Board Change • May 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Johan Hammaren was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 30
First quarter 2026 earnings: Revenues miss analyst expectations First quarter 2026 results: Revenue: €16.8m (flat on 1Q 2025). Net income: €2.10m (up €3.20m from 1Q 2025). Profit margin: 13% (up from net loss in 1Q 2025). Revenue missed analyst estimates by 3.4%. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Announcement • Apr 29
Tecnotree Oyj Provides Earnings Guidance for 2026 Tecnotree Oyj provided earnings guidance for 2026. For the period, revenue is expected to grow by low to mid single-digit percentage in constant currency terms. Major Estimate Revision • Mar 04
Consensus EPS estimates fall by 23% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from €0.83 to €0.64 per share. Revenue forecast steady at €75.4m. Net income forecast to grow 44% next year vs 29% growth forecast for Software industry in Finland. Consensus price target of €5.70 unchanged from last update. Share price was steady at €5.59 over the past week. Reported Earnings • Feb 27
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: €0.60 (up from €0.50 in FY 2024). Revenue: €72.5m (up 1.3% from FY 2024). Net income: €10.2m (up 23% from FY 2024). Profit margin: 14% (up from 12% in FY 2024). The increase in margin was primarily driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 44%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 17% per year. New Risk • Feb 26
New major risk - Revenue and earnings growth Earnings have declined by 15% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 15% per year over the past 5 years. Shareholders have been substantially diluted in the past year (43% increase in shares outstanding). Minor Risk Profit margins are more than 30% lower than last year (9.3% net profit margin). New Risk • Feb 19
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 43% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Shareholders have been substantially diluted in the past year (43% increase in shares outstanding). Minor Risk Profit margins are more than 30% lower than last year (9.3% net profit margin). New Risk • Feb 01
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 43% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Shareholders have been substantially diluted in the past year (43% increase in shares outstanding). Minor Risk Profit margins are more than 30% lower than last year (9.3% net profit margin). New Risk • Jan 27
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Finnish stocks, typically moving 5.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (5.8% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (9.3% net profit margin). Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment improves as stock rises 39% After last week's 39% share price gain to €5.62, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 6x in the Software industry in Finland. Total loss to shareholders of 51% over the past three years. Announcement • Jan 12
Tecnotree Oyj to Report Fiscal Year 2025 Final Results on Mar 09, 2026 Tecnotree Oyj announced that they will report fiscal year 2025 final results at 10:00 AM, USSR Zone1 on Mar 09, 2026 Reported Earnings • Oct 29
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: €0.20 (down from €0.24 in 3Q 2024). Revenue: €18.6m (down 2.1% from 3Q 2024). Net income: €3.70m (flat on 3Q 2024). Profit margin: 20% (in line with 3Q 2024). Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) also missed analyst estimates by 31%. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has fallen by 26% per year, which means it is performing significantly worse than earnings. Announcement • Oct 28
Tecnotree Corporation Reiterates Earnings Guidance for the Full Year 2025 Tecnotree Corporation reiterated earnings guidance for the full year 2025. For the year, the company reiterates Net sales growth in constant currency of low-to-high single digit. Valuation Update With 7 Day Price Move • Oct 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to €5.25, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 22x in the Software industry in Finland. Total loss to shareholders of 42% over the past three years. Reported Earnings • Aug 05
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: €0.06 (down from €0.22 in 2Q 2024). Revenue: €17.3m (down 7.5% from 2Q 2024). Net income: €3.70m (flat on 2Q 2024). Profit margin: 21% (up from 20% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 86%. Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has fallen by 27% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to €4.30, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 13x in the Software industry in Finland. Total loss to shareholders of 74% over the past three years. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €3.48, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 13x in the Software industry in Finland. Total loss to shareholders of 79% over the past three years. Reported Earnings • May 02
