HLSE:SOLTEQ

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Very undervalued 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 is more volatile than 90% of Finnish stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SOLTEQ's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Finnish stocks.


Market Performance


7 Day Return

0%

SOLTEQ

-4.9%

FI Software

1.4%

FI Market


1 Year Return

102.7%

SOLTEQ

69.6%

FI Software

9.7%

FI Market

Return vs Industry: SOLTEQ exceeded the Finnish Software industry which returned 71.7% over the past year.

Return vs Market: SOLTEQ exceeded the Finnish Market which returned 8.6% over the past year.


Shareholder returns

SOLTEQIndustryMarket
7 Day0%-4.9%1.4%
30 Day8.0%-0.9%6.7%
90 Day83.9%20.7%12.0%
1 Year102.7%102.7%69.9%69.6%19.0%9.7%
3 Year100.7%100.7%86.0%83.2%37.1%13.1%
5 Year68.5%63.5%47.1%39.7%75.9%37.1%

Long-Term 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?

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOLTEQ (€2.96) is trading below our estimate of fair value (€4.75)

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


Price To Earnings Ratio

PE vs Industry: SOLTEQ is good value based on its PE Ratio (17.1x) compared to the FI Software industry average (44.8x).

PE vs Market: SOLTEQ is good value based on its PE Ratio (17.1x) compared to the Finnish market (26.4x).


Price to Earnings Growth Ratio

PEG Ratio: SOLTEQ is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SOLTEQ is good value based on its PB Ratio (2.2x) compared to the FI Software industry average (8x).


Next Steps

Future Growth

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

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLTEQ's forecast earnings growth (19% per year) is above the savings rate (0.3%).

Earnings vs Market: SOLTEQ's earnings (19% per year) are forecast to grow faster than the Finnish market (15.9% per year).

High Growth Earnings: SOLTEQ's earnings are forecast to grow, but not significantly.

Revenue vs Market: SOLTEQ's revenue (4% per year) is forecast to grow slower than the Finnish market (4.2% per year).

High Growth Revenue: SOLTEQ's revenue (4% 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 (10.7%).


Next Steps

Past Performance

How has Solteq Oyj performed over the past 5 years?

-3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOLTEQ has a large one-off gain of €2.5M impacting its September 30 2020 financial results.

Growing Profit Margin: SOLTEQ's current net profit margins (5.7%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: SOLTEQ's earnings have declined by 3.5% per year over the past 5 years.

Accelerating Growth: SOLTEQ's earnings growth over the past year (284.8%) exceeds its 5-year average (-3.5% per year).

Earnings vs Industry: SOLTEQ earnings growth over the past year (284.8%) exceeded the Software industry 100.7%.


Return on Equity

High ROE: SOLTEQ's Return on Equity (13.2%) 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 (€15.7M) do not cover its short term liabilities (€41.5M).

Long Term Liabilities: SOLTEQ's short term assets (€15.7M) exceed its long term liabilities (€7.0M).


Debt to Equity History and Analysis

Debt Level: SOLTEQ's debt to equity ratio (98.7%) is considered high.

Reducing Debt: SOLTEQ's debt to equity ratio has reduced from 169% to 98.7% over the past 5 years.

Debt Coverage: SOLTEQ's debt is well covered by operating cash flow (29.5%).

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


Balance Sheet


Next Steps

Dividend

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

2.25%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

3.8yrs

Average management tenure


CEO

Olli Väätäinen (54 yo)

3.75yrs

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 ($USD350.83K) is about average for companies of similar size in the Finnish market ($USD329.20K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Olli Väätäinen
Chief Executive Officer3.75yrs€290.00k2.99%
€ 1.7m
Kari Lehtosalo
Chief Financial Officer1.33yrsno datano data
Mikko Sairanen
General Counsel6.33yrsno datano data
Kirsi Jalasaho
Vice President of People & Culture3.75yrsno datano data
Timo Viitanen
Head of Customer Specifi C Solutions Business Unit & Senior Advisorno datano datano data
Urpo Karjalainen
Head of Retail and Wholesale Business Unitno datano datano data
Juha Rokkanen
Executive Vice President of Digital Services3.58yrsno datano data
Matti Djateu
Chief Digital Officer3.58yrsno datano data
Nina Danilotschkin
Senior Consultant12.42yrsno datano data

3.8yrs

Average Tenure

47yo

Average Age

Experienced Management: SOLTEQ's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Aarne Aktan
Independent Director5.25yrs€28.00kno data
Mika Uotila
Independent Director5.25yrs€27.00kno data
Markku Pietilä
Independent Chairman of the Boardno data€46.00k0.078%
€ 45.0k
Panu Porkka
Independent Director2yrs€15.00kno data
Lotta Kopra
Independent Director2.25yrs€28.00kno data
Katarina Segerståhl
Independent Director2yrs€16.00kno data

2.3yrs

Average Tenure

45yo

Average Age

Experienced Board: SOLTEQ's board of directors are not considered experienced ( 2.3 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: €57.920m
  • Shares outstanding: 19.31m
  • Website: https://www.solteq.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOLTEQHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURSep 1999
0G5HLSE (London Stock Exchange)YesOrdinary SharesGBEURSep 1999
SOLTEHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURSep 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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 19:49
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.