HLSE:SSH1V

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SSH Communications Security Oyj

Executive Summary

SSH Communications Security Oyj provides enterprise cybersecurity solutions for financial institutions and other organizations to access, secure, and control data, applications, and services worldwide.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SSH1V's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

SSH1V

0.08%

FI Software

-1.2%

FI Market


1 Year Return

-1.0%

SSH1V

48.7%

FI Software

-6.6%

FI Market

Return vs Industry: SSH1V underperformed the Finnish Software industry which returned 50% over the past year.

Return vs Market: SSH1V exceeded the Finnish Market which returned -2.2% over the past year.


Shareholder returns

SSH1VIndustryMarket
7 Day-5.1%0.08%-1.2%
30 Day-7.8%1.2%-7.5%
90 Day72.7%25.5%8.6%
1 Year-1.0%-1.0%48.9%48.7%2.2%-6.6%
3 Year-31.3%-31.3%6.0%4.2%6.1%-10.1%
5 Year-67.6%-67.6%-18.4%-22.2%34.6%6.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SSH Communications Security Oyj undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SSH1V (€1.49) is trading below our estimate of fair value (€4.27)

Significantly Below Fair Value: SSH1V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SSH1V is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: SSH1V is unprofitable, so we can't compare its PE Ratio to the Finnish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SSH1V's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SSH1V is good value based on its PB Ratio (5.7x) compared to the FI Software industry average (6.1x).


Next Steps

Future Growth

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

84.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSH1V is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.4%).

Earnings vs Market: SSH1V is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SSH1V's is expected to become profitable in the next 3 years.

Revenue vs Market: SSH1V's revenue (15.4% per year) is forecast to grow faster than the Finnish market (4.9% per year).

High Growth Revenue: SSH1V's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SSH1V is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has SSH Communications Security Oyj performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSH1V is currently unprofitable.

Growing Profit Margin: SSH1V is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SSH1V is unprofitable, but has reduced losses over the past 5 years at a rate of 21.4% per year.

Accelerating Growth: Unable to compare SSH1V's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SSH1V is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (90%).


Return on Equity

High ROE: SSH1V has a negative Return on Equity (-6.47%), as it is currently unprofitable.


Next Steps

Financial Health

How is SSH Communications Security Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: SSH1V's short term assets (€15.0M) exceed its short term liabilities (€8.2M).

Long Term Liabilities: SSH1V's short term assets (€15.0M) exceed its long term liabilities (€2.0M).


Debt to Equity History and Analysis

Debt Level: SSH1V's debt to equity ratio (5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SSH1V's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SSH1V has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SSH1V has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is SSH Communications Security Oyj current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SSH1V's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SSH1V'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 SSH1V's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SSH1V's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SSH1V is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SSH1V'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?

1.6yrs

Average management tenure


CEO

Teemu Tunkelo (59yo)

0.33

Tenure

Mr. Teemu Tunkelo serves as Chief Executive Officer at SSH Communications Security Oyj since March 24, 2020. He had been Independent Director of Nixu Oyj since April 25, 2018 until 2020. Professional exper ...


Leadership Team

NamePositionTenureCompensationOwnership
Tatu Ylönen
Founder25.5yrs€30.00k18.01% 10.4m
Teemu Tunkelo
Chief Executive Officer0.33yrno datano data
Niklas Nordström
Chief Financial Officer2.33yrsno datano data
Markku Rossi
Chief Technology Officer5.42yrsno data0.0017% 968.0
Markku Karppi
General Counsel5.5yrsno datano data
Joe Scaff
Chief Sales Officer1.58yrsno data0.12% 69.2k
Sami Ahvenniemi
Chief Customer Officer1.58yrsno datano data
Jussi Mononen
Chief Commercial Officer0.17yrno datano data
Jussi Löppönen
Head of the NQX Businessno datano datano data
Timo Lilja
Head of Engineering1.33yrsno datano data

1.6yrs

Average Tenure

50yo

Average Age

Experienced Management: SSH1V's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tatu Ylönen
Founder25.5yrs€30.00k18.01% 10.4m
Aino-Mari Kiianmies
Director0.33yrno datano data
Sampo Kellomäki
Director0.33yrno datano data
Kai Tavakka
Director0.083yrno datano data
Henri Österlund
Chairman0.083yrno datano data

0.3yrs

Average Tenure

Experienced Board: SSH1V's board of directors are not considered experienced ( 0.3 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

SSH Communications Security Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SSH Communications Security Oyj
  • Ticker: SSH1V
  • Exchange: HLSE
  • Founded: 1995
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: €57.621m
  • Shares outstanding: 38.80m
  • Website: https://www.ssh.com

Number of Employees


Location

  • SSH Communications Security Oyj
  • Kornetintie 3
  • Helsinki
  • Uusimaa
  • 380
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSH1VHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURDec 2000
0MKQLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2000

Biography

SSH Communications Security Oyj provides enterprise cybersecurity solutions for financial institutions and other organizations to access, secure, and control data, applications, and services worldwide. Its products include PrivX that offers lean access management for multi-cloud, containers, and serverless systems; Universal SSH Key Manager for SSH key and certificate management with support for legacy systems and a transition path to the cloud; Tectia SSH that offers Secure file transfer, remote administration, application tunneling, and automation for server environments; and NQX Firewall for the protection of government and other high-security applications. It sells its products directly as well as through online. The company was founded in 1995 and is headquartered in Helsinki, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 20:58
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
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.