HLSE:SSH1V

Stock Analysis Report

SSH Communications Security Oyj

Executive Summary

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

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

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


Market Performance


7 Day Return

2.5%

SSH1V

1.0%

FI Software

0.8%

FI Market


1 Year Return

-19.7%

SSH1V

17.1%

FI Software

5.5%

FI Market

Return vs Industry: SSH1V underperformed the Finnish Software industry which returned 17.1% over the past year.

Return vs Market: SSH1V underperformed the Finnish Market which returned 5.5% over the past year.


Shareholder returns

SSH1VIndustryMarket
7 Day2.5%1.0%0.8%
30 Day2.2%-3.3%0.6%
90 Day-5.7%7.1%2.7%
1 Year-19.7%-19.7%17.9%17.1%10.4%5.5%
3 Year-48.5%-48.5%-9.0%-12.3%29.6%14.2%
5 Year-44.7%-44.7%1.7%-4.0%62.9%31.7%

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?

43.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SSH1V (€1.41) is trading below our estimate of fair value (€2.48)

Significantly Undervalued: 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

Low 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 (4.7x) compared to the FI Software industry average (4.7x).


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?

82.2%

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 (0.5%).

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

High Growth Earnings: SSH1V's loss is forecast to worsen by 0% next year.

Revenue vs Market: SSH1V's revenue (12.4% per year) is forecast to grow faster than the Finnish market (2.1% per year).

High Growth Revenue: SSH1V's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SSH1V's Return on Equity is forecast to be high in 3 years time (30.7%)


Next Steps

Past Performance

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

-1.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SSH1V is unprofitable, and losses have increased over the past 5 years at a rate of -1.5% 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 (9.1%).


Return on Equity

High ROE: SSH1V has a negative Return on Equity (-3.94%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SSH1V is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SSH1V is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is SSH Communications Security Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: SSH1V's short term assets (€14.6M) exceeds its short term liabilities (€7.4M)

Long Term Liabilities: SSH1V's short term assets (14.6M) exceeds its long term liabilities (800.0K)


Debt to Equity History and Analysis

Debt Level: SSH1V's debt to equity ratio (4.8%) 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

Inventory Level: SSH1V has a low level of unsold assets or inventory.

Debt Coverage by Assets: SSH1V's debt is covered by short term assets (assets are 24.333330x debt).


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's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%5.1%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate SSH1V'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 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

What is the CEO of SSH Communications Security Oyj's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Kaisa Olkkonen (55yo)

2.8yrs

Tenure

0

Ms. Kaisa Olkkonen, LL.M., has been the Chief Executive Officer of SSH Communications Security Oyj since January 1, 2017 and served as its Chairman from April 20, 2016 to January 5, 2017. Ms. Olkkonen is a ...


CEO Compensation Analysis

Compensation vs. Market: Kaisa's total compensation ($USD215.56K) is about average for companies of similar size in the Finnish market ($USD0.00).

Compensation vs Earnings: Kaisa's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.6yrs

Average Tenure

48yo

Average Age

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


Board Age and Tenure

1.6yrs

Average Tenure

49yo

Average Age

Experienced Board: SSH1V's board of directors are not considered experienced ( 1.6 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

  • Tatu Ylönen (51yo)

    Founder

    • Tenure: 24.8yrs
    • Compensation: €27.50k
  • Sami Ahvenniemi (47yo)

    Chief Customer Officer

    • Tenure: 0.8yrs
  • Markku Rossi (49yo)

    Chief Technology Officer

    • Tenure: 4.7yrs
  • Simo Karkkulainen (38yo)

    Chief Marketing Officer

    • Tenure: 0.8yrs
  • Joe Scaff (38yo)

    Chief Sales Officer

    • Tenure: 0.8yrs
  • Niklas Nordström (40yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
  • Markku Karppi

    General Counsel

    • Tenure: 4.8yrs
  • Kaisa Olkkonen (55yo)

    Chief Executive Officer

    • Tenure: 2.8yrs
  • Jussi Löppönen (56yo)

    Head of the NQX Business

    • Tenure: 0yrs
  • Timo Lilja

    Head of Engineering

    • Tenure: 0.6yrs

Board Members

  • Tatu Ylönen (51yo)

    Founder

    • Tenure: 24.8yrs
    • Compensation: €27.50k
  • Timo Syrjälä (61yo)

    Director

    • Tenure: 5yrs
    • Compensation: €28.00k
  • Petri Kuivala (49yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: €31.25k
  • Sam Curry (47yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: €22.50k
  • Anne Zettlemoyer (39yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: €22.50k
  • Sauli Kiuru

    Vice Chairman of the Board

    • Tenure: 0.3yrs

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: €54.711m
  • Shares outstanding: 38.80m
  • Website: https://www.ssh.com

Number of Employees


Location

  • SSH Communications Security Oyj
  • Kornetintie 8
  • 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 organizations to access, secure, and control data, applications, and services worldwide. Its products include PrivX that offe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:37
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.