Solteq Oyj
Market Cap
€23.0m
Last Updated
2020/06/01 21:31 UTC
Data Sources
Company Financials +
Executive Summary
Solteq Oyj, an IT service and software company, provides digital business solutions in Finland, Sweden, Norway, Denmark, Poland, and the United Kingdom.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -3.1% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Fair value with acceptable track record.
Share Price & News
How has Solteq Oyj's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SOLTEQ has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.7%
SOLTEQ
2.4%
FI Software
3.0%
FI Market
1 Year Return
-14.1%
SOLTEQ
52.4%
FI Software
4.9%
FI Market
Return vs Industry: SOLTEQ underperformed the Finnish Software industry which returned 53.5% over the past year.
Return vs Market: SOLTEQ underperformed the Finnish Market which returned 4.6% over the past year.
Shareholder returns
| SOLTEQ | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | 2.4% | 3.0% |
| 30 Day | 7.4% | 13.9% | 8.8% |
| 90 Day | -14.1% | 6.9% | -0.9% |
| 1 Year | -14.1%-14.1% | 52.6%52.4% | 8.9%4.9% |
| 3 Year | -28.8%-28.8% | 2.7%0.9% | 10.7%-1.3% |
| 5 Year | -25.8%-28.0% | -10.6%-14.5% | 42.1%16.3% |
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
3 months ago | Simply Wall St
Analysts Have Lowered Expectations For Solteq Oyj After Its Latest Results3 months ago | Simply Wall St
Those Who Purchased Solteq Oyj (HEL:SOLTEQ) Shares Three Years Ago Have A 11% Loss To Show For It3 months ago | Simply Wall St
Should You Like Solteq Oyj’s (HEL:SOLTEQ) High Return On Capital Employed?Valuation
Is Solteq Oyj undervalued compared to its fair value and its price relative to the market?
11.02x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SOLTEQ (€1.16) is trading above our estimate of fair value (€0.58)
Significantly Below Fair Value: SOLTEQ is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SOLTEQ is good value based on its PE Ratio (11x) compared to the Software industry average (55.3x).
PE vs Market: SOLTEQ is good value based on its PE Ratio (11x) compared to the Finnish market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: SOLTEQ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SOLTEQ is good value based on its PB Ratio (0.9x) compared to the FI Software industry average (6.2x).
Next Steps
Future Growth
How is Solteq Oyj forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-3.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SOLTEQ's earnings are forecast to decline over the next 3 years (-3.1% per year).
Earnings vs Market: SOLTEQ's earnings are forecast to decline over the next 3 years (-3.1% per year).
High Growth Earnings: SOLTEQ's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SOLTEQ's revenue (2.7% per year) is forecast to grow slower than the Finnish market (5.9% per year).
High Growth Revenue: SOLTEQ'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: SOLTEQ's Return on Equity is forecast to be low in 3 years time (4.1%).
Next Steps
Past Performance
How has Solteq Oyj performed over the past 5 years?
-20.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SOLTEQ has a large one-off gain of €2.5M impacting its March 31 2020 financial results.
Growing Profit Margin: SOLTEQ's current net profit margins (3.4%) are higher than last year (0.9%).
Past Earnings Growth Analysis
Earnings Trend: SOLTEQ's earnings have declined by -20.3% per year over the past 5 years.
Accelerating Growth: SOLTEQ's earnings growth over the past year (296.5%) exceeds its 5-year average (-20.3% per year).
Earnings vs Industry: SOLTEQ earnings growth over the past year (296.5%) exceeded the Software industry 90%.
Return on Equity
High ROE: SOLTEQ's Return on Equity (8.3%) is considered low.
Next Steps
Financial Health
How is Solteq Oyj's financial position?
Financial Position Analysis
Short Term Liabilities: SOLTEQ's short term assets (€20.2M) do not cover its short term liabilities (€47.1M).
Long Term Liabilities: SOLTEQ's short term assets (€20.2M) exceed its long term liabilities (€7.1M).
Debt to Equity History and Analysis
Debt Level: SOLTEQ's debt to equity ratio (109%) is considered high.
Reducing Debt: SOLTEQ's debt to equity ratio has increased from 4% to 109% over the past 5 years.
Debt Coverage: SOLTEQ's debt is well covered by operating cash flow (24.9%).
Interest Coverage: SOLTEQ's interest payments on its debt are not well covered by EBIT (1.1x coverage).
