HLSE:FSC1V

Stock Analysis Report

Executive Summary

F-Secure Oyj provides cyber security and protection services in Nordic countries, rest of Europe, North America, and internationally.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FSC1V has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

FSC1V

-1.5%

FI Software

-1.0%

FI Market


1 Year Return

35.4%

FSC1V

25.0%

FI Software

7.4%

FI Market

Return vs Industry: FSC1V exceeded the Finnish Software industry which returned 25% over the past year.

Return vs Market: FSC1V exceeded the Finnish Market which returned 7.4% over the past year.


Shareholder returns

FSC1VIndustryMarket
7 Day-0.2%-1.5%-1.0%
30 Day14.4%10.6%-0.3%
90 Day23.5%17.6%4.6%
1 Year35.4%35.4%25.8%25.0%12.3%7.4%
3 Year2.7%-2.0%7.3%3.4%32.1%16.2%
5 Year75.1%50.5%1.7%-4.3%51.5%22.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is F-Secure Oyj undervalued compared to its fair value and its price relative to the market?

9.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FSC1V (€3.18) is trading below our estimate of fair value (€3.51)

Significantly Below Fair Value: FSC1V is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FSC1V is poor value based on its PE Ratio (231.5x) compared to the Software industry average (47.1x).

PE vs Market: FSC1V is poor value based on its PE Ratio (231.5x) compared to the Finnish market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: FSC1V is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: FSC1V is overvalued based on its PB Ratio (7x) compared to the FI Software industry average (4.8x).


Next Steps

Future Growth

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

57.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSC1V's forecast earnings growth (57.9% per year) is above the savings rate (0.5%).

Earnings vs Market: FSC1V's earnings (57.9% per year) are forecast to grow faster than the Finnish market (14.1% per year).

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

Revenue vs Market: FSC1V's revenue (4% per year) is forecast to grow faster than the Finnish market (1.5% per year).

High Growth Revenue: FSC1V's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FSC1V's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has F-Secure Oyj performed over the past 5 years?

-33.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSC1V has large one-off items impacting its financial results.

Growing Profit Margin: FSC1V's current net profit margins (1.2%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: FSC1V's earnings have declined by -33.1% per year over the past 5 years.

Accelerating Growth: FSC1V's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FSC1V had negative earnings growth (-30.5%) over the past year, making it difficult to compare to the Software industry average (9.2%).


Return on Equity

High ROE: FSC1V's Return on Equity (3.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is F-Secure Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: FSC1V's short term assets (€83.5M) do not cover its short term liabilities (€98.5M)

Long Term Liabilities: FSC1V's short term assets (€83.5M) exceeds its long term liabilities (56.0M)


Debt to Equity History and Analysis

Debt Level: FSC1V's debt to equity ratio (47.8%) is considered high.

Reducing Debt: Insufficient data to determine if FSC1V's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: FSC1V's debt is well covered by operating cash flow (55.6%).

Interest Coverage: FSC1V's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: FSC1V has a low level of unsold assets or inventory.

Debt Coverage by Assets: FSC1V's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is F-Secure Oyj's current dividend yield, its reliability and sustainability?

1.21%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%4.8%industryaverage1.3%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate FSC1V's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FSC1V's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FSC1V's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FSC1V's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FSC1V is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FSC1V's dividend in 3 years as they are not forecast to pay a notable one for the Finnish market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Samu Konttinen (46yo)

3.3yrs

Tenure

€616,361

Compensation

Mr. Samu Konttinen has been the Chief Executive Officer and President of F-Secure Oyj since August 1, 2016 and serves as its Managing Director. Mr. Konttinen served as an Executive Vice President of Corpor ...


CEO Compensation Analysis

Compensation vs Market: Samu's total compensation ($USD682.04K) is above average for companies of similar size in the Finnish market ($USD467.99K).

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


Management Age and Tenure

3.0yrs

Average Tenure

48.5yo

Average Age

Experienced Management: FSC1V's management team is considered experienced (3 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

51.5yo

Average Age

Experienced Board: FSC1V'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

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 57.9%.


Management Team

  • Risto Siilasmaa (53yo)

    Founder & Chairman

    • Tenure: 13yrs
    • Compensation: €80.00k
  • Kristian Järnefelt (54yo)

    Executive Vice President of Consumer Cyber Security Business Unit

    • Tenure: 3.8yrs
  • Samu Konttinen (46yo)

    President

    • Tenure: 3.3yrs
    • Compensation: €616.36k
  • Eriikka Söderström (51yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
  • Jari Still (54yo)

    Chief Information Officer

    • Tenure: 3.8yrs
  • Mika Ståhlberg (46yo)

    Chief Technology Officer

    • Tenure: 3.8yrs
  • Jyrki Tulokas (44yo)

    Executive Vice President of Cyber Security Products & Services

    • Tenure: 1.8yrs
  • Sandra Proske

    Director of Global Corporate Communications

    • Tenure: 0yrs
  • Eva Tuominen (43yo)

    Executive Vice President of People Operations & Culture

    • Tenure: 0.7yrs
  • Antti Hovila

    EVP for Strategy and Corporate Development

    • Tenure: 0.7yrs

Board Members

  • Risto Siilasmaa (53yo)

    Founder & Chairman

    • Tenure: 13yrs
    • Compensation: €80.00k
  • Pertti Ervi (62yo)

    Independent Vice Chairman

    • Tenure: 0yrs
    • Compensation: €48.00k
  • Bruce Oreck (66yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: €38.00k
  • Päivi Rekonen (50yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: €38.00k
  • Tuomas Syrjänen (43yo)

    Director

    • Tenure: 0.7yrs
  • Matti Aksela (44yo)

    Director

    • Tenure: 0.7yrs

Company Information

F-Secure Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: F-Secure Oyj
  • Ticker: FSC1V
  • Exchange: HLSE
  • Founded: 1988
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: €500.974m
  • Shares outstanding: 157.79m
  • Website: https://www.f-secure.com

Number of Employees


Location

  • F-Secure Oyj
  • Tammasaarenkatu 7
  • PO Box 24
  • Helsinki
  • Uusimaa
  • 181
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSC1VHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURNov 1999
0EIELSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1999
FSOY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1999
DTVDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1999
FSC1VHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1999

Biography

F-Secure Oyj provides cyber security and protection services in Nordic countries, rest of Europe, North America, and internationally. Its corporate security solutions include F-Secure Radar, a vulnerabilit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 20:43
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.