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: EPS: €0.09. Revenue: €16.9m (up 4.3% from 1Q 2024). Net income: €1.50m (up €1.50m from 1Q 2024). Profit margin: 8.9% (up from 0% in 1Q 2024). The increase in margin was primarily driven by lower expenses. Revenue exceeded analyst estimates by 1.8%. Earnings per share (EPS) missed analyst estimates by 50%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has fallen by 39% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to €3.76, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 14x in the Software industry in Finland. Total loss to shareholders of 78% over the past three years. Upcoming Dividend • Apr 23
Upcoming dividend of €0.01 per share Eligible shareholders must have bought the stock before 30 April 2025. Payment date: 12 May 2025. Payout ratio is a comfortable 1.1% but the company is not cash flow positive. Trailing yield: 0.3%. Lower than top quartile of Finnish dividend payers (6.2%). Lower than average of industry peers (1.8%). Announcement • Apr 10
Tecnotree Oyj Approves the Appointment of Investment & Strategy Committee Members The Board of Directors of Tecnotree Corporation elected on 9 April 2025 at the Annual General Meeting has held an organizing meeting. Investment & Strategy Committee: Neil Macleod (Chairman), Jyoti Desai and Conrad Neil Phoenix. Announcement • Apr 07
Tecnotree Corporation Approves Dividend for the Financial Year 2024, Payable on 12 May 2025 Tecnotree Corporation at its AGM held on April 7, 2025, approved a dividend of EUR 0.01 per share is paid for the financial year 2024. The dividend is paid to a shareholder who is registered in the shareholders' register of the company held by Euroclear Finland Oy on the record date of the payment, i.e. 2 May 2025. The company will pay the dividend on 12 May 2025. Announcement • Mar 14
Tecnotree Corporation Proposes Dividend for the Financial Year 2024, Payable on 12 May 2025 The Board of Directors of Tecnotree Corporation proposed to the Annual General Meeting that a dividend of EUR 0.01 per share be paid for the financial year 2024. The dividend shall be paid to a shareholder who is registered in the shareholders' register of the Company held by Euroclear Finland Oy on the record date of the payment, i.e. 2 May 2025. The Board of Directors proposes that the Company shall pay the dividend on 12 May 2025. Reported Earnings • Feb 27
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: €0.50 (down from €0.80 in FY 2023). Revenue: €71.7m (down 8.5% from FY 2023). Net income: €8.30m (down 26% from FY 2023). Profit margin: 12% (down from 14% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) also missed analyst estimates by 33%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has fallen by 47% per year, which means it is performing significantly worse than earnings. Announcement • Feb 26
Tecnotree Corporation Provides Earnings Guidance for the Year 2025 Tecnotree Corporation provided earnings guidance for the year 2025. For the year, Net sales are expected to grow by low to mid-single digit percentage in constant currency terms. Operating profit margin expected to see margin expansion of at least +200bp (2%). Valuation Update With 7 Day Price Move • Feb 04
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to €4.27, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 15x in the Software industry in Finland. Total loss to shareholders of 83% over the past three years. New Risk • Jan 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Finnish stocks, typically moving 5.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (5.9% average weekly change). Market cap is less than US$100m (€41.7m market cap, or US$43.1m). Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to €3.09, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 19x in the Software industry in Finland. Total loss to shareholders of 87% over the past three years. Announcement • Jan 11
Tecnotree Oyj to Report Q4, 2024 Final Results between Mar 10, 2025 and Mar 14, 2025 Tecnotree Oyj announced that they will report Q4, 2024 final results between Mar 10, 2025 and Mar 14, 2025 Reported Earnings • Oct 25
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: €0.24 (up from €0.22 in 3Q 2023). Revenue: €19.0m (down 11% from 3Q 2023). Net income: €3.70m (up 16% from 3Q 2023). Profit margin: 20% (up from 15% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has fallen by 51% per year, which means it is performing significantly worse than earnings. Announcement • Sep 16
Tecnotree Oyj Announces Dividend, Payable on 1 October 2024 The Board of Directors of Tecnotree by the Annual General Meeting dated 15 April 2024, Tecnotree would like to announced that the company's Board has passed the following resolutions on 16 September 2024 with respect to payment of dividends: The Board resolved to distribute a dividend of EUR 0.01 per share and the amount of dividend to be paid from the Company's retained earnings account will be a maximum of EUR 170,000. The dividend record date will be 24 September 2024, and the dividend will be paid on 1 October 2024. The actual dividend payment date outside Finland will be determined by the practices of the intermediary banks transferring the dividend payments. Upcoming Dividend • Sep 16
