Neste Oyj
Neste Oyj Fundamental Analysis
Neste Oyj (NTOIF) shows weak financial fundamentals with a PE ratio of 30.66, profit margin of 3.75%, and ROE of 9.77%. The company generates $19.1B in annual revenue with weak year-over-year growth of -7.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NTOIF's fundamental strength across five key dimensions:
Efficiency Score
WeakNTOIF struggles to generate sufficient returns from assets.
Valuation Score
ModerateNTOIF shows balanced valuation metrics.
Growth Score
WeakNTOIF faces weak or negative growth trends.
Financial Health Score
ExcellentNTOIF maintains a strong and stable balance sheet.
Profitability Score
WeakNTOIF struggles to sustain strong margins.
Key Financial Metrics
Is NTOIF Expensive or Cheap?
P/E Ratio
NTOIF trades at 30.66 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NTOIF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Neste Oyj at 2.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.20 times EBITDA. This signals the market has high growth expectations.
How Well Does NTOIF Make Money?
Net Profit Margin
For every $100 in sales, Neste Oyj keeps $3.75 as profit after all expenses.
Operating Margin
Core operations generate 6.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.77 in profit for every $100 of shareholder equity.
ROA
Neste Oyj generates $3.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Neste Oyj produces operating cash flow of $2.43B, showing steady but balanced cash generation.
Free Cash Flow
Neste Oyj produces free cash flow of $1.58B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.05 in free cash annually.
FCF Yield
NTOIF converts 7.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.68
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How NTOIF Stacks Against Its Sector Peers
| Metric | NTOIF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.66 | 21.16 | Worse (Expensive) |
| ROE | 9.77% | 975.00% | Weak |
| Net Margin | 3.75% | -58736.00% (disorted) | Weak |
| Debt/Equity | 0.68 | -0.49 (disorted) | Distorted |
| Current Ratio | 1.59 | 5.15 | Neutral |
| ROA | 3.98% | -11053687.00% (disorted) | Weak |
NTOIF 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 Neste Oyj's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
61.76%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-79.80%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
-15.17%
Industry Style: Cyclical, Value, Commodity
Declining