Fortum: Positive risks on the rise in midst of uncertainty
Fortum's situation is still confusing due to the European energy crisis resulting from Russian military action, but we believe that the likelihood of a rapid exit from Russia has improved. In addition, with Germany’s Energy Security Act, Uniper's worst scenario is largely excluded, even though Russian gas supplies are spluttering as the country uses energy as a political weapon. Fortum’s valuation is very low (2023e P/E under 11x) and the investment profile would become much more attractive if the exit from Russia was at least reasonably successful.
Fortum
Fortum is active in the energy sector. In addition to the provision of electricity, a number of technical solutions are offered in heat optimization as well as apps that are used to keep track of energy consumption. The company also provides charging stations for electric cars. The largest activity is found around the Nordic market. The company was founded in 1998 and is headquartered in Espoo.
Read more on company pageKey Estimate Figures2022-06-21
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 112,400.0 | 140,378.0 | 134,138.0 |
growth-% | 129.32 % | 24.89 % | -4.45 % |
EBIT (adj.) | 2,536.0 | 2,141.8 | 2,018.7 |
EBIT-% (adj.) | 2.26 % | 1.53 % | 1.50 % |
EPS (adj.) | 2.00 | 1.39 | 1.53 |
Dividend | 1.14 | 1.14 | 1.14 |
Dividend % | 4.22 % | 8.68 % | 8.68 % |
P/E (adj.) | 13.49 | 9.42 | 8.58 |
EV/EBITDA | 47.15 | 9.91 | 5.69 |