0.32%
1.04%
-5.80%
10.96%
2.49%
-33.66%
21.43%
AI Spotlight on KESKOB
Company Description
Kesko Oyj engages in the grocery trading business in Finland.It operates through Grocery Trade, Building and Technical Trade, and Car Trade segments.The company's Grocery Trade segment is involved in the wholesale and B2B trade of groceries; and the retail sale of the home and specialty goods.
This segment operates approximately 1,200 K-food stores, including K-Citymarket, K-Supermarket, K-Market, and Neste K.Its Building and Technical Trade segment engages in the retail, wholesale, and B2B trade of building and home improvement, and electrical and HEPAC products, as well as trades in leisure goods.This segment operates retail store chains under the K-Rauta, K-Bygg, Byggmakker, and Onninen names, as well as leisure goods trade chains under the Intersport and Budget Sport names in Finland, Sweden, Norway, and the Baltic countries.
The company's Car Trade segment imports, markets, and retails Volkswagen, Audi, SEAT, CUPRA, Bentley, and Porsche passenger cars, as well as Volkswagen and MAN commercial vehicles in Finland.This segment is also involved in car leasing activities; and the provision of repair and maintenance, spare parts, and accessories services, as well as charging network for electric vehicles under the K-Charge name in Finland.Kesko Oyj was founded in 1940 and is headquartered in Helsinki, Finland.
Market Data
| Last Price | 18.53 |
| Change Percentage | 0.32% |
| Open | 18.5 |
| Previous Close | 18.47 |
| Market Cap ( Millions) | 7321 |
| Volume | 327743 |
| Year High | 20.49 |
| Year Low | 15.62 |
| M A 50 | 18.4 |
| M A 200 | 17.74 |
Financial Ratios
| FCF Yield | 5.03% |
| Dividend Yield | 5.56% |
| ROE | 16.25% |
| Debt / Equity | 117.45% |
| Net Debt / EBIDTA | 240.67% |
| Price To Book | 2.78 |
| Price Earnings Ratio | 17.5 |
| Price To FCF | 19.9 |
| Price To sales | 0.62 |
| EV / EBITDA | 8.58 |
News
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Grocery Trade
Expected Growth : 3.5 %
What the company do ?
Kesko Oyj's Grocery Trade segment operates in the Finnish grocery retail market, offering food and non-food products to consumers through its K-food store chain.
Why we expect these perspectives ?
Kesko Oyj's 3.5% growth in Grocery Trade is driven by increasing demand for online grocery shopping, strategic expansion into new markets, and focus on private label products. Additionally, investments in digitalization, efficient supply chain management, and customer loyalty programs contribute to the growth. Furthermore, the company's strong market position and ability to adapt to changing consumer preferences also support the growth momentum.
Segment n°2 -> Building and Technical Trade
Expected Growth : 3.8 %
What the company do ?
Building and Technical Trade from Kesko Oyj refers to the segment that provides building and technical products, services, and solutions to construction, industrial, and retail customers.
Why we expect these perspectives ?
Kesko Oyj's Building and Technical Trade segment growth of 3.8% is driven by increasing demand for sustainable building solutions, investments in digitalization and e-commerce, and strategic acquisitions. Additionally, the segment benefits from a strong market position in Finland and a growing presence in Sweden and Norway, supported by a solid financial performance and efficient operations.
Segment n°3 -> Car Trade
Expected Growth : 4.2 %
What the company do ?
Car Trade from Kesko Oyj refers to the retail and wholesale of automotive products and services, including car sales, maintenance, and accessories in Finland.
Why we expect these perspectives ?
Kesko Oyj's Car Trade segment growth of 4.2% is driven by increasing demand for new and used cars, expansion of online sales channels, and strategic partnerships with car manufacturers. Additionally, investments in digitalization and omnichannel retailing have improved customer experience, contributing to the segment's growth.
Segment n°4 -> Common Functions
Expected Growth : 3.2 %
What the company do ?
Kesko Oyj's common functions include procurement, logistics, and IT services that support its retail chains, providing operational efficiency and cost savings.
Why we expect these perspectives ?
Kesko Oyj's 3.2% growth is driven by increasing demand for grocery and food services, expansion of digital channels, and strategic acquisitions. Additionally, the company's focus on sustainability, cost savings, and operational efficiency have contributed to its growth. Furthermore, Kesko's strong market position in Finland and its ability to adapt to changing consumer behavior have also supported its growth momentum.
Kesko Oyj Products
| Product Range | What is it ? |
|---|---|
| Food Trade | Kesko Oyj's food trade segment operates in the grocery trade and offers a wide range of food products to consumers through its various store formats, including K-food, K-market, and K-citymarket. |
| Building and Technical Trade | Kesko Oyj's building and technical trade segment provides a wide range of building materials, technical products, and services to professional builders, contractors, and consumers. |
| Car Trade | Kesko Oyj's car trade segment operates in the automotive retail business, offering new and used cars, as well as car maintenance and repair services. |
| Home and Speciality Goods Trade | Kesko Oyj's home and speciality goods trade segment offers a wide range of home and speciality products, including interior decoration, leisure goods, and sports equipment. |
Kesko Oyj's Porter Forces
Threat Of Substitutes
Kesko Oyj operates in the retail industry, where substitutes are readily available. However, the company's strong brand presence and customer loyalty mitigate the threat of substitutes.
Bargaining Power Of Customers
Kesko Oyj's customers have a high bargaining power due to the availability of substitutes and the company's dependence on a few large customers.
Bargaining Power Of Suppliers
Kesko Oyj has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power over suppliers.
Threat Of New Entrants
The retail industry has high barriers to entry, including significant capital requirements and established relationships with suppliers. This reduces the threat of new entrants.
Intensity Of Rivalry
The retail industry is highly competitive, with many established players competing for market share. Kesko Oyj faces intense rivalry from both domestic and international competitors.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 50.26% |
| Debt Cost | 4.43% |
| Equity Weight | 49.74% |
| Equity Cost | 6.99% |
| WACC | 5.70% |
| Leverage | 101.04% |
Kesko Oyj : Quality Control
Kesko Oyj passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| GRG.L | Greggs plc operates as a bakery food-on-the-go retailer in the United Kingdom. It offers a range of fresh and frozen bakery products, sandwiches, and drinks. The company sells products to … |
| COLR.BR | Etn. Fr. Colruyt NV, together with its subsidiaries, engages in the retail, wholesale, food service, and other activities in Belgium, France, and internationally. It operates through three segments: Retail, Wholesale … |
| SBRY.L | J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom and the Republic of Ireland. It … |
| CA.PA | Carrefour SA operates stores in various formats and channels in France, Spain, Italy, Belgium, Poland, Romania, Brazil, Argentina, and Taiwan. The company operates hypermarkets, supermarkets, convenience stores, cash and carry … |
| AXFO.ST | Axfood AB (publ) engages in the food retail and wholesale businesses in Sweden. It operates through Willys, Hemköp, Dagab, and Axfood Snabbgross segments. The company operates its retail business through … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
Colruyt
A-Score
1-Year Total Return ->
🥈
Greggs
A-Score
1-Year Total Return ->
🥉
Kesko
A-Score
1-Year Total Return ->
4
Carrefour
A-Score
1-Year Total Return ->
5
Axfood
A-Score
1-Year Total Return ->
6
