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Market Cap

€220.3m

Last Updated

2021/05/15 18:36 UTC

Data Sources

Company Financials +

Executive Summary

Tecnotree Oyj provides telecom IT solutions products and services for charging, billing, customer care, and messaging and content services in the, Europe and Americas, the Middle East, Africa, and the Asia Pacific. More Details


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TEM1V is more volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TEM1V's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Finnish stocks.


Market Performance


7 Day Return

5.3%

TEM1V

-7.0%

FI Software

-1.9%

FI Market


1 Year Return

338.4%

TEM1V

111.7%

FI Software

39.3%

FI Market

Return vs Industry: TEM1V exceeded the Finnish Software industry which returned 111.9% over the past year.

Return vs Market: TEM1V exceeded the Finnish Market which returned 39.3% over the past year.


Shareholder returns

TEM1VIndustryMarket
7 Day5.3%-7.0%-1.9%
30 Day23.3%-9.5%1.5%
90 Day28.7%-0.5%2.7%
1 Year338.4%338.4%112.8%111.7%48.8%39.3%
3 Year913.7%913.7%140.1%137.5%32.1%10.7%
5 Year587.3%587.3%170.4%160.6%90.7%51.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tecnotree 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: TEM1V (€0.81) is trading below our estimate of fair value (€1.81)

Significantly Below Fair Value: TEM1V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TEM1V is good value based on its PE Ratio (14x) compared to the Finnish Software industry average (50.1x).

PE vs Market: TEM1V is good value based on its PE Ratio (14x) compared to the Finnish market (24.7x).


Price to Earnings Growth Ratio

PEG Ratio: TEM1V is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: TEM1V's PB Ratio (10.8x) is in line with the FI Software industry average.


Future Growth

How is Tecnotree Oyj forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEM1V's forecast earnings growth (11.2% per year) is above the savings rate (0.2%).

Earnings vs Market: TEM1V's earnings (11.2% per year) are forecast to grow slower than the Finnish market (12.1% per year).

High Growth Earnings: TEM1V's earnings are forecast to grow, but not significantly.

Revenue vs Market: TEM1V's revenue (8.9% per year) is forecast to grow faster than the Finnish market (3.2% per year).

High Growth Revenue: TEM1V's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TEM1V's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Tecnotree Oyj performed over the past 5 years?

53.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEM1V has high quality earnings.

Growing Profit Margin: TEM1V's current net profit margins (28.4%) are higher than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: TEM1V has become profitable over the past 5 years, growing earnings by 53.2% per year.

Accelerating Growth: TEM1V's earnings growth over the past year (119.9%) exceeds its 5-year average (53.2% per year).

Earnings vs Industry: TEM1V earnings growth over the past year (119.9%) underperformed the Software industry 119.9%.


Return on Equity

High ROE: TEM1V's Return on Equity (77.2%) is considered outstanding.


Financial Health

How is Tecnotree Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: TEM1V's short term assets (€43.3M) exceed its short term liabilities (€12.0M).

Long Term Liabilities: TEM1V's short term assets (€43.3M) exceed its long term liabilities (€18.8M).


Debt to Equity History and Analysis

Debt Level: TEM1V's debt to equity ratio (80.7%) is considered high.

Reducing Debt: TEM1V's debt to equity ratio has reduced from 281.2% to 80.7% over the past 5 years.

Debt Coverage: TEM1V's debt is well covered by operating cash flow (66.1%).

Interest Coverage: TEM1V earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TEM1V's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TEM1V'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 TEM1V's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TEM1V's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TEM1V is not paying a notable dividend for the Finnish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TEM1V'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?

2.0yrs

Average management tenure


CEO

Padma Ravichander (61 yo)

5yrs

Tenure

€2,584,000

Compensation

Ms. Padma Ravichander has been Chief Executive Officer of Tecnotree Oyj since May 9, 2016 and serves as its Member of Management Board. Ms. Ravichander served as an Interim Chief Executive Officer of Tecno...


CEO Compensation Analysis

Compensation vs Market: Padma's total compensation ($USD3.14M) is above average for companies of similar size in the Finnish market ($USD369.73K).

Compensation vs Earnings: Padma's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: TEM1V's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: TEM1V's board of directors are not considered experienced ( 2 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 been diluted in the past year, with total shares outstanding growing by 3.7%.


Top Shareholders

Company Information

Tecnotree Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tecnotree Oyj
  • Ticker: TEM1V
  • Exchange: HLSE
  • Founded: 1978
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €220.338m
  • Shares outstanding: 271.69m
  • Website: https://www.tecnotree.com

Number of Employees


Location

  • Tecnotree Oyj
  • Tekniikantie 14
  • Espoo
  • Uusimaa
  • 2150
  • Finland

Listings


Biography

Tecnotree Oyj provides telecom IT solutions products and services for charging, billing, customer care, and messaging and content services in the, Europe and Americas, the Middle East, Africa, and the Asia...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/15 18:36
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.