Neste Oyj Fundamental Analysis
Neste Oyj (NEF.DE) shows weak financial fundamentals with a PE ratio of -391.47, profit margin of -0.46%, and ROE of -1.20%. The company generates $20.6B in annual revenue with weak year-over-year growth of -10.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NEF.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakNEF.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateNEF.DE shows balanced valuation metrics.
Growth Score
WeakNEF.DE faces weak or negative growth trends.
Financial Health Score
ExcellentNEF.DE maintains a strong and stable balance sheet.
Profitability Score
WeakNEF.DE struggles to sustain strong margins.
Key Financial Metrics
Is NEF.DE Expensive or Cheap?
P/E Ratio
NEF.DE trades at -391.47 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NEF.DE's PEG of 3.66 indicates potential overvaluation.
Price to Book
The market values Neste Oyj at 5.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 47.13 times EBITDA. This signals the market has high growth expectations.
How Well Does NEF.DE Make Money?
Net Profit Margin
For every $100 in sales, Neste Oyj keeps $-0.46 as profit after all expenses.
Operating Margin
Core operations generate 0.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.20 in profit for every $100 of shareholder equity.
ROA
Neste Oyj generates $-0.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Neste Oyj generates limited operating cash flow of $1.18B, signaling weaker underlying cash strength.
Free Cash Flow
Neste Oyj generates weak or negative free cash flow of $-341.94M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.45 in free cash annually.
FCF Yield
NEF.DE converts -0.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-391.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.002
vs 25 benchmark
How NEF.DE Stacks Against Its Sector Peers
| Metric | NEF.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -391.47 | 21.16 | Better (Cheaper) |
| ROE | -1.20% | 984.00% | Weak |
| Net Margin | -0.46% | -59500.00% (disorted) | Weak |
| Debt/Equity | 0.69 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.73 | 4.98 | Neutral |
| ROA | -0.61% | -11018321.00% (disorted) | Weak |
NEF.DE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Neste Oyj's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.88%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-105.38%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
-17.75%
Industry Style: Cyclical, Value, Commodity
Declining