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Fortum OYJ (FOJCY)
OTHER OTC:FOJCY
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Fortum OYJ
(OTC:FOJCY)
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Rating:70Outperform
Price Target:
$4.00
â–²(9.89% Upside)
Fortum OYJ's stock score is driven by strong valuation metrics and stable technical indicators. Financial performance shows solid profitability but is offset by declining revenue and cash flow challenges. The earnings call highlights both strategic successes and operational risks, resulting in a balanced outlook.
Fortum OYJ (FOJCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.20B
Dividend Yield12.78%
Average Volume (3M)343.00
Price to Earnings (P/E)16.1
Beta (1Y)0.42
Revenue Growth-18.91%
EPS Growth-27.20%
CountryUS
Employees4,451
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.03
Shares Outstanding4,486,322,300
10 Day Avg. Volume0
30 Day Avg. Volume343
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue3.63
Enterprise Value/Gross Profit8.41
Enterprise Value/Ebitda10.96
Forecast
1Y Price Target
$4.00Price Target Upside9.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 primarily through the sale of electricity and heat to residential, commercial, and industrial customers. The company operates a diverse portfolio of power plants, including nuclear, hydropower, and renewable energy facilities, which contribute to its electricity generation capacity. Key revenue streams include electricity sales from these plants, heat sales from district heating systems, and services related to energy efficiency and management. Additionally, Fortum has established partnerships and joint ventures in various markets, enhancing its operational capabilities and market reach. The company's focus on sustainability and renewable energy also positions it to benefit from governmental incentives and regulations aimed at promoting green energy, further reinforcing its revenue model.
Fortum OYJ Earnings Call Summary
Earnings Call Date:Aug 15, 2025
(Q2-2025)
| Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several notable achievements such as maintaining a stable achieved power price, successful acquisitions, and a strong financial position. However, these were offset by significant challenges in generation volumes, decreased profitability, and ongoing geopolitical uncertainties. The sentiment reflects a balance between positive strategic moves and operational difficulties.Q2-2025 Updates
Positive Updates
Stable Achieved Power Price
Despite lower market power prices, Fortum's achieved power price for Q2 2025 was EUR 48.1 per megawatt hour, nearly matching the previous year's EUR 48.6 per megawatt hour. This was supported by a high hedge ratio and good physical optimization.
Successful Acquisition in Consumer Solutions
Fortum completed the acquisition of Orange Energia, doubling the number of retail customers in Poland and securing a sales distribution network through Orange Polska until the end of 2028.
Efficiency Improvement Program on Track
Fortum's efficiency program aims to reduce annual fixed costs by EUR 100 million by the end of 2025, with a new fixed cost base of approximately EUR 850 million excluding increased taxes.
Strong Financial Position
Fortum's financial net debt was EUR 1.3 billion at the end of Q2, with a leverage ratio of 0.9x EBITDA, maintaining a strong liquidity position with ample reserves.
Expansion in Renewable Energy Portfolio
Fortum acquired a project development portfolio for wind power in Finland, strengthening its development pipeline for renewables with a total of 8 gigawatts in the permitting phase.
Negative Updates
Record Low Generation Volumes
Total generation for Q2 2025 was a record low at 8.8 terawatt hours, down 2.2 terawatt hours from the previous year, due to low hydro inflow and unavailabilities in the nuclear generation fleet.
Decrease in Comparable Operating Profit
The comparable operating profit for Q2 2025 was EUR 115 million, reflecting a decrease due to lower generation volumes and lower power prices.
Ongoing Geopolitical and Regulatory Uncertainties
Uncertainty from geopolitical conflicts and U.S. tariff plans poses challenges to major industrial investments in the Nordics, highlighting the need for a reliable regulatory framework.
Hydro Generation Challenges
Hydro volumes for the last 12 months were 18.3 terawatt hours, below the normal range of 20 to 20.5 terawatt hours, with risks of continued low volumes for the full year.
Nuclear Outages
Unavailabilities in the nuclear fleet are expected to result in 2.9 terawatt hours lower output for the full year 2025, impacting generation volumes.
Company Guidance
During the conference call, Fortum provided detailed guidance on various financial metrics and operational strategies. The company reported a comparable operating profit of EUR 115 million for Q2 2025, with a comparable EPS of EUR 0.09. For the first half of the year, the comparable operating profit reached EUR 577 million, and the EPS was EUR 0.51 per share. Fortum's achieved power price was EUR 48.1 per megawatt hour, slightly lower than the previous year, due to a high hedge ratio and effective physical optimization, despite a 23% drop in realized market prices compared to the same period last year. The company emphasized ongoing challenges, including record-low hydro generation and unavailabilities in its nuclear fleet, resulting in a total generation of 8.8 terawatt hours in Q2, which was 2.2 terawatt hours lower than the previous year. Fortum also highlighted the completion of an acquisition in its Consumer Solutions business, doubling its retail customer base in Poland. The company is targeting an annual fixed-cost reduction of EUR 100 million by the end of 2025, aiming for a new fixed cost base of approximately EUR 850 million in 2026, excluding Swedish property tax increases. For the first half of 2025, the cash flow was strong but decreased to EUR 656 million. Their financial net debt stood at EUR 1.3 billion, and leverage was at 0.9x at the end of June. Fortum continues to project a power demand growth to 550 terawatt hours per annum in the Nordics by 2030, with ongoing uncertainties in the operating environment due to geopolitical conflicts and U.S. tariff plans posing potential challenges for industrial investments.Fortum OYJ Financial Statement Overview
Summary
Fortum OYJ demonstrates strong profitability margins and moderate leverage. However, declining revenue and negative free cash flow growth highlight potential challenges. The company needs to address revenue growth and cash flow generation to sustain its financial health in the renewable utilities sector.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.65
Positive
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.70
Positive
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.60
Neutral
| 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 | 2.80B |
| 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 | 7.79B | 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
Positive
3.64
Price Trends
3.62
Positive
3.58
Positive
3.25
Positive
Market Momentum
0.02
Negative
55.98
Neutral
67.59
Neutral
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 3.64 is above the 20-day moving average (MA) of 3.55, above the 50-day MA of 3.62, and above the 200-day MA of 3.25, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 67.59 is Neutral, 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $16.20B | 16.11 | 10.78% | 12.78% | -18.91% | -27.20% | |
66 Neutral | 164.74B | 145.37 | 16.26% | 0.12% | 8.38% | -2.28% | |
65 Neutral | 103.49B | 34.05 | 22.38% | 0.46% | 13.41% | 27.49% | |
63 Neutral | 5.72B | 44.01 | 4.11% | 6.09% | -0.27% | -16.25% | |
61 Neutral | 5.72B | 41.87 | 4.11% | 6.39% | -0.27% | -16.25% | |
48 Neutral | 6.21B | -4.70 | -1174.68% | 4.27% | 12.46% | -388.89% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
Performance Comparison
FOJCY
Fortum OYJ
3.64
0.52
16.67%
CWEN
Clearway Energy
28.54
-0.37
-1.28%
CWEN.A
Clearway Energy
27.20
0.47
1.76%
BEPC
Brookfield Renewable
34.56
3.44
11.05%
CEG
Constellation Energy Corporation
331.26
72.80
28.17%
GEV
GE Vernova Inc.
605.17
350.69
137.81%
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.