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LEMO

Lemonsoft Oyj HLSE:LEMON Stock Report

Last Price

€13.14

Market Cap

€241.7m

7D

-3.2%

1Y

n/a

Updated

11 Aug, 2022

Data

Company Financials +
LEMON fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance2/6
Financial Health5/6
Dividends0/6

LEMON Stock Overview

Lemonsoft Oyj, a software company, designs, develops, and sells enterprise resource planning software solutions worldwide.

Lemonsoft Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lemonsoft Oyj
Historical stock prices
Current Share Price€13.14
52 Week High€20.00
52 Week Low€10.92
Beta0
1 Month Change7.00%
3 Month Change9.87%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-15.76%

Recent News & Updates

Jun 15
Lemonsoft Oyj (HEL:LEMON) Shares Could Be 27% Below Their Intrinsic Value Estimate

Lemonsoft Oyj (HEL:LEMON) Shares Could Be 27% Below Their Intrinsic Value Estimate

In this article we are going to estimate the intrinsic value of Lemonsoft Oyj ( HEL:LEMON ) by taking the expected...

Shareholder Returns

LEMONFI SoftwareFI Market
7D-3.2%0.5%2.0%
1Yn/a-46.5%-18.6%

Return vs Industry: Insufficient data to determine how LEMON performed against the Finnish Software industry.

Return vs Market: Insufficient data to determine how LEMON performed against the Finnish Market.

Price Volatility

Is LEMON's price volatile compared to industry and market?
LEMON volatility
LEMON Average Weekly Movement8.6%
Software Industry Average Movement5.7%
Market Average Movement5.0%
10% most volatile stocks in FI Market8.8%
10% least volatile stocks in FI Market3.3%

Stable Share Price: LEMON is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: LEMON's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Finnish stocks.

About the Company

FoundedEmployeesCEOWebsite
2006169Kari Joki-Hollantihttps://www.lemonsoft.fi

Lemonsoft Oyj, a software company, designs, develops, and sells enterprise resource planning software solutions worldwide. It offers financial management module, which automates various tasks, such as bookkeeping, invoicing, processing of purchase invoices, order dispatches, payroll computation with statutory notifications to authorities, filing tax reports, and preparing financial statements, as well as includes features that facilitate the retrieval, processing, and archiving of documentation related to financial management; payroll and personnel management modules that comprise payroll computation, travel expense invoices, and work shift scheduling features; and customer relationship management module, which consists of real-time data to customers on the payment behavior, sales data, offer and order bases, and invoicing and production status of customers. The company also provides business intelligence module that supports customers in implementing and communicating their strategy by offering targets, actions, and KPIs; dynamic reporting products and report customization services; LemonFiles, a cloud-based solution for data management; project management module to plan, budget, and forecast various stages of projects; resource management module that provides tools for the evaluation of the utilization rate of resources, as well as for the planning of the use of resources; logistics module to place orders electronically and linking logistic operations to the systems of the customers’ partners; production module for production monitoring and development; service interfaces, such as LemonHUB that enables the digitalization of the customers’ manual and physical processes; and other software products.

Lemonsoft Oyj Fundamentals Summary

How do Lemonsoft Oyj's earnings and revenue compare to its market cap?
LEMON fundamental statistics
Market Cap€241.69m
Earnings (TTM)€1.97m
Revenue (TTM)€19.69m

122.7x

P/E Ratio

12.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LEMON income statement (TTM)
Revenue€19.69m
Cost of Revenue€11.13m
Gross Profit€8.56m
Other Expenses€6.59m
Earnings€1.97m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 28, 2022

Earnings per share (EPS)0.11
Gross Margin43.48%
Net Profit Margin10.01%
Debt/Equity Ratio8.6%

How did LEMON perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

43%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 LEMON?

Other financial metrics that can be useful for relative valuation.