Inaugural dividend of €0.01 per share Eligible shareholders must have bought the stock before 23 September 2024. Payment date: 01 October 2024. This is the first dividend for Tecnotree Oyj since going public. The average dividend yield among industry peers is 2.6%. Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment deteriorates as stock falls 6.9% After last week's 6.9% share price decline to €3.87, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 17x in the Software industry in Finland. Total loss to shareholders of 85% over the past three years. Price Target Changed • Sep 09
Price target decreased by 26% to €4.25 Down from €5.75, the current price target is an average from 2 analysts. New target price is 9.8% above last closing price of €3.87. Stock is down 57% over the past year. The company is forecast to post earnings per share of €0.84 for next year compared to €0.80 last year. Announcement • Sep 06
Tecnotree Oyj Updates Dividend Policy Tecnotree Oyj updated its dividend distribution policy to distribute 10% of its free cash flow as dividends. Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to €4.15, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 17x in the Software industry in Finland. Total loss to shareholders of 87% over the past three years. Major Estimate Revision • Aug 16
Consensus EPS estimates increase by 46%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from €82.6m to €80.3m. EPS estimate rose from €0.575 to €0.84. Net income forecast to grow 55% next year vs 46% growth forecast for Software industry in Finland. Consensus price target down from €5.75 to €5.50. Share price fell 19% to €4.15 over the past week. Reported Earnings • Aug 11
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: €0.12 (down from €0.23 in 2Q 2023). Revenue: €18.7m (down 3.1% from 2Q 2023). Net income: €3.70m (flat on 2Q 2023). Profit margin: 20% (in line with 2Q 2023). Revenue missed analyst estimates by 7.9%. Earnings per share (EPS) also missed analyst estimates by 54%. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has fallen by 45% per year, which means it is performing significantly worse than earnings. New Risk • Jul 04
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.2% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.3% average weekly change). High level of non-cash earnings (27% accrual ratio). Minor Risks Shareholders have been diluted in the past year (2.2% increase in shares outstanding). Significant insider selling over the past 3 months (€59k sold). Market cap is less than US$100m (€80.9m market cap, or US$87.3m). Recent Insider Transactions • May 12
Insider recently sold €59k worth of stock On the 8th of May, Ramaseshan Subramanian sold around 11k shares on-market at roughly €5.39 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of €167k more than they bought in the last 12 months. Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: €0.01 (vs €0.11 in 1Q 2023) First quarter 2024 results: EPS: €0.01 (down from €0.11 in 1Q 2023). Revenue: €16.3m (up 5.2% from 1Q 2023). Net income: €1.60m (down 11% from 1Q 2023). Profit margin: 9.8% (down from 12% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has fallen by 28% per year, which means it is performing significantly worse than earnings. Announcement • Apr 16
Tecnotree Corporation Resolves to Establish Strategy Committee Tecnotree Corporation at its AGM held on 15 April 2024 resolved to establish Strategy Committee. The members of the Committees were elected as follows: Strategy Committee: Jyoti Desai (Chairman), Anders Fornander and Johan Hammarén. The composition of an Audit Committee, a Remuneration Committee and a Nomination Committee are as follows: Audit Committee: Johan Hammarén (Chairman), Neil Macleod and Jyoti Desai. Remuneration Committee: Jyoti Desai (Chairman), Anders Fornander and Neil Macleod. Nomination Committee: Jyoti Desai (Chairman), Conrad Neil Phoenix, Neil Macleod and Johan Hammarén. Announcement • Mar 24
Tecnotree Corporation Proposes Dividend for the Year 2023 Tecnotree Corporation's Board of Directors has decided to amend its dividend proposal included in the financial report release published on 22 February 2024 for the Annual General Meeting to be held on 15 April 2024. According to the previous dividend proposal, the Board of Directors proposes to the Annual General Meeting that no dividend will be paid for the financial year 2023. According to the new proposal, the Board of Directors proposed to the Annual General Meeting that the Board of Directors is authorized to decide, in its discretion, on the distribution of an aggregate maximum of EUR 350,000 as dividends from the financial year 2023. The aforesaid dividend proposal is conditional on the Annual General Meeting deciding that the Company carries out a reverse share split to the effect that each twenty (20) current shares of the Company are merged into one (1) share as proposed by the Board of Directors. Should the Annual General Meeting decide on the reverse share split pursuant to the aforesaid proposal, the maximum amount of dividends that can be distributed on the basis of the aforesaid dividend authorization is EUR 0.01 per share (post 20:1 reverse share split). Major Estimate Revision • Feb 29
