Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Fortum Oyj

DB:FOT
Snowflake Description

6 star dividend payer with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FOT
DB
€13B
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

Fortum Oyj, together with its subsidiaries, engages in the generation and sale of electricity and heat in the Nordic countries, Russia, Poland, India, other parts of the Baltic Rim area, and internationally. The last earnings update was 57 days ago. More info.


Add to Portfolio Compare Print
  • Fortum Oyj has significant price volatility in the past 3 months.
FOT Share Price and Events
7 Day Returns
11.9%
DB:FOT
0.7%
Europe Electric Utilities
2.1%
DE Market
1 Year Returns
-20.5%
DB:FOT
-0.5%
Europe Electric Utilities
-16.6%
DE Market
FOT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fortum Oyj (FOT) 11.9% -21% -30.6% -20.5% 14.8% -20.4%
Europe Electric Utilities 0.7% -17.1% -11.1% -0.5% 22.1% -2%
DE Market 2.1% -12.6% -22.9% -16.6% -21.9% -27.8%
1 Year Return vs Industry and Market
  • FOT underperformed the Electric Utilities industry which returned -0.5% over the past year.
  • FOT underperformed the Market in Germany which returned -16.6% over the past year.
Price Volatility
FOT
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Fortum Oyj undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fortum Oyj to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fortum Oyj.

DB:FOT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:FOT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.9%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.27
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.272 (1 + (1- 20%) (53.24%))
0.589
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 5.94%)
4.36%

Discounted Cash Flow Calculation for DB:FOT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fortum Oyj is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:FOT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 4.36%)
2020 1,399.36 Analyst x6 1,340.87
2021 1,558.76 Analyst x6 1,431.18
2022 1,456.40 Analyst x5 1,281.31
2023 2,326.00 Analyst x1 1,960.83
2024 2,296.00 Analyst x1 1,854.64
2025 2,274.16 Est @ -0.95% 1,760.22
2026 2,256.36 Est @ -0.78% 1,673.44
2027 2,241.35 Est @ -0.66% 1,592.84
2028 2,228.30 Est @ -0.58% 1,517.37
2029 2,216.60 Est @ -0.52% 1,446.32
Present value of next 10 years cash flows €15,859.00
DB:FOT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €2,216.60 × (1 + -0.39%) ÷ (4.36% – -0.39%)
€46,463.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €46,463.78 ÷ (1 + 4.36%)10
€30,317.30
DB:FOT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €15,859.00 + €30,317.30
€46,176.30
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €46,176.30 / 888.29
€51.98
DB:FOT Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:FOT represents 1.00134x of HLSE:FORTUM
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00134x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 51.98 x 1.00134
€52.05
Value per share (EUR) From above. €52.05
Current discount Discount to share price of €14.93
= -1 x (€14.93 - €52.05) / €52.05
71.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Fortum Oyj is available for.
Intrinsic value
>50%
Share price is €14.93 vs Future cash flow value of €52.05
Current Discount Checks
For Fortum Oyj to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fortum Oyj's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Fortum Oyj's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Fortum Oyj's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fortum Oyj's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:FOT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in EUR €1.67
HLSE:FORTUM Share Price ** HLSE (2020-04-07) in EUR €14.91
Europe Electric Utilities Industry PE Ratio Median Figure of 74 Publicly-Listed Electric Utilities Companies 10.45x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 16.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fortum Oyj.

DB:FOT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= HLSE:FORTUM Share Price ÷ EPS (both in EUR)

= 14.91 ÷ 1.67

8.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fortum Oyj is good value based on earnings compared to the Europe Electric Utilities industry average.
  • Fortum Oyj is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Fortum Oyj's expected growth come at a high price?
Raw Data
DB:FOT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-3.3%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 35 Publicly-Listed Electric Utilities Companies 1.6x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

DB:FOT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.93x ÷ -3.3%

-2.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fortum Oyj earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Fortum Oyj's assets?
Raw Data
DB:FOT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in EUR €14.61
HLSE:FORTUM Share Price * HLSE (2020-04-07) in EUR €14.91
Europe Electric Utilities Industry PB Ratio Median Figure of 87 Publicly-Listed Electric Utilities Companies 0.78x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.45x
DB:FOT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= HLSE:FORTUM Share Price ÷ Book Value per Share (both in EUR)

