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Fortum OYJ (FOJCY)
OTHER OTC:FOJCY
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Fortum OYJ
(OTC:FOJCY)
Rating:68Neutral
Price Target:
$4.00
▲(1.52%Upside)
Fortum OYJ (FOJCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.59B
Dividend Yield3.93%
Average Volume (3M)322.00
Price to Earnings (P/E)15.2
Beta (1Y)0.43
Revenue Growth-16.99%
EPS GrowthN/A
CountryUS
Employees4,451
SectorUtilities
Sector Strength76
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.09
Shares Outstanding4,486,322,300
10 Day Avg. Volume0
30 Day Avg. Volume322
Financial Highlights & Ratios
PEG Ratio-1.44
Price to Book (P/B)1.47
Price to Sales (P/S)0.00
P/FCF Ratio17.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside1.52% Upside
Rating ConsensusHold
Number of Analyst Covering0
Fortum OYJ Business Overview & Revenue Model
Company DescriptionFortum 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 MoneyFortum OYJ generates revenue through the production and sale of electricity and heat. The company's key revenue streams include the sale of electricity generated from its diverse portfolio of power plants, including nuclear, hydroelectric, and renewable sources such as wind and solar. Additionally, Fortum earns income from district heating services, where it provides heating solutions to residential and commercial customers. The company is also engaged in energy trading, where it buys and sells electricity and related commodities in the energy markets. Strategic partnerships and joint ventures in different regions further enhance Fortum's revenue potential by expanding its reach and efficiency in energy production and distribution.
Fortum OYJ Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 27.51%|
Next Earnings Date:Aug 15, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. Fortum achieved a strong power price and maintained a robust financial position with strategic acquisitions and effective cost management. However, challenges included decreased hydro and nuclear volumes, a decline in comparable operating profit, and ongoing market volatility impacting power purchase agreements.Q1-2025 Updates
Positive Updates
Strong Achieved Power Price
Despite lower Nordic spot prices, Fortum achieved a power price of €60.1 per megawatt hour, supported by a robust double-digit optimization premium above last year's level.
Renewables and Strategic Acquisitions
Fortum continued developing its Renewables pipeline, concluded the acquisition of Enersense's project development portfolio, and announced the acquisition of Polish electricity solutions provider, Orange Energia, doubling its customer base in Poland.
Robust Financial Position
The company's financial net debt was practically zero, and the leverage ratio stood at 0.0x at the end of the first quarter, reflecting a stable financial position.
Successful Cost Management
The efficiency improvement program is proceeding as planned, with a small decrease in fixed costs and continued efforts to reduce the fixed cost base by €100 million by the end of 2025.
Strong Liquidity Position
Fortum reported ample liquidity reserves of €8.4 billion, including €4.3 billion of liquid funds and €4.1 billion in undrawn committed credit facilities and overdrafts.
Negative Updates
Decreased Hydro and Nuclear Volumes
Hydro generation was below the long-term historical average, and nuclear volumes were negatively affected by outages, with a forecast decrease of approximately 1.4 terawatt hours for the remainder of the year.
Decline in Comparable Operating Profit
Fortum's comparable operating profit declined by €77 million to €436 million in the Generation segment, mainly due to lower spot and hedge power prices, lower hydro and nuclear volumes, and higher property taxes in Sweden.
Volatility in Commodity Markets
European gas prices surged due to supply risks and geopolitical tensions, although they later declined. The high volatility in Nordic spot prices continued, affecting market capture rates for wind and hydropower.
Challenges in Signing New Power Purchase Agreements
Due to increased market uncertainty, customers are mainly focusing on short and mid-term contracts, and no significant new power purchase agreements have been signed recently.
