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Fortum OYJ
(OTC:FOJCY)
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Rating:67Neutral
Price Target:
$5.50
▲(16.77% Upside)
Action:Reiterated
Date:10/24/26
The score is primarily supported by improved financial fundamentals (normalized profitability and reduced leverage) and a generally positive earnings-call backdrop (clear guidance, strong liquidity, and better cash generation). These positives are moderated by historical earnings/cash-flow volatility, mixed technical signals with soft momentum, and a valuation that looks only moderately attractive given a ~25x P/E despite the ~3.4% dividend yield.
Positive Factors
Diversified low-carbon generation
Fortum’s significant hydro and nuclear generation assets provide a substantial low-carbon production base and support recurring participation in Nordic electricity markets. This portfolio can underpin scale, system relevance, and long-term energy offerings while reducing reliance on a single generation technology.
Negative Factors
Volatile revenue and earnings profile
Fortum’s recent normalization in earnings is tempered by a history of materially declining revenue in several annual periods. This volatility makes the earnings trajectory less predictable and means current margins may be sensitive to changing generation volumes, achieved prices, and operating conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified low-carbon generation
Fortum’s significant hydro and nuclear generation assets provide a substantial low-carbon production base and support recurring participation in Nordic electricity markets. This portfolio can underpin scale, system relevance, and long-term energy offerings while reducing reliance on a single generation technology.
Read all positive factors
Fortum OYJ (FOJCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.37B
Dividend Yield3.4%
Average Volume (3M)523.00
Price to Earnings (P/E)25.4
Beta (1Y)0.20
Revenue Growth15.08%
EPS Growth-4.48%
CountryUS
Employees4,551
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.18
Shares Outstanding4,486,322,300
10 Day Avg. Volume0
30 Day Avg. Volume523
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)1.95
Price to Sales (P/S)3.34
P/FCF Ratio49.08
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue4.18
Enterprise Value/Gross Profit11.51
Enterprise Value/Ebitda15.40
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Fortum OYJ Business Overview & Revenue Model
Company Description
Fortum Oyj, along with its subsidiaries, specializes in the production and distribution of electricity and thermal energy across the Nordic countries, Germany, the United Kingdom, Russia, the Netherlands, the Baltic Rim area, and other global mark...
How the Company Makes Money
Fortum makes money mainly by producing and selling electricity and related energy products and services. Its core revenue stream is power generation: it generates electricity (notably from hydro and nuclear assets) and sells it into wholesale powe...
Fortum OYJ Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call balanced near-term operational and market headwinds (weaker Q2 comparable profit and EPS, lower achieved power price, reduced ancillary services income, constrained nuclear output and higher fixed costs) against strong cash generation, a robust balance sheet and liquidity position, positive H1 results, a maintained full-year optimization premium guidance for 2026 (EUR 8–10/MWh), and a strategic, value-accretive proposed acquisition (Elmera) that expands scale in Consumer Solutions. Taken together the positives (liquidity, cash flow, H1 improvement, strategic M&A and clear guidance) outweigh the contained operational and market lowlights.Positive Updates
Strong liquidity and conservative leverage
Net debt at end-Q2 was EUR 1.8 billion with leverage (net debt / comparable EBITDA) at 1.4x. Gross debt (ex leases) EUR 3.8 billion and ample liquidity reserves of EUR 6.5 billion (EUR 2.1 billion liquid funds + EUR 4.4 billion undrawn committed facilities). Interest cost on loan portfolio 3.1%.
Negative Updates
Q2 earnings and EPS decline
Comparable operating profit in Q2 was EUR 106 million, a decrease of EUR 9 million versus prior year. Comparable net profit for Q2 declined to EUR 74 million and comparable EPS fell from EUR 0.09 to EUR 0.08 (≈ -11%).
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Q2-2026 Updates
Positive
Negative
Strong liquidity and conservative leverage
Net debt at end-Q2 was EUR 1.8 billion with leverage (net debt / comparable EBITDA) at 1.4x. Gross debt (ex leases) EUR 3.8 billion and ample liquidity reserves of EUR 6.5 billion (EUR 2.1 billion liquid funds + EUR 4.4 billion undrawn committed facilities). Interest cost on loan portfolio 3.1%.
