HLSE:EFECTE

Stock Analysis Report

Executive Summary

Efecte Oy, a software company, provides cloud-based software as a service and identity management solutions in Finland, Sweden, Denmark, and Germany.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.

Risks

  • Efecte Oy is covered by less than 3 analysts.

Share Price & News

How has Efecte Oy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

EFECTE

1.7%

FI Software

-0.2%

FI Market


1 Year Return

-16.4%

EFECTE

4.3%

FI Software

-2.6%

FI Market

EFECTE underperformed the Software industry which returned 3.2% over the past year.

EFECTE underperformed the Market in Finland which returned -2.9% over the past year.


Share holder returns

EFECTEIndustryMarket
7 Day-3.8%1.7%-0.2%
30 Day-8.0%10.3%3.9%
90 Day-7.1%14.4%1.8%
1 Year-16.4%-16.4%4.9%4.3%1.8%-2.6%
3 Yearn/a-10.9%-13.9%28.1%13.2%
5 Yearn/a-1.6%-7.7%57.2%27.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Efecte Oy undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Efecte Oy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Efecte Oy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Efecte Oy is loss making, we can't compare its value to the FI Software industry average.

Efecte Oy is loss making, we can't compare the value of its earnings to the Finland market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Efecte Oy, we can't assess if its growth is good value.


Price Based on Value of Assets

Efecte Oy is overvalued based on assets compared to the FI Software industry average.


Next Steps

Future Growth

How is Efecte Oy expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

77.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Efecte Oy's revenue is expected to grow by 16.4% yearly, however this is not considered high growth (20% yearly).

Efecte Oy's earnings are expected to grow significantly at over 20% yearly.

Efecte Oy's revenue growth is expected to exceed the Finland market average.

Efecte Oy's earnings growth is expected to exceed the Finland market average.

Efecte Oy's earnings growth is expected to exceed the low risk savings rate of 0.5%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Efecte Oy will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Efecte Oy performed over the past 5 years?

-41.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Efecte Oy does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Efecte Oy's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Efecte Oy's 1-year growth to the Europe Software industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Efecte Oy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Efecte Oy has efficiently used its assets last year compared to the FI Software industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Efecte Oy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Efecte Oy's financial position?


Financial Position Analysis

Efecte Oy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Efecte Oy's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Efecte Oy has no debt.

Efecte Oy currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Low level of unsold assets.

Efecte Oy has no debt, it does not need to be covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Efecte Oy has sufficient cash runway for more than 3 years based on current free cash flow.

Unable to confirm if Efecte Oy has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

What is Efecte Oy's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Efecte Oy's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Efecte Oy's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Efecte Oy has not reported any payouts.

Unable to verify if Efecte Oy's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Efecte Oy has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Efecte Oy's dividends in 3 years as they are not expected to pay a notable one for Finland.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Niilo Fredrikson (39yo)

1yrs

Tenure

0

Mr. Niilo Fredrikson, M.Sc. (Tech.) and M.Sc. (Econ.) has been Chief Executive Officer at Efecte Oy since September 24, 2018. He serves as an Executive Vice President of Intelligent Data at Comptel Oyj and ...


Management Age and Tenure

1.0yrs

Average Tenure

43yo

Average Age

The average tenure for the Efecte Oy management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.7yrs

Average Tenure

57yo

Average Age

The tenure for the Efecte Oy board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Timo Hyvönen (54yo)

    Vice President of Professional Services & Operations

    • Tenure: 3.7yrs
  • Niilo Fredrikson (39yo)

    Chief Executive Officer

    • Tenure: 1yrs
  • Sakari Suhonen (42yo)

    Chief Executive Officer (Leave of Absence)

    • Tenure: 0yrs
  • Niina Hovi (43yo)

    Vice President of Culture & HR

    • Tenure: 2.7yrs
  • Peter Schneider (47yo)

    Chief Product Officer

    • Tenure: 0.7yrs
  • Henriikka Åkerman (44yo)

    Chief Marketing & Strategy Officer

    • Tenure: 2.7yrs
  • Topias Marttila (38yo)

    Chief Technology Officer

    • Tenure: 0.8yrs
  • Taru Mäkinen

    Interim CFO & Controller

    • Tenure: 0.3yrs

Board Members

  • Pertti Ervi (62yo)

    Chairman of the Board

    • Tenure: 8.7yrs
  • Hannu Vaajoensuu (58yo)

    Director

    • Tenure: 4.7yrs
  • Kari Mäkelä (57yo)

    Member of the Board

    • Tenure: 7.7yrs
  • Turkka Keskinen (55yo)

    Member of the Board

    • Tenure: 4.7yrs
  • Päivi Rekonen (50yo)

    Director

    • Tenure: 1.4yrs

Company Information

Efecte Oy's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Efecte Oy
  • Ticker: EFECTE
  • Exchange: HLSE
  • Founded: 1998
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €27.176m
  • Shares outstanding: 5.91m
  • Website: https://www.efecte.com

Number of Employees


Location

  • Efecte Oy
  • Innopoli 3
  • Vaisalantie 6
  • Espoo
  • Uusimaa
  • 2130
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EFECTEHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURDec 2017

Biography

Efecte Oy, a software company, provides cloud-based software as a service and identity management solutions in Finland, Sweden, Denmark, and Germany. It offers IT service, contract, finance, and HR managem ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 21:47
End of Day Share Price2019/09/19 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.