Company Guidance
During the call, Fortum provided guidance for several key metrics in their first quarter 2025 report. Despite lower Nordic spot prices, Fortum achieved a power price of €60.1 per megawatt hour, supported by a robust optimization premium. They updated their annual optimization premium guidance to €7 to €9 per megawatt hour for 2025, while maintaining €6 to €8 per megawatt hour for subsequent years. Fortum's hydro generation was below the long-term average, and nuclear volumes decreased, negatively impacted by outages. The forecast for nuclear volumes for the rest of the year decreased by about 1.4 terawatt hours. Fortum's comparable operating profit for Q1 2025 was €462 million, while comparable EPS declined to €0.42. Operating cash flow was €453 million. The company's financial net debt was nearly zero, with a leverage ratio of 0.0x. The guidance for corporate tax rate remains unchanged at 18% to 20% for 2025 and 2026, with potential adjustments in 2027 pending legislative changes in Finland. Capital expenditure is expected to be €1.4 billion from 2025 to 2027, with maintenance CapEx at about €250 million annually.Fortum OYJ Financial Statement Overview
Summary
Fortum OYJ exhibits solid profitability with strong margins but faces challenges with a revenue decline of -6.4% and a decrease in free cash flow by -15.6%. The balance sheet is stable with low leverage, but improving revenue growth and cash flow generation is crucial for better financial health.Income Statement
Fortum OYJ's income statement reflects moderate financial health. The TTM shows a gross profit margin of 40.3% and a net profit margin of 19.5%, indicating solid profitability. However, revenue has decreased over the past year, reflecting a revenue growth rate of -6.4%. The EBIT and EBITDA margins are also strong at 22.7% and 34.3%, respectively, suggesting efficient operations despite the revenue decline.65
Positive
Balance Sheet
The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.49, indicating manageable leverage. The equity ratio is 54.1%, showing a solid equity base. Return on equity is healthy at 11.0%, reflecting effective use of equity. Overall, the company maintains a strong balance sheet with low risk from high leverage.70
Positive
Cash Flow
Fortum OYJ's cash flow is stable but shows room for improvement. The operating cash flow to net income ratio is 1.24, indicating good cash generation relative to profits. However, the free cash flow growth rate is -15.6%, highlighting a decrease in free cash flow. The free cash flow to net income ratio is 0.73, suggesting moderate free cash flow relative to net income.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.43B | 5.80B | 6.71B | 8.80B | 112.40B | 49.02B |
| Gross Profit | 2.19B | 2.40B | 2.90B | 3.33B | 7.23B | 4.72B |
| EBITDA | 1.86B | 2.04B | 2.21B | 2.46B | 4.82B | 2.80B |
| Net Income | 1.06B | 1.16B | -2.07B | 1.01B | -114.00M | 1.82B |
Balance Sheet | ||||||
| Total Assets | 17.74B | 17.31B | 18.74B | 23.64B | 149.66B | 57.81B |
| Cash, Cash Equivalents and Short-Term Investments | 4.32B | 4.13B | 4.18B | 3.92B | 7.59B | 2.31B |
| Total Debt | 4.73B | 4.83B | 5.91B | 7.79B | 17.22B | 10.66B |
| Total Liabilities | 8.06B | 8.15B | 10.24B | 15.90B | 136.00B | 42.23B |
| Stockholders Equity | 9.60B | 9.07B | 8.44B | 7.67B | 12.13B | 12.95B |
Cash Flow | ||||||
| Free Cash Flow | 767.00M | 909.00M | 1.24B | -9.30B | 3.79B | 1.45B |
| Operating Cash Flow | 1.31B | 1.39B | 1.82B | -8.77B | 4.97B | 2.56B |
| Investing Cash Flow | 313.00M | 604.00M | 1.10B | -985.00M | -5.73B | -2.14B |
| Financing Cash Flow | -2.19B | -2.04B | -2.61B | 6.07B | 6.01B | 505.00M |
Fortum OYJ Technical Analysis
Positive
3.94
Price Trends
3.59
Positive
3.36
Positive
3.09
Positive
Market Momentum
0.06
Negative
74.12
Negative
101.38
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 3.94 is above the 20-day moving average (MA) of 3.69, above the 50-day MA of 3.59, and above the 200-day MA of 3.09, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 74.12 is Negative, neither overbought nor oversold. The STOCH value of 101.38 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.36B | 40.44 | 4.70% | 5.38% | -1.34% | 21.62% | |
75 Outperform | $6.36B | 38.02 | 4.70% | 5.70% | -1.34% | 21.62% | |
71 Outperform | $100.82B | 34.12 | 24.71% | 0.46% | 11.36% | 26.54% | |
68 Neutral | $17.59B | 15.15 | 11.66% | 3.93% | -16.99% | ― | |
67 Neutral | $16.88B | 17.11 | 4.48% | 3.27% | 4.75% | 6.12% | |
65 Neutral | $2.75B | 50.87 | 4.18% | ― | -1.77% | -41.65% | |
60 Neutral | $6.56B | 32.67 | -4.65% | 3.98% | 1.01% | -110.78% |
* Utilities Sector Average
Performance Comparison
FOJCY
Fortum OYJ
3.93
1.12
39.86%
CWEN
Clearway Energy
31.46
6.57
26.40%
CWEN.A
Clearway Energy
29.58
6.68
29.17%
BEPC
Brookfield Renewable
36.45
9.37
34.60%
RNW
ReNew Energy Global
7.47
1.75
30.59%
CEG
Constellation Energy Corporation
327.35
153.47
88.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.