Elisa Oyj (HLSE:ELISA) - Share price, News & Analysis

Q: What is the Fair Price of ELISA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ELISA (€52.52) is trading below our estimate of [[fair value]] (€63.29)

ELISA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	4/6
Financial Health	4/6
Dividends	3/6

ELISA Stock Overview

Elisa Oyj provides data communications and digital services.

Rewards

Trading at 17% below our estimate of its fair value

Earnings are forecast to grow 3.8% per year

Earnings have grown 1.8% per year over the past 5 years

Risk Analysis

Dividend of 3.9% is not well covered by earnings or forecast to be in the next 3 years

Has a high level of debt

Elisa Oyj Competitors

Telefónica Deutschland Holding

XTRA:O2D

€7.8b

Ooredoo Q.P.S.C

DSM:ORDS

ر.ق28.1b

Hellenic Telecommunications Organization

ATSE:HTO

€7.5b

Itissalat Al-Maghrib (IAM)

CBSE:IAM

د.م106.4b

Price History & Performance

Summary of all time highs, changes and price drops for Elisa Oyj
Historical stock prices
Current Share Price	€52.52
52 Week High	€56.90
52 Week Low	€48.05
Beta	-0.018
1 Month Change	-2.81%
3 Month Change	-2.60%
1 Year Change	-5.34%
3 Year Change	16.76%
5 Year Change	45.85%
Change since IPO	155.57%

Recent News & Updates

Jul 15

Here's Why Elisa Oyj (HEL:ELISA) Can Manage Its Debt Responsibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 31

Estimating The Intrinsic Value Of Elisa Oyj (HEL:ELISA)

Today we will run through one way of estimating the intrinsic value of Elisa Oyj ( HEL:ELISA ) by taking the expected...

May 15

Elisa Oyj (HEL:ELISA) Hasn't Managed To Accelerate Its Returns

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Shareholder Returns

	ELISA	FI Telecom	FI Market
7D	-1.1%	0.7%	2.0%
1Y	-5.3%	-7.6%	-18.6%

Return vs Industry: ELISA exceeded the Finnish Telecom industry which returned -7.6% over the past year.

Return vs Market: ELISA exceeded the Finnish Market which returned -18.6% over the past year.

Price Volatility

Is ELISA's price volatile compared to industry and market?
ELISA volatility
ELISA Average Weekly Movement	2.2%
Telecom Industry Average Movement	4.2%
Market Average Movement	5.0%
10% most volatile stocks in FI Market	8.8%
10% least volatile stocks in FI Market	3.3%

Stable Share Price: ELISA is less volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ELISA's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1882	5,572	Veli-Matti Mattila	https://www.elisa.com

Elisa Oyj provides data communications and digital services. It operates in two segments, Consumer Customers and Corporate Customers segments. The company offers telecommunications and communications services, such as fixed and mobile subscription, digital, cable-tv subscription, entertainment, and e-reading services, as well as video conferencing services.

Elisa Oyj Fundamentals Summary

How do Elisa Oyj's earnings and revenue compare to its market cap?
ELISA fundamental statistics
Market Cap	€8.49b
Earnings (TTM)	€359.80m
Revenue (TTM)	€2.06b

23.4x

P/E Ratio

4.1x

P/S Ratio

Is ELISA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELISA income statement (TTM)
Revenue	€2.06b
Cost of Revenue	€1.17b
Gross Profit	€897.20m
Other Expenses	€537.40m
Earnings	€359.80m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 19, 2022

Earnings per share (EPS)	2.25
Gross Margin	43.45%
Net Profit Margin	17.42%
Debt/Equity Ratio	134.7%

How did ELISA perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

91%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ELISA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ELISA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ELISA. This is calculated by dividing ELISA's market cap by their current preferred multiple.
What is ELISA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€8.49b

ELISA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.8x
Enterprise Value/EBITDA	14.3x
PEG Ratio	6.2x

Price to Earnings Ratio vs Peers

How does ELISA's PE Ratio compare to its peers?

