Innofactor Oyj (HLSE:IFA1V) - Share price, News & Analysis

IFA1V fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	1/6
Financial Health	5/6
Dividends	3/6

IFA1V Stock Overview

Innofactor Oyj provides software solutions for monitoring personal data files and log data management in the Nordic countries.

Rewards

Trading at 63.4% below our estimate of its fair value

Earnings are forecast to grow 18.24% per year

Risk Analysis

Dividend of 13.63% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (4.1%) are lower than last year (6.3%)

Does not have a meaningful market cap (€44M)

Innofactor Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Innofactor Oyj
Historical stock prices
Current Share Price	€1.17
52 Week High	€1.91
52 Week Low	€1.07
Beta	1.23
1 Month Change	-0.17%
3 Month Change	-10.72%
1 Year Change	-31.74%
3 Year Change	86.35%
5 Year Change	-28.85%
Change since IPO	-34.78%

Recent News & Updates

Apr 29

Investors Could Be Concerned With Innofactor Oyj's (HEL:IFA1V) Returns On Capital

If we're looking to avoid a business that is in decline, what are the trends that can warn us ahead of time? When we...

Shareholder Returns

	IFA1V	FI Software	FI Market
7D	-1.2%	1.7%	-1.6%
1Y	-31.7%	-16.0%	-19.8%

Return vs Industry: IFA1V underperformed the Finnish Software industry which returned -16% over the past year.

Return vs Market: IFA1V underperformed the Finnish Market which returned -19.8% over the past year.

Price Volatility

Is IFA1V's price volatile compared to industry and market?
IFA1V volatility
IFA1V Average Weekly Movement	3.2%
Software Industry Average Movement	6.1%
Market Average Movement	5.3%
10% most volatile stocks in FI Market	8.4%
10% least volatile stocks in FI Market	3.4%

Stable Share Price: IFA1V is less volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IFA1V's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	502	Sami Ensio	https://www.innofactor.com

Innofactor Oyj provides software solutions for monitoring personal data files and log data management in the Nordic countries. It offers planning services for business-critical IT solutions, project deliveries, implementation support, and maintenance services, as well as develops software and services The company offers Dynasty 10, a software suite for information management and case management professionals; Innofactor DataSight for real-time analytics and reporting; TeamsMate for microsoft teams governance; Innofactor Virtual Data Center which is infrastructure as code (IaC) deployed in Azure platform; and QualityFirst, a quality and management software suite.

Innofactor Oyj Fundamentals Summary

How do Innofactor Oyj's earnings and revenue compare to its market cap?
IFA1V fundamental statistics
Market Cap	€43.89m
Earnings (TTM)	€2.71m
Revenue (TTM)	€65.52m

16.2x

P/E Ratio

0.7x

P/S Ratio

Is IFA1V overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IFA1V income statement (TTM)
Revenue	€65.52m
Cost of Revenue	€51.48m
Gross Profit	€14.04m
Other Expenses	€11.33m
Earnings	€2.71m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)	0.073
Gross Margin	21.43%
Net Profit Margin	4.14%
Debt/Equity Ratio	25.0%

How did IFA1V perform over the long term?

See historical performance and comparison

Dividends

13.6%

Current Dividend Yield

110%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is IFA1V undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IFA1V?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for IFA1V. This is calculated by dividing IFA1V's market cap by their current preferred multiple.
What is IFA1V's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€43.89m

IFA1V 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	0.8x
Enterprise Value/EBITDA	16.9x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does IFA1V's PE Ratio compare to its peers?

IFA1V PE Ratio vs Peers

The above table shows the PE ratio for IFA1V vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	59.8x

Forward PE

Price-To-Earnings vs Peers: IFA1V is good value based on its Price-To-Earnings Ratio (16.2x) compared to the peer average (59.8x).

Price to Earnings Ratio vs Industry

How does IFA1V's PE Ratio compare vs other companies in the Software Industry?

Price-To-Earnings vs Industry: IFA1V is good value based on its Price-To-Earnings Ratio (16.2x) compared to the Finnish Software industry average (46.1x)

Price to Earnings Ratio vs Fair Ratio

What is IFA1V's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IFA1V PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.2x
Fair PE Ratio	26.7x

Price-To-Earnings vs Fair Ratio: IFA1V is good value based on its Price-To-Earnings Ratio (16.2x) compared to the estimated Fair Price-To-Earnings Ratio (26.7x).

Share Price vs Fair Value

What is the Fair Price of IFA1V when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IFA1V (€1.17) is trading below our estimate of fair value (€3.21)

Significantly Below Fair Value: IFA1V is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: IFA1V is good value based on its PEG Ratio (0.9x)

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

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

18.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFA1V's forecast earnings growth (18.2% per year) is above the savings rate (0.2%).

Earnings vs Market: IFA1V's earnings (18.2% per year) are forecast to grow faster than the Finnish market (8.1% per year).

High Growth Earnings: IFA1V's earnings are forecast to grow, but not significantly.

Revenue vs Market: IFA1V's revenue (2.9% per year) is forecast to grow faster than the Finnish market (1.8% per year).

High Growth Revenue: IFA1V's revenue (2.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: IFA1V's Return on Equity is forecast to be low in 3 years time (15.9%).

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Past Performance

How has Innofactor Oyj performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

51.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IFA1V has a large one-off gain of €2.7M impacting its March 31 2022 financial results.

Growing Profit Margin: IFA1V's current net profit margins (4.1%) are lower than last year (6.3%).

Past Earnings Growth Analysis

Earnings Trend: IFA1V's earnings have grown significantly by 51.1% per year over the past 5 years.

Accelerating Growth: IFA1V's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IFA1V had negative earnings growth (-35.3%) over the past year, making it difficult to compare to the Software industry average (5.5%).

Return on Equity

High ROE: IFA1V's Return on Equity (10.3%) is considered low.

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Financial Health

How is Innofactor Oyj's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: IFA1V's short term assets (€18.5M) do not cover its short term liabilities (€19.9M).

Long Term Liabilities: IFA1V's short term assets (€18.5M) exceed its long term liabilities (€8.7M).

Debt to Equity History and Analysis

Debt Level: IFA1V's net debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: IFA1V's debt to equity ratio has reduced from 57.9% to 25% over the past 5 years.

Debt Coverage: IFA1V's debt is well covered by operating cash flow (121%).

Interest Coverage: IFA1V's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

13.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: IFA1V's dividend (13.63%) is higher than the bottom 25% of dividend payers in the Finnish market (2.54%).

High Dividend: IFA1V's dividend (13.63%) is in the top 25% of dividend payers in the Finnish market (5.07%)

Stability and Growth of Payments

Stable Dividend: Too early to tell whether IFA1V's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if IFA1V's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (110%), IFA1V's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (79.9%), IFA1V's dividend payments are covered by cash flows.

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Management

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

2.8yrs

Average management tenure

CEO

Sami Ensio (50 yo)

11.5yrs

Tenure

€363,000

Compensation

Mr. Sami Pekka Ensio, M.Sc. (Tech.), has been the Chief Executive Officer of Innofactor Plc since December 27, 2010 and serves as its President and Chairman of Executive Board. Mr. Ensio is Country Manager...

CEO Compensation Analysis

Compensation vs Market: Sami's total compensation ($USD382.91K) is above average for companies of similar size in the Finnish market ($USD277.11K).

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

Leadership Team

Experienced Management: IFA1V's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: IFA1V's board of directors are considered experienced (4.2 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31