HLSE:SOLTEQ

Stock Analysis Report

Executive Summary

Solteq Oyj, an IT service and software company, provides digital business solutions in Finland, Sweden, Denmark, Poland, and the United Kingdom.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

SOLTEQ

1.0%

FI Software

0.8%

FI Market


1 Year Return

1.4%

SOLTEQ

17.1%

FI Software

5.5%

FI Market

Return vs Industry: SOLTEQ underperformed the Finnish Software industry which returned 17.1% over the past year.

Return vs Market: SOLTEQ underperformed the Finnish Market which returned 5.5% over the past year.


Shareholder returns

SOLTEQIndustryMarket
7 Day1.4%1.0%0.8%
30 Day-5.3%-3.3%0.6%
90 Day0%7.1%2.7%
1 Year1.4%1.4%17.9%17.1%10.4%5.5%
3 Year-15.4%-17.9%-9.0%-12.3%29.6%14.2%
5 Year6.1%-0.7%1.7%-4.0%62.9%31.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SOLTEQ (€1.42) is trading below our estimate of fair value (€1.73)

Significantly Undervalued: SOLTEQ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SOLTEQ is good value based on its PE Ratio (29.8x) compared to the Software industry average (47.2x).

PE vs Market: SOLTEQ is poor value based on its PE Ratio (29.8x) compared to the Finnish market (20.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: SOLTEQ is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SOLTEQ is good value based on its PB Ratio (1.2x) compared to the FI Software industry average (4.7x).


Next Steps

Future Growth

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

26.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLTEQ's forecast earnings growth (26.2% per year) is above the savings rate (0.5%).

Earnings vs Market: SOLTEQ's earnings (26.2% per year) are forecast to grow faster than the Finnish market (13.4% per year).

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

Revenue vs Market: SOLTEQ's revenue (3.8% per year) is forecast to grow faster than the Finnish market (2.1% per year).

High Growth Revenue: SOLTEQ's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SOLTEQ's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Solteq Oyj performed over the past 5 years?

-34.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SOLTEQ's earnings have declined by -34.1% per year over the past 5 years.

Accelerating Growth: SOLTEQ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SOLTEQ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (9.1%).


Return on Equity

High ROE: SOLTEQ's Return on Equity (4.2%) is considered low.


Return on Assets

ROA vs Industry: SOLTEQ's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: SOLTEQ has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Solteq Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: SOLTEQ's short term assets (€17.8M) do not cover its short term liabilities (€21.7M)

Long Term Liabilities: SOLTEQ's short term assets (17.8M) do not cover its long term liabilities (31.2M)


Debt to Equity History and Analysis

Debt Level: SOLTEQ's debt to equity ratio (125.4%) is considered high

Reducing Debt: SOLTEQ's debt to equity ratio has increased from 15.6% to 125.4% over the past 5 years.

Debt Coverage: SOLTEQ's debt is well covered by operating cash flow (26.1%).

Interest Coverage: SOLTEQ's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

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

Debt Coverage by Assets: SOLTEQ's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

2.82%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%5.1%industryaverage1.4%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate SOLTEQ'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 SOLTEQ's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.5yrs

Average management tenure


CEO

Olli Väätäinen (53yo)

2.5yrs

Tenure

€287,000

Compensation

Mr. Olli Väätäinen serves as Chief Operating Officer of Kotipizza Oyj. Mr. Väätäinen has been Chief Executive Officer of Solteq Oyj since April 1, 2017. He served as the Chief Operating Officer and Member  ...


CEO Compensation Analysis

Compensation vs. Market: Olli's total compensation ($USD319.71K) is above average for companies of similar size in the Finnish market ($USD0.00).

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


Management Age and Tenure

2.5yrs

Average Tenure

44yo

Average Age

Experienced Management: SOLTEQ's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

1.0yrs

Average Tenure

44yo

Average Age

Experienced Board: SOLTEQ's board of directors are not considered experienced ( 1 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

  • Olli Väätäinen (53yo)

    Chief Executive Officer

    • Tenure: 2.5yrs
    • Compensation: €287.00k
  • Timo Viitanen

    Head of Customer Specifi C Solutions Business Unit & Senior Advisor

    • Tenure: 0yrs
  • Urpo Karjalainen

    Head of Retail and Wholesale Business Unit

    • Tenure: 0yrs
  • Nina Danilotschkin

    Senior Consultant

    • Tenure: 11.2yrs
  • Kirsi Jalasaho (45yo)

    Vice President of People & Culture

    • Tenure: 2.5yrs
  • Juha Rokkanen (50yo)

    Executive Vice President of Digital Services

    • Tenure: 0yrs
  • Mikko Sairanen (34yo)

    General Counsel

    • Tenure: 5.1yrs
  • Martti Nurminen (40yo)

    Chief Financial Officer

    • Tenure: 1.5yrs
  • Ilkka Brander (43yo)

    Executive VP of Core Business Solutions

    • Tenure: 0yrs
  • Matti Djateu (44yo)

    Chief Digital Officer

    • Tenure: 2.3yrs

Board Members

  • Aarne Aktan (46yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: €23.00k
  • Mika Uotila (48yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: €24.00k
  • Markku Pietilä (62yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: €42.00k
  • Panu Porkka (42yo)

    Independent Director

    • Tenure: 0.8yrs
  • Lotta Kopra (39yo)

    Independent Director

    • Tenure: 1yrs
  • Katarina Segerståhl (38yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Solteq Oyj
  • Ticker: SOLTEQ
  • Exchange: HLSE
  • Founded: 1982
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €27.415m
  • Shares outstanding: 19.31m
  • Website: https://www.solteq.com

Number of Employees


Location

  • Solteq Oyj
  • Karhumäentie 3
  • 5th Floor
  • Vantaa
  • 1530
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOLTEQHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURSep 1999
0G5HLSE (London Stock Exchange)YesOrdinary SharesGBEURSep 1999

Biography

Solteq Oyj, an IT service and software company, provides digital business solutions in Finland, Sweden, Denmark, Poland, and the United Kingdom. The company offers Deep Vision, a service for identifying is ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:39
End of Day Share Price2019/10/18 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.