HLSE:TIETO

Stock Analysis Report

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Executive Summary

TietoEVRY Oyj operates as a software and services company. More Details


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TIETO is not significantly more volatile than the rest of Finnish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TIETO's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

TIETO

0.9%

FI IT

-1.4%

FI Market


1 Year Return

11.7%

TIETO

20.0%

FI IT

29.3%

FI Market

Return vs Industry: TIETO underperformed the Finnish IT industry which returned 13.6% over the past year.

Return vs Market: TIETO underperformed the Finnish Market which returned 18.5% over the past year.


Shareholder returns

TIETOIndustryMarket
7 Day0.7%0.9%-1.4%
30 Day-6.1%-5.6%-1.4%
90 Day-0.7%2.8%3.1%
1 Year14.6%11.7%23.0%20.0%38.8%29.3%
3 Year-1.7%-13.5%7.7%-4.6%31.2%8.2%
5 Year31.7%3.5%105.5%85.2%72.1%34.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TietoEVRY Oyj undervalued compared to its fair value and its price relative to the market?

29.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TIETO (€26.3) is trading below our estimate of fair value (€37.29)

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


Price To Earnings Ratio

PE vs Industry: TIETO is poor value based on its PE Ratio (32.9x) compared to the XE IT industry average (25.4x).

PE vs Market: TIETO is poor value based on its PE Ratio (32.9x) compared to the Finnish market (27.7x).


Price to Earnings Growth Ratio

PEG Ratio: TIETO is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: TIETO is good value based on its PB Ratio (1.9x) compared to the FI IT industry average (4.9x).


Next Steps

Future Growth

How is TietoEVRY Oyj forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TIETO's forecast earnings growth (21.9% per year) is above the savings rate (0.3%).

Earnings vs Market: TIETO's earnings (21.9% per year) are forecast to grow faster than the Finnish market (19.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TIETO's revenue (1.8% per year) is forecast to grow slower than the Finnish market (3.8% per year).

High Growth Revenue: TIETO's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TIETO's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has TietoEVRY Oyj performed over the past 5 years?

-5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TIETO has high quality earnings.

Growing Profit Margin: TIETO's current net profit margins (3.4%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: TIETO's earnings have declined by 5.2% per year over the past 5 years.

Accelerating Growth: TIETO's earnings growth over the past year (19.9%) exceeds its 5-year average (-5.2% per year).

Earnings vs Industry: TIETO earnings growth over the past year (19.9%) exceeded the IT industry 7.4%.


Return on Equity

High ROE: TIETO's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is TietoEVRY Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: TIETO's short term assets (€823.6M) do not cover its short term liabilities (€826.1M).

Long Term Liabilities: TIETO's short term assets (€823.6M) do not cover its long term liabilities (€1.2B).


Debt to Equity History and Analysis

Debt Level: TIETO's debt to equity ratio (56.9%) is considered high.

Reducing Debt: TIETO's debt to equity ratio has increased from 35.4% to 56.9% over the past 5 years.

Debt Coverage: TIETO's debt is well covered by operating cash flow (38.3%).

Interest Coverage: TIETO's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Next Steps

Dividend

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

5.02%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TIETO's dividend (5.02%) is higher than the bottom 25% of dividend payers in the Finnish market (1.86%).

High Dividend: TIETO's dividend (5.02%) is in the top 25% of dividend payers in the Finnish market (3.95%)


Stability and Growth of Payments

Stable Dividend: TIETO's dividend payments have been volatile in the past 10 years.

Growing Dividend: TIETO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (165.4%), TIETO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TIETO's dividends in 3 years are forecast to be covered by earnings (59.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average board tenure


CEO

Kimmo Alkio (57 yo)

9.33yrs

Tenure

€2,636,446

Compensation

Mr. Kimmo Alkio, BBA, MBA has been the Chief Executive Officer and President of TietoEVRY Oyj (formerly known as Tieto Oyj) since November 1, 2011. Mr. Alkio has been the President and Chief Executive Offi...


CEO Compensation Analysis

Compensation vs Market: Kimmo's total compensation ($USD3.13M) is above average for companies of similar size in the Finnish market ($USD1.79M).

Compensation vs Earnings: Kimmo's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Tomas Franzén
Independent Chairman of the Board1.25yrs€72.52k0.0014%
€ 42.4k
Salim Nathoo
Independent Deputy Chairperson1.25yrs€99.33kno data
Timo Ahopelto
Independent Director4.17yrs€31.51k0.0022%
€ 67.8k
Leif Teksum
Independent Director1.25yrs€59.94k0.0061%
€ 186.0k
Endre Rangnes
Independent Director7yrs€47.27k0.0038%
€ 115.7k
Harri-Pekka Kaukonen
Independent Director5yrsno data0.0039%
€ 118.8k
Rohan Haldea
Independent Director1.25yrs€65.68kno data
Liselotte Engstam
Independent Director3yrs€47.27k0.0018%
€ 55.0k
Anders Palklint
Representative Director1.25yrs€26.25kno data
Ilpo Waljus
Representative Director1.25yrs€26.25kno data
Niko Pakalen
Independent Director2yrs€31.51k0.00070%
€ 21.4k
Ola Jordhøy
Representative Director1.25yrs€26.25kno data

1.3yrs

Average Tenure

55yo

Average Age

Experienced Board: TIETO's board of directors are not considered experienced ( 1.3 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

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


Key Information

  • Name: TietoEVRY Oyj
  • Ticker: TIETO
  • Exchange: HLSE
  • Founded: 1968
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €3.054b
  • Shares outstanding: 118.27m
  • Website: https://www.tietoevry.com

Number of Employees


Location

  • TietoEVRY Oyj
  • Keilalahdentie 2-4
  • PO Box 2
  • Espoo
  • Uusimaa
  • 2101
  • 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
TIETOSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBSEKJan 1988
TIETOOB (Oslo Bors)YesCommon StockNONOKJan 1988

Biography

TietoEVRY Oyj operates as a software and services company. It operates through Digital Experience, Hybrid Infra, Industry Software, and Product Development Services segments. The Digital Experience segment...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 19:40
End of Day Share Price2021/03/08 00:00
Earnings2020/12/31
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.