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Tieto Oyj

DB:TTEB
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TTEB
DB
€2B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

Tieto Oyj operates as a software and services company. The last earnings update was 29 days ago. More info.


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TTEB Share Price and Events
7 Day Returns
-0.7%
DB:TTEB
6.3%
DE IT
-3.2%
DE Market
1 Year Returns
-15.2%
DB:TTEB
17.4%
DE IT
-11.6%
DE Market
TTEB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tieto Oyj (TTEB) -0.7% -0.4% 1.3% -15.2% 5.3% 26.5%
DE IT 6.3% 18.7% 30.1% 17.4% 174.3% 276.3%
DE Market -3.2% -5.1% 0.3% -11.6% 5.3% 5.9%
1 Year Return vs Industry and Market
  • TTEB underperformed the IT industry which returned 17.4% over the past year.
  • TTEB underperformed the Market in Germany which returned -11.6% over the past year.
Price Volatility
TTEB
Industry
5yr Volatility vs Market
Related Companies

TTEB Value

 Is Tieto Oyj undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tieto Oyj to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tieto Oyj.

DB:TTEB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:TTEB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.5%
IT Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.046 (1 + (1- 20%) (24.26%))
1.167
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.167 * 6.51%)
7.83%

Discounted Cash Flow Calculation for DB:TTEB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tieto Oyj is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:TTEB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.83%)
2019 129.13 Analyst x3 119.76
2020 126.27 Analyst x3 108.60
2021 107.67 Analyst x3 85.88
2022 137.00 Analyst x1 101.35
2023 131.00 Analyst x1 89.88
2024 126.98 Est @ -3.07% 80.80
2025 124.34 Est @ -2.08% 73.37
2026 122.62 Est @ -1.39% 67.10
2027 121.51 Est @ -0.9% 61.67
2028 120.82 Est @ -0.56% 56.87
Present value of next 10 years cash flows €845.30
DB:TTEB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €120.82 × (1 + 0.23%) ÷ (7.83% – 0.23%)
€1,593.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €1,593.81 ÷ (1 + 7.83%)10
€750.23
DB:TTEB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €845.30 + €750.23
€1,595.53
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €1,595.53 / 73.94
€21.58
DB:TTEB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:TTEB represents 0.993x of HLSE:TIETO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.993x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 21.58 x 0.993
€21.43
Value per share (EUR) From above. €21.43
Current discount Discount to share price of €25.54
= -1 x (€25.54 - €21.43) / €21.43
-19.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Tieto Oyj is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tieto Oyj's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tieto Oyj's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TTEB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €1.63
HLSE:TIETO Share Price ** HLSE (2019-05-24) in EUR €25.72
Germany IT Industry PE Ratio Median Figure of 20 Publicly-Listed IT Companies 26.27x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 20.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tieto Oyj.

DB:TTEB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= HLSE:TIETO Share Price ÷ EPS (both in EUR)

= 25.72 ÷ 1.63

15.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tieto Oyj is good value based on earnings compared to the DE IT industry average.
  • Tieto Oyj is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Tieto Oyj's expected growth come at a high price?
Raw Data
DB:TTEB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
4.8%per year
Germany IT Industry PEG Ratio Median Figure of 13 Publicly-Listed IT Companies 1.47x
Germany Market PEG Ratio Median Figure of 272 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

DB:TTEB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.77x ÷ 4.8%

3.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tieto Oyj is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Tieto Oyj's assets?
Raw Data
DB:TTEB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €5.44
HLSE:TIETO Share Price * HLSE (2019-05-24) in EUR €25.72
Germany IT Industry PB Ratio Median Figure of 25 Publicly-Listed IT Companies 3.93x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.76x
DB:TTEB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= HLSE:TIETO Share Price ÷ Book Value per Share (both in EUR)

= 25.72 ÷ 5.44

4.73x

* Primary Listing of Tieto Oyj.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tieto Oyj is overvalued based on assets compared to the DE IT industry average.
X
Value checks
We assess Tieto Oyj's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Tieto Oyj has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TTEB Future Performance

