Fortum OYJ (FOJCY) AI Stock Analysis

• Market Cap: $18.93B
• Dividend Yield: 11.02%
• Average Volume (3M): 176.00
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.31
• Revenue Growth: -19.13%
• EPS Growth: -30.28%
• Country: US
• Employees: 4,451
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.01
• Shares Outstanding: 4,486,322,300
• 10 Day Avg. Volume: 72
• 30 Day Avg. Volume: 176
• PEG Ratio: -0.06
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 12.82
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 3.63
• Enterprise Value/Gross Profit: 8.41
• Enterprise Value/Ebitda: 10.96
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $4.50 ▲(6.64% Upside)

Fortum OYJ's overall stock score reflects a stable financial position with strong profitability and an attractive dividend yield. However, challenges such as declining revenue, negative cash flow growth, and weak technical indicators weigh on the score. The balanced sentiment from the earnings call provides some optimism, but the company must address operational challenges to improve its outlook.

Positive Factors

Efficiency Improvement Program

The efficiency improvement program is a structural enhancement that will lower costs significantly, improving profitability and competitiveness.

Acquisition of Wind Power Portfolio

This acquisition strengthens Fortum's renewable energy pipeline, supporting long-term growth in the sustainable energy sector.

Consumer Solutions Business Performance

Strong performance in Consumer Solutions indicates effective market strategies and enhances revenue stability in the Nordic and Polish markets.

Negative Factors

Decreased Generation Volumes

Reduced generation volumes, especially in nuclear and hydro, can affect revenue and profitability, posing a risk to financial stability.

Negative Revenue Growth

Declining revenue growth challenges Fortum's ability to sustain financial health, impacting long-term profitability and market position.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential liquidity issues, limiting Fortum's ability to invest in growth opportunities and manage debt.

Fortum OYJ Business Overview & Revenue Model

Company Description

Fortum Oyj, together with its subsidiaries, engages in the generation and sale of electricity and heat in the Nordic countries, Germany, the United Kingdom, Russia, the Netherlands, 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 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's Uniper segment engages in the power generation business, as well as energy trading and optimization activities. Fortum Oyj was founded in 1998 and is headquartered in Espoo, Finland.

How the Company Makes Money

Fortum OYJ generates revenue through multiple key streams. The primary source is electricity generation, where it produces energy from both renewable and non-renewable sources, selling it to the market. The company also earns income through its Customer Solutions segment, providing electricity, gas, and heating services to both residential and commercial customers. Additionally, Fortum profits from its investments in energy infrastructure, such as district heating and cooling systems. Partnerships with other energy providers and entities engaged in energy efficiency initiatives further enhance its revenue. The company's focus on sustainability and innovation in energy solutions positions it to capitalize on the growing demand for clean energy, thereby creating additional revenue opportunities.

Fortum OYJ Financial Statement Overview

Summary

Fortum OYJ shows strong profitability margins and moderate leverage, but faces challenges with declining revenue and negative free cash flow growth. The company needs to address these issues to maintain financial health.

