HLSE:TNOM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

How has Talenom Oyj's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TNOM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.0%

TNOM

-0.7%

FI Professional Services

1.2%

FI Market


1 Year Return

55.6%

TNOM

22.1%

FI Professional Services

2.8%

FI Market

Return vs Industry: TNOM exceeded the Finnish Professional Services industry which returned 22.1% over the past year.

Return vs Market: TNOM exceeded the Finnish Market which returned 2.8% over the past year.


Shareholder returns

TNOMIndustryMarket
7 Day-9.0%-0.7%1.2%
30 Day2.3%1.1%5.1%
90 Day26.3%16.5%12.2%
1 Year58.7%55.6%25.3%22.1%11.9%2.8%
3 Year386.9%355.1%82.2%65.9%16.6%-2.5%
5 Year835.6%742.8%222.7%163.7%44.4%14.0%

Price Volatility Vs. Market

How volatile is Talenom Oyj's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Talenom Oyj undervalued compared to its fair value and its price relative to the market?

46.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TNOM (€8.92) is trading above our estimate of fair value (€5.21)

Significantly Below Fair Value: TNOM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TNOM is poor value based on its PE Ratio (46x) compared to the FI Professional Services industry average (21.7x).

PE vs Market: TNOM is poor value based on its PE Ratio (46x) compared to the Finnish market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: TNOM is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: TNOM is overvalued based on its PB Ratio (14.1x) compared to the FI Professional Services industry average (2.8x).


Next Steps

Future Growth

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

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNOM's forecast earnings growth (21.1% per year) is above the savings rate (0.4%).

Earnings vs Market: TNOM's earnings (21.1% per year) are forecast to grow faster than the Finnish market (13.3% per year).

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

Revenue vs Market: TNOM's revenue (14.8% per year) is forecast to grow faster than the Finnish market (5.1% per year).

High Growth Revenue: TNOM's revenue (14.8% 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 (36.5%)


Next Steps

  • Explore growth companies in the Commercial Services industry.

Past Performance

How has Talenom Oyj performed over the past 5 years?

50.4%

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 (13.9%).


Past Earnings Growth Analysis

Earnings Trend: TNOM has become profitable over the past 5 years, growing earnings by 50.4% per year.

Accelerating Growth: TNOM's earnings growth over the past year (10.4%) is below its 5-year average (50.4% per year).

Earnings vs Industry: TNOM earnings growth over the past year (10.4%) exceeded the Professional Services industry 6%.


Return on Equity

High ROE: Whilst TNOM's Return on Equity (30.53%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Talenom Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: TNOM's short term assets (€16.1M) exceed its short term liabilities (€14.3M).

Long Term Liabilities: TNOM's short term assets (€16.1M) do not cover its long term liabilities (€37.0M).


Debt to Equity History and Analysis

Debt Level: TNOM's debt to equity ratio (112.4%) is considered high.

Reducing Debt: TNOM's debt to equity ratio has reduced from 145.2% to 112.4% over the past 5 years.

Debt Coverage: TNOM's debt is well covered by operating cash flow (67.6%).

Interest Coverage: TNOM's interest payments on its debt are well covered by EBIT (13.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TNOM's dividend (1.4%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.34%).

High Dividend: TNOM's dividend (1.4%) is low compared to the top 25% of dividend payers in the Finnish market (4.86%).


Stability and Growth of Payments

Stable Dividend: TNOM is not paying a notable dividend for the Finnish market, therefore no need to check if payments are stable.

Growing Dividend: TNOM is not paying a notable dividend for the Finnish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TNOM is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TNOM's dividend in 3 years as they are not forecast to pay a notable one for the Finnish market.


Next Steps

Management

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

4.1yrs

Average board tenure


CEO

Otto-Pekka Huhtala (40 yo)

1.08yrs

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. He had been Deputy Chief Executive Officer of Taleno ...


Board Members

NamePositionTenureCompensationOwnership
Anne Riekki
Independent Director3.58yrsno datano data
Harri Tahkola
Chairman3.42yrsno data20.33%
€ 79.6m
Mikko Siuruainen
Director4.58yrsno data1.62%
€ 6.3m
Olli Hyyppa
Independent Director5.58yrsno data0.14%
€ 547.2k
Johannes Karjula
Independent Directorno datano datano data

4.1yrs

Average Tenure

48yo

Average Age

Experienced Board: TNOM's board of directors are considered experienced (4.1 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 2.6%.


Top Shareholders

Company Information

Talenom Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Talenom Oyj
  • Ticker: TNOM
  • Exchange: HLSE
  • Founded: 1972
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: €391.362m
  • Shares outstanding: 42.91m
  • Website: https://www.talenom.fi

Number of Employees


Location

  • Talenom Oyj
  • Yrttipellontie 2
  • Oulu
  • Northern Ostrobothnia
  • 90230
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNOMHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURJun 2015
0RQILSE (London Stock Exchange)YesShare CapitalGBEURJun 2015
TNOMHBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURJun 2015

Biography

Talenom Oyj provides accounting and software services for small and medium-sized enterprises in Finland. It offers accounting services, such as bookkeeping, financial performance monitoring, sales invoicin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 20:51
End of Day Share Price2020/08/05 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.