ITERA ASA (ITERA.OL) Stock Fundamental Analysis
OSL:ITERA - Euronext Oslo - NO0010001118 - Common Stock - Currency: NOK
ITERA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 industry peers in the IT Services industry. ITERA scores excellent on profitability, but there are some minor concerns on its financial health. ITERA is not valued too expensively and it also shows a decent growth rate. ITERA also has an excellent dividend rating. This makes ITERA very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year ITERA was profitable.
In the past year ITERA had a positive cash flow from operations.
In the past 5 years ITERA has always been profitable.
ITERA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ITERA has a Return On Assets of 12.55%. This is amongst the best in the industry. ITERA outperforms 97.10% of its industry peers.
ITERA has a Return On Equity of 74.86%. This is amongst the best in the industry. ITERA outperforms 97.10% of its industry peers.
ITERA's Return On Invested Capital of 39.50% is amongst the best of the industry. ITERA outperforms 98.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ITERA is significantly above the industry average of 10.77%.
The last Return On Invested Capital (39.50%) for ITERA is well below the 3 year average (57.90%), which needs to be investigated, but indicates that ITERA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.55% | ||
| ROE | 74.86% | ||
| ROIC | 39.5% |
ROA(3y)17.79%
ROA(5y)19%
ROE(3y)98.79%
ROE(5y)109.93%
ROIC(3y)57.9%
ROIC(5y)69.8%
1.3 Margins
ITERA's Profit Margin of 4.12% is in line compared to the rest of the industry. ITERA outperforms 57.97% of its industry peers.
ITERA's Profit Margin has declined in the last couple of years.
ITERA has a Operating Margin (6.17%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ITERA has declined.
ITERA has a Gross Margin of 92.24%. This is amongst the best in the industry. ITERA outperforms 86.96% of its industry peers.
In the last couple of years the Gross Margin of ITERA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.17% | ||
| PM (TTM) | 4.12% | ||
| GM | 92.24% |
OM growth 3Y-22%
OM growth 5Y-9.27%
PM growth 3Y-17.93%
PM growth 5Y-11.13%
GM growth 3Y-0.02%
GM growth 5Y1.36%
2. Health
2.1 Basic Checks
ITERA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ITERA has more shares outstanding than it did 1 year ago.
ITERA has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, ITERA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.75 indicates that ITERA is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.75, ITERA belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
ITERA has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
ITERA has a better Debt to FCF ratio (1.07) than 86.96% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that ITERA has dependencies on debt financing.
ITERA has a worse Debt to Equity ratio (1.12) than 68.12% of its industry peers.
Although ITERA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 5.75 |
ROIC/WACC4.97
WACC7.95%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ITERA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.95, ITERA is doing worse than 72.46% of the companies in the same industry.
ITERA has a Quick Ratio of 0.95. This is a bad value and indicates that ITERA is not financially healthy enough and could expect problems in meeting its short term obligations.
ITERA has a Quick ratio of 0.95. This is in the lower half of the industry: ITERA underperforms 71.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for ITERA have decreased strongly by -37.59% in the last year.
The Earnings Per Share has been decreasing by -3.16% on average over the past years.
The Revenue has decreased by -2.58% in the past year.
The Revenue has been growing by 8.67% on average over the past years. This is quite good.
EPS 1Y (TTM)-37.59%
EPS 3Y-7.18%
EPS 5Y-3.16%
EPS Q2Q%-61.11%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y12.71%
Revenue growth 5Y8.67%
Sales Q2Q%-4.46%
3.2 Future
The Earnings Per Share is expected to grow by 38.54% on average over the next years. This is a very strong growth
Based on estimates for the next years, ITERA will show a quite strong growth in Revenue. The Revenue will grow by 10.84% on average per year.
EPS Next Y48.51%
EPS Next 2Y46.83%
EPS Next 3Y38.54%
EPS Next 5YN/A
Revenue Next Year5.75%
Revenue Next 2Y9.64%
Revenue Next 3Y10.84%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.16, ITERA is valued on the expensive side.
ITERA's Price/Earnings ratio is a bit cheaper when compared to the industry. ITERA is cheaper than 60.87% of the companies in the same industry.
ITERA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.10.
With a Price/Forward Earnings ratio of 14.25, ITERA is valued correctly.
69.57% of the companies in the same industry are more expensive than ITERA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, ITERA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ITERA is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as ITERA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.81 | ||
| EV/EBITDA | 8.94 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ITERA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ITERA's earnings are expected to grow with 38.54% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y46.83%
EPS Next 3Y38.54%
5. Dividend
5.1 Amount
ITERA has a Yearly Dividend Yield of 4.40%, which is a nice return.
