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Research

Fortum: Abundant dividend stream

By Juha KinnunenAnalyst
Fortum
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We have mainly made minor adjustments to our forecasts as the financial statements approach. The price of electricity has again made an upturn, which we are considering cautiously. Fortum’s balance sheet is already over-capitalized and there are not many investment targets for now, so dividends will be abundant for the financial year 2023. We feel this combined with a low valuation (2024e P/E below 12x) gives the stock an attractive risk-adjusted expected return.

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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 page

Key Estimate Figures04.01.2024

202223e24e
Revenue7,774.06,553.05,733.7
growth-%21.1 %-15.7 %-12.5 %
EBIT (adj.)1,611.01,640.21,349.6
EBIT-% (adj.)20.7 %25.0 %23.5 %
EPS (adj.)1.211.321.15
Dividend0.911.151.02
Dividend %5.9 %6.4 %5.7 %
P/E (adj.)12.813.615.6
EV/EBITDA7.07.79.3

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