates $4.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kesko Oyj generates limited operating cash flow of $871.35M, signaling weaker underlying cash strength.
Free Cash Flow
Kesko Oyj produces free cash flow of $594.98M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.37 in free cash annually.
FCF Yield
KKOYY converts 3.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How KKOYY Stacks Against Its Sector Peers
| Metric | KKOYY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.17 | 23.13 | Worse (Expensive) |
| ROE | 15.45% | 1246.00% | Weak |
| Net Margin | 3.24% | -6035.00% (disorted) | Weak |
| Debt/Equity | 1.28 | 0.80 | Weak (High Leverage) |
| Current Ratio | 0.97 | 2.42 | Weak Liquidity |
| ROA | 4.58% | -199791.00% (disorted) | Weak |
KKOYY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kesko Oyj's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.74%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
11.31%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
11.99%
Industry Style: Defensive, Dividend, Low Volatility
High Growth