Compared to an average industry Dividend Yield of 7.38, ITERA pays a better dividend. On top of this ITERA pays more dividend than 81.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, ITERA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
The dividend of ITERA has a limited annual growth rate of 1.80%.
Dividend Growth(5Y)1.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ITERA pays out 139.40% of its income as dividend. This is not a sustainable payout ratio.
ITERA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP139.4%
EPS Next 2Y46.83%
EPS Next 3Y38.54%
OSL:ITERA (5/5/2025, 7:00:00 PM)
9.1
+0.02 (+0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners2.46%
Inst Owner ChangeN/A
Ins Owners5.37%
Ins Owner ChangeN/A
Market Cap747.93M
Analysts40
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Yearly Dividend0.6
Dividend Growth(5Y)1.8%
DP139.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-81.12%
Min EPS beat(2)-110.79%
Max EPS beat(2)-51.46%
EPS beat(4)0
Avg EPS beat(4)-52.16%
Min EPS beat(4)-110.79%
Max EPS beat(4)-7.54%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.21%
Min Revenue beat(2)-7.79%
Max Revenue beat(2)-4.62%
Revenue beat(4)0
Avg Revenue beat(4)-7.03%
Min Revenue beat(4)-9.08%
Max Revenue beat(4)-4.62%
Revenue beat(8)2
Avg Revenue beat(8)-2.42%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 14.25 | ||
| P/S | 0.88 | ||
| P/FCF | 11.81 | ||
| P/OCF | 10.14 | ||
| P/B | 16.02 | ||
| P/tB | 53.51 | ||
| EV/EBITDA | 8.94 |
EPS(TTM)0.43
EY4.73%
EPS(NY)0.64
Fwd EY7.02%
FCF(TTM)0.77
FCFY8.46%
OCF(TTM)0.9
OCFY9.86%
SpS10.33
BVpS0.57
TBVpS0.17
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.55% | ||
| ROE | 74.86% | ||
| ROCE | 51.82% | ||
| ROIC | 39.5% | ||
| ROICexc | 82.45% | ||
| ROICexgc | 254.14% | ||
| OM | 6.17% | ||
| PM (TTM) | 4.12% | ||
| GM | 92.24% | ||
| FCFM | 7.46% |
ROA(3y)17.79%
ROA(5y)19%
ROE(3y)98.79%
ROE(5y)109.93%
ROIC(3y)57.9%
ROIC(5y)69.8%
ROICexc(3y)104.91%
ROICexc(5y)157.14%
ROICexgc(3y)385.2%
ROICexgc(5y)N/A
ROCE(3y)75.95%
ROCE(5y)91.56%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-0.24%
ROICexc growth 3Y-21.57%
ROICexc growth 5Y-5.81%
OM growth 3Y-22%
OM growth 5Y-9.27%
PM growth 3Y-17.93%
PM growth 5Y-11.13%
GM growth 3Y-0.02%
GM growth 5Y1.36%
F-Score5
Asset Turnover3.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 31.63% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 59.43 | ||
| Cash Conversion | 86.41% | ||
| Profit Quality | 181.14% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 5.75 |
F-Score5
WACC7.95%
ROIC/WACC4.97
Cap/Depr(3y)47.64%
Cap/Depr(5y)59.62%
Cap/Sales(3y)1.9%
Cap/Sales(5y)2.8%
Profit Quality(3y)142.72%
Profit Quality(5y)136.17%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.59%
EPS 3Y-7.18%
EPS 5Y-3.16%
EPS Q2Q%-61.11%
EPS Next Y48.51%
EPS Next 2Y46.83%
EPS Next 3Y38.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y12.71%
Revenue growth 5Y8.67%
Sales Q2Q%-4.46%
Revenue Next Year5.75%
Revenue Next 2Y9.64%
Revenue Next 3Y10.84%
Revenue Next 5YN/A
EBIT growth 1Y-33.17%
EBIT growth 3Y-12.08%
EBIT growth 5Y-1.41%
EBIT Next Year78.18%
EBIT Next 3Y40.02%
EBIT Next 5YN/A
FCF growth 1Y-14%
FCF growth 3Y19.66%
FCF growth 5Y0.68%
OCF growth 1Y-21.05%
OCF growth 3Y1.87%
OCF growth 5Y-1.62%