LEMON 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/Revenue11.7x
Enterprise Value/EBITDA46x
PEG Ratio4.2x

Price to Earnings Ratio vs Peers

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

LEMON PE Ratio vs Peers
The above table shows the PE ratio for LEMON vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average33.5x
ADMCM Admicom Oyj
35.7x14.9%€307.7m
WITH WithSecure Oyj
10.3x30.9%€318.2m
BITTI Bittium Oyj
48.9x35.1%€182.1m
FSECURE F-Secure Oyj
39x15.0%€495.7m
LEMON Lemonsoft Oyj
122.7x29.4%€241.7m

Price-To-Earnings vs Peers: LEMON is expensive based on its Price-To-Earnings Ratio (122.7x) compared to the peer average (33.5x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: LEMON is expensive based on its Price-To-Earnings Ratio (122.7x) compared to the Finnish Software industry average (39.2x)


Price to Earnings Ratio vs Fair Ratio

What is LEMON'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.

LEMON PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio122.7x
Fair PE Ratio38x

Price-To-Earnings vs Fair Ratio: LEMON is expensive based on its Price-To-Earnings Ratio (122.7x) compared to the estimated Fair Price-To-Earnings Ratio (38x).


Share Price vs Fair Value

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

Below Fair Value: LEMON (€13.14) is trading below our estimate of fair value (€15.03)

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


Analyst Price Targets

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

Analyst Forecast: Target price is lower than the current share price.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


29.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEMON's forecast earnings growth (29.4% per year) is above the savings rate (0.2%).

Earnings vs Market: LEMON's earnings (29.4% per year) are forecast to grow faster than the Finnish market (7.9% per year).

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

Revenue vs Market: LEMON's revenue (17.7% per year) is forecast to grow faster than the Finnish market (1.8% per year).

High Growth Revenue: LEMON's revenue (17.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LEMON's Return on Equity is forecast to be high in 3 years time (29.3%)


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Past Performance

How has Lemonsoft 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


6.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LEMON has high quality earnings.

Growing Profit Margin: LEMON's current net profit margins (10%) are lower than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: LEMON's earnings have grown by 6.6% per year over the past 5 years.

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

Earnings vs Industry: LEMON had negative earnings growth (-39.5%) over the past year, making it difficult to compare to the Software industry average (-1.3%).


Return on Equity

High ROE: LEMON's Return on Equity (9%) is considered low.


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Financial Health

How is Lemonsoft 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: LEMON's short term assets (€16.4M) exceed its short term liabilities (€7.4M).

Long Term Liabilities: LEMON's short term assets (€16.4M) exceed its long term liabilities (€2.0M).


Debt to Equity History and Analysis

Debt Level: LEMON has more cash than its total debt.

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

Debt Coverage: LEMON's debt is well covered by operating cash flow (193.8%).

Interest Coverage: LEMON earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Lemonsoft 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


0.99%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LEMON's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.39%).

High Dividend: LEMON's dividend (0.99%) is low compared to the top 25% of dividend payers in the Finnish market (4.75%).


Stability and Growth of Payments

Stable Dividend: LEMON is not paying a notable dividend for the Finnish market, therefore no need to check if payments are stable.

Growing Dividend: LEMON is not paying a notable dividend for the Finnish market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: LEMON is not paying a notable dividend for the Finnish market.


Cash Payout to Shareholders

Cash Flow Coverage: LEMON is not paying a notable dividend for the Finnish market.


Discover strong dividend paying companies

Management

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

4.6yrs

Average management tenure


CEO

Kari Joki-Hollanti

4.58yrs

Tenure

Mr. Kari Joki-Hollanti is Chief Executive Officer of Lemonsoft Oyj since 2018 and serves as its Non-Independent Director since 2006. Mr. Joki-Hollanti is Development Director of Lemonsoft Oyj from 2006 to...


Leadership Team

Experienced Management: LEMON's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: LEMON's board of directors are considered experienced (5.6 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: LEMON only recently listed within the past 12 months.


Top Shareholders

Company Information

Lemonsoft Oyj's employee growth, exchange listings and data sources


Key Information

  • Name: Lemonsoft Oyj
  • Ticker: LEMON
  • Exchange: HLSE
  • Founded: 2006
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: €241.690m
  • Shares outstanding: 18.39m
  • Website: https://www.lemonsoft.fi

Number of Employees


Location

  • Lemonsoft Oyj
  • Vaasanpuistikko 20 A
  • 4th Floor
  • Vaasa
  • Ostrobothnia
  • 65100
  • Finland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.