The headwind won't ease
On Tuesday, Neste lowered the guidance for Renewable Products' 2024 sales margin reflecting especially the weakness in the market caused by increased supply. We cut both our short- and medium-term forecasts driven by a fall in the sales margin. We feel the valuation of the stock is quite reasonable with clearly more conservative sales margin forecasts. We believe this supports a positive view even though no quick relief is in sight for the difficult market situation.
Neste
Neste produces transport fuel and renewable fuels. Today, the largest operations and extraction are held in the Nordic market, where the company is active in the entire value chain, from extraction to delivery to port depots. In addition, the opportunity is given for direct sales where customers can pick up fuel at selected stations. The largest market is in the Nordic region, and the company is headquartered in Espoo, Finland.
Read more on company pageKey Estimate Figures15.05
2023 | 24e | 25e | |
---|---|---|---|
Revenue | 22,925.9 | 19,287.2 | 23,056.0 |
growth-% | -10.82 % | -15.87 % | 19.54 % |
EBIT (adj.) | 2,591.5 | 1,002.6 | 1,578.4 |
EBIT-% (adj.) | 11.30 % | 5.20 % | 6.85 % |
EPS (adj.) | 2.88 | 1.02 | 1.62 |
Dividend | 1.20 | 0.60 | 0.65 |
Dividend % | 3.73 % | 4.52 % | 4.90 % |
P/E (adj.) | 11.18 | 13.02 | 8.17 |
EV/EBITDA | 10.69 | 7.06 | 4.91 |