HLSE:SIILI

Stock Analysis Report

Siili Solutions Oyj

Executive Summary

Siili Solutions Oyj engages in the software integration and digital services development businesses in Finland and internationally.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SIILI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

SIILI

-11.9%

FI IT

-1.5%

FI Market


1 Year Return

7.5%

SIILI

7.8%

FI IT

10.2%

FI Market

Return vs Industry: SIILI matched the Finnish IT industry which returned 7.8% over the past year.

Return vs Market: SIILI underperformed the Finnish Market which returned 10.2% over the past year.


Shareholder returns

SIILIIndustryMarket
7 Day-0.4%-11.9%-1.5%
30 Day-0.8%-6.4%1.2%
90 Day6.1%5.4%9.0%
1 Year10.4%7.5%13.1%7.8%15.2%10.2%
3 Year24.2%13.0%19.9%3.6%33.2%17.2%
5 Year86.3%63.4%53.5%16.2%44.9%17.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIILI (€9.72) is trading below our estimate of fair value (€17.52)

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


Price To Earnings Ratio

PE vs Industry: SIILI is poor value based on its PE Ratio (43.2x) compared to the IT industry average (22.4x).

PE vs Market: SIILI is poor value based on its PE Ratio (43.2x) compared to the Finnish market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: SIILI is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SIILI is good value based on its PB Ratio (3.5x) compared to the FI IT industry average (3.6x).


Next Steps

Future Growth

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

31.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIILI's forecast earnings growth (31.7% per year) is above the savings rate (-0.1%).

Earnings vs Market: SIILI's earnings (31.7% per year) are forecast to grow faster than the Finnish market (9.7% per year).

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

Revenue vs Market: SIILI's revenue (6.6% per year) is forecast to grow faster than the Finnish market (-0.08% per year).

High Growth Revenue: SIILI's revenue (6.6% 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 SIILI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Siili Solutions Oyj performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIILI has high quality earnings.

Growing Profit Margin: SIILI's current net profit margins (2%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: SIILI's earnings have grown by 8.7% per year over the past 5 years.

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

Earnings vs Industry: SIILI had negative earnings growth (-58.9%) over the past year, making it difficult to compare to the IT industry average (12.8%).


Return on Equity

High ROE: SIILI's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Siili Solutions Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: SIILI's short term assets (€23.9M) exceed its short term liabilities (€18.4M).

Long Term Liabilities: SIILI's short term assets (€23.9M) exceed its long term liabilities (€14.6M).


Debt to Equity History and Analysis

Debt Level: SIILI's debt to equity ratio (82.6%) is considered high.

Reducing Debt: SIILI's debt to equity ratio has increased from 0.4% to 82.6% over the past 5 years.

Debt Coverage: SIILI's debt is well covered by operating cash flow (36.4%).

Interest Coverage: SIILI's interest payments on its debt are well covered by EBIT (17.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SIILI's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

1.65%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%2.1%markettop25%4.5%industryaverage1.7%forecastin3Years5.3%

Current dividend yield vs market & industry

Notable Dividend: SIILI's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.13%).

High Dividend: SIILI's dividend (1.65%) is low compared to the top 25% of dividend payers in the Finnish market (4.51%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: SIILI is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SIILI's dividend in 3 years as they are not forecast to pay a notable one for the Finnish market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Marko Somerma (53yo)

0.3yrs

Tenure

0

Mr. Marko Somerma, Lis. Sc.(Tech) is Director at Siili Solutions Oyj since April 2019 and serves as its Chief Executive Officer since November 01, 2019. He has been a Member of Corporate Management Board a ...


Leadership Team

NamePositionTenureCompensationOwnership
Marko Somerma
CEO & Director0.3yrsno datano data
Aleksi Kankainen
Chief Financial Officer1.4yrsno datano data
Kari Pirttikangas
Chief Operating Officer0yrsno datano data
Jarkko Malviniemi
Vice President of Offering & Technology0yrsno datano data
Antonia Plorin
Head of Administration3.7yrsno datano data
Hanna Seppänen
Director of Legal & Investor Relations0yrsno datano data
Antti Kiukas
Chief Marketing Officer0yrsno datano data
Kristiina Burtsoff
Chief Human Resource Officer3.1yrsno datano data
Pasi Ropponen
0yrsno datano data

2.3yrs

Average Tenure

45yo

Average Age

Experienced Management: SIILI's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marko Somerma
CEO & Director0.3yrsno datano data
Harry Brade
Independent Chairman of the Board2.1yrs€46.20kno data
Kati Hagros
Independent Director0yrs€22.50kno data
Anu Nissinen
Independent Director6.1yrs€34.80kno data

2.1yrs

Average Tenure

51.5yo

Average Age

Experienced Board: SIILI's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

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


Key Information

  • Name: Siili Solutions Oyj
  • Ticker: SIILI
  • Exchange: HLSE
  • Founded: 2005
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €68.043m
  • Shares outstanding: 7.00m
  • Website: https://www.siili.com

Location

  • Siili Solutions Oyj
  • Porkkalankatu 24
  • Helsinki
  • Uusimaa
  • 180
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIILIHLSE (OMX Nordic Exchange Helsinki)YesA SharesFIEUROct 2012
0RFOLSE (London Stock Exchange)YesA SharesGBEUROct 2012
SIILIHBATS-CHIXE (BATS 'Chi-X Europe')YesA SharesGBEUROct 2012

Biography

Siili Solutions Oyj engages in the software integration and digital services development businesses in Finland and internationally. The company is involved in the full lifecycle design and development of digital services; and smart operations, as well as provides cloud and data platforms. The company was founded in 2005 and is based in Helsinki, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:13
End of Day Share Price2020/02/20 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.