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Research

Fortum: The choice of dividend investors

By Juha KinnunenAnalyst
Fortum
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The Q4 result was disappointing, with smaller parts of the Generation segment, such as district heating, making losses. There were no surprises in the company's outlook, but electricity futures have fallen again, weighing on earnings forecasts for the coming years by 10-15%. Nevertheless, we think the valuation is attractive (2024e P/E 11x) and the dividend yield of almost 10% supports the expected return well. Both the share price and related expectations are now at very low levels.

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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 Figures08.02.2024

202324e25e
Revenue6,711.06,185.36,172.0
growth-%-13.7 %-7.8 %-0.2 %
EBIT (adj.)1,544.01,227.11,173.6
EBIT-% (adj.)23.0 %19.8 %19.0 %
EPS (adj.)1.281.040.97
Dividend1.150.910.86
Dividend %8.8 %5.1 %4.8 %
P/E (adj.)10.217.318.5
EV/EBITDA6.310.811.3

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