 How is Tieto Oyj expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tieto Oyj expected to grow at an attractive rate?
  • Tieto Oyj's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Tieto Oyj's earnings growth is positive but not above the Germany market average.
  • Tieto Oyj's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:TTEB Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TTEB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 4.8%
DB:TTEB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 2.6%
Germany IT Industry Earnings Growth Rate Market Cap Weighted Average 24.1%
Germany IT Industry Revenue Growth Rate Market Cap Weighted Average 15.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:TTEB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TTEB Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,787 245 1
2022-12-31 1,785 248 138 2
2021-12-31 1,735 197 131 5
2020-12-31 1,682 190 126 7
2019-12-31 1,638 183 117 7
DB:TTEB Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 1,602 156 120
2018-12-31 1,600 174 123
2018-09-30 1,587 159 124
2018-06-30 1,575 151 126
2018-03-31 1,557 133 122
2017-12-31 1,543 151 108
2017-09-30 1,537 135 105
2017-06-30 1,523 138 98
2017-03-31 1,518 130 102
2016-12-31 1,493 97 107
2016-09-30 1,485 114 107
2016-06-30 1,479 117 110

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tieto Oyj's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • Tieto Oyj's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:TTEB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Tieto Oyj Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TTEB Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 1.87 1.87 1.87 1.00
2021-12-31 1.76 1.82 1.71 4.00
2020-12-31 1.74 1.97 1.59 6.00
2019-12-31 1.50 1.67 1.32 6.00
DB:TTEB Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 1.63
2018-12-31 1.67
2018-09-30 1.68
2018-06-30 1.70
2018-03-31 1.65
2017-12-31 1.46
2017-09-30 1.43
2017-06-30 1.33
2017-03-31 1.38
2016-12-31 1.46
2016-09-30 1.46
2016-06-30 1.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Tieto Oyj is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Tieto Oyj's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tieto Oyj has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TTEB Past Performance

  How has Tieto Oyj performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tieto Oyj's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tieto Oyj has delivered over 20% year on year earnings growth in the past 5 years.
  • Tieto Oyj's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Tieto Oyj's 1-year earnings growth is negative, it can't be compared to the DE IT industry average.
Earnings and Revenue History
Tieto Oyj's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tieto Oyj Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TTEB Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,601.60 120.40 88.50
2018-12-31 1,599.50 123.20 88.50
2018-09-30 1,587.10 124.30 89.00
2018-06-30 1,575.00 125.60 89.00
2018-03-31 1,556.60 121.70 89.00
2017-12-31 1,543.40 107.70 89.00
2017-09-30 1,537.40 105.20 90.80
2017-06-30 1,522.90 98.20 90.80
2017-03-31 1,518.20 101.60 90.80
2016-12-31 1,492.60 107.20 90.80
2016-09-30 1,484.60 107.40 88.10
2016-06-30 1,479.20 109.70 88.10
2016-03-31 1,462.00 102.90 88.10
2015-12-31 1,460.10 90.50 88.10
2015-09-30 1,467.40 62.80 100.60
2015-06-30 1,478.50 20.40 100.60
2015-03-31 1,501.10 19.50 100.60
2014-12-31 1,522.50 35.00 100.60
2014-09-30 1,524.70 43.30 96.40
2014-06-30 1,539.60 74.50 96.40
2014-03-31 1,569.90 65.40 96.40
2013-12-31 1,606.80 62.20 96.40
2013-09-30 1,680.30 28.70 106.00
2013-06-30 1,742.70 33.00 106.00
2013-03-31 1,782.10 18.80 106.00
2012-12-31 1,825.30 29.40 106.00
2012-09-30 1,836.40 60.40 104.30
2012-06-30 1,827.40 60.20 104.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Tieto Oyj has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Tieto Oyj used its assets more efficiently than the DE IT industry average last year based on Return on Assets.
  • Tieto Oyj's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tieto Oyj's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tieto Oyj has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TTEB Health

 How is Tieto Oyj's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tieto Oyj's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tieto Oyj's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Tieto Oyj's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Tieto Oyj's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tieto Oyj Company Filings, last reported 1 month ago.

DB:TTEB Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 402.40 461.30 191.90
2018-12-31 482.50 304.10 164.60
2018-09-30 445.30 253.00 51.00
2018-06-30 409.50 279.30 67.40
2018-03-31 390.70 157.40 53.90
2017-12-31 476.20 237.10 78.20
2017-09-30 447.10 207.20 41.90
2017-06-30 413.20 220.40 51.30
2017-03-31 401.10 120.70 76.90
2016-12-31 488.10 172.40 56.70
2016-09-30 446.20 214.90 71.70
2016-06-30 417.70 204.00 93.20
2016-03-31 401.70 131.30 144.60
2015-12-31 482.90 178.00 156.20
2015-09-30 433.50 183.20 115.90
2015-06-30 418.20 127.70 112.20
2015-03-31 399.50 109.60 184.80
2014-12-31 471.20 112.60 160.60
2014-09-30 477.00 122.20 84.40
2014-06-30 489.80 141.70 99.60
2014-03-31 476.20 123.10 136.30
2013-12-31 514.20 137.60 114.10
2013-09-30 513.50 208.70 154.80
2013-06-30 483.90 213.00 132.30
2013-03-31 488.70 118.00 100.30
2012-12-31 524.50 120.80 86.70
2012-09-30 578.40 123.30 55.90
2012-06-30 545.40 175.60 91.10
  • Tieto Oyj's level of debt (114.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (25.9% vs 114.6% today).
  • Debt is well covered by operating cash flow (33.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35x coverage).
X
Financial health checks
We assess Tieto Oyj's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tieto Oyj has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TTEB Dividends

 What is Tieto Oyj's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.64%
Current annual income from Tieto Oyj dividends. Estimated to be 5.87% next year.
If you bought €2,000 of Tieto Oyj shares you are expected to receive €113 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Tieto Oyj's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.45%).
  • Tieto Oyj's dividend is above the markets top 25% of dividend payers in Germany (3.93%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:TTEB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Germany IT Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 0.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:TTEB Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.53 5.00
2020-12-31 1.52 7.00
2019-12-31 1.49 7.00
DB:TTEB Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-06 1.450 5.494
2018-02-06 1.400 5.154
2017-02-02 1.370 5.104
2016-02-24 1.350 5.387
2016-02-04 1.350 5.738
2015-02-05 1.000 4.394
2014-03-21 0.900 4.456
2013-02-06 0.830 5.111
2012-02-13 0.750 5.368
2011-02-10 0.700 6.193
2010-02-16 0.500 3.394

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Tieto Oyj has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Tieto Oyj only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Tieto Oyj's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Tieto Oyj's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tieto Oyj afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tieto Oyj has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TTEB Management

 What is the CEO of Tieto Oyj's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kimmo Alkio
COMPENSATION €2,055,836
AGE 55
TENURE AS CEO 7.5 years
CEO Bio

Mr. Kimmo Alkio, BBA, MBA has been the Chief Executive Officer and President of Tieto Oyj since November 1, 2011. Mr. Alkio has been the President and Chief Executive Officer of Tieto Corporation since July 2011. He served as a Vice President of Systems Integration and Networks at Nokia Corporation. He served as the President and Chief Executive Officer of F-secure Oyj from November 6, 2006 to October 31, 2011. Mr. Alkio served as the Chief Operating Officer of F-secure Oyj from June 2001 to April 1, 2005. He served as Vice President of Nokia Networks Corporation from 2005 to 2006. He served in Various management positions in F-Secure Corporation from 2000 to 2005 and Compaq Computer from 1995 to 2000. He also served as the Chief Executive Officer of F-Secure On-Line Solutions. He had been an Independent Director of Cargotec Czech Republic s.r.o since March 22, 2016 until March 2019. He served as Independent Director of Cargotec Corporation until March 2019. Mr. Alkio served as Director of the European Service Provider business unit at Compaq Computer Corporation. He held various management positions at Digital Equipment Corporation, in Finland and in the American and European headquarters. He served as Vice Chairman of Aldata Solution Oyj since September 2005. He served as a Director of Tieto Oyj (also known as TietoEnator AB) from 2009 to November 1, 2011 and Aldata Solution Oyj from April 14, 2005 to 2007. He served as a Member of Executive Council of F-secure Oyj until April 1, 2005. Mr. Alkio holds a BBA from the Texas A&M University and has studied an Executive MBA at the Helsinki University of Technology.

CEO Compensation
  • Kimmo's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Kimmo's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Tieto Oyj management team in years:

4.1
Average Tenure
51
Average Age
  • The tenure for the Tieto Oyj management team is about average.
Management Team

Kimmo Alkio

TITLE
CEO & President
COMPENSATION
€2M
AGE
55
TENURE
7.5 yrs

Tomi Hyryläinen

TITLE
Chief Financial Officer
TENURE
0.3 yrs

Markus Suomi

TITLE
Chief Technology Officer
AGE
47
TENURE
1.1 yrs

Tanja Lounevirta

TITLE
Head of Investor Relations

Kia Haring

TITLE
Head of Global Communications

Outi Karisto

TITLE
Head of Human Resource Public & Healthcare & Welfare

Katariina Kravi

TITLE
Executive Vice President of Human Resources
AGE
51
TENURE
7.1 yrs

Ari Järvelä

TITLE
Executive VP of Data-Driven Businesses and Head of Business Consulting & Implementation Service
AGE
49

Satu Kiiskinen

TITLE
Executive Vice President of Industrial & Consumer Services
AGE
53

Päivi Huuhtanen

TITLE
Head of Stakeholder Relations
Board of Directors Tenure

Average tenure and age of the Tieto Oyj board of directors in years:

2.2
Average Tenure
57
Average Age
  • The average tenure for the Tieto Oyj board of directors is less than 3 years, this suggests a new board.
Board of Directors

Kurt Jofs

TITLE
Chairman
AGE
60
TENURE
2.2 yrs

Harri-Pekka Kaukonen

TITLE
Deputy Chairman
AGE
55

Esa Koskinen

TITLE
Director
AGE
63
TENURE
9.2 yrs

Endre Rangnes

TITLE
Independent Director
AGE
59
TENURE
5.2 yrs

Johanna Lamminen

TITLE
Independent Non-Executive Director
AGE
52
TENURE
3.2 yrs

Robert Spinelli

TITLE
Director
AGE
61
TENURE
1.2 yrs

Timo Ahopelto

TITLE
Director
AGE
43
TENURE
2.3 yrs

Liselotte Engstam

TITLE
Director
AGE
58
TENURE
1.2 yrs

Niko Pakalén

TITLE
Director
AGE
32
TENURE
0.3 yrs

Tomas Franzén

TITLE
Director
AGE
56
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Tieto Oyj's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tieto Oyj has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TTEB News

Simply Wall St News

TTEB Company Info

Description

Tieto Oyj operates as a software and services company. The company operates through Technology Services and Modernization, Business Consulting and Implementation, Industry Solutions, and Product Development Services segments. The Technology Services and Modernization segment provides life cycle management services of customer application and IT infrastructure, including cloud and other emerging services, and security services, as well as software application development and management services for enterprises. The Business Consulting and Implementation segment offers IT architecture consulting, customer experience management, business process and change management, and transformation and system integration services. The Industry Solutions segment provides industry solutions for oil and gas, payments, and forest sectors. The Product Development Services segment offers product development services for telecom and communications infrastructure companies, consumer electronics, and semiconductor companies, as well as automotive industry. The company also serves financial services, healthcare and welfare, public sector, media, energy, pulp and paper, industrial services, and retail and consumer services industries. It operates in Finland, Sweden, Norway, Austria, the Baltic countries, Russia, and internationally. Tieto Oyj was founded in 1968 and is headquartered in Espoo, Finland.

Details
Name: Tieto Oyj
TTEB
Exchange: DB
Founded: 1968
€1,901,659,820
73,937,007
Website: http://www.tieto.com
Address: Tieto Oyj
Keilalahdentie 2-4,
Espoo,
Uusimaa, 02150,
Finland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
HLSE TIETO Common Stock OMX Nordic Exchange Helsinki FI EUR 05. Jan 1988
DB TTEB Common Stock Deutsche Boerse AG DE EUR 05. Jan 1988
LSE 0KG0 Common Stock London Stock Exchange GB EUR 05. Jan 1988
OM TIETOS Common Stock OMX Nordic Exchange Stockholm SE SEK 05. Jan 1988
Number of employees
Current staff
Staff numbers
15,275
Tieto Oyj employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 21:29
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/06
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.