Talenom Oyj (HLSE:TNOM) - Share price, News & Analysis

Q: What is the Fair Price of TNOM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TNOM (€9.38) is trading below our estimate of [[fair value]] (€15.04)

TNOM fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	3/6
Financial Health	4/6
Dividends	2/6

TNOM Stock Overview

Talenom Oyj provides accounting and software services for small and medium-sized enterprises in Finland, Sweden, and internationally.

Rewards

Trading at 37.6% below our estimate of its fair value

Earnings are forecast to grow 21.04% per year

Earnings grew by 15.6% over the past year

Risk Analysis

Has a high level of debt

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Talenom Oyj Competitors

Enento Group Oyj

HLSE:ENENTO

€537.2m

Etteplan Oyj

HLSE:ETTE

€324.3m

Dovre Group

HLSE:DOV1V

€60.4m

Solwers Oyj

HLSE:SOLWERS

€46.7m

Price History & Performance

Summary of all time highs, changes and price drops for Talenom Oyj
Historical stock prices
Current Share Price	€9.38
52 Week High	€14.90
52 Week Low	€7.75
Beta	1.27
1 Month Change	-14.73%
3 Month Change	-4.19%
1 Year Change	-32.81%
3 Year Change	63.13%
5 Year Change	363.21%
Change since IPO	730.09%

Recent News & Updates

Sep 13

Is Now The Time To Look At Buying Talenom Oyj (HEL:TNOM)?

While Talenom Oyj ( HEL:TNOM ) might not be the most widely known stock at the moment, it saw a decent share price...

Shareholder Returns

	TNOM	FI Professional Services	FI Market
7D	-9.6%	-5.9%	-5.8%
1Y	-32.8%	-33.0%	-21.6%

Return vs Industry: TNOM matched the Finnish Professional Services industry which returned -33% over the past year.

Return vs Market: TNOM underperformed the Finnish Market which returned -21.6% over the past year.

Price Volatility

Is TNOM's price volatile compared to industry and market?
TNOM volatility
TNOM Average Weekly Movement	6.3%
Professional Services Industry Average Movement	5.2%
Market Average Movement	5.1%
10% most volatile stocks in FI Market	8.2%
10% least volatile stocks in FI Market	3.4%

Stable Share Price: TNOM is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TNOM's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of Finnish stocks.

About the Company

Founded	Employees	CEO	Website
1972	1,220	Otto-Pekka Huhtala	https://www.talenom.fi

Talenom Oyj provides accounting and software services for small and medium-sized enterprises in Finland, Sweden, and internationally. It offers accounting services, such as sales invoicing, invoice payment, payroll accounting, financial performance monitoring, and HR services, as well as care services; and advisory services, including legal, taxation, and financial consultancy services. The company also provides Talenom Online, an electronic financial management web service; Talenom App, a mobile phone application for delivering accounting documents and travel invoices; and Talenom Link, a service that allows transfer of sales invoice information and employee’s working hour information to payroll.

Talenom Oyj Fundamentals Summary

How do Talenom Oyj's earnings and revenue compare to its market cap?
TNOM fundamental statistics
Market Cap	€419.38m
Earnings (TTM)	€12.18m
Revenue (TTM)	€93.31m

34.4x

P/E Ratio

4.5x

P/S Ratio

Is TNOM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TNOM income statement (TTM)
Revenue	€93.31m
Cost of Revenue	€53.32m
Gross Profit	€39.99m
Other Expenses	€27.81m
Earnings	€12.18m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 25, 2022

Earnings per share (EPS)	0.27
Gross Margin	42.86%
Net Profit Margin	13.06%
Debt/Equity Ratio	119.7%

How did TNOM perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

61%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is TNOM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TNOM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TNOM. This is calculated by dividing TNOM's market cap by their current preferred multiple.
What is TNOM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€419.38m

TNOM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5x
Enterprise Value/EBITDA	21.4x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does TNOM's PE Ratio compare to its peers?

TNOM PE Ratio vs Peers

The above table shows the PE ratio for TNOM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.8x
ENENTO Enento Group Oyj	23.1x	17.0%	€537.2m
ETTE Etteplan Oyj	15.3x	10.6%	€324.3m
DOV1V Dovre Group	12.3x	10.6%	€60.4m
SOLWERS Solwers Oyj	32.5x	14.1%	€46.7m
TNOM Talenom Oyj	34.4x	21.0%	€419.4m

Price-To-Earnings vs Peers: TNOM is expensive based on its Price-To-Earnings Ratio (34.4x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

How does TNOM's PE Ratio compare vs other companies in the European Professional Services Industry?

Price-To-Earnings vs Industry: TNOM is expensive based on its Price-To-Earnings Ratio (34.4x) compared to the European Professional Services industry average (17.8x)

Price to Earnings Ratio vs Fair Ratio

What is TNOM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TNOM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	34.4x
Fair PE Ratio	31.6x

Price-To-Earnings vs Fair Ratio: TNOM is expensive based on its Price-To-Earnings Ratio (34.4x) compared to the estimated Fair Price-To-Earnings Ratio (31.6x).

Share Price vs Fair Value

What is the Fair Price of TNOM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TNOM (€9.38) is trading below our estimate of fair value (€15.04)

Significantly Below Fair Value: TNOM is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

How is Talenom Oyj forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

21.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNOM's forecast earnings growth (21% per year) is above the savings rate (0.2%).

Earnings vs Market: TNOM's earnings (21% per year) are forecast to grow faster than the Finnish market (7.2% per year).

