OTCPK:FSOY.F

Stock Analysis Report

Executive Summary

F-Secure Oyj provides cyber security products and services in Nordic countries, rest of Europe, North America, and internationally.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

FSOY.F

9.6%

US Software

10.5%

US Market


1 Year Return

n/a

FSOY.F

8.0%

US Software

-11.5%

US Market

Return vs Industry: Insufficient data to determine how FSOY.F performed against the US Software industry.

Return vs Market: Insufficient data to determine how FSOY.F performed against the US Market.


Shareholder returns

FSOY.FIndustryMarket
7 Day0%9.6%10.5%
30 Day0%-7.8%-15.4%
90 Day0%-7.1%-21.4%
1 Yearn/a9.2%8.0%-9.6%-11.5%
3 Yearn/a100.6%92.0%12.6%5.4%
5 Year24.2%24.2%170.4%151.5%32.8%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is F-Secure Oyj undervalued compared to its fair value and its price relative to the market?

246.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FSOY.F ($3.18) is trading above our estimate of fair value ($3.02)

Significantly Below Fair Value: FSOY.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FSOY.F is poor value based on its PE Ratio (233.3x) compared to the Software industry average (47.3x).

PE vs Market: FSOY.F is poor value based on its PE Ratio (233.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FSOY.F is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: FSOY.F is overvalued based on its PB Ratio (7.1x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is F-Secure Oyj forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

57.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSOY.F's forecast earnings growth (57.9% per year) is above the savings rate (1.7%).

Earnings vs Market: FSOY.F's earnings (57.9% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: FSOY.F's revenue (4% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: FSOY.F's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FSOY.F's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has F-Secure Oyj performed over the past 5 years?

-33.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSOY.F has a large one-off gain of €2.4M impacting its September 30 2019 financial results.

Growing Profit Margin: FSOY.F's current net profit margins (1.2%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: FSOY.F's earnings have declined by -33.1% per year over the past 5 years.

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

Earnings vs Industry: FSOY.F had negative earnings growth (-30.5%) over the past year, making it difficult to compare to the Software industry average (20.8%).


Return on Equity

High ROE: FSOY.F's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is F-Secure Oyj's financial position?


Financial Position Analysis

Short Term Liabilities: FSOY.F's short term assets (€83.5M) do not cover its short term liabilities (€98.5M).

Long Term Liabilities: FSOY.F's short term assets (€83.5M) exceed its long term liabilities (€56.0M).


Debt to Equity History and Analysis

Debt Level: FSOY.F's debt to equity ratio (47.8%) is considered high.

Reducing Debt: Insufficient data to determine if FSOY.F's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: FSOY.F's debt is well covered by operating cash flow (55.6%).

Interest Coverage: FSOY.F's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: FSOY.F's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is F-Secure Oyj's current dividend yield, its reliability and sustainability?

1.60%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FSOY.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FSOY.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FSOY.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FSOY.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FSOY.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FSOY.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Samu Konttinen (46yo)

3.42s

Tenure

€616,361

Compensation

Mr. Samu Konttinen has been the Chief Executive Officer and President of F-Secure Oyj since August 1, 2016 and serves as its Managing Director. Mr. Konttinen served as an Executive Vice President of Corpor ...


CEO Compensation Analysis

Compensation vs Market: Samu's total compensation ($USD685.68K) is below average for companies of similar size in the US market ($USD1.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Risto Siilasmaa
Founder & Chairman13.17yrs€80.00k38.01% 223.9m
Samu Konttinen
President3.42yrs€616.36k0.065% 379.9k
Eriikka Söderström
Chief Financial Officer2.92yrsno data0.033% 196.5k
Jyrki Tulokas
Chief Technology Officer0.25yrno data0.0098% 57.8k
Jari Still
Chief Information Officer3.92yrsno data0.076% 449.2k
Sandra Proske
Director of Global Corporate Communicationsno datano datano data
Eva Tuominen
Executive Vice President of People Operations & Culture0.83yrno datano data
Kristian Järnefelt
Executive Vice President of Consumer Cyber Security Business Unit3.92yrsno data0.012% 73.5k
Juha Kivikoski
Executive Vice President of Business Cyber Security1.83yrsno data0.0017% 9.8k
Ian Shaw
Executive Vice President of Cyber Security Consulting2yrsno data0.040% 233.3k

2.5yrs

Average Tenure

49yo

Average Age

Experienced Management: FSOY.F's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Risto Siilasmaa
Founder & Chairman13.17yrs€80.00k38.01% 223.9m
Pertti Ervi
Independent Vice Chairmanno data€48.00k0.036% 209.4k
Bruce Oreck
Independent Director3.75yrs€38.00k0.0077% 45.3k
Päivi Rekonen
Independent Director2.75yrs€38.00k0.0043% 25.6k
Tuomas Syrjänen
Director0.83yrno datano data
Matti Aksela
Director0.83yrno datano data

2.8yrs

Average Tenure

51.5yo

Average Age

Experienced Board: FSOY.F's board of directors are not considered experienced ( 2.8 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 been substantially diluted in the past year, with total shares outstanding growing by 57.9%.


Top Shareholders

Company Information

F-Secure Oyj's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: F-Secure Oyj
  • Ticker: FSOY.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: €534.109m
  • Listing Market Cap: €588.939m
  • Shares outstanding: 157.79m
  • Website: https://www.f-secure.com

Number of Employees


Location

  • F-Secure Oyj
  • Tammasaarenkatu 7
  • PO Box 24
  • Helsinki
  • Uusimaa
  • 181
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSC1VHLSE (OMX Nordic Exchange Helsinki)YesOrdinary SharesFIEURNov 1999
0EIELSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1999
FSOY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1999
DTVDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1999
FSC1VHBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1999

Biography

F-Secure Oyj provides cyber security and protection services in Nordic countries, rest of Europe, North America, and internationally. Its corporate security solutions include F-Secure Radar, a vulnerability scanning and management platform; phishd, an anti-phishing behavior management platform; F-Secure Protection Service for Business, a cloud-hosted endpoint security; F-Secure Business Suite, an on-site deployed endpoint security; F-Secure Cloud Protection for Salesforce, a content level security for Salesforce’s customers; F-Secure Rapid Detection and Response, a customer or partner managed endpoint detection and response solution for detecting and responding to targeted attacks; F-Secure Rapid Detection and Response Service, a managed detection and response service; and Countercept, an advanced threat hunting and continuous response capabilities against targeted attacks delivered as a managed service. The company also provides cyber security services comprising F-Secure cyber incident and resilience services, F-Secure security assessments, F-Secure red team testing, and F-Secure cyber risk management. In addition, it offers consumer security solutions, including F-Secure SAFE, an antivirus and Internet security solution; F-Secure KEY, a password manager; F-Secure FREEDOME, a VPN that hides online activity to ensure anonymous and secure Internet browsing; F-Secure SENSE, a security solution for connected home devices; F-Secure Internet Security for secure Internet surfing with browsing protection; and F-Secure Anti-Virus, a malware removal technology software. F-Secure Oyj serves consumers and business customers through a network of approximately 200 telecommunications operators, as well as through thousands of IT service and retail partners. F-Secure Oyj was founded in 1988 and is headquartered in Helsinki, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/27 00:24
End of Day Share Price2019/10/29 00:00
Earnings2019/09/30
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.