Consensus EPS estimates fall by 25% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from €84.9m to €83.0m. EPS estimate also fell from €0.04 per share to €0.03 per share. Consensus price target of €0.35 unchanged from last update. Share price was steady at €0.30 over the past week. Reported Earnings • Feb 23
Full year 2023 earnings released: EPS: €0.04 (vs €0.037 in FY 2022) Full year 2023 results: EPS: €0.04. Revenue: €78.6m (up 9.8% from FY 2022). Net income: €11.2m (down 3.2% from FY 2022). Profit margin: 14% (down from 16% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Software industry in Finland. New Risk • Feb 14
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: €92.0m (US$98.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (36% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.1% average weekly change). Significant insider selling over the past 3 months (€64k sold). Market cap is less than US$100m (€92.0m market cap, or US$98.6m). Board Change • Dec 17
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Anders Fornander was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Dec 08
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: €92.2m (US$99.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (36% accrual ratio). Minor Risk Market cap is less than US$100m (€92.2m market cap, or US$99.1m). Announcement • Dec 08
Tecnotree Corporation Announces Resignation of Markku Wilenius from the Board of Directors Markku Wilenius has resigned from the Board of Directors of Tecnotree Corporation. The resignation will be effective immediately. Price Target Changed • Oct 30
Price target decreased by 29% to €0.39 Down from €0.55, the current price target is an average from 2 analysts. New target price is 5.9% above last closing price of €0.36. Stock is down 37% over the past year. The company is forecast to post earnings per share of €0.04 for next year compared to €0.037 last year. Announcement • Oct 29
Tecnotree Corporation Revises Earnings Guidance for the Year 2023 Tecnotree Corporation revised earnings guidance for the year 2023. For the year, the company expects revenue to be higher by 9% to 13% against earlier guidance of 7% to 15%, compared to 2022. Operating profit (EBIT) to be higher by 15% to 20% against earlier guidance of 10% to 20%, compared to 2022. Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: €0.01 (vs €0.01 in 3Q 2022) Third quarter 2023 results: EPS: €0.01 (in line with 3Q 2022). Revenue: €21.6m (up 8.5% from 3Q 2022). Net income: €3.20m (down 5.9% from 3Q 2022). Profit margin: 15% (down from 17% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 15% per year. New Risk • Aug 31
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. Price Target Changed • Aug 07
Price target decreased by 10% to €0.52 Down from €0.58, the current price target is an average from 2 analysts. New target price is 12% above last closing price of €0.47. Stock is down 28% over the past year. The company is forecast to post earnings per share of €0.04 for next year compared to €0.037 last year. Reported Earnings • Aug 07
Second quarter 2023 earnings: EPS in line with expectations, revenues disappoint Second quarter 2023 results: EPS: €0.012 (down from €0.013 in 2Q 2022). Revenue: €19.3m (up 5.5% from 2Q 2022). Net income: €3.70m (down 7.5% from 2Q 2022). Profit margin: 19% (down from 22% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Announcement • Aug 05
Tecnotree Corporation Provides Earnings Guidance for the Year 2023 Tecnotree Corporation provided earnings guidance for the year 2023. For the year, the company maintains its current guidance: revenue to be higher by 7%-15% compared to 2022; operating profit (EBIT) to be higher by 10%-20% compared to 2022. Recent Insider Transactions • May 15
Insider recently sold €131k worth of stock On the 11th of May, Sajan Thomas sold around 295k shares on-market at roughly €0.44 per share. This transaction amounted to 73% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • Mar 28
Full year 2022 earnings: EPS in line with analyst expectations despite revenue beat Full year 2022 results: EPS: €0.037 (down from €0.062 in FY 2021). Revenue: €71.6m (up 12% from FY 2021). Net income: €11.6m (down 37% from FY 2021). Profit margin: 16% (down from 28% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Feb 25
Full year 2022 earnings: EPS in line with analyst expectations despite revenue beat Full year 2022 results: EPS: €0.04 (down from €0.062 in FY 2021). Revenue: €71.7m (up 12% from FY 2021). Net income: €11.6m (down 37% from FY 2021). Profit margin: 16% (down from 28% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in Finland. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth.