Heeros Oyj (HLSE:HEEROS) - Share price, News & Analysis

Q: What is the Fair Price of HEEROS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HEEROS (€3.89) is trading below our estimate of [[fair value]] (€11.25)

HEEROS fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

HEEROS Stock Overview

Heeros Oyj provides cloud-based financial management solutions.

Rewards

Trading at 65.4% below our estimate of its fair value

Earnings are forecast to grow 78.1% per year

Risk Analysis

Volatile share price over the past 3 months

Profit margins (0.2%) are lower than last year (4.3%)

Shareholders have been diluted in the past year

Does not have a meaningful market cap (€20M)

Heeros Oyj Competitors

QPR Software Oyj

HLSE:QPR1V

€14.1m

Innofactor Oyj

HLSE:IFA1V

€35.9m

Solteq Oyj

HLSE:SOLTEQ

€38.6m

Efecte Oy

HLSE:EFECTE

€65.7m

Price History & Performance

Summary of all time highs, changes and price drops for Heeros Oyj
Historical stock prices
Current Share Price	€3.89
52 Week High	€6.68
52 Week Low	€3.01
Beta	1.19
1 Month Change	1.83%
3 Month Change	-2.75%
1 Year Change	-37.86%
3 Year Change	81.78%
5 Year Change	64.13%
Change since IPO	38.93%

Recent News & Updates

Jul 01

Is Now An Opportune Moment To Examine Heeros Oyj (HEL:HEEROS)?

Heeros Oyj ( HEL:HEEROS ), might not be a large cap stock, but it saw a decent share price growth in the teens level on...

Mar 02

These 4 Measures Indicate That Heeros Oyj (HEL:HEEROS) Is Using Debt Safely

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

	HEEROS	FI Software	FI Market
7D	11.1%	1.0%	1.9%
1Y	-37.9%	-46.4%	-18.7%

Return vs Industry: HEEROS exceeded the Finnish Software industry which returned -46.5% over the past year.

Return vs Market: HEEROS underperformed the Finnish Market which returned -18.6% over the past year.

Price Volatility

Is HEEROS's price volatile compared to industry and market?
HEEROS volatility
HEEROS Average Weekly Movement	8.1%
Software Industry Average Movement	5.7%
Market Average Movement	5.0%
10% most volatile stocks in FI Market	8.8%
10% least volatile stocks in FI Market	3.3%

Stable Share Price: HEEROS is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HEEROS's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Finnish stocks.

About the Company

Founded	Employees	CEO	Website
2000	98	Mikko Pilkama	https://www.heeros.com

Heeros Oyj provides cloud-based financial management solutions. The company offers automated solutions for purchase invoice workflow, invoice OCR processing, e-invoicing, e-archiving, SEPA payments, payable and receivable ledgers, general ledger accounting, and mobile applications. It also provides implementation, training, and main user services.

Heeros Oyj Fundamentals Summary

How do Heeros Oyj's earnings and revenue compare to its market cap?
HEEROS fundamental statistics
Market Cap	€20.33m
Earnings (TTM)	€20.95k
Revenue (TTM)	€10.32m

972.5x

P/E Ratio

2.0x

P/S Ratio

Is HEEROS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HEEROS income statement (TTM)
Revenue	€10.32m
Cost of Revenue	€6.05m
Gross Profit	€4.27m
Other Expenses	€4.25m
Earnings	€20.95k

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.004
Gross Margin	41.36%
Net Profit Margin	0.20%
Debt/Equity Ratio	34.9%

How did HEEROS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is HEEROS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HEEROS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HEEROS. This is calculated by dividing HEEROS's market cap by their current preferred multiple.
What is HEEROS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€20.33m

HEEROS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.2x
Enterprise Value/EBITDA	29.6x
PEG Ratio	12.5x

Price to Sales Ratio vs Peers

How does HEEROS's PS Ratio compare to its peers?

HEEROS PS Ratio vs Peers

The above table shows the PS ratio for HEEROS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.5x
QPR1V QPR Software Oyj	1.7x	8.5%	€14.1m
IFA1V Innofactor Oyj	0.6x	3.6%	€35.9m
SOLTEQ Solteq Oyj	0.5x	6.0%	€38.6m
EFECTE Efecte Oy	3.4x	16.6%	€65.7m
HEEROS Heeros Oyj	2x	11.5%	€20.3m

Price-To-Sales vs Peers: HEEROS is expensive based on its Price-To-Sales Ratio (2x) compared to the peer average (1.5x).

Price to Earnings Ratio vs Industry

How does HEEROS's PE Ratio compare vs other companies in the European Software Industry?

Price-To-Sales vs Industry: HEEROS is good value based on its Price-To-Sales Ratio (2x) compared to the Finnish Software industry average (2.1x)

Price to Sales Ratio vs Fair Ratio

What is HEEROS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HEEROS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2x
Fair PS Ratio	1.4x

Price-To-Sales vs Fair Ratio: HEEROS is expensive based on its Price-To-Sales Ratio (2x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).

Share Price vs Fair Value

What is the Fair Price of HEEROS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HEEROS (€3.89) is trading below our estimate of fair value (€11.25)

Significantly Below Fair Value: HEEROS is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

78.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEEROS's forecast earnings growth (78.1% per year) is above the savings rate (0.2%).

Earnings vs Market: HEEROS's earnings (78.1% per year) are forecast to grow faster than the Finnish market (7.8% per year).

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

Revenue vs Market: HEEROS's revenue (11.5% per year) is forecast to grow faster than the Finnish market (1.8% per year).

High Growth Revenue: HEEROS's revenue (11.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if HEEROS's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Heeros Oyj performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

66.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HEEROS has high quality earnings.

Growing Profit Margin: HEEROS's current net profit margins (0.2%) are lower than last year (4.3%).

Past Earnings Growth Analysis

Earnings Trend: HEEROS has become profitable over the past 5 years, growing earnings by 66.3% per year.

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

Earnings vs Industry: HEEROS had negative earnings growth (-94.5%) over the past year, making it difficult to compare to the Software industry average (-1.3%).

Return on Equity

High ROE: HEEROS's Return on Equity (0.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Heeros Oyj's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HEEROS's short term assets (€1.4M) do not cover its short term liabilities (€2.8M).

Long Term Liabilities: HEEROS's short term assets (€1.4M) do not cover its long term liabilities (€2.4M).

Debt to Equity History and Analysis

Debt Level: HEEROS's net debt to equity ratio (28%) is considered satisfactory.

Reducing Debt: HEEROS's debt to equity ratio has reduced from 36.5% to 34.9% over the past 5 years.

Debt Coverage: HEEROS's debt is well covered by operating cash flow (76.6%).

Interest Coverage: HEEROS's interest payments on its debt are not well covered by EBIT (2.6x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HEEROS has not reported any payouts.

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Management

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

0.6yrs

Average management tenure

CEO

Mikko Pilkama (50 yo)

no data

Tenure

Mr. Mikko Pilkama, M.Sc. (Econ.), serves as Chief Executive Officer at Heeros Oyj. He serves as Executive Vice President of Issuing Services at Nets Oy and serves as its Member of Executive Board. Mr. Pilk...

Leadership Team

Experienced Management: HEEROS's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.

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 been diluted in the past year, with total shares outstanding growing by 17.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31