Stock Analysis Report

Executive Summary

Tieto Oyj operates as a software and services company.



6 star dividend payer with mediocre balance sheet.

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






SE Market

1 Year Return






SE Market

Return vs Industry: TIETOS underperformed the Swedish IT industry which returned 7.5% over the past year.

Return vs Market: TIETOS underperformed the Swedish Market which returned 9% over the past year.

Share holder returns

7 Day6.0%1.7%2.9%
30 Day6.4%0.07%-0.4%
90 Day3.5%4.6%0.3%
1 Year8.5%3.0%9.5%7.5%13.7%9.0%
3 Year26.3%7.9%45.8%38.4%30.5%11.1%
5 Year108.4%58.7%179.3%143.8%66.0%30.7%

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

No news available


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


Discount to future cash flow value

Intrinsic Value Based on Future Cash Flows

Undervalued: TIETOS (SEK269.2) is trading below our estimate of fair value (SEK283.05)

Significantly Undervalued: TIETOS is trading below fair value, but not by a significant amount.

Price Based on Earnings

PE vs Industry: TIETOS is poor value based on its PE Ratio (16.2x) compared to the IT industry average (15.8x).

PE vs Market: TIETOS is good value based on its PE Ratio (16.2x) compared to the Swedish market (16.7x).

Price Based on Expected Growth

Low PEG Ratio: TIETOS is poor value based on its PEG Ratio (2.2x)

Price Based on Value of Assets

PB vs Industry: TIETOS is overvalued based on its PB Ratio (4.4x) compared to the SE IT industry average (3.3x).

Next Steps

Future Growth

How is Tieto Oyj expected to perform in the next 1 to 3 years based on estimates from 7 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Estimates

Future Annual Growth Analysis

Earnings vs Savings Rate: TIETOS's forecast earnings growth (7.2% per year) is above the savings rate (0.4%).

Earnings vs Market: TIETOS's earnings (7.2% per year) are forecast to grow slower than the Swedish market (8.7% per year).

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

Revenue vs Market: TIETOS's revenue (2.7% per year) is forecast to grow slower than the Swedish market (4.5% per year).

High Growth Revenue: TIETOS's revenue (2.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Estimates

Future Return on Equity

High Future ROE: TIETOS's Return on Equity is forecast to be high in 3 years time (28%)

Next Steps

Past Performance

How has Tieto Oyj performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Past Earnings Growth Analysis

Earnings Trend: TIETOS's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: TIETOS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TIETOS had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the IT industry average (17%).

Return on Equity

High ROE: TIETOS's Return on Equity (27.4%) is considered high.

Return on Assets

ROA vs Industry: TIETOS's Return on Assets is below or equal to the IT industry average last year.

Return on Capital Employed

ROCE Improving: TIETOS's Return on Capital Employed has declined over the past 3 years.

Next Steps

Financial Health

How is Tieto Oyj's financial position?

Financial Position Analysis

Short Term Liabilities: TIETOS's short term assets (€497.4M) do not cover its short term liabilities (€521.5M)

Long Term Liabilities: TIETOS's short term assets (497.4M) exceeds its long term liabilities (343.5M)

Debt to Equity History and Analysis

Debt Level: TIETOS's debt to equity ratio (68.7%) is considered high

Reducing Debt: TIETOS's debt to equity ratio has increased from 28.2% to 68.7% over the past 5 years.

Debt Coverage: TIETOS's debt is well covered by operating cash flow (63.4%).

Interest Coverage: TIETOS's interest payments on its debt are well covered by EBIT (20.7x coverage).

Balance Sheet

Inventory Level: TIETOS has a low level of unsold assets or inventory.

Debt Coverage by Assets: TIETOS's debt is covered by short term assets (assets are 1.743420x debt).

Next Steps


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


Expected Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Dividend Yield and Payments Analysis

Notable Dividend: TIETOS's dividend (5.82%) is higher than the bottom 25% of dividend payers in the Swedish market (1.8%).

High Dividend: TIETOS's dividend (5.82%) is in the top 25% of dividend payers in the Swedish market (4.84%)

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

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

Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.1%), TIETOS's payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: TIETOS's dividends in 3 years are forecast to be covered by earnings (72.5% payout ratio).

Next Steps


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


Average management tenure


Kimmo Alkio (56yo)





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

Compensation vs. Market: Kimmo's total compensation ($USD2.27M) is about average for companies of similar size in the Swedish market ($USD809.73K).

Compensation vs Earnings: Kimmo's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Management Age and Tenure


Average Tenure


Average Age

Experienced Management: TIETOS's management team is considered experienced (4.5 years average tenure).

Board Age and Tenure


Average Tenure


Average Age

Experienced Board: TIETOS's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.

Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Management Team

  • Kimmo Alkio (56yo)

    CEO & President

    • Tenure: 7.9yrs
    • Compensation: €2.06m
  • Markus Suomi (48yo)

    Chief Technology Officer

    • Tenure: 1.5yrs
  • Ari Järvelä (50yo)

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

    • Tenure: 0yrs
  • Outi Karisto

    Head of Human Resource Public & Healthcare & Welfare

    • Tenure: 0yrs
  • Tanja Lounevirta

    Head of Investor Relations

    • Tenure: 0yrs
  • Katariina Kravi (52yo)

    Executive Vice President of Human Resources

    • Tenure: 7.5yrs
  • Satu Kiiskinen (54yo)

    Executive Vice President of Industrial & Consumer Services

    • Tenure: 0yrs
  • Päivi Huuhtanen

    Head of Stakeholder Relations

    • Tenure: 0yrs
  • Kia Haring

    Head of Global Communications

    • Tenure: 0yrs
  • Tomi Hyryläinen

    Chief Financial Officer

    • Tenure: 0.7yrs

Board Members

  • Tomas Franzén (57yo)

    Independent Director

    • Tenure: 0.8yrs
  • Kurt Jofs (61yo)

    Independent Chairman

    • Tenure: 2.6yrs
  • Johanna Lamminen (53yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
  • Timo Ahopelto (44yo)


    • Tenure: 2.8yrs
  • Endre Rangnes (60yo)

    Independent Director

    • Tenure: 5.6yrs
  • Esa Koskinen (64yo)

    Independent Director

    • Tenure: 9.6yrs
  • Harri-Pekka Kaukonen (56yo)

    • Tenure: 0yrs
  • Liselotte Engstam (59yo)

    Independent Director

    • Tenure: 1.6yrs
  • Niko Pakalén (33yo)


    • Tenure: 0.8yrs
  • Robert Spinelli (62yo)

    Independent Director

    • Tenure: 1.6yrs

Company Information

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

Key Information

  • Name: Tieto Oyj
  • Ticker: TIETOS
  • Exchange: OM
  • Founded: 1968
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €1.841b
  • Listing Market Cap: €19.910b
  • Shares outstanding: 73.94m
  • Website:

Number of Employees


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


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


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 Analysis2019/10/12 20:58
End of Day Share Price2019/10/11 00:00
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.


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