HLSE:TIETO

Stock Analysis Report

Executive Summary

Tieto Oyj operates as a software and services company.

Snowflake

Fundamentals

6 star dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.0%

HLSE:TIETO

-3.8%

FI IT

-1.4%

FI Market


1 Year Return

-20.8%

HLSE:TIETO

-18.4%

FI IT

-4.9%

FI Market

TIETO underperformed the IT industry which returned -18.5% over the past year.

TIETO underperformed the Market in Finland which returned -5% over the past year.


Share holder returns

TIETOIndustryMarket
7 Day-5.0%-3.8%-1.4%
30 Day-8.8%-6.9%-1.1%
90 Day-15.9%-12.5%-1.6%
1 Year-16.6%-20.8%-14.5%-18.4%-0.6%-4.9%
3 Year-4.9%-18.6%-1.1%-14.6%26.4%11.9%
5 Year38.0%5.2%39.7%4.6%53.1%24.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tieto Oyj undervalued based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Tieto Oyj's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Tieto Oyj's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Tieto Oyj is good value based on earnings compared to the Europe IT industry average.

Tieto Oyj is good value based on earnings compared to the Finland market.


Price Based on Expected Growth

Tieto Oyj is poor value based on expected growth next year.


Price Based on Value of Assets

Tieto Oyj is good value based on assets compared to the FI IT industry average.


Next Steps

Future Growth

How is Tieto Oyj expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tieto Oyj's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Tieto Oyj's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

Tieto Oyj's revenue growth is expected to exceed the Finland market average.

Tieto Oyj's earnings growth is positive but not above the Finland market average.

Tieto Oyj's earnings growth is expected to exceed the low risk savings rate of 0.5%.


Earnings per Share Growth Estimates


Future Return on Equity

Tieto Oyj is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Tieto Oyj performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Tieto Oyj's year on year earnings growth rate has been positive over the past 5 years.

Tieto Oyj's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Tieto Oyj's 1-year earnings growth is negative, it can't be compared to the Europe IT industry average.


Return on Equity

Tieto Oyj has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Tieto Oyj used its assets more efficiently than the Europe IT industry average last year based on Return on Assets.


Return on Capital Employed

Tieto Oyj's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Tieto Oyj's financial position?


Financial Position Analysis

Tieto Oyj's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Tieto Oyj's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Tieto Oyj's level of debt (68.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (28.2% vs 68.7% today).

Debt is well covered by operating cash flow (63.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 20.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

What is Tieto Oyj's current dividend yield, its reliability and sustainability?

6.93%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Tieto Oyj's pays a higher dividend yield than the bottom 25% of dividend payers in Finland (2.42%).

Tieto Oyj's dividend is above the markets top 25% of dividend payers in Finland (5.33%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Kimmo Alkio (56yo)

7.8yrs

Tenure

€2,055,836

Compensation

Mr. Kimmo Alkio, BBA, MBA has been the Chief Executive Officer and President of Tieto Oyj since November 1, 2011. Mr. Alkio has been the President and Chief Executive Officer of Tieto Corporation since Jul ...


CEO Compensation Analysis

Kimmo's remuneration is higher than average for companies of similar size in Finland.

Kimmo's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

52yo

Average Age

The tenure for the Tieto Oyj management team is about average.


Board Age and Tenure

2.4yrs

Average Tenure

58yo

Average Age

The average tenure for the Tieto Oyj board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Katariina Kravi (52yo)

    Executive Vice President of Human Resources

    • Tenure: 7.3yrs
  • Outi Karisto

    Head of Human Resource Public & Healthcare & Welfare

  • Tomi Hyryläinen

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Ari Järvelä (50yo)

    Executive VP of Data-Driven Businesses and Head of Business Consulting & Implementation Service

  • Kimmo Alkio (56yo)

    CEO & President

    • Tenure: 7.8yrs
    • Compensation: 2.06m
  • Päivi Huuhtanen

    Head of Stakeholder Relations

  • Markus Suomi (48yo)

    Chief Technology Officer

    • Tenure: 1.3yrs
  • Kia Haring

    Head of Global Communications

  • Satu Kiiskinen (54yo)

    Executive Vice President of Industrial & Consumer Services

  • Tanja Lounevirta

    Head of Investor Relations


Board Members

  • Endre Rangnes (60yo)

    Independent Director

    • Tenure: 5.4yrs
  • Niko Pakalén (33yo)

    Director

    • Tenure: 0.6yrs
  • Kurt Jofs (61yo)

    Chairman

    • Tenure: 2.4yrs
  • Timo Ahopelto (44yo)

    Director

    • Tenure: 2.6yrs
  • Esa Koskinen (64yo)

    Director

    • Tenure: 9.4yrs
  • Johanna Lamminen (53yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
  • Liselotte Engstam (59yo)

    Director

    • Tenure: 1.4yrs
  • Robert Spinelli (62yo)

    Director

    • Tenure: 1.4yrs
  • Harri-Pekka Kaukonen (56yo)

    Deputy Chairman

  • Tomas Franzén (57yo)

    Director

    • Tenure: 0.6yrs

Company Information

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


Key Information

  • Name: Tieto Oyj
  • Ticker: TIETO
  • Exchange: HLSE
  • Founded: 1968
  • Industry: it consulting and other services
  • Sector: software
  • Market Cap: €1.616b
  • Shares outstanding: 73.94m
  • Website: Click here

Number of Employees


Location

  • Tieto Oyj
  • Keilalahdentie 2-4
  • Espoo
  • Uusimaa
  • 2150
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TIETOHLSE (OMX Nordic Exchange Helsinki)YesCommon StockFIEURJan 1988
TIETOSOM (OMX Nordic Exchange Stockholm)YesCommon StockSESEKJan 1988
0KG0LSE (London Stock Exchange)YesCommon StockGBEURJan 1988
TTEBDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1988

Biography

Tieto Oyj operates as a software and services company. The company operates through Technology Services and Modernization, Business Consulting and Implementation, Industry Solutions, and Product Developmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 20:47
End of Day Share Price2019/08/16 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.