TIETOEVRY OYJ (TIETO.OL) Stock Fundamental Analysis
OSL:TIETO - FI0009000277 - Common Stock
187.7 NOK
+2.1 (+1.13%)
TIETO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 73 industry peers in the IT Services industry. Both the profitability and the financial health of TIETO get a neutral evaluation. Nothing too spectacular is happening here. TIETO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TIETO had positive earnings in the past year.
TIETO had a positive operating cash flow in the past year.
Of the past 5 years TIETO 4 years were profitable.
In the past 5 years TIETO always reported a positive cash flow from operatings.
1.2 Ratios
TIETO's Return On Assets of -8.53% is on the low side compared to the rest of the industry. TIETO is outperformed by 77.03% of its industry peers.
TIETO has a worse Return On Equity (-24.42%) than 77.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.46%, TIETO is in line with its industry, outperforming 43.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIETO is below the industry average of 11.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.53% | ||
| ROE | -24.42% | ||
| ROIC | 6.46% |
ROA(3y)2.8%
ROA(5y)3.83%
ROE(3y)5.6%
ROE(5y)7.73%
ROIC(3y)7.79%
ROIC(5y)7.71%
1.3 Margins
With a Operating Margin value of 7.13%, TIETO perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
In the last couple of years the Operating Margin of TIETO has grown nicely.
The Gross Margin of TIETO (79.49%) is better than 74.32% of its industry peers.
In the last couple of years the Gross Margin of TIETO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.13% | ||
| PM (TTM) | N/A | ||
| GM | 79.49% |
OM growth 3Y-11.07%
OM growth 5Y3.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.03%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TIETO is still creating some value.
The number of shares outstanding for TIETO remains at a similar level compared to 1 year ago.
TIETO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TIETO is higher compared to a year ago.
2.2 Solvency
TIETO has an Altman-Z score of 2.29. This is not the best score and indicates that TIETO is in the grey zone with still only limited risk for bankruptcy at the moment.
TIETO's Altman-Z score of 2.29 is in line compared to the rest of the industry. TIETO outperforms 47.30% of its industry peers.
TIETO has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as TIETO would need 3.68 years to pay back of all of its debts.
TIETO's Debt to FCF ratio of 3.68 is in line compared to the rest of the industry. TIETO outperforms 52.70% of its industry peers.
TIETO has a Debt/Equity ratio of 0.89. This is a neutral value indicating TIETO is somewhat dependend on debt financing.
The Debt to Equity ratio of TIETO (0.89) is worse than 60.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.86
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.23 indicates that TIETO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.23, TIETO is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that TIETO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.22, TIETO perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
TIETO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.24%.
TIETO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.76% yearly.
TIETO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.04%.
Measured over the past years, TIETO shows a quite strong growth in Revenue. The Revenue has been growing by 10.08% on average per year.
EPS 1Y (TTM)-30.24%
EPS 3Y-2.48%
EPS 5Y1.76%
EPS Q2Q%-56.82%
Revenue 1Y (TTM)-20.04%
Revenue growth 3Y-0.25%
Revenue growth 5Y10.08%
Sales Q2Q%-35.23%
3.2 Future
Based on estimates for the next years, TIETO will show a decrease in Earnings Per Share. The EPS will decrease by -0.68% on average per year.
Based on estimates for the next years, TIETO will show a decrease in Revenue. The Revenue will decrease by -8.38% on average per year.
EPS Next Y-36.36%
EPS Next 2Y-11.21%
EPS Next 3Y-4.65%
EPS Next 5Y-0.68%
Revenue Next Year-34.47%
Revenue Next 2Y-17.93%
Revenue Next 3Y-11.15%
Revenue Next 5Y-8.38%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.17, the valuation of TIETO can be described as reasonable.
89.19% of the companies in the same industry are more expensive than TIETO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TIETO to the average of the S&P500 Index (27.06), we can say TIETO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.55, the valuation of TIETO can be described as reasonable.
Based on the Price/Forward Earnings ratio, TIETO is valued a bit cheaper than 77.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. TIETO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TIETO indicates a rather cheap valuation: TIETO is cheaper than 91.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TIETO is valued a bit cheaper than the industry average as 79.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.41 | ||
| EV/EBITDA | 3.76 |
4.3 Compensation for Growth
TIETO's earnings are expected to decrease with -4.65% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.36
EPS Next 2Y-11.21%
EPS Next 3Y-4.65%
5. Dividend
5.1 Amount
TIETO has a Yearly Dividend Yield of 9.54%, which is a nice return.
