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Research

Fortum: From the shadows of Russia towards the light

By Juha KinnunenAnalyst
Fortum
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The company's Q1 results were well above our expectations, but the most important part of yesterday's performance was the cutting of Russia from the group. Although this will again put a big dent in the balance sheet, the company will withstand this blow and the financial situation is quite good. The journey from the gloom of Russia toward the light is underway, but this is not reflected in the valuation. The stock price is attractive both in absolute terms (2023e P/E 10x) and relative to peers (around 20% discount), which should correct over time.

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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 Figures12.05.2023

202223e24e
Revenue7,754.07,347.27,441.4
growth-%20.7 %-5.2 %1.3 %
EBIT (adj.)1,611.01,859.91,715.9
EBIT-% (adj.)20.8 %25.3 %23.1 %
EPS (adj.)2.001.361.31
Dividend0.911.001.00
Dividend %5.9 %5.5 %5.5 %
P/E (adj.)7.813.513.9
EV/EBITDA7.08.49.0

Forum discussions

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He was elected CEO of Enento about a week ago. Hopefully, he intends to transfer the Fortum money into his new employer’s shares (irresponsible...
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5
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