HLSE:DIGIA

Stock Analysis Report

Executive Summary

Digia Oyj provides software and services for organizations to develop services, manage business, and utilize data in Finland and Sweden.

Snowflake

Fundamentals

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

6.1%

DIGIA

2.8%

FI IT

2.1%

FI Market


1 Year Return

31.0%

DIGIA

0.1%

FI IT

5.9%

FI Market

Return vs Industry: DIGIA exceeded the Finnish IT industry which returned 0.1% over the past year.

Return vs Market: DIGIA exceeded the Finnish Market which returned 5.9% over the past year.


Shareholder returns

DIGIAIndustryMarket
7 Day6.1%2.8%2.1%
30 Day-4.2%4.3%1.2%
90 Day11.5%6.1%1.7%
1 Year34.4%31.0%4.9%0.1%10.9%5.9%
3 Year22.3%8.6%14.6%-0.9%29.3%13.9%
5 Year201.8%19.1%156.7%129.0%62.8%31.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DIGIA (€3.68) is trading below our estimate of fair value (€5.12)

Significantly Below Fair Value: DIGIA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DIGIA is good value based on its PE Ratio (17.4x) compared to the IT industry average (18.7x).

PE vs Market: DIGIA is good value based on its PE Ratio (17.4x) compared to the Finnish market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: DIGIA is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: DIGIA is good value based on its PB Ratio (2x) compared to the FI IT industry average (4x).


Next Steps

Future Growth

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

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIGIA's forecast earnings growth (16.4% per year) is above the savings rate (0.5%).

Earnings vs Market: DIGIA's earnings (16.4% per year) are forecast to grow faster than the Finnish market (13.5% per year).

High Growth Earnings: DIGIA's earnings are forecast to grow, but not significantly.

Revenue vs Market: DIGIA's revenue (5.3% per year) is forecast to grow faster than the Finnish market (2% per year).

High Growth Revenue: DIGIA's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DIGIA's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has Digia Oyj performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DIGIA has become profitable over the past 5 years, growing earnings by 20.6% per year.

Accelerating Growth: DIGIA's earnings growth over the past year (123.1%) exceeds its 5-year average (20.6% per year).

Earnings vs Industry: DIGIA earnings growth over the past year (123.1%) exceeded the IT industry 13.2%.


Return on Equity

High ROE: DIGIA's Return on Equity (11.8%) is considered low.


Return on Assets

ROA vs Industry: DIGIA has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: DIGIA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Digia Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: DIGIA's short term assets (€33.8M) do not cover its short term liabilities (€35.5M)

Long Term Liabilities: DIGIA's short term assets (33.8M) exceeds its long term liabilities (15.3M)


Debt to Equity History and Analysis

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

Reducing Debt: DIGIA's debt to equity ratio has reduced from 47.6% to 19.9% over the past 5 years.

Debt Coverage: DIGIA's debt is well covered by operating cash flow (133.2%).

Interest Coverage: DIGIA's interest payments on its debt are well covered by EBIT (32.7x coverage).


Balance Sheet

Inventory Level: DIGIA has a low level of unsold assets or inventory.

Debt Coverage by Assets: DIGIA's debt is covered by short term assets (assets are 3.418960x debt).


Next Steps

Dividend

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

1.90%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.3%markettop25%5.0%industryaverage1.8%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DIGIA's dividend (1.9%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.34%).

High Dividend: DIGIA's dividend (1.9%) is low compared to the top 25% of dividend payers in the Finnish market (5.01%).

Stable Dividend: DIGIA's dividend payments have been volatile in the past 10 years.

Growing Dividend: DIGIA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.1%), DIGIA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DIGIA's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Timo Levoranta (54yo)

3.4yrs

Tenure

0

Mr. Timo Levoranta has been Chief Executive Officer and President at Digia Oyj since May 1, 2016 and served as its Executive Vice President of Domestic Business from 2016 to May 1, 2016. Mr. Levoranta serv ...


CEO Compensation Analysis

Compensation vs. Market: Timo's total compensation ($USD0.00) is too low to compare against companies of similar size in the Finnish market ($USD0.00).

Compensation vs Earnings: Insufficient data to compare Timo's compensation with company performance.


Management Age and Tenure

2.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: DIGIA's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

56yo

Average Age

Experienced Board: DIGIA's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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


Management Team

  • Timo Levoranta (54yo)

    President & CEO

    • Tenure: 3.4yrs
  • Pia Huhdanmäki (50yo)

    HR Director

    • Tenure: 1.7yrs
  • Kristiina Simola (54yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
  • Mika Kervinen (51yo)

    General Counsel

    • Tenure: 3.4yrs
  • Teemu Virtanen (41yo)

    Senior Vice President of Business Connect

    • Tenure: 2.2yrs
  • Juhana Juppo (48yo)

    CTO & Senior VP of Horizontal Services

    • Tenure: 3.1yrs
  • Ari Rikkilä (52yo)

    Senior Vice President of Sales & Marketing

    • Tenure: 2.4yrs
  • Tuomo Niemi (57yo)

    Senior Vice President of Financial Sector

    • Tenure: 2.3yrs
  • Harri Vepsäläinen (45yo)

    Senior Vice President of Digital Services

    • Tenure: 1.5yrs
  • Jukka Kotro (58yo)

    Senior Vice President of Business Platforms

    • Tenure: 1.2yrs

Board Members

  • Seppo Ruotsalainen (65yo)

    Vice Chairman

    • Tenure: 0yrs
  • Martti Ala-Härkönen (54yo)

    Director

    • Tenure: 3.6yrs
  • Robert Ingman (58yo)

    Chairman

    • Tenure: 0yrs
  • Päivi Hokkanen (60yo)

    Director

    • Tenure: 7.6yrs
  • Outi Taivainen (51yo)

    Director

    • Tenure: 1.6yrs
  • Santtu Elsinen (47yo)

    Director

    • Tenure: 1.6yrs

Company Information

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


Key Information

  • Name: Digia Oyj
  • Ticker: DIGIA
  • Exchange: HLSE
  • Founded:
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €97.895m
  • Shares outstanding: 26.60m
  • Website: https://www.digia.com

Number of Employees


Location

  • Digia Oyj
  • Atomitie 2 A
  • Helsinki
  • Uusimaa
  • 370
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIGIAHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURSep 1999
0IKKLSE (London Stock Exchange)YesShare CapitalGBEURSep 1999

Biography

Digia Oyj provides software and services for organizations to develop services, manage business, and utilize data in Finland and Sweden. The company offers electronic services, which include user-designed  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:45
End of Day Share Price2019/10/21 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.