Nokian Renkaat Oyj
Nokian Renkaat Oyj Fundamental Analysis
Nokian Renkaat Oyj (NKRKY) shows moderate financial fundamentals with a PE ratio of -87.16, profit margin of -1.10%, and ROE of -1.30%. The company generates $1.4B in annual revenue with moderate year-over-year growth of 9.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NKRKY's fundamental strength across five key dimensions:
Efficiency Score
WeakNKRKY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNKRKY trades at attractive valuation levels.
Growth Score
ExcellentNKRKY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNKRKY maintains a strong and stable balance sheet.
Profitability Score
WeakNKRKY struggles to sustain strong margins.
Key Financial Metrics
Is NKRKY Expensive or Cheap?
P/E Ratio
NKRKY trades at -87.16 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NKRKY's PEG of -2.26 indicates potential undervaluation.
Price to Book
The market values Nokian Renkaat Oyj at 1.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.94 times EBITDA. This is generally considered low.
How Well Does NKRKY Make Money?
Net Profit Margin
For every $100 in sales, Nokian Renkaat Oyj keeps $-1.10 as profit after all expenses.
Operating Margin
Core operations generate 2.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.30 in profit for every $100 of shareholder equity.
ROA
Nokian Renkaat Oyj generates $-0.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nokian Renkaat Oyj produces operating cash flow of $148.27M, showing steady but balanced cash generation.
Free Cash Flow
Nokian Renkaat Oyj generates weak or negative free cash flow of $-15.66M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.06 in free cash annually.
FCF Yield
NKRKY converts -1.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-87.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.08
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
0.02
vs 25 benchmark
How NKRKY Stacks Against Its Sector Peers
| Metric | NKRKY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -87.16 | 23.64 | Better (Cheaper) |
| ROE | -1.30% | 1155.00% | Weak |
| Net Margin | -1.10% | 669.00% | Weak |
| Debt/Equity | 0.70 | 0.73 | Neutral |
| Current Ratio | 2.08 | 2.57 | Strong Liquidity |
| ROA | -0.65% | -8241.00% (disorted) | Weak |
NKRKY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nokian Renkaat Oyj's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-19.00%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-105.71%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-64.71%
Industry Style: Cyclical, Growth, Discretionary
Declining