Balance Sheet
Next Steps
Dividend
What is Solteq Oyj's current dividend yield, its reliability and sustainability?
4.31%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SOLTEQ's dividend (4.31%) is higher than the bottom 25% of dividend payers in the Finnish market (2.44%).
High Dividend: SOLTEQ's dividend (4.31%) is low compared to the top 25% of dividend payers in the Finnish market (5.03%).
Stability and Growth of Payments
Stable Dividend: SOLTEQ's dividend payments have been volatile in the past 10 years.
Growing Dividend: SOLTEQ's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.5%), SOLTEQ's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SOLTEQ's dividends in 3 years are forecast to be covered by earnings (59.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Olli Väätäinen (53yo)
3.17yrs
Tenure
€290,000
Compensation
Mr. Olli Väätäinen previously served 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 ...
CEO Compensation Analysis
Compensation vs Market: Olli's total compensation ($USD322.40K) is about average for companies of similar size in the Finnish market ($USD322.40K).
Compensation vs Earnings: Olli's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 3.17yrs | €290.00k | 2.99% €686.7k | |
| Chief Financial Officer | 0.75yr | no data | no data | |
| General Counsel | 5.75yrs | no data | no data | |
| Vice President of People & Culture | 3.17yrs | no data | no data | |
| Head of Customer Specifi C Solutions Business Unit & Senior Advisor | no data | no data | no data | |
| Head of Retail and Wholesale Business Unit | no data | no data | no data | |
| Executive Vice President of Software | 3.58yrs | no data | no data | |
| Executive Vice President of Digital Services | 3yrs | no data | no data | |
| Chief Digital Officer | 3yrs | no data | no data | |
| Senior Consultant | 11.83yrs | no data | no data |
3.2yrs
Average Tenure
45yo
Average Age
Experienced Management: SOLTEQ's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 4.67yrs | €28.00k | no data | |
| Independent Director | 4.67yrs | €27.00k | no data | |
| Independent Chairman of the Board | no data | €46.00k | 0.078% €17.8k | |
| Independent Director | 1.42yrs | €15.00k | no data | |
| Independent Director | 1.67yrs | €28.00k | no data | |
| Independent Director | 1.42yrs | €16.00k | no data |
1.7yrs
Average Tenure
44yo
Average Age
Experienced Board: SOLTEQ's board of directors are not considered experienced ( 1.7 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
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: €22.975m
- Shares outstanding: 19.31m
- Website: https://www.solteq.com
Number of Employees
Location
- Solteq Oyj
- Karhumäentie 3
- 5th Floor
- Vantaa
- Uusimaa
- 1530
- Finland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SOLTEQ | HLSE (OMX Nordic Exchange Helsinki) | Yes | Ordinary Shares | FI | EUR | Sep 1999 |
| 0G5H | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Sep 1999 |
Biography
Solteq Oyj, an IT service and software company, provides digital business solutions in Finland, Sweden, Norway, Denmark, Poland, and the United Kingdom. The company offers Solteq Cloud POS, a point-of sale (POS) solution for cafeteria, lunch restaurants, events, and self-service needs; Solteq Tekso, a cash register system for fashion and hardware shops, other specialty shops, and grocery retail; and Solteq Order Engine that is tailored to individual customer needs. It also provides Solteq Robotics for customized packages and continuous service; and Solteq Retail Robot, which moves inside a store to recognize products, empty or hole shelves, and incorrect price tags, as well as builds 3D maps of stores with product locations and integrates to the POS, PIM, planogram, and ERP systems. In addition, the company offers inPulse4Utilities that provides tools for digital customer engagement for district heating, water supply, and energy companies; inWorks, which offers browser-based customer data management and invoicing systems; Vehicle sales that provides solutions for vehicle retail sales and after-sales services; and Solteq Smart Dealer, which offers automotive and aftermarket products. Further, it provides Solteq WebService, a cloud-based ERP system for vehicle maintenance and after-sales services; Solteq Service Box that allows customers to deliver and return keys according to their own individual schedules; Trafi –query, a search portal for accessing up-to-date vehicle and customer information from the Trafi ATJ database; Customer Data Refreshment, which offers up to date customer data; Solteq Care, an electronic journal system, for municipality health care; and Solteq Tooth, a dental system for handling records and patient-oriented administrative tasks. The company was formerly known as Tampereen Tiedonhallinta. Solteq Oyj was founded in 1982 and is headquartered in Vantaa, Finland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/01 21:31 |
| End of Day Share Price | 2020/06/01 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.