HLSE:TLT1V

Stock Analysis Report

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Executive Summary

Teleste Corporation provides video and broadband solutions, and network services in Finland and internationally.


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TLT1V has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.9%

TLT1V

8.1%

FI Communications

3.5%

FI Market


1 Year Return

-13.1%

TLT1V

-3.9%

FI Communications

6.8%

FI Market

Return vs Industry: TLT1V underperformed the Finnish Communications industry which returned -3.9% over the past year.

Return vs Market: TLT1V underperformed the Finnish Market which returned 6.8% over the past year.


Shareholder returns

TLT1VIndustryMarket
7 Day3.9%8.1%3.5%
30 Day22.6%14.7%13.7%
90 Day9.6%21.6%6.9%
1 Year-13.1%-13.1%-3.0%-3.9%10.7%6.8%
3 Year-39.8%-42.7%2.8%-2.2%12.1%-0.1%
5 Year-25.7%-33.1%-8.5%-19.3%45.1%18.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TLT1V (€4.78) is trading below our estimate of fair value (€6.47)

Significantly Below Fair Value: TLT1V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TLT1V is good value based on its PE Ratio (15.6x) compared to the Communications industry average (16.7x).

PE vs Market: TLT1V is good value based on its PE Ratio (15.6x) compared to the Finnish market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: TLT1V is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: TLT1V is good value based on its PB Ratio (1.2x) compared to the XE Communications industry average (1.7x).


Next Steps

Future Growth

How is Teleste forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

56.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLT1V's forecast earnings growth (56.9% per year) is above the savings rate (0.4%).

Earnings vs Market: TLT1V's earnings (56.9% per year) are forecast to grow faster than the Finnish market (14.5% per year).

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

Revenue vs Market: TLT1V's revenue (3.1% per year) is forecast to grow slower than the Finnish market (5.1% per year).

High Growth Revenue: TLT1V's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TLT1V's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Teleste performed over the past 5 years?

-36.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLT1V has a large one-off gain of €8.3M impacting its March 31 2020 financial results.

Growing Profit Margin: TLT1V's current net profit margins (2.5%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: TLT1V's earnings have declined by -36.6% per year over the past 5 years.

Accelerating Growth: TLT1V's earnings growth over the past year (780.4%) exceeds its 5-year average (-36.6% per year).

Earnings vs Industry: TLT1V earnings growth over the past year (780.4%) exceeded the Communications industry 13.9%.


Return on Equity

High ROE: TLT1V's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is Teleste's financial position?


Financial Position Analysis

Short Term Liabilities: TLT1V's short term assets (€95.5M) exceed its short term liabilities (€53.2M).

Long Term Liabilities: TLT1V's short term assets (€95.5M) exceed its long term liabilities (€26.9M).


Debt to Equity History and Analysis

Debt Level: TLT1V's debt to equity ratio (31.9%) is considered satisfactory.

Reducing Debt: TLT1V's debt to equity ratio has reduced from 40.7% to 31.9% over the past 5 years.

Debt Coverage: TLT1V's debt is well covered by operating cash flow (22.4%).

Interest Coverage: Insufficient data to determine if TLT1V's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

2.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TLT1V's dividend (2.09%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.37%).

High Dividend: TLT1V's dividend (2.09%) is low compared to the top 25% of dividend payers in the Finnish market (4.89%).


Stability and Growth of Payments

Stable Dividend: TLT1V's dividend payments have been volatile in the past 10 years.

Growing Dividend: TLT1V's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.7%), TLT1V's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TLT1V's dividends in 3 years are forecast to be well covered by earnings (22.2% payout ratio).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Jukka Rinnevaara (58yo)

17.58yrs

Tenure

€535,000

Compensation

Mr. Jukka Rinnevaara, M.Sc. (Econ.) serves as Independent Director of Vaisala Oyj since March 26, 2019. He has been the Chief Executive Officer and President of Teleste Corporation since November 01, 2002  ...


CEO Compensation Analysis

Compensation vs Market: Jukka's total compensation ($USD605.48K) is above average for companies of similar size in the Finnish market ($USD326.55K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jukka Rinnevaara
President & CEO17.58yrs€535.00k0.57% 498.9k
Juha Hyytiäinen
Chief Financial Officer6.42yrsno data0.046% 40.4k
Markus Mattila
Senior Vice President of Operations12.33yrsno data0.059% 51.6k
Esa Harju
Senior Vice President of Video Security & Information3.5yrsno data0.061% 52.8k
Johan Slotte
Deputy CEO & Head of Corporate Business Development and Legal Affairsno datano data0.061% 52.9k
Mika Kavanti
Vice President of Marketing and Channel Sales8.83yrsno datano data
Tuomas Vanne
Senior Vice President of People & Competence1.42yrsno datano data
Hanno Narjus
Senior Vice President of Network Products13.42yrsno data0.038% 33.3k
Pasi Järvenpää
Senior Vice President of Research & Development7.42yrsno data0.025% 22.2k

8.1yrs

Average Tenure

52yo

Average Age

Experienced Management: TLT1V's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kai Telanne
Independent Director12.17yrs€32.00k0.14% 120.6k
Heikki Mäkijärvi
Independent Director2.17yrs€32.00k0.022% 19.5k
Timo Luukkainen
Chairman of the Board0.17yr€32.00k0.037% 32.6k
Jussi Himanen
Independent Director1.17yrs€32.00k0.012% 10.4k
Vesa Korpimies
Non-Independent Director1.17yrs€33.00k0.017% 15.1k
Mirel Leino
Director0.17yrno datano data

1.2yrs

Average Tenure

57yo

Average Age

Experienced Board: TLT1V's board of directors are not considered experienced ( 1.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Teleste Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teleste Corporation
  • Ticker: TLT1V
  • Exchange: HLSE
  • Founded: 1954
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: €87.040m
  • Shares outstanding: 18.21m
  • Website: https://www.teleste.com

Number of Employees


Location

  • Teleste Corporation
  • Telestenkatu 1
  • Littoinen
  • Finland Proper
  • 20660
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TLT1VHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURMar 1999
TS6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1999
0K1QLSE (London Stock Exchange)YesOrdinary SharesGBEURMar 1999

Biography

Teleste Corporation provides video and broadband solutions, and network services in Finland and internationally. The company’s Video and Broadband Solutions segment focuses on product solutions for broadband access networks, video service platforms, and video surveillance applications. Its Network Services segment offers network service solutions, including new construction, rebuilding, upgrading, planning, and maintenance services for cable networks. The company’s broadband data and video products include RF amplifiers, optical nodes, remote PHY nodes, RF passives, optical passives, management tools, DOCSIS mini-CMTS, headend optics, Luminato video headend products, and Optimo transcoders, as well as modular IP to analog TV and IP to FM radio converters. Its information and security products consist of passenger information management products, media content management products, fleet monitoring and operation control products, information displays, display control products, onboard passenger information systems, onboard infotainment and advertising products, onboard public address and intercommunications products, onboard video surveillance products, onboard connectivity products, video management systems, mobile network video recorders, fiber optic video transmission products, video encoders and decoders, secured IP link products, and S-AWARE situational awareness systems. In addition, the company provides information and security services, such as technical integration, software support and maintenance, system design, software integration and tailor made solutions, project management, configuration, installation and commissioning, and training; and broadband data and video services. It serves the hospitality, public transport, public authorities, airports, road, and military and border control markets, as well as installers, operators, and wholesalers and distributors. The company was founded in 1954 and is headquartered in Littoinen, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/07 00:14
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.