HLSE:IFA1V

Stock Analysis Report

Executive Summary

Innofactor Plc provides digitalization and cloud solutions that focus on Microsoft platforms in the Nordic countries.

Snowflake

Fundamentals

Overvalued with concerning outlook.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

IFA1V

1.1%

FI Software

1.6%

FI Market


1 Year Return

29.1%

IFA1V

26.5%

FI Software

9.2%

FI Market

Return vs Industry: IFA1V exceeded the Finnish Software industry which returned 26.5% over the past year.

Return vs Market: IFA1V exceeded the Finnish Market which returned 9.2% over the past year.


Shareholder returns

IFA1VIndustryMarket
7 Day1.8%1.1%1.6%
30 Day3.1%-1.4%1.5%
90 Day8.4%6.5%1.8%
1 Year29.1%29.1%27.3%26.5%14.4%9.2%
3 Year-41.2%-41.2%-3.7%-7.2%29.9%14.4%
5 Year-24.7%-24.7%2.6%-3.2%61.2%30.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate IFA1V's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate IFA1V's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: IFA1V is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: IFA1V is unprofitable, so we can't compare its PE Ratio to the Finnish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IFA1V's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IFA1V is good value based on its PB Ratio (1.2x) compared to the FI Software industry average (4.8x).


Next Steps

Future Growth

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

99.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFA1V is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IFA1V is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IFA1V is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IFA1V's revenue (2.7% per year) is forecast to grow faster than the Finnish market (2% per year).

High Growth Revenue: IFA1V's revenue (2.7% 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 (6.9%).


Next Steps

Past Performance

How has Innofactor performed over the past 5 years?

-60.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IFA1V is unprofitable, and losses have increased over the past 5 years at a rate of -60.8% per year.

Accelerating Growth: Unable to compare IFA1V's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IFA1V is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (9.1%).


Return on Equity

High ROE: IFA1V has a negative Return on Equity (-10.49%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: IFA1V is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: IFA1V is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Innofactor's financial position?


Financial Position Analysis

Short Term Liabilities: IFA1V's short term assets (€14.1M) do not cover its short term liabilities (€26.1M)

Long Term Liabilities: IFA1V's short term assets (14.1M) exceeds its long term liabilities (8.5M)


Debt to Equity History and Analysis

Debt Level: IFA1V's debt to equity ratio (63.7%) is considered high

Reducing Debt: IFA1V's debt to equity ratio has increased from 54.5% to 63.7% over the past 5 years.

Debt Coverage: IFA1V's debt is not well covered by operating cash flow (7.6%).

Interest Coverage: Insufficient data to determine if IFA1V's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: IFA1V has a low level of unsold assets or inventory.

Debt Coverage by Assets: IFA1V's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.0%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate IFA1V's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IFA1V's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if IFA1V's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IFA1V's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IFA1V'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 Innofactor's salary, the management and board of directors tenure and is there insider trading?

0.4yrs

Average management tenure


CEO

Sami Ensio (48yo)

8.8yrs

Tenure

0

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 ($USD0.00) is too low to compare against companies of similar size in the Finnish market ($USD0.00).

Compensation vs Earnings: Sami's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

0.4yrs

Average Tenure

48yo

Average Age

Experienced Management: IFA1V's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

51yo

Average Age

Experienced Board: IFA1V's board of directors are not considered experienced ( 1.5 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

  • Sami Ensio (48yo)

    Founder

    • Tenure: 8.8yrs
  • Markku Puolanne (46yo)

    CFO & Member of Executive Board

    • Tenure: 0.2yrs
  • Janne Heikkinen (45yo)

    Executive VP of Products & Services and Member of Executive Board

    • Tenure: 0yrs
  • Vesa Syrjäkari (59yo)

    EVP of Business Dev & Ops Excellence

    • Tenure: 0yrs
  • Jørn Ellefsen (48yo)

    MD, Country Manager of Norway & Member of Management Board

    • Tenure: 0.6yrs
  • Michaela Skrabb

    General Counsel

    • Tenure: 0.2yrs

Board Members

  • Risto Linturi (62yo)

    Director

    • Tenure: 1.5yrs
  • Sami Ensio (48yo)

    Founder

    • Tenure: 8.8yrs
  • Jonas Persson (51yo)

    Member of Nordic Advisory Board

    • Tenure: 1.5yrs
  • Niels Soelberg

    Member of Nordic Advisory Board

    • Tenure: 1.5yrs
  • Anna Lindén (46yo)

    Director

    • Tenure: 1.5yrs
  • Knut Aasrud

    Member of Nordic Advisory Board

    • Tenure: 1.5yrs
  • Pekka Eloholma (59yo)

    Chairman

    • Tenure: 1.5yrs

Company Information

Innofactor Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Innofactor Plc
  • Ticker: IFA1V
  • Exchange: HLSE
  • Founded: 2000
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €25.050m
  • Shares outstanding: 37.39m
  • Website: https://www.innofactor.com

Number of Employees


Location

  • Innofactor Plc
  • Keilaranta 9
  • Espoo
  • Uusimaa
  • 2150
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IFA1VHLSE (OMX Nordic Exchange Helsinki)YesCommon StockFIEURDec 2010
TJGDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2010
IFA1VHBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURDec 2010

Biography

Innofactor Plc provides digitalization and cloud solutions that focus on Microsoft platforms in the Nordic countries. It develops software products and services; and offers planning services for business-c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 21:14
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.