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SOLT

Solteq Oyj HLSE:SOLTEQ Stock Report

Last Price

€2.08

Market Cap

€40.2m

7D

-9.4%

1Y

-67.3%

Updated

16 Aug, 2022

Data

Company Financials +
SOLTEQ fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance2/6
Financial Health1/6
Dividends3/6

SOLTEQ Stock Overview

Solteq Oyj provides digital business solutions and industry-specific software in Finland, Sweden, Norway, Denmark, Poland, and the United Kingdom.

Solteq Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Solteq Oyj
Historical stock prices
Current Share Price€2.08
52 Week High€6.48
52 Week Low€1.70
Beta1.67
1 Month Change-11.33%
3 Month Change-33.92%
1 Year Change-67.27%
3 Year Change47.16%
5 Year Change22.78%
Change since IPO-59.31%

Recent News & Updates

Aug 12
Is Now An Opportune Moment To Examine Solteq Oyj (HEL:SOLTEQ)?

Is Now An Opportune Moment To Examine Solteq Oyj (HEL:SOLTEQ)?

Solteq Oyj ( HEL:SOLTEQ ), is not the largest company out there, but it received a lot of attention from a substantial...

Shareholder Returns

SOLTEQFI SoftwareFI Market
7D-9.4%0.2%2.2%
1Y-67.3%-48.4%-17.9%

Return vs Industry: SOLTEQ underperformed the Finnish Software industry which returned -46.8% over the past year.

Return vs Market: SOLTEQ underperformed the Finnish Market which returned -18.3% over the past year.

Price Volatility

Is SOLTEQ's price volatile compared to industry and market?
SOLTEQ volatility
SOLTEQ Average Weekly Movement6.8%
Software Industry Average Movement5.8%
Market Average Movement5.0%
10% most volatile stocks in FI Market8.9%
10% least volatile stocks in FI Market3.3%

Stable Share Price: SOLTEQ is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SOLTEQ's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Finnish stocks.

About the Company

FoundedEmployeesCEOWebsite
1982682Aarne Aktanhttps://www.solteq.com

Solteq Oyj provides digital business solutions and industry-specific software in Finland, Sweden, Norway, Denmark, Poland, and the United Kingdom. The company offers Solteq Commerce Cloud, a point of sale system for retail businesses and restaurants; Solteq Care, an electronic journal system designed for product development in municipality health care; Solteq Connector, an integration platform to update the data between systems; Solteq Electricity Distribution to enhance strategic business planning with off-the-shelf Saas solution for DSOs; and Solteq Electricity Trade to digitalize electricity sales process with off-the-shelf SaaS Solution for the Nordic electricity markets. It also provides Solteq i4U, a solution for customer interaction and service for energy and water supply companies; Solteq inWorks, a solution for customer information management and invoicing; Solteq Order Engine that is tailored to individual customer needs; Solteq Robotics for customized packages and continuous service; 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; and Solteq Smart Dealer, which offers automotive and aftermarket products.

Solteq Oyj Fundamentals Summary

How do Solteq Oyj's earnings and revenue compare to its market cap?
SOLTEQ fundamental statistics
Market Cap€40.25m
Earnings (TTM)€1.80m
Revenue (TTM)€70.47m

22.4x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOLTEQ income statement (TTM)
Revenue€70.47m
Cost of Revenue€50.49m
Gross Profit€19.98m
Other Expenses€18.18m
Earnings€1.80m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)0.093
Gross Margin28.36%
Net Profit Margin2.55%
Debt/Equity Ratio104.9%

How did SOLTEQ perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

105%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 SOLTEQ?

Other financial metrics that can be useful for relative valuation.

SOLTEQ 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/Revenue1x
Enterprise Value/EBITDA12.2x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

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

SOLTEQ PE Ratio vs Peers
The above table shows the PE ratio for SOLTEQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average39x
IFA1V Innofactor Oyj
16.1x26.2%€36.5m
EFECTE Efecte Oy
97.9x48.1%€65.7m
VINCIT Vincit Oyj
29.7x17.5%€103.3m
TEM1V Tecnotree Oyj
12.5x16.4%€194.5m
SOLTEQ Solteq Oyj
22.4x37.0%€40.2m

Price-To-Earnings vs Peers: SOLTEQ is good value based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (39x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: SOLTEQ is good value based on its Price-To-Earnings Ratio (22.4x) compared to the Finnish Software industry average (37.4x)


Price to Earnings Ratio vs Fair Ratio

What is SOLTEQ'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.

SOLTEQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.4x
Fair PE Ratio34.4x

Price-To-Earnings vs Fair Ratio: SOLTEQ is good value based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (34.4x).


Share Price vs Fair Value

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

Below Fair Value: SOLTEQ (€2.08) is trading below our estimate of fair value (€7.99)

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


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 more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


37.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLTEQ's forecast earnings growth (37% per year) is above the savings rate (0.2%).

Earnings vs Market: SOLTEQ's earnings (37% per year) are forecast to grow faster than the Finnish market (8% per year).

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

Revenue vs Market: SOLTEQ's revenue (5.7% per year) is forecast to grow faster than the Finnish market (1.7% per year).

High Growth Revenue: SOLTEQ's revenue (5.7% 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 (17.4%).


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Past Performance

How has Solteq 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


54.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SOLTEQ has high quality earnings.

Growing Profit Margin: SOLTEQ's current net profit margins (2.6%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: SOLTEQ has become profitable over the past 5 years, growing earnings by 54.9% per year.

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

Earnings vs Industry: SOLTEQ had negative earnings growth (-56.9%) over the past year, making it difficult to compare to the Software industry average (-5.4%).


Return on Equity

High ROE: SOLTEQ's Return on Equity (6.3%) is considered low.


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Financial Health

How is Solteq Oyj's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SOLTEQ's short term assets (€16.3M) do not cover its short term liabilities (€25.0M).

Long Term Liabilities: SOLTEQ's short term assets (€16.3M) do not cover its long term liabilities (€27.4M).


Debt to Equity History and Analysis

Debt Level: SOLTEQ's net debt to equity ratio (94.3%) is considered high.

Reducing Debt: SOLTEQ's debt to equity ratio has reduced from 108.9% to 104.9% over the past 5 years.

Debt Coverage: SOLTEQ's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: SOLTEQ's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SOLTEQ's dividend (4.82%) is higher than the bottom 25% of dividend payers in the Finnish market (2.41%).

High Dividend: SOLTEQ's dividend (4.82%) is in the top 25% of dividend payers in the Finnish market (4.74%)


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 increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (104.5%), SOLTEQ's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (457.5%), SOLTEQ's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.2yrs

Average management tenure


CEO

Aarne Aktan (49 yo)

0.083yr

Tenure

€27,000

Compensation

Mr. Aarne Aktan serves as Chief Executive Officer at Solteq Oyj since July 1, 2022. He has been a Director of Solteq Oyj since October 19, 2015. Mr. Aktan serves as Managing Director at Yhtyneet Medix Labo...


Leadership Team

Experienced Management: SOLTEQ's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: SOLTEQ's board of directors are considered experienced (3.4 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: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Solteq Oyj
  • Ticker: SOLTEQ
  • Exchange: HLSE
  • Founded: 1982
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: €40.248m
  • Shares outstanding: 19.40m
  • Website: https://www.solteq.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 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.