HLSE:BITTI

Stock Analysis Report

Executive Summary

Bittium Oyj develops communications and connectivity solutions worldwide.

Rewards

PE ratio (40.1x) is below the Software industry average (57.1x)

Earnings are forecast to grow 33.8% per year

Became profitable this year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.7%

BITTI

-2.1%

FI Software

-3.0%

FI Market


1 Year Return

-10.6%

BITTI

19.8%

FI Software

8.2%

FI Market

Return vs Industry: BITTI underperformed the Finnish Software industry which returned 26.3% over the past year.

Return vs Market: BITTI underperformed the Finnish Market which returned 12.5% over the past year.


Shareholder returns

BITTIIndustryMarket
7 Day-7.7%-2.1%-3.0%
30 Day11.3%8.2%1.1%
90 Day12.2%22.3%4.5%
1 Year-8.7%-10.6%20.6%19.8%13.1%8.2%
3 Year24.2%10.0%14.6%10.2%31.1%15.4%
5 Year95.2%63.5%6.4%-0.3%49.3%20.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BITTI (€7.1) is trading above our estimate of fair value (€6.5)

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


Price To Earnings Ratio

PE vs Industry: BITTI is good value based on its PE Ratio (40.1x) compared to the Software industry average (57.1x).

PE vs Market: BITTI is poor value based on its PE Ratio (40.1x) compared to the Finnish market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: BITTI is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: BITTI is good value based on its PB Ratio (2.4x) compared to the FI Software industry average (5.9x).


Next Steps

Future Growth

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

33.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BITTI's forecast earnings growth (33.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: BITTI's earnings (33.8% per year) are forecast to grow faster than the Finnish market (14.6% per year).

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

Revenue vs Market: BITTI's revenue (23.7% per year) is forecast to grow faster than the Finnish market (1.9% per year).

High Growth Revenue: BITTI's revenue (23.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BITTI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Bittium Oyj performed over the past 5 years?

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BITTI has high quality earnings.

Growing Profit Margin: BITTI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BITTI's earnings have declined by -14.1% per year over the past 5 years.

Accelerating Growth: BITTI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BITTI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (7.3%).


Return on Equity

High ROE: BITTI's Return on Equity (6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bittium Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: BITTI's short term assets (€75.7M) exceed its short term liabilities (€21.8M).

Long Term Liabilities: BITTI's short term assets (€75.7M) exceed its long term liabilities (€22.3M).


Debt to Equity History and Analysis

Debt Level: BITTI's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: BITTI's debt to equity ratio has increased from 12% to 19.9% over the past 5 years.

Debt Coverage: BITTI's debt is well covered by operating cash flow (41.3%).

Interest Coverage: BITTI's interest payments on its debt are well covered by EBIT (18x coverage).


Balance Sheet

Inventory Level: BITTI has a high level of physical assets or inventory.

Debt Coverage by Assets: BITTI's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

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

2.23%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.2%markettop25%4.8%industryaverage1.2%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: BITTI's dividend (2.08%) is higher than the bottom 25% of dividend payers in the Finnish market (2.06%).

High Dividend: BITTI's dividend (2.11%) is low compared to the top 25% of dividend payers in the Finnish market (4.68%).


Stability and Growth of Payments

Stable Dividend: BITTI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BITTI's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.2%), BITTI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BITTI's dividends in 3 years are forecast to be well covered by earnings (47.3% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Hannu Huttunen (53yo)

4.4yrs

Tenure

€221,148

Compensation

Mr. Hannu Huttunen has been the Chief Executive Officer of Bittium Oyj since August 7, 2015. Mr. Huttunen served as Managing Director and President of Wireless Business Segment at Bittium Technologies Oy s ...


CEO Compensation Analysis

Compensation vs Market: Hannu's total compensation ($USD246.02K) is below average for companies of similar size in the Finnish market ($USD581.82K).

Compensation vs Earnings: Hannu's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

53yo

Average Age

Experienced Management: BITTI's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

65yo

Average Age

Experienced Board: BITTI's board of directors are considered experienced (3 years average tenure).


Insider Trading

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 not been meaningfully diluted in the past year.


Management Team

  • Pekka Kunnari (52yo)

    Chief Financial Officer

    • Tenure: 4.2yrs
  • Jorma Halonen (71yo)

    Member of Management Board

    • Compensation: €20.00k
  • Juha Hulkko (65yo)

    Founder & Member of Executive Board

    • Compensation: €20.00k
  • Seppo Laine (66yo)

    Member of Executive Board and External Advisor of the Board

    • Compensation: €37.00k
  • Arto Pietilä (61yo)

    Senior Vice President of Medical Technologies Product & Service Area

    • Tenure: 16yrs
  • Hannu Huttunen (53yo)

    Chief Executive Officer

    • Tenure: 4.4yrs
    • Compensation: €221.15k
  • Karoliina Fyrstén (42yo)

    Head of Product & Services Areas and Director of Corporate Communications & Marketing

    • Tenure: 4.4yrs
  • Kari Jokela (50yo)

    Chief Legal Officer & Member of Corporate Management Board

    • Tenure: 5.3yrs
  • Andreas Heim

    Executive Vice President of Operations

    • Tenure: 3.6yrs
  • Sammy Loitto (39yo)

    Senior Vice President of Sales

    • Tenure: 1.3yrs

Board Members

  • Seppo Mäkinen (67yo)

    Member of the Board

    • Tenure: 5yrs
    • Compensation: €24.13k
  • Pekka Kemppainen (65yo)

    Independent Director

    • Tenure: 0.8yrs
  • Seppo Laine (66yo)

    Member of Executive Board and External Advisor of the Board

    • Compensation: €37.00k
  • Erkki Veikkolainen (67yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: €42.22k
  • Riitta Tiuraniemi (57yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: €21.73k
  • Juha Putkiranta (62yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: €26.53k
  • Petri Toljamo (45yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: €20.13k

Company Information

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


Key Information

  • Name: Bittium Oyj
  • Ticker: BITTI
  • Exchange: HLSE
  • Founded: 1985
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: €249.495m
  • Shares outstanding: 35.69m
  • Website: https://www.bittium.com

Number of Employees


Location

  • Bittium Oyj
  • Ritaharjuntie 1
  • Oulu
  • Northern Ostrobothnia
  • 90590
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BITTIHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURSep 1998
0JG5LSE (London Stock Exchange)YesOrdinary SharesGBEURSep 1998
JOTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1998
BITTIHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURSep 1998

Biography

Bittium Oyj develops communications and connectivity solutions worldwide. The company offers Bittium Tough Mobile, Bittium Secure Suite, Bittium Tough Mobile HybridX, Bittium Specialized Device Platform, Bittium SafeMove, Bittium Tactical Wireless IP Network, Bittium Tactical LTE Access Point, Bittium Tough Comnode, and The Bittium Tough SDR product family, as well as Bittium Tough VoIP, Bittium Tough VoIP Field Phone, Terminal, Service, and Softphone in the areas of defense and security. It also provides professional design and technology expertise services for wireless devices, network infrastructure, and Internet of Things solutions. In addition, the company provides medical technology in biosignal measuring for cardiology, neurology, rehabilitation, occupational health, and sports medicine comprising Faros, Cardiac rehabilitation system, NeurOne, BrainStatus, and Cardiac Explorer. The company was formerly known as Elektrobit Oyj and changed its name to Bittium Oyj in July 2015. Bittium Oyj was founded in 1985 and is headquartered in Oulu, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/27 20:47
End of Day Share Price2020/01/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.