HLSE:GOFORE

Stock Analysis Report

Executive Summary

Gofore Oyj provides digitalization services for corporate customers and public sector operators in Finland and rest of Europe.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

GOFORE

1.6%

FI IT

1.6%

FI Market


1 Year Return

-21.2%

GOFORE

4.1%

FI IT

9.2%

FI Market

Return vs Industry: GOFORE underperformed the Finnish IT industry which returned 4.1% over the past year.

Return vs Market: GOFORE underperformed the Finnish Market which returned 9.2% over the past year.


Shareholder returns

GOFOREIndustryMarket
7 Day1.3%1.6%1.6%
30 Day-8.0%4.2%1.5%
90 Day-10.1%6.5%1.8%
1 Year-19.1%-21.2%9.1%4.1%14.4%9.2%
3 Yearn/a16.5%0.7%29.9%14.4%
5 Yearn/a149.2%122.4%61.2%30.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GOFORE (€7.64) is trading below our estimate of fair value (€8)

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


Price To Earnings Ratio

PE vs Industry: GOFORE is poor value based on its PE Ratio (20.1x) compared to the IT industry average (18.3x).

PE vs Market: GOFORE is good value based on its PE Ratio (20.1x) compared to the Finnish market (20.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GOFORE is good value based on its PB Ratio (3.6x) compared to the FI IT industry average (4x).


Next Steps

Future Growth

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

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOFORE's forecast earnings growth (18.8% per year) is above the savings rate (0.5%).

Earnings vs Market: GOFORE's earnings (18.8% per year) are forecast to grow faster than the Finnish market (13.5% per year).

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

Revenue vs Market: GOFORE's revenue (9.2% per year) is forecast to grow faster than the Finnish market (2% per year).

High Growth Revenue: GOFORE's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GOFORE's Return on Equity is forecast to be low in 3 years time (19.3%).


Next Steps

Past Performance

How has Gofore Oyj performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GOFORE's earnings have grown significantly by 28.5% per year over the past 5 years.

Accelerating Growth: GOFORE's earnings growth over the past year (24.8%) is below its 5-year average (28.5% per year).

Earnings vs Industry: GOFORE earnings growth over the past year (24.8%) exceeded the IT industry 13.2%.


Return on Equity

High ROE: GOFORE's Return on Equity (17%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Gofore Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: GOFORE's short term assets (€30.2M) exceeds its short term liabilities (€15.0M)

Long Term Liabilities: GOFORE's short term assets (30.2M) exceeds its long term liabilities (5.2M)


Debt to Equity History and Analysis

Debt Level: GOFORE's debt to equity ratio (22%) is considered satisfactory

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

Debt Coverage: GOFORE's debt is well covered by operating cash flow (168.8%).

Interest Coverage: GOFORE's interest payments on its debt are well covered by EBIT (94.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: GOFORE's debt is covered by short term assets (assets are 4.6x debt).


Next Steps

Dividend

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

2.49%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.3%markettop25%5.0%industryaverage1.8%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GOFORE's dividend (2.49%) is higher than the bottom 25% of dividend payers in the Finnish market (2.34%).

High Dividend: GOFORE's dividend (2.49%) is low compared to the top 25% of dividend payers in the Finnish market (5.03%).

Stable Dividend: Whilst dividend payments have been stable, GOFORE has been paying a dividend for less than 10 years.

Growing Dividend: GOFORE's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.1%), GOFORE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GOFORE's dividends in 3 years are forecast to be well covered by earnings (40.3% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Timur Kärki (48yo)

9.8yrs

Tenure

0

Mr. Timur Kärki, M.SC. (TECH.) has been the Chief Executive Officer of Gofore Oyj since 2010. Mr. Kärki was Director of VMP Oyj since March 29, 2019 until 2019. Previously, Mr. Kärki served as Projects Dir ...


Management Age and Tenure

0.8yrs

Average Tenure

45yo

Average Age

Experienced Management: GOFORE's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

46yo

Average Age

Experienced Board: GOFORE's board of directors are not considered experienced ( 1.6 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

  • Vijay Selvaraj

    Global Head of Design Services

    • Tenure: 0yrs
  • Timur Kärki (48yo)

    Chairman of Management Board & CEO

    • Tenure: 9.8yrs
  • Petteri Venola (46yo)

    Chief Financial Officer

    • Tenure: 7.8yrs
  • Juha Virtanen (42yo)

    Sales Director

    • Tenure: 3.8yrs
  • Mikael Nylund (44yo)

    Director of M&A and Deputy CEO

    • Tenure: 0yrs
  • Kristiina Härkönen (44yo)

    Chief Sustainability Officer

    • Tenure: 0.2yrs
  • Riikka Nurminen (43yo)

    Marketing & Communications Director (Leave of Absence)

    • Tenure: 0.8yrs
  • Terhi Vesanen (59yo)

    Chief Growth Officer

    • Tenure: 0.2yrs
  • Petra Sievinen (50yo)

    Director of Marketing & Communications

    • Tenure: 0.2yrs

Board Members

  • Ali Saadetdin (70yo)

    Chairman of the Board

    • Tenure: 13.8yrs
  • Sami Somero (44yo)

    Director

    • Tenure: 5.8yrs
  • Mika Varjus (43yo)

    Director

    • Tenure: 1.6yrs
  • Kristiina Michelsson (46yo)

    Director

    • Tenure: 1.6yrs
  • Stefan Baggström (46yo)

    Director

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Gofore Oyj
  • Ticker: GOFORE
  • Exchange: HLSE
  • Founded: 2002
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €107.058m
  • Shares outstanding: 14.01m
  • Website: https://www.gofore.com

Number of Employees


Location

  • Gofore Oyj
  • Kalevantie 2
  • Tampere
  • Pirkanmaa
  • 33100
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GOFOREHLSE (OMX Nordic Exchange Helsinki)YesShare CapitalFIEURNov 2017
0CXSLSE (London Stock Exchange)YesShare CapitalGBEURNov 2017

Biography

Gofore Oyj provides digitalization services for corporate customers and public sector operators in Finland and rest of Europe. The company provides management consultation (lead), service design (design),  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 21:40
End of Day Share Price2019/10/23 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.