TIETOEVRY OYJ (TIETO.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:TIETO - FI0009000277 - Common Stock
214.6 NOK
-3.6 (-1.65%)
Taking everything into account, TIETO scores 3 out of 10 in our fundamental rating. TIETO was compared to 76 industry peers in the IT Services industry. Both the profitability and financial health of TIETO have multiple concerns. TIETO is valued correctly, 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.
TIETO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TIETO (-15.38%) is worse than 85.53% of its industry peers.
With a Return On Equity value of -33.88%, TIETO is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 6.87%, TIETO is doing worse than 60.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TIETO is significantly below the industry average of 26.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.38% | ||
| ROE | -33.88% | ||
| ROIC | 6.87% |
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
Looking at the Operating Margin, with a value of 7.49%, TIETO is in line with its industry, outperforming 55.26% of the companies in the same industry.
TIETO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 78.87%, TIETO is doing good in the industry, outperforming 71.05% of the companies in the same industry.
TIETO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.49% | ||
| PM (TTM) | N/A | ||
| GM | 78.87% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TIETO is creating some value.
Compared to 1 year ago, TIETO has about the same amount of shares outstanding.
The number of shares outstanding for TIETO has been increased compared to 5 years ago.
Compared to 1 year ago, TIETO has a worse debt to assets ratio.
2.2 Solvency
TIETO has an Altman-Z score of 2.89. 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.
The Altman-Z score of TIETO (2.89) is comparable to the rest of the industry.
The Debt to FCF ratio of TIETO is 2.94, which is a good value as it means it would take TIETO, 2.94 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.94, TIETO is doing good in the industry, outperforming 63.16% of the companies in the same industry.
TIETO has a Debt/Equity ratio of 0.64. This is a neutral value indicating TIETO is somewhat dependend on debt financing.
TIETO has a Debt to Equity ratio (0.64) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.92
WACC7.48%
2.3 Liquidity
TIETO has a Current Ratio of 0.96. This is a bad value and indicates that TIETO is not financially healthy enough and could expect problems in meeting its short term obligations.
TIETO has a Current ratio of 0.96. This is in the lower half of the industry: TIETO underperforms 68.42% of its industry peers.
A Quick Ratio of 0.95 indicates that TIETO may have some problems paying its short term obligations.
TIETO's Quick ratio of 0.95 is on the low side compared to the rest of the industry. TIETO is outperformed by 64.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for TIETO have decreased strongly by -28.36% in the last year.
The Earnings Per Share has been growing slightly by 1.76% on average over the past years.
Looking at the last year, TIETO shows a very negative growth in Revenue. The Revenue has decreased by -26.94% in the last year.
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)-28.36%
EPS 3Y-2.48%
EPS 5Y1.76%
EPS Q2Q%2.04%
Revenue 1Y (TTM)-26.94%
Revenue growth 3Y-0.25%
Revenue growth 5Y10.08%
Sales Q2Q%-30.66%
3.2 Future
TIETO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.76% yearly.
The Revenue is expected to decrease by -8.35% on average over the next years.
EPS Next Y-32.02%
EPS Next 2Y-8.23%
EPS Next 3Y-2.78%
EPS Next 5Y-0.76%
Revenue Next Year-31.06%
Revenue Next 2Y-16.48%
Revenue Next 3Y-10.14%
Revenue Next 5Y-8.35%
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 12.54, the valuation of TIETO can be described as correct.
TIETO's Price/Earnings ratio is rather cheap when compared to the industry. TIETO is cheaper than 85.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of TIETO to the average of the S&P500 Index (26.61), we can say TIETO is valued rather cheaply.
TIETO is valuated reasonably with a Price/Forward Earnings ratio of 11.16.
Based on the Price/Forward Earnings ratio, TIETO is valued cheaply inside the industry as 80.26% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.01. TIETO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
TIETO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIETO is cheaper than 92.11% of the companies in the same industry.