High Growth Earnings: TNOM's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TNOM's revenue (17.2% per year) is forecast to grow faster than the Finnish market (1.9% per year).

High Growth Revenue: TNOM's revenue (17.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TNOM's Return on Equity is forecast to be high in 3 years time (30.4%)

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Past Performance

How has Talenom Oyj performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

23.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TNOM has high quality earnings.

Growing Profit Margin: TNOM's current net profit margins (13.1%) are lower than last year (14.4%).

Past Earnings Growth Analysis

Earnings Trend: TNOM's earnings have grown significantly by 23% per year over the past 5 years.

Accelerating Growth: TNOM's earnings growth over the past year (15.6%) is below its 5-year average (23% per year).

Earnings vs Industry: TNOM earnings growth over the past year (15.6%) exceeded the Professional Services industry 12.1%.

Return on Equity

High ROE: Whilst TNOM's Return on Equity (24.25%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is Talenom Oyj's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TNOM's short term assets (€37.3M) exceed its short term liabilities (€21.8M).

Long Term Liabilities: TNOM's short term assets (€37.3M) do not cover its long term liabilities (€72.1M).

Debt to Equity History and Analysis

Debt Level: TNOM's net debt to equity ratio (68.6%) is considered high.

Reducing Debt: TNOM's debt to equity ratio has reduced from 175.5% to 119.7% over the past 5 years.

Debt Coverage: TNOM's debt is well covered by operating cash flow (47%).

Interest Coverage: TNOM's interest payments on its debt are well covered by EBIT (30.7x coverage).

Balance Sheet

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Dividend

What is Talenom Oyj current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TNOM's dividend (1.81%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.85%).

High Dividend: TNOM's dividend (1.81%) is low compared to the top 25% of dividend payers in the Finnish market (5.42%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TNOM has been paying a dividend for less than 10 years.

Growing Dividend: TNOM's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (61.2%), TNOM's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (64.9%), TNOM's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure

CEO

Otto-Pekka Huhtala (42 yo)

19.67yrs

Tenure

Mr. Otto-Pekka Huhtala, M.S. (Econ.) serves as Chief Executive Officer of Talenom Oyj since July 29, 2019 and serves as its Chairman of Executive Board and its Member of Executive Board since 2003. He had...

Leadership Team

Experienced Management: TNOM's management team is considered experienced (3.7 years average tenure).

Board Members

Experienced Board: TNOM's board of directors are considered experienced (6.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.

Top Shareholders

Top 25 shareholders own 70.93% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
18.35%	Harri Tahkola	8,205,863	€77.0m	0%	no data
10.77%	Markus Tahkola	4,815,824	€45.2m	0%	no data
4.96%	Allianz SE, Insurance Investments	2,217,449	€20.8m	0%	3.11%
4.89%	Danske Bank A/S, Asset Management Arm	2,184,565	€20.5m	0%	0.29%
3.68%	Evli Fund Management Company Ltd.	1,645,000	€15.4m	0%	3.68%
3.66%	Ilmarinen Pension Insurance Co. Ltd, Asset Management Arm	1,635,517	€15.3m	0%	0.15%
3.02%	Danske Capital AS	1,348,296	€12.6m	0%	0.1%
2.79%	Mikko Siuruainen	1,249,432	€11.7m	0%	no data
2.07%	Conficap Oy	925,000	€8.7m	0%	no data
1.75%	SEB Investment Management AB	782,486	€7.3m	0%	0.02%
1.74%	Föreningen Konstsamfundet r.f., Endowment Arm	780,000	€7.3m	0%	5.16%
1.71%	Joh. Berenberg, Gossler & Co. KG, Asset Management Arm	765,462	€7.2m	-7.01%	0.24%
1.52%	SPSW Capital GmbH	681,223	€6.4m	0%	1.51%
1.38%	CM-CIC Asset Management Société anonyme	618,499	€5.8m	0%	0.1%
1.22%	Wasatch Advisors Inc	546,670	€5.1m	14.3%	0.02%
1.15%	Aktia Fund Management Company Ltd	515,515	€4.8m	0%	13.87%
1.04%	SP-Rahastoyhtiö Oy	465,000	€4.4m	0%	0.28%
0.87%	Allianz Asset Management AG	390,924	€3.7m	0%	no data
0.87%	Otto-Pekka Huhtala	387,160	€3.6m	0%	no data
0.78%	BlackRock, Inc.	347,319	€3.3m	5.1%	no data
0.71%	Massachusetts Financial Services Company	315,368	€3.0m	22.08%	no data
0.61%	Nordea Investment Management AB	271,300	€2.5m	0%	no data
0.49%	Deka Investment GmbH	217,000	€2.0m	-18.73%	no data
0.47%	Fondbolaget Fondita AB	210,000	€2.0m	0%	0.32%
0.43%	Universal-Investment-Luxembourg SA	190,140	€1.8m	-26.62%	0.25%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
TNOM	HLSE (OMX Nordic Exchange Helsinki)	Yes	Share Capital	FI	EUR	Jun 2015
0RQI	LSE (London Stock Exchange)	Yes	Share Capital	GB	EUR	Jun 2015
TNOMH	BATS-CHIXE (BATS 'Chi-X Europe')	Yes	Share Capital	GB	EUR	Jun 2015

Data	Last Updated (UTC time)
Company Analysis	2022/09/24 00:00
End of Day Share Price	2022/09/23 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31