HLSE:DIGIA

Stock Analysis Report

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Executive Summary

Digia 0Oyj provides software and services for organizations to develop services, manage business, and utilize data in Finland and internationally.


Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

DIGIA

0.6%

FI IT

2.4%

FI Market


1 Year Return

67.9%

DIGIA

17.5%

FI IT

6.6%

FI Market

Return vs Industry: DIGIA exceeded the Finnish IT industry which returned 17.5% over the past year.

Return vs Market: DIGIA exceeded the Finnish Market which returned 6.6% over the past year.


Shareholder returns

DIGIAIndustryMarket
7 Day-0.7%0.6%2.4%
30 Day13.6%3.6%6.3%
90 Day20.8%18.5%16.3%
1 Year72.9%67.9%19.1%17.5%15.7%6.6%
3 Year141.4%124.5%13.2%5.5%20.1%0.3%
5 Year197.2%15.4%68.9%53.0%54.9%22.4%

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?

19.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DIGIA (€5.86) is trading above our estimate of fair value (€5.06)

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


Price To Earnings Ratio

PE vs Industry: DIGIA is good value based on its PE Ratio (19.1x) compared to the XE IT industry average (22.3x).

PE vs Market: DIGIA is good value based on its PE Ratio (19.1x) compared to the Finnish market (21.6x).


Price to Earnings Growth Ratio

PEG Ratio: DIGIA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: DIGIA is good value based on its PB Ratio (2.8x) compared to the FI IT industry average (3.8x).


Next Steps

Future Growth

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

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DIGIA's forecast earnings growth (10.8% per year) is above the savings rate (0.4%).

Earnings vs Market: DIGIA's earnings (10.8% per year) are forecast to grow slower than the Finnish market (14.1% per year).

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

Revenue vs Market: DIGIA's revenue (3% per year) is forecast to grow slower than the Finnish market (5.2% per year).

High Growth Revenue: DIGIA's revenue (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 (14.8%).


Next Steps

  • Explore growth companies in the Software industry.

Past Performance

How has Digia Oyj performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DIGIA has high quality earnings.

Growing Profit Margin: DIGIA's current net profit margins (5.9%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: DIGIA's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: DIGIA's earnings growth over the past year (41.2%) exceeds its 5-year average (12.1% per year).

Earnings vs Industry: DIGIA earnings growth over the past year (41.2%) exceeded the IT industry 5.9%.


Return on Equity

High ROE: DIGIA's Return on Equity (15%) is considered low.


Next Steps

Financial Health

How is Digia Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: DIGIA's short term assets (€48.8M) do not cover its short term liabilities (€51.4M).

Long Term Liabilities: DIGIA's short term assets (€48.8M) exceed its long term liabilities (€17.8M).


Debt to Equity History and Analysis

Debt Level: DIGIA's debt to equity ratio (34.7%) is considered satisfactory.

Reducing Debt: DIGIA's debt to equity ratio has reduced from 36.6% to 34.7% over the past 5 years.

Debt Coverage: DIGIA's debt is well covered by operating cash flow (114.4%).

Interest Coverage: DIGIA's interest payments on its debt are well covered by EBIT (29x coverage).


Balance Sheet


Next Steps

Dividend

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

1.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DIGIA's dividend (1.71%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.26%).

High Dividend: DIGIA's dividend (1.71%) is low compared to the top 25% of dividend payers in the Finnish market (4.85%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.5%), 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 (40.7% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Timo Levoranta (55 yo)

4.25yrs

Tenure

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 ($USD0.00) is below average for companies of similar size in the Finnish market ($USD543.60K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timo Levoranta
President & CEO4.25yrsno data0.18%
€ 286.5k
Kristiina Simola
Chief Financial Officer3yrsno datano data
Juhana Juppo
Chief Technology Officer3.92yrsno datano data
Mika Kervinen
General Counsel4.25yrsno datano data
Ari Rikkilä
Senior Vice President of Sales & Marketing3.25yrsno datano data
Pia Huhdanmäki
Senior Vice President of HR & Culture2.5yrsno datano data
Teemu Virtanen
Senior Vice President of Business Connect3yrsno datano data
Tuomo Niemi
Senior Vice President of Financial Platforms3.17yrsno datano data
Harri Vepsäläinen
Senior Vice President of Digital Services2.33yrsno datano data
Jukka Kotro
Senior Vice President of Business Platforms2yrsno datano data

3.1yrs

Average Tenure

52.5yo

Average Age

Experienced Management: DIGIA's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Seppo Ruotsalainen
Independent Vice Chairmanno datano data0.023%
€ 35.4k
Martti Ala-Härkönen
Independent Director4.42yrsno data0.075%
€ 117.9k
Robert Ingman
Chairman of the Board2.58yrsno data0.098%
€ 153.2k
Päivi Hokkanen
Independent Director8.42yrsno data0.041%
€ 63.8k
Outi Taivainen
Independent Director2.42yrsno data0.0011%
€ 1.7k
Santtu Elsinen
Independent Director2.42yrsno datano data

2.6yrs

Average Tenure

57yo

Average Age

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


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 not been meaningfully diluted in the past year.


Top Shareholders

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: €156.581m
  • Shares outstanding: 26.72m
  • 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 0Oyj provides software and services for organizations to develop services, manage business, and utilize data in Finland and internationally. The company offers service design and business consulting ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 10:11
End of Day Share Price2020/08/13 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.