TIETO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TIETO is cheaper than 80.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.78 | ||
| EV/EBITDA | 3.97 |
4.3 Compensation for Growth
TIETO's earnings are expected to decrease with -2.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)7.14
EPS Next 2Y-8.23%
EPS Next 3Y-2.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.24%, TIETO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.27, TIETO pays a better dividend. On top of this TIETO pays more dividend than 97.37% 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.24% |
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-50.06%
EPS Next 2Y-8.23%
EPS Next 3Y-2.78%
OSL:TIETO (12/22/2025, 7:00:00 PM)
214.6
-3.6 (-1.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners53.97%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap25.46B
Revenue(TTM)2.09B
Net Income(TTM)-352.00M
Analysts52.22
Price Target214.1 (-0.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.24% |
Yearly Dividend17.52
Dividend Growth(5Y)5.62%
DP-50.06%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.82%
Min EPS beat(2)-29.82%
Max EPS beat(2)6.19%
EPS beat(4)1
Avg EPS beat(4)-18.61%
Min EPS beat(4)-39.07%
Max EPS beat(4)6.19%
EPS beat(8)1
Avg EPS beat(8)-12.22%
EPS beat(12)2
Avg EPS beat(12)-9.33%
EPS beat(16)3
Avg EPS beat(16)-7.61%
Revenue beat(2)0
Avg Revenue beat(2)-2.48%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-1.58%
Revenue beat(4)0
Avg Revenue beat(4)-9.6%
Min Revenue beat(4)-28.15%
Max Revenue beat(4)-1.58%
Revenue beat(8)0
Avg Revenue beat(8)-6.42%
Revenue beat(12)0
Avg Revenue beat(12)-5.8%
Revenue beat(16)0
Avg Revenue beat(16)-4.64%
PT rev (1m)2.47%
PT rev (3m)8.36%
EPS NQ rev (1m)-3.3%
EPS NQ rev (3m)-2.96%
EPS NY rev (1m)-8.56%
EPS NY rev (3m)6.82%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)5.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 11.16 | ||
| P/S | 1.03 | ||
| P/FCF | 8.78 | ||
| P/OCF | 6.67 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.97 |
EPS(TTM)17.12
EY7.98%
EPS(NY)19.22
Fwd EY8.96%
FCF(TTM)24.44
FCFY11.39%
OCF(TTM)32.16
OCFY14.99%
SpS209.09
BVpS104.1
TBVpS-59.69
PEG (NY)N/A
PEG (5Y)7.14
Graham Number200.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.38% | ||
| ROE | -33.88% | ||
| ROCE | 8.81% | ||
| ROIC | 6.87% | ||
| ROICexc | 7.54% | ||
| ROICexgc | N/A | ||
| OM | 7.49% | ||
| PM (TTM) | N/A | ||
| GM | 78.87% | ||
| FCFM | 11.69% |
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%
ROICexgc growth 3Y-30.89%
ROICexgc 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-Score5
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 14.82% | ||
| Cap/Sales | 3.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.89 |
F-Score5
WACC7.48%
ROIC/WACC0.92
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)-28.36%
EPS 3Y-2.48%
EPS 5Y1.76%
EPS Q2Q%2.04%
EPS Next Y-32.02%
EPS Next 2Y-8.23%
EPS Next 3Y-2.78%
EPS Next 5Y-0.76%
Revenue 1Y (TTM)-26.94%
Revenue growth 3Y-0.25%
Revenue growth 5Y10.08%
Sales Q2Q%-30.66%
Revenue Next Year-31.06%
Revenue Next 2Y-16.48%
Revenue Next 3Y-10.14%
Revenue Next 5Y-8.35%
EBIT growth 1Y-39.7%
EBIT growth 3Y-11.29%
EBIT growth 5Y13.74%
EBIT Next Year-20.05%
EBIT Next 3Y5.24%
EBIT Next 5Y2.76%
FCF growth 1Y23.62%
FCF growth 3Y-5.74%
FCF growth 5Y1.13%
OCF growth 1Y14.89%
OCF growth 3Y-3.94%
OCF growth 5Y3.19%
TIETOEVRY OYJ / TIETO.OL FAQ
What is the fundamental rating for TIETO stock?
ChartMill assigns a fundamental rating of 3 / 10 to TIETO.OL.
What is the valuation status for TIETO stock?
ChartMill assigns a valuation rating of 6 / 10 to TIETOEVRY OYJ (TIETO.OL). This can be considered as Fairly Valued.
What is the profitability of TIETO stock?
TIETOEVRY OYJ (TIETO.OL) has a profitability rating of 3 / 10.
What are the PE and PB ratios of TIETOEVRY OYJ (TIETO.OL) stock?
The Price/Earnings (PE) ratio for TIETOEVRY OYJ (TIETO.OL) is 12.54 and the Price/Book (PB) ratio is 2.06.
Can you provide the financial health for TIETO stock?
The financial health rating of TIETOEVRY OYJ (TIETO.OL) is 3 / 10.