Compared to an average industry Dividend Yield of 7.33, TIETO pays a better dividend. On top of this TIETO pays more dividend than 95.95% of the companies listed in the same industry.
TIETO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.54% |
5.2 History
The dividend of TIETO has a limited annual growth rate of 5.62%.
Dividend Growth(5Y)5.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TIETO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-72.12%
EPS Next 2Y-11.21%
EPS Next 3Y-4.65%
OSL:TIETO (9/5/2025, 7:00:00 PM)
187.7
+2.1 (+1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners55.87%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap22.27B
Analysts72.38
Price Target201.48 (7.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.54% |
Yearly Dividend17.27
Dividend Growth(5Y)5.62%
DP-72.12%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.45%
Min EPS beat(2)-39.07%
Max EPS beat(2)-29.82%
EPS beat(4)0
Avg EPS beat(4)-20.57%
Min EPS beat(4)-39.07%
Max EPS beat(4)-1.66%
EPS beat(8)0
Avg EPS beat(8)-13.25%
EPS beat(12)2
Avg EPS beat(12)-9.36%
EPS beat(16)2
Avg EPS beat(16)-8.36%
Revenue beat(2)0
Avg Revenue beat(2)-15.76%
Min Revenue beat(2)-28.15%
Max Revenue beat(2)-3.37%
Revenue beat(4)0
Avg Revenue beat(4)-10.29%
Min Revenue beat(4)-28.15%
Max Revenue beat(4)-3.37%
Revenue beat(8)0
Avg Revenue beat(8)-6.74%
Revenue beat(12)0
Avg Revenue beat(12)-5.7%
Revenue beat(16)0
Avg Revenue beat(16)-4.8%
PT rev (1m)-0.18%
PT rev (3m)-0.23%
EPS NQ rev (1m)-4.21%
EPS NQ rev (3m)-26.71%
EPS NY rev (1m)-36.49%
EPS NY rev (3m)-36.49%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)-34.44%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-16.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 10.55 | ||
| P/S | 0.83 | ||
| P/FCF | 7.41 | ||
| P/OCF | 5.67 | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.76 |
EPS(TTM)16.8
EY8.95%
EPS(NY)17.78
Fwd EY9.48%
FCF(TTM)25.34
FCFY13.5%
OCF(TTM)33.13
OCFY17.65%
SpS226.57
BVpS99.09
TBVpS-61.67
PEG (NY)N/A
PEG (5Y)6.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.53% | ||
| ROE | -24.42% | ||
| ROCE | 8.29% | ||
| ROIC | 6.46% | ||
| ROICexc | 7.08% | ||
| ROICexgc | 73.23% | ||
| OM | 7.13% | ||
| PM (TTM) | N/A | ||
| GM | 79.49% | ||
| FCFM | 11.18% |
ROA(3y)2.8%
ROA(5y)3.83%
ROE(3y)5.6%
ROE(5y)7.73%
ROIC(3y)7.79%
ROIC(5y)7.71%
ROICexc(3y)8.56%
ROICexc(5y)8.57%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.54%
ROCE(5y)10.23%
ROICexcg growth 3Y-30.89%
ROICexcg growth 5Y-50.16%
ROICexc growth 3Y-8.05%
ROICexc growth 5Y16.47%
OM growth 3Y-11.07%
OM growth 5Y3.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.03%
GM growth 5Y-0.48%
F-Score4
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 14.62% | ||
| Cap/Sales | 3.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.29 |
F-Score4
WACC7.48%
ROIC/WACC0.86
Cap/Depr(3y)43.1%
Cap/Depr(5y)43.19%
Cap/Sales(3y)3.09%
Cap/Sales(5y)3.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.24%
EPS 3Y-2.48%
EPS 5Y1.76%
EPS Q2Q%-56.82%
EPS Next Y-36.36%
EPS Next 2Y-11.21%
EPS Next 3Y-4.65%
EPS Next 5Y-0.68%
Revenue 1Y (TTM)-20.04%
Revenue growth 3Y-0.25%
Revenue growth 5Y10.08%
Sales Q2Q%-35.23%
Revenue Next Year-34.47%
Revenue Next 2Y-17.93%
Revenue Next 3Y-11.15%
Revenue Next 5Y-8.38%
EBIT growth 1Y-36.61%
EBIT growth 3Y-11.29%
EBIT growth 5Y13.74%
EBIT Next Year7.6%
EBIT Next 3Y6.92%
EBIT Next 5Y2.76%
FCF growth 1Y10.54%
FCF growth 3Y-5.74%
FCF growth 5Y1.13%
OCF growth 1Y3.98%
OCF growth 3Y-3.94%
OCF growth 5Y3.19%