Read all positive updates
Company Guidance
Fortum reiterated detailed financial and operational guidance: hedges for the rest of 2026 are €40/MWh at an 80% hedge ratio and for 2027 €41/MWh at a 65% hedge ratio; the optimization premium is guided at €8–10/MWh for 2026 (longer‑term 2027+ at €6–8/MWh). Nuclear output for 2026 is now estimated at 23–23.5 TWh (below the ~26 TWh normal level; range reduced by 0.5 TWh). Committed capex is €550m for 2026 (ex‑acquisitions) and €2.0bn for 2026–2030 (of which €750m is growth), with annual maintenance capex ~€250m. They expect a comparable effective tax rate of 18–20%, aim to maintain investment‑grade with a leverage ceiling of 2.5x (Q2 net debt/EBITDA 1.4x; net debt €1.8bn end‑Q2, €1.5bn at Q2 start by new definition), gross debt €3.8bn excl. leases, liquidity reserves €6.5bn (€2.1bn cash + €4.4bn undrawn facilities), cost of debt ~3.1% and interest income on cash ~2.1%; dividend policy remains 60–90% of net profit (cash dividend €0.74/share, €664m paid).Fortum OYJ Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.49B | 4.99B | 5.80B | 6.71B | 8.80B | 112.40B |
| Gross Profit | 1.99B | 2.02B | 2.40B | 2.90B | 3.33B | 7.23B |
| EBITDA | 1.49B | 1.44B | 2.04B | 2.21B | 2.39B | 4.79B |
| Net Income | 827.88M | 765.00M | 1.16B | -2.07B | 1.01B | -114.00M |
Balance Sheet | ||||||
| Total Assets | 15.09B | 16.44B | 17.31B | 18.74B | 23.64B | 149.66B |
| Cash, Cash Equivalents and Short-Term Investments | 2.10B | 2.90B | 4.13B | 4.18B | 3.92B | 7.59B |
| Total Debt | 3.86B | 4.75B | 4.83B | 5.91B | 7.84B | 17.22B |
| Total Liabilities | 6.87B | 7.82B | 8.15B | 10.24B | 15.90B | 136.00B |
| Stockholders Equity | 8.14B | 8.54B | 9.07B | 8.44B | 7.67B | 12.13B |
Cash Flow | ||||||
| Free Cash Flow | 392.02M | 340.00M | 909.00M | 1.24B | -9.30B | 3.79B |
| Operating Cash Flow | 880.16M | 840.00M | 1.39B | 1.82B | -8.77B | 4.97B |
| Investing Cash Flow | -607.00M | -614.00M | 604.00M | 1.10B | -985.00M | -5.73B |
| Financing Cash Flow | -1.35B | -1.46B | -2.04B | -2.61B | 6.07B | 6.01B |
Fortum OYJ Technical Analysis
Positive
4.71
Price Trends
5.15
Positive
4.86
Positive
4.83
Positive
Market Momentum
-0.01
Positive
49.81
Neutral
21.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOJCY, the sentiment is Positive. The current price of 4.71 is below the 20-day moving average (MA) of 5.24, below the 50-day MA of 5.15, and below the 200-day MA of 4.83, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 21.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FOJCY.
Fortum OYJ Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $23.37B | 25.39 | 10.04% | 3.40% | 15.08% | -4.48% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $5.44B | -1.13 | 243.54% | 5.28% | -2.38% | -301.98% | |
61 Neutral | $2.50B | 21.01 | 9.00% | ― | 14.06% | 11.99% | |
55 Neutral | $5.36B | 41.89 | 4.96% | 0.55% | 31.13% | -4.27% | |
54 Neutral | $6.45B | 41.33 | 1.96% | 5.91% | 7.99% | 22.73% | |
48 Neutral | $1.83B | 14.12 | 1.97% | 19.20% | -2.84% | ― |
* Utilities Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.