Company Overview
Kesko is a Finnish retail company that operates in various sectors, including food retailing, building materials, and consumer goods. With a rich history dating back to 1878, Kesko has established itself as one of the leading retailers in Northern Europe. The company's primary mission is to provide high-quality products and services to its customers while maintaining a strong commitment to sustainability and social responsibility.
Kesko's core values are built around the principles of innovation, customer satisfaction, and long-term thinking. The company aims to create value for its customers, employees, and shareholders through its daily operations and strategic decisions. Kesko's vision is to be a leader in the retail industry, known for its expertise, quality, and commitment to sustainability.
Key Products/Services
Kesko offers a wide range of products and services across its various business areas. In food retailing, the company operates several brands, including K-ruokakaupat, K-rautakaupat, and Intersport, which provide customers with high-quality food, building materials, and sports equipment.
In addition to its core businesses, Kesko also offers various services, such as home improvement solutions, consumer goods, and financial services. The company's product range is designed to meet the changing needs of its customers, providing them with convenient and affordable shopping experiences.
Benefits
Kesko's products and services offer several benefits to its customers, including:
- High-quality products and services
- Convenient shopping experiences through various channels
- Sustainability and social responsibility initiatives
- Innovation and customer satisfaction
- Long-term thinking and commitment to value creation
Kesko's strong brand portfolio, operational efficiency, and commitment to sustainability make it an attractive investment opportunity for those seeking a stable and growing retail company.
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 396.8 | 396.8 | 397.9 | 400.1 | 400.1 | 400.1 | 400.1 |
| Target Valuation (MEur) | 9496.4 | 8966.0 | 8399.9 | 7977.4 | 7902.4 | 8106.7 | 8106.7 |
| Targer Price | 23.93 | 22.6 | 21.11 | 19.94 | 19.75 | 20.26 | 20.26 |
| Potential, % | 16.1 | 26.1 | 15.4 | 3.6 | -8.1 | -5.8 | -5.8 |
| Recommendation | Hold | Buy | Hold | Hold | Hold | Hold | Hold |
| MCAP (MEur) | 8181.7 | 7112.4 | 7277.3 | 7701.5 | 8601.7 | 8601.7 | 8601.7 |
| Price | 20.62 | 17.93 | 18.29 | 19.25 | 21.5 | 21.5 | 21.5 |
| EV | 8366.0 | 7674.0 | 8135.0 | 9010.0 | 9514.0 | 8692.0 | 7952.0 |
| P/S | 0.69 | 0.6 | 0.61 | 0.62 | 0.66 | 0.64 | 0.63 |
| EV/S | 0.71 | 0.65 | 0.68 | 0.72 | 0.73 | 0.65 | 0.58 |
| EV/EBIT | 9.91 | 11.04 | 13.98 | 14.27 | 14.72 | 14.21 | 15.55 |
| P/E | 12.95 | 14.35 | 19.08 | 19.02 | 18.41 | 17.58 | 21.03 |
| P/B | 2.98 | 2.58 | 2.66 | 2.72 | 2.9 | 2.49 | 2.23 |
| P/OCF | 8.94 | 6.78 | 7.22 | 8.76 | 7.52 | 6.86 | 7.34 |
| EV/OCF | 9.14 | 7.31 | 8.07 | 10.24 | 8.32 | 6.93 | 6.78 |
| P/FCF | 14.33 | 15.49 | 17.72 | 22.8 | 11.53 | 10.46 | 11.63 |
| EV/FCF | 14.66 | 16.71 | 19.81 | 26.67 | 12.75 | 10.57 | 10.75 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 11809.0 | 11783.8 | 11920.1 | 12474.7 | 13046.4 | 13440.9 | 13714.4 |
| Rev. Growth, % | 4.5 | -0.2 | 1.2 | 4.7 | 4.6 | 3.0 | 2.0 |
| Ebit | 844.0 | 695.3 | 581.8 | 631.4 | 646.3 | 611.5 | 511.3 |
| Ebit Growth, % | 8.9 | -17.6 | -16.3 | 8.5 | 2.4 | -5.4 | -16.4 |
| Ebit, % | 7.1 | 5.9 | 4.9 | 5.1 | 5.0 | 4.5 | 3.7 |
| Profit | 631.9 | 495.6 | 381.5 | 404.9 | 467.3 | 489.2 | 409.1 |
| EPS | 1.59 | 1.25 | 0.96 | 1.01 | 1.17 | 1.22 | 1.02 |
| Profit Growth, % | 10.5 | -21.6 | -23.0 | 6.1 | 15.4 | 4.7 | -16.4 |
| Profit, % | 5.4 | 4.2 | 3.2 | 3.2 | 3.6 | 3.6 | 3.0 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 1115.4 | 1083.9 | 1101.5 | 1204.0 | 1281.0 | 1356.9 | 1420.6 |
| Acc. Receivable | 969.3 | 970.5 | 957.9 | 1014.8 | 1054.7 | 1077.4 | 1115.9 |
| Cash | 245.5 | 211.9 | 473.1 | 166.2 | 864.4 | 1686.6 | 2426.5 |
| Equity | 2742.2 | 2758.4 | 2734.9 | 2826.7 | 2964.8 | 3454.0 | 3863.1 |
| ROE, % | 23.0 | 18.0 | 13.9 | 14.3 | 15.8 | 14.2 | 10.6 |
| ROCE, % | 26.6 | 19.7 | 14.3 | 14.7 | 13.6 | 11.7 | 9.1 |
| Net Debt | 184.1 | 561.9 | 857.2 | 1308.9 | 912.2 | 90.0 | -649.9 |
| Gearing, % | 6.7 | 20.4 | 31.3 | 46.3 | 30.8 | 2.6 | -16.8 |
| Equity ratio, % | 36.7 | 35.6 | 32.3 | 32.0 | 31.8 | 34.6 | 36.3 |
| Acc. Payable | 1499.4 | 1418.3 | 1404.4 | 1388.3 | 1409.5 | 1421.6 | 1420.4 |
| Total Assets | 7474.0 | 7754.3 | 8471.2 | 8823.1 | 9328.1 | 9990.1 | 10633.5 |
| ROA, % | 8.5 | 6.4 | 4.5 | 4.6 | 5.0 | 4.9 | 3.8 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 915.2 | 1049.5 | 1008.2 | 879.6 | 1144.1 | 1254.6 | 1172.2 |
| Investment Cash Flow | -344.4 | -590.2 | -597.5 | -541.8 | -398.1 | -432.4 | -432.4 |
| Free Cash Flow | 570.8 | 459.3 | 410.7 | 337.8 | 746.0 | 822.2 | 739.8 |
| OCF/CAPEX | 2.66 | 1.78 | 1.69 | 1.62 | 2.87 | 2.9 | 2.71 |
| Financial Cash Flow | -604.6 | -492.2 | -149.8 | -644.7 | -47.9 | 0.0 | 0.0 |
Disclaimer
Risk Disclosure: Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
The data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes.
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