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

TNOM fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	2/6
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 34% below our estimate of its fair value

Earnings are forecast to grow 21.63% per year

Earnings have grown 24% per year over the past 5 years

Risk Analysis

Has a high level of debt

Shareholders have been diluted in the past year

Talenom Oyj Competitors

Wulff-Yhtiöt Oyj

HLSE:WUF1V

€30.3m

Price History & Performance

Summary of all time highs, changes and price drops for Talenom Oyj
Historical stock prices
Current Share Price	€10.36
52 Week High	€17.04
52 Week Low	€7.75
Beta	1.21
1 Month Change	-0.39%
3 Month Change	10.68%
1 Year Change	-25.15%
3 Year Change	84.45%
5 Year Change	462.53%
Change since IPO	816.82%

Shareholder Returns

	TNOM	FI Professional Services	FI Market
7D	2.0%	0.1%	-0.2%
1Y	-25.1%	-22.0%	-13.4%

Return vs Industry: TNOM underperformed the Finnish Professional Services industry which returned -22% over the past year.

Return vs Market: TNOM underperformed the Finnish Market which returned -13.4% over the past year.

Price Volatility

Is TNOM's price volatile compared to industry and market?
TNOM volatility
TNOM Average Weekly Movement	5.7%
Professional Services Industry Average Movement	6.0%
Market Average Movement	6.1%
10% most volatile stocks in FI Market	8.9%
10% least volatile stocks in FI Market	4.4%

Stable Share Price: TNOM is not significantly more volatile than the rest 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.

About the Company

Founded	Employees	CEO	Website
1972	1,012	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	€460.71m
Earnings (TTM)	€11.19m
Revenue (TTM)	€87.71m

41.2x

P/E Ratio

5.3x

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	€87.71m
Cost of Revenue	€50.64m
Gross Profit	€37.07m
Other Expenses	€25.87m
Earnings	€11.19m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 02, 2022

Earnings per share (EPS)	0.25
Gross Margin	42.26%
Net Profit Margin	12.76%
Debt/Equity Ratio	114.3%

How did TNOM perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

66%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

34.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TNOM (€10.36) is trading below our estimate of fair value (€15.71)

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

Price To Earnings Ratio

PE vs Industry: TNOM is poor value based on its PE Ratio (41.2x) compared to the Finnish Professional Services industry average (24x).

PE vs Market: TNOM is poor value based on its PE Ratio (41.2x) compared to the Finnish market (17.3x).

Price to Earnings Growth Ratio

PEG Ratio: TNOM is poor value based on its PEG Ratio (1.9x)

Price to Book Ratio

PB vs Industry: TNOM is overvalued based on its PB Ratio (10.5x) compared to the FI Professional Services industry average (2.1x).

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

21.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNOM's forecast earnings growth (21.6% per year) is above the savings rate (0.2%).

Earnings vs Market: TNOM's earnings (21.6% per year) are forecast to grow faster than the Finnish market (8.7% per year).

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

Revenue vs Market: TNOM's revenue (14.3% per year) is forecast to grow faster than the Finnish market (2.9% per year).

High Growth Revenue: TNOM's revenue (14.3% 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 (30.2%)

Past Performance

How has Talenom Oyj performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

24.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TNOM has high quality earnings.

Growing Profit Margin: TNOM's current net profit margins (12.8%) are lower than last year (14.9%).

Past Earnings Growth Analysis

Earnings Trend: TNOM's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: TNOM's earnings growth over the past year (10.6%) is below its 5-year average (24% per year).

Earnings vs Industry: TNOM earnings growth over the past year (10.6%) underperformed the Professional Services industry 11.8%.

Return on Equity

High ROE: Whilst TNOM's Return on Equity (25.51%) is high, this metric is skewed due to their high level of debt.

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 (€25.1M) exceed its short term liabilities (€22.3M).

Long Term Liabilities: TNOM's short term assets (€25.1M) do not cover its long term liabilities (€61.1M).

Debt to Equity History and Analysis

Debt Level: TNOM's net debt to equity ratio (84.9%) is considered high.

Reducing Debt: TNOM's debt to equity ratio has reduced from 175.7% to 114.3% over the past 5 years.

Debt Coverage: TNOM's debt is well covered by operating cash flow (51%).

Interest Coverage: TNOM's interest payments on its debt are well covered by EBIT (20.6x coverage).

Balance Sheet

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
Future Dividend Coverage

1.64%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TNOM's dividend (1.64%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.39%).

High Dividend: TNOM's dividend (1.64%) is low compared to the top 25% of dividend payers in the Finnish market (4.69%).

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 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (66.2%), TNOM's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (83.3%), 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?

3.3yrs

Average management tenure

CEO

Otto-Pekka Huhtala (41 yo)

19.33yrs

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 (3.3 years average tenure).

Board Members

Experienced Board: TNOM's board of directors are considered experienced (5.8 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 2.1%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31