TIETOEVRY OYJ (TIETO.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:TIETO - FI0009000277 - Common Stock
216.8 NOK
+7 (+3.34%)
Taking everything into account, TIETO scores 3 out of 10 in our fundamental rating. TIETO was compared to 72 industry peers in the IT Services industry. TIETO has a bad profitability rating. Also its financial health evaluation is rather negative. TIETO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TIETO had positive earnings in the past year.
In the past year TIETO had a positive cash flow from operations.
Of the past 5 years TIETO 4 years were profitable.
Each year in the past 5 years TIETO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -15.38%, TIETO is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
TIETO's Return On Equity of -33.88% is on the low side compared to the rest of the industry. TIETO is outperformed by 80.56% of its industry peers.
TIETO's Return On Invested Capital of 6.87% is on the low side compared to the rest of the industry. TIETO is outperformed by 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TIETO is significantly below the industry average of 27.45%.
| 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 51.39% of the companies in the same industry.
In the last couple of years the Operating Margin of TIETO has grown nicely.
Looking at the Gross Margin, with a value of 78.87%, TIETO is in the better half of the industry, outperforming 70.83% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TIETO is destroying value.
Compared to 1 year ago, TIETO has about the same amount of shares outstanding.
Compared to 5 years ago, TIETO has more shares outstanding
The debt/assets ratio for TIETO is higher compared to a year ago.
2.2 Solvency
TIETO has an Altman-Z score of 2.91. 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.
With a Altman-Z score value of 2.91, TIETO perfoms like the industry average, outperforming 59.72% of the companies in the same 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.
The Debt to FCF ratio of TIETO (2.94) is better than 62.50% of its industry peers.
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 | 2.91 |
ROIC/WACC0.48
WACC14.18%
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 70.83% 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
TIETO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.36%.
Measured over the past 5 years, TIETO shows a small growth in Earnings Per Share. The EPS has been growing by 1.76% on average per year.
TIETO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -26.94%.
The Revenue has been growing by 10.08% on average over the past years. This is quite good.
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
Based on estimates for the next years, TIETO will show a decrease in Earnings Per Share. The EPS will decrease by -0.76% on average per year.
The Revenue is expected to decrease by -8.35% on average over the next years.
EPS Next Y-25.66%
EPS Next 2Y-10.15%
EPS Next 3Y-4.21%
EPS Next 5Y-0.76%
Revenue Next Year-30.96%
Revenue Next 2Y-16.23%
Revenue Next 3Y-9.89%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TIETO is valuated correctly with a Price/Earnings ratio of 12.77.
TIETO's Price/Earnings ratio is rather cheap when compared to the industry. TIETO is cheaper than 83.33% of the companies in the same industry.
TIETO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
A Price/Forward Earnings ratio of 11.86 indicates a reasonable valuation of TIETO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIETO indicates a somewhat cheap valuation: TIETO is cheaper than 70.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, TIETO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIETO is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TIETO is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.95 | ||
| EV/EBITDA | 4.01 |
4.3 Compensation for Growth
A cheap valuation may be justified as TIETO's earnings are expected to decrease with -4.21% in the coming years.
PEG (NY)N/A
PEG (5Y)7.27
EPS Next 2Y-10.15%
EPS Next 3Y-4.21%
5. Dividend
5.1 Amount
TIETO has a Yearly Dividend Yield of 8.41%, which is a nice return.
TIETO's Dividend Yield is rather good when compared to the industry average which is at 3.78. TIETO pays more dividend than 97.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TIETO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.41% |
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-10.15%
EPS Next 3Y-4.21%
OSL:TIETO (12/2/2025, 7:00:00 PM)
216.8
+7 (+3.34%)
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 Cap25.72B
Revenue(TTM)2.09B
Net Income(TTM)-352.00M
Analysts73
Price Target212.79 (-1.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.41% |
Yearly Dividend17.29
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)7.81%
PT rev (3m)5.61%
EPS NQ rev (1m)8.25%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)17.58%
EPS NY rev (3m)16.82%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)5.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.86 | ||
| P/S | 1.05 | ||
| P/FCF | 8.95 | ||
| P/OCF | 6.8 | ||
| P/B | 2.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.01 |
EPS(TTM)16.98
EY7.83%
EPS(NY)18.27
Fwd EY8.43%
FCF(TTM)24.24
FCFY11.18%
OCF(TTM)31.9
OCFY14.71%
SpS207.36
BVpS103.23
TBVpS-59.19
PEG (NY)N/A
PEG (5Y)7.27
Graham Number198.6
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 | 2.91 |
F-Score5
WACC14.18%
ROIC/WACC0.48
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-25.66%
EPS Next 2Y-10.15%
EPS Next 3Y-4.21%
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-30.96%
Revenue Next 2Y-16.23%
Revenue Next 3Y-9.89%
Revenue Next 5Y-8.35%
EBIT growth 1Y-39.7%
EBIT growth 3Y-11.29%
EBIT growth 5Y13.74%
EBIT Next Year-20.84%
EBIT Next 3Y2.89%
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 12.77 and the Price/Book (PB) ratio is 2.1.
Can you provide the financial health for TIETO stock?
The financial health rating of TIETOEVRY OYJ (TIETO.OL) is 3 / 10.