= 14.91 ÷ 14.61

1.02x

* Primary Listing of Fortum Oyj.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fortum Oyj is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess Fortum Oyj's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. Fortum Oyj has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Fortum Oyj expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-3.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fortum Oyj expected to grow at an attractive rate?
  • Fortum Oyj's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Fortum Oyj's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Fortum Oyj's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:FOT Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:FOT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -3.3%
DB:FOT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 29.2%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:FOT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:FOT Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 79,817 3,701 1,031 2
2023-12-31 79,068 3,724 1,620 2
2022-12-31 82,187 2,920 1,316 6
2021-12-31 82,758 2,739 1,475 7
2020-12-31 66,325 3,330 1,734 6
2020-04-07
DB:FOT Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-12-31 5,526 2,015 1,482
2019-09-30 5,560 1,790 1,318
2019-06-30 5,497 1,661 1,191
2019-03-31 5,435 1,282 800
2018-12-31 5,333 804 843
2018-09-30 5,185 1,061 895
2018-06-30 5,094 1,113 1,201
2018-03-31 4,936 984 915
2017-12-31 4,567 993 866
2017-09-30 4,251 849 766
2017-06-30 4,064 765 378
2017-03-31 3,895 528 505

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fortum Oyj's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Fortum Oyj's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:FOT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Fortum Oyj Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FOT Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 1.82 2.47 1.16 2.00
2023-12-31 1.99 2.54 1.10 3.00
2022-12-31 1.57 2.18 1.08 9.00
2021-12-31 1.64 2.32 1.15 9.00
2020-12-31 2.11 3.55 1.54 9.00
2020-04-07
DB:FOT Past Financials Data
Date (Data in EUR Millions) EPS *
2019-12-31 1.67
2019-09-30 1.48
2019-06-30 1.34
2019-03-31 0.90
2018-12-31 0.95
2018-09-30 1.01
2018-06-30 1.35
2018-03-31 1.03
2017-12-31 0.97
2017-09-30 0.86
2017-06-30 0.43
2017-03-31 0.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Fortum Oyj is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Fortum Oyj's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fortum Oyj has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Fortum Oyj performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fortum Oyj's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fortum Oyj has delivered over 20% year on year earnings growth in the past 5 years.
  • Fortum Oyj's 1-year earnings growth exceeds its 5-year average (75.8% vs 21.7%)
  • Fortum Oyj's earnings growth has exceeded the Europe Electric Utilities industry average in the past year (75.8% vs 9.7%).
Earnings and Revenue History
Fortum Oyj's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fortum Oyj Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FOT Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 5,526.00 1,482.00 480.00
2019-09-30 5,560.00 1,318.00 506.00
2019-06-30 5,497.00 1,191.00 501.00
2019-03-31 5,435.00 800.00 500.00
2018-12-31 5,333.00 843.00 459.00
2018-09-30 5,185.00 895.00 496.00
2018-06-30 5,094.00 1,201.00 492.00
2018-03-31 4,936.00 915.00 476.00
2017-12-31 4,567.00 866.00 456.00
2017-09-30 4,251.00 766.00 414.00
2017-06-30 4,064.00 378.00 389.00
2017-03-31 3,895.00 505.00 363.00
2016-12-31 3,653.00 496.00 349.00
2016-09-30 3,478.00 366.00 343.00
2016-06-30 3,409.00 -256.00 346.00
2016-03-31 3,436.00 -196.00 360.00
2015-12-31 3,486.00 -231.00 364.00
2015-09-30 3,674.00 274.00 364.00
2015-06-30 3,876.00 985.00 374.00
2015-03-31 3,966.00 1,064.00 371.00
2014-12-31 4,132.00 1,081.00 385.00
2014-09-30 4,369.00 1,020.00 427.00
2014-06-30 4,566.00 993.00 439.00
2014-03-31 4,894.00 1,111.00 465.00
2013-12-31 5,345.00 1,204.00 488.00
2013-09-30 5,773.00 1,352.00 512.00
2013-06-30 5,876.00 1,447.00 536.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Fortum Oyj has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Fortum Oyj used its assets more efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • Fortum Oyj has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fortum Oyj's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Fortum Oyj has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Fortum Oyj's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fortum Oyj's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fortum Oyj is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fortum Oyj's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Fortum Oyj's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Fortum Oyj Company Filings, last reported 3 months ago.