ELISA PE Ratio vs Peers

The above table shows the PE ratio for ELISA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	29.9x
O2D Telefónica Deutschland Holding	21.6x	16.1%	€7.8b
ORDS Ooredoo Q.P.S.C	54.8x	28.8%	ر.ق28.1b
HTO Hellenic Telecommunications Organization	13.7x	4.4%	€7.5b
IAM Itissalat Al-Maghrib (IAM)	29.6x	7.7%	د.م106.4b
ELISA Elisa Oyj	23.4x	3.8%	€8.5b

Price-To-Earnings vs Peers: ELISA is good value based on its Price-To-Earnings Ratio (23.4x) compared to the peer average (29.9x).

Price to Earnings Ratio vs Industry

How does ELISA's PE Ratio compare vs other companies in the European Telecom Industry?

Price-To-Earnings vs Industry: ELISA is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the European Telecom industry average (18.1x)

Price to Earnings Ratio vs Fair Ratio

What is ELISA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ELISA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ELISA's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of ELISA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ELISA (€52.52) is trading below our estimate of fair value (€63.29)

Significantly Below Fair Value: ELISA is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.

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Future Growth

How is Elisa Oyj forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELISA's forecast earnings growth (3.8% per year) is above the savings rate (0.2%).

Earnings vs Market: ELISA's earnings (3.8% per year) are forecast to grow slower than the Finnish market (7.8% per year).

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

Revenue vs Market: ELISA's revenue (2.2% per year) is forecast to grow faster than the Finnish market (1.8% per year).

High Growth Revenue: ELISA's revenue (2.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ELISA's Return on Equity is forecast to be high in 3 years time (30.6%)

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Past Performance

How has Elisa Oyj performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ELISA has high quality earnings.

Growing Profit Margin: ELISA's current net profit margins (17.4%) are higher than last year (17.2%).

Past Earnings Growth Analysis

Earnings Trend: ELISA's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: ELISA's earnings growth over the past year (8.4%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: ELISA earnings growth over the past year (8.4%) underperformed the Telecom industry 20.7%.

Return on Equity

High ROE: Whilst ELISA's Return on Equity (33.96%) is high, this metric is skewed due to their high level of debt.

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Financial Health

How is Elisa Oyj's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ELISA's short term assets (€674.3M) exceed its short term liabilities (€658.9M).

Long Term Liabilities: ELISA's short term assets (€674.3M) do not cover its long term liabilities (€1.3B).

Debt to Equity History and Analysis

Debt Level: ELISA's net debt to equity ratio (126.4%) is considered high.

Reducing Debt: ELISA's debt to equity ratio has reduced from 143.4% to 134.7% over the past 5 years.

Debt Coverage: ELISA's debt is well covered by operating cash flow (40.4%).

Interest Coverage: ELISA's interest payments on its debt are well covered by EBIT (44.1x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ELISA's dividend (3.9%) is higher than the bottom 25% of dividend payers in the Finnish market (2.4%).

High Dividend: ELISA's dividend (3.9%) is low compared to the top 25% of dividend payers in the Finnish market (4.81%).

Stability and Growth of Payments

Stable Dividend: ELISA's dividends per share have been stable in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (91.3%), ELISA's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (101.4%), ELISA's dividend payments are not well covered by cash flows.

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Management

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

13.8yrs

Average management tenure

CEO

Veli-Matti Mattila (61 yo)

16.58yrs

Tenure

€3,151,877

Compensation

Mr. Veli-Matti Johannes Mattila, M.Sc (Tech.), MBA, serves as Director at Orion Oyj since March 25, 2021. He is a Chief Economist at Federation of Finnish Financial Services. Mr. Mattila serves as Chief Ex...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Veli-Matti's total compensation is reasonable compared to companies of similar size in the Finnish market.

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

Leadership Team

Experienced Management: ELISA's management team is seasoned and experienced (13.8 years average tenure).

Board Members

Experienced Board: ELISA's board of directors are not considered experienced ( 2.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31