Income Statement

Fortum OYJ's income statement shows a mixed performance. The company has a strong gross profit margin of 40.3% in TTM, indicating efficient cost management. However, the revenue has been declining, with a negative growth rate of -5.18% in TTM. The net profit margin is healthy at 19.5%, but the declining revenue trend poses a risk to future profitability. EBIT and EBITDA margins are solid, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.49 in TTM, indicating moderate leverage. The return on equity is reasonable at 10.6%, suggesting effective use of equity capital. The equity ratio is strong, showing a solid equity base relative to total assets. However, past fluctuations in debt levels could pose potential risks.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -13.82% in TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.52, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.61, reflecting some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.14B	5.80B	6.71B	8.80B	112.40B	49.02B
Gross Profit	2.22B	2.40B	2.90B	3.33B	7.23B	4.72B
EBITDA	1.71B	2.04B	2.21B	2.46B	4.82B	3.50B
Net Income	943.00M	1.16B	-2.07B	1.01B	-114.00M	1.82B
Balance Sheet
Total Assets	16.06B	17.31B	18.74B	23.64B	149.66B	57.81B
Cash, Cash Equivalents and Short-Term Investments	3.15B	4.13B	4.18B	3.92B	7.59B	2.31B
Total Debt	4.74B	4.83B	5.91B	7.84B	17.22B	10.66B
Total Liabilities	7.71B	8.15B	10.24B	15.90B	136.00B	42.23B
Stockholders Equity	8.27B	9.07B	8.44B	7.67B	12.13B	12.95B
Cash Flow
Free Cash Flow	661.00M	909.00M	1.24B	-9.30B	3.79B	1.45B
Operating Cash Flow	1.17B	1.39B	1.82B	-8.77B	4.97B	2.56B
Investing Cash Flow	420.00M	604.00M	1.10B	-985.00M	-5.73B	-2.14B
Financing Cash Flow	-2.50B	-2.04B	-2.61B	6.07B	6.01B	505.00M

Fortum OYJ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOJCY, the sentiment is Positive. The current price of 4.22 is above the 20-day moving average (MA) of 4.19, above the 50-day MA of 4.21, and above the 200-day MA of 3.63, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 94.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FOJCY.

Fortum OYJ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEG	72 Outperform	$109.92B	40.31	20.35%	0.44%	21.35%	-3.93%
CWEN	70 Neutral	$6.54B	13.86	13.20%	5.46%	2.54%	124.89%
CWEN.A	70 Neutral	$6.54B	13.01	13.20%	5.81%	2.54%	124.89%
GEV	69 Neutral	$182.25B	108.85	18.78%	0.14%	9.43%	35.56%
FOJCY	66 Neutral	$18.93B	20.40	10.78%	11.02%	-19.13%	-30.28%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
BEPC	51 Neutral	$6.96B	-5.80	-38.17%	3.85%	5.93%	-39.88%

Fortum OYJ Corporate Events

Fortum Oyj’s Earnings Call: Balancing Achievements and Challenges

The recent earnings call for Fortum Oyj (OTC) presented a balanced sentiment, highlighting both positive developments and notable challenges. The company reported an increase in power prices and a successful efficiency improvement program, alongside strong performance in the Consumer Solutions segment. However, these achievements were tempered by decreased generation volumes, particularly in the nuclear and hydro sectors, which impacted the financial results. Overall, the sentiment reflected significant achievements but also underscored the challenges faced by the company.

Fortum Oyj Reports Solid Power Prices Amid Lower Volumes

Fortum Oyj, a leading energy company in the Nordics, focuses on clean energy generation, including hydro, nuclear, and renewable sources, while driving decarbonization efforts across industries. In its latest earnings report, Fortum Oyj highlighted a solid achieved power price despite lower generation volumes. The company’s financial performance for the third quarter of 2025 showed a decrease in comparable EBITDA to EUR 175 million from EUR 254 million in the previous year, primarily due to reduced hydro and nuclear volumes. The Consumer Solutions segment, however, recorded its strongest third-quarter performance, driven by improved electricity and gas sales margins. Fortum’s strategic initiatives include a significant investment in wind power projects in Finland and a commitment to exit coal by 2027. Looking ahead, Fortum remains focused on strengthening its core operations and exploring new growth opportunities in renewable energy and clean hydrogen, while navigating regulatory uncertainties in the Nordic market.

Fortum Oyj Earnings Call: Strategic Gains Amid Challenges

Fortum Oyj’s recent earnings call painted a mixed picture of the company’s current standing, highlighting both achievements and challenges. The sentiment expressed during the call was balanced, with positive strategic moves such as maintaining a stable achieved power price and successful acquisitions, countered by operational difficulties including decreased profitability and geopolitical uncertainties.