DB:FOT Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 13,234.00 6,707.00 1,448.00
2019-09-30 12,639.00 6,815.00 1,477.00
2019-06-30 12,620.00 6,729.00 1,336.00
2019-03-31 11,941.00 6,791.00 1,761.00
2018-12-31 12,077.00 6,183.00 702.00
2018-09-30 12,227.00 6,075.00 844.00
2018-06-30 12,093.00 6,119.00 926.00
2018-03-31 12,372.00 4,484.00 3,658.00
2017-12-31 13,287.00 4,997.00 4,011.00
2017-09-30 13,202.00 5,074.00 3,935.00
2017-06-30 12,719.00 4,832.00 4,139.00
2017-03-31 14,148.00 5,089.00 5,241.00
2016-12-31 13,543.00 5,368.00 5,177.00
2016-09-30 13,178.00 5,401.00 5,360.00
2016-06-30 13,335.00 5,409.00 6,175.00
2016-03-31 14,268.00 6,274.00 8,284.00
2015-12-31 13,863.00 6,192.00 8,385.00
2015-09-30 13,873.00 6,304.00 8,221.00
2015-06-30 14,968.00 6,968.00 8,802.00
2015-03-31 10,501.00 7,283.00 3,440.00
2014-12-31 10,935.00 7,220.00 3,088.00
2014-09-30 11,336.00 7,189.00 2,251.00
2014-06-30 11,509.00 7,377.00 2,282.00
2014-03-31 12,206.00 7,992.00 3,067.00
2013-12-31 10,124.00 9,235.00 1,336.00
2013-09-30 10,221.00 9,174.00 1,156.00
2013-06-30 10,285.00 9,184.00 1,208.00
  • Fortum Oyj's level of debt (50.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (66.1% vs 50.7% today).
  • Debt is well covered by operating cash flow (30%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.9x coverage).
X
Financial health checks
We assess Fortum Oyj's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Fortum Oyj has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Fortum Oyj's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.38%
Current annual income from Fortum Oyj dividends. Estimated to be 7.41% next year.
If you bought €2,000 of Fortum Oyj shares you are expected to receive €148 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Fortum Oyj's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.67%).
  • Fortum Oyj's dividend is above the markets top 25% of dividend payers in Germany (4.71%).
Upcoming dividend payment

Purchase Fortum Oyj before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:FOT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 51 Stocks 4.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:FOT Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 1.29 3.00
2023-12-31 1.29 4.00
2022-12-31 1.09 15.00
2021-12-31 1.07 18.00
2020-12-31 1.08 18.00
2020-04-07
DB:FOT Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2020-02-06 1.100 6.630
2019-02-01 1.100 5.401
2018-02-02 1.100 5.611
2017-04-04 1.100 7.098
2016-02-03 1.100 7.945
2015-03-06 1.100 7.138
2015-02-20 1.100 5.449
2015-02-04 1.100 5.562
2014-02-19 1.100 6.058
2014-02-04 1.100 6.455
2013-01-31 1.000 6.475
2012-02-01 1.000 6.607
2011-02-02 1.000 5.231
2010-02-03 1.000 5.155

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Fortum Oyj's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Fortum Oyj's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fortum Oyj afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fortum Oyj has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Fortum Oyj's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pekka Lundmark
COMPENSATION €2,666,000
AGE 56
TENURE AS CEO 4.6 years
CEO Bio

Mr. Pekka Ilmari Lundmark, M.Sc.(Eng.), has been President and Chief Executive Officer of Fortum Oyj since September 7, 2015 and serves as its Managing Director. Mr. Lundmark served as President and Chief Executive Officer of Konecranes Group for Shanghai High Tech Industrial Cranes Co., Ltd. and served as its Member of the Group Executive Board of Konecranes since 2004. He served as Senior Advisor of Startupfactory. He served as Chief Executive Officer, President and Chairman of the Group Executive Board of Konecranes Inc. since December 2009. He served as President and Chief Executive Officer of Hackman Oyj Abp from 2002 to 2004 and has held various executive positions at Nokia Corporation from 1990 to 2000. He served as President and Chief Executive Officer of Konecranes Plc from June 17, 2005 to September 5, 2015 and served as its Managing Director. He served as Group Executive Vice President of Konecranes Plc since August 10, 2004 and served as its Chairman of Group Executive Board from May 2009 to September 5, 2015 and Member of Executive Board from 2004 to September 5, 2015. He served as Chairman of Marimekko Oyj from April 2008 to April 9, 2015. He serves as a Director at u-blox Espoo Oy. He served as a Director of Valmet Oyj from 2013 to April 7, 2015. Mr. Lundmark is a graduate of Helsinki University of Technology Department of Technical Physics with an MSc. in Engineering and majored in Information Technology and International Marketing.

