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Research

Fortum: Leaving Russia

By Inderes
Fortum
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The operating result of the "old Fortum" was in line with expectations and the company said it would withdraw in a controlled manner from Russia, which is difficult in the current situation. There is plenty of commotion around Russian gas, but in addition to the accelerating bans, we also received news from Germany that diluted the risks around Uniper. Fortum's valuation on paper is very low (2023e P/E 10x) and this can be a great place to buy for those who can stand uncertainty. However, the valuation is neutral in relation to peers. For us, there is still too much uncertainty about the development of Uniper when Europe alienates itself from Russian gas.

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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 Figures13.05.2022

202122e23e
Revenue112,400.0140,378.0134,138.0
growth-%129.3 %24.9 %-4.4 %
EBIT (adj.)2,536.02,141.82,018.7
EBIT-% (adj.)2.3 %1.5 %1.5 %
EPS (adj.)2.001.391.53
Dividend1.141.141.14
Dividend %4.2 %5.0 %5.0 %
P/E (adj.)13.516.214.8
EV/EBITDA47.214.08.2

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