CEO Compensation
  • Pekka's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Pekka's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Fortum Oyj management team in years:

4.3
Average Tenure
53
Average Age
  • The tenure for the Fortum Oyj management team is about average.
Management Team

Pekka Lundmark

TITLE
President
COMPENSATION
€3M
AGE
56
TENURE
4.6 yrs

Markus Heikki Rauramo

TITLE
Chief Financial Officer
AGE
51
TENURE
3.1 yrs

Ensio Väisänen

TITLE
Head of Corporate Financial Services Unit
TENURE
12.8 yrs

Ingela Ulfves

TITLE
Vice President of Investor Relations & Financial Communications
AGE
53

Sirpa-Helena Sormunen

TITLE
Secretary to the Board & General Counsel
AGE
60
TENURE
5.6 yrs

Heli Kurki

TITLE
Head of Publicity & Communications

Risto Penttinen

TITLE
Senior Vice President of Strategy
AGE
51
TENURE
4 yrs

Per Langer

TITLE
Executive Vice President of City Solutions
AGE
50
TENURE
3.1 yrs

Erkki Kari-Koskinen

TITLE
Head of Markets

Anders Egelrud

TITLE
Managing Director of Fortum Värme
AGE
54
Board of Directors Tenure

Average tenure and age of the Fortum Oyj board of directors in years:

2.5
Average Tenure
60
Average Age
  • The average tenure for the Fortum Oyj board of directors is less than 3 years, this suggests a new board.
Board of Directors

Matti Lievonen

TITLE
Independent Chairman
AGE
61
TENURE
2.1 yrs

Klaus-Dieter Maubach

TITLE
Independent Deputy Chairman
AGE
57
TENURE
2.1 yrs

Kim Ignatius

TITLE
Independent Non-Executive Director
AGE
63
TENURE
8 yrs

Eva Hamilton

TITLE
Independent Non-Executive Director
AGE
65
TENURE
5.1 yrs

Veli-Matti Reinikkala

TITLE
Deputy Chairman
AGE
62
TENURE
4 yrs

Silvennoinen McAlister

TITLE
Independent Non-Executive Director
AGE
59
TENURE
3 yrs

Essimari Kairisto

TITLE
Independent Director
AGE
53
TENURE
2.1 yrs

Philipp Rösler

TITLE
Independent Director
AGE
46
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Fortum Oyj's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Fortum Oyj has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Fortum Oyj, together with its subsidiaries, engages in the generation and sale of electricity and heat in the Nordic countries, Russia, Poland, India, other parts of the Baltic Rim area, and internationally. The company’s Generation segment generates power through nuclear, hydro, wind, and thermal resources; and provides power portfolio optimization, trading, and industrial intelligence, as well as nuclear services. Its City Solutions develops solutions in the areas of heating, cooling, waste-to-energy, biomass, and other circular economy solutions, as well as solar power production. The company’s Consumer Solutions segment engages in electricity and gas retail businesses, including the provision of invoicing, debt collection, and customer services; and electricity and related value-added products, as well as digital services. This segment serves approximately 2.4 million customers. Its Russia segment generates and sells power and heat. The company was founded in 1998 and is headquartered in Espoo, Finland.

Details
Name: Fortum Oyj
FOT
Exchange: DB
Founded: 1998
€12,800,323,240
888,294,465
Website: http://www.fortum.com
Address: Fortum Oyj
CD Building,
Keilalahdentie 2-4,
Espoo,
Uusimaa, 02150,
Finland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
HLSE FORTUM Registered Shares OMX Nordic Exchange Helsinki FI EUR 18. Dec 1998
OTCPK FOJC.F Registered Shares Pink Sheets LLC US USD 18. Dec 1998
DB FOT Registered Shares Deutsche Boerse AG DE EUR 18. Dec 1998
XTRA FOT Registered Shares XETRA Trading Platform DE EUR 18. Dec 1998
LSE 0HAH Registered Shares London Stock Exchange GB EUR 18. Dec 1998
BATS-CHIXE FORTMH Registered Shares BATS 'Chi-X Europe' GB EUR 18. Dec 1998
ETLX FOT Registered Shares Eurotlx IT EUR 18. Dec 1998
OTCPK FOJC.Y ADR Pink Sheets LLC US USD 20. Oct 2008
Number of employees
Current staff
Staff numbers
7,838
Fortum Oyj employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 21:27
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/02/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.