TIETOEVRY OYJ (TIETO.OL) Stock Fundamental Analysis
OSL:TIETO - Euronext Oslo - FI0009000277 - Common Stock - Currency: NOK
We assign a fundamental rating of 4 out of 10 to TIETO. TIETO was compared to 76 industry peers in the IT Services industry. While TIETO is still in line with the averages on profitability rating, there are concerns on its financial health. TIETO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TIETO was profitable.
In the past year TIETO had a positive cash flow from operations.
TIETO had positive earnings in 4 of the past 5 years.
In the past 5 years TIETO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -5.87%, TIETO is doing worse than 72.37% of the companies in the same industry.
TIETO's Return On Equity of -16.46% is on the low side compared to the rest of the industry. TIETO is outperformed by 71.05% of its industry peers.
TIETO has a Return On Invested Capital (8.51%) which is comparable to the rest of the industry.
TIETO had an Average Return On Invested Capital over the past 3 years of 7.79%. This is below the industry average of 10.85%.
The 3 year average ROIC (7.79%) for TIETO is below the current ROIC(8.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.87% | ||
| ROE | -16.46% | ||
| ROIC | 8.51% |
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
The Operating Margin of TIETO (7.66%) is better than 60.53% of its industry peers.
In the last couple of years the Operating Margin of TIETO has grown nicely.
With a decent Gross Margin value of 80.33%, TIETO is doing good in the industry, outperforming 73.68% 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 | 7.66% | ||
| PM (TTM) | N/A | ||
| GM | 80.33% |
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
TIETO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TIETO remains at a similar level compared to 1 year ago.
The number of shares outstanding for TIETO has been increased compared to 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 2.13. 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.
Looking at the Altman-Z score, with a value of 2.13, TIETO is in line with its industry, outperforming 48.68% of the companies in the same industry.
TIETO has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as TIETO would need 3.53 years to pay back of all of its debts.
TIETO has a Debt to FCF ratio of 3.53. This is comparable to the rest of the industry: TIETO outperforms 51.32% of its industry peers.
TIETO has a Debt/Equity ratio of 0.55. This is a neutral value indicating TIETO is somewhat dependend on debt financing.
TIETO has a Debt to Equity ratio (0.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.45
WACC5.86%
2.3 Liquidity
TIETO has a Current Ratio of 0.92. This is a bad value and indicates that TIETO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TIETO (0.92) is worse than 75.00% of its industry peers.
A Quick Ratio of 0.92 indicates that TIETO may have some problems paying its short term obligations.
With a Quick ratio value of 0.92, TIETO is not doing good in the industry: 72.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
TIETO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.65%.
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 -10.61% 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)-17.65%
EPS 3Y-2.48%
EPS 5Y1.76%
EPS Q2Q%-48%
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y-0.25%
Revenue growth 5Y10.08%
Sales Q2Q%-35.85%
3.2 Future
TIETO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.95% yearly.
The Revenue is expected to grow by 0.89% on average over the next years.
EPS Next Y0.2%
EPS Next 2Y3.74%
EPS Next 3Y4.31%
EPS Next 5Y5.95%
Revenue Next Year-21.47%
Revenue Next 2Y-10.07%
Revenue Next 3Y-6.87%
Revenue Next 5Y0.89%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.56, the valuation of TIETO can be described as very reasonable.
94.74% of the companies in the same industry are more expensive than TIETO, based on the Price/Earnings ratio.
TIETO is valuated cheaply when we compare the Price/Earnings ratio to 26.20, which is the current average of the S&P500 Index.
TIETO is valuated cheaply with a Price/Forward Earnings ratio of 7.77.
Based on the Price/Forward Earnings ratio, TIETO is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.13. TIETO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 7.77 |
4.2 Price Multiples
93.42% of the companies in the same industry are more expensive than TIETO, based on the Enterprise Value to EBITDA ratio.
78.95% of the companies in the same industry are more expensive than TIETO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.06 | ||
| EV/EBITDA | 3.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TIETO does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)46.87
PEG (5Y)5.45
EPS Next 2Y3.74%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.36%, TIETO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.98, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.36% |
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
The earnings of TIETO are negative and hence is the payout ratio. TIETO will probably not be able to sustain this dividend level.
The dividend of TIETO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-95.87%
EPS Next 2Y3.74%
EPS Next 3Y4.31%
OSL:TIETO (5/28/2025, 7:00:00 PM)
184.6
+1.5 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners46.01%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap21.90B
Analysts71.3
Price Target217.29 (17.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.36% |
Yearly Dividend16.94
Dividend Growth(5Y)5.62%
DP-95.87%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.4%
Min EPS beat(2)-39.07%
Max EPS beat(2)-11.72%
EPS beat(4)0
Avg EPS beat(4)-13.52%
Min EPS beat(4)-39.07%
Max EPS beat(4)-1.64%
EPS beat(8)0
Avg EPS beat(8)-11.32%
EPS beat(12)2
Avg EPS beat(12)-7.43%
EPS beat(16)2
Avg EPS beat(16)-7.11%
Revenue beat(2)0
Avg Revenue beat(2)-16.72%
Min Revenue beat(2)-28.15%
Max Revenue beat(2)-5.29%
Revenue beat(4)0
Avg Revenue beat(4)-10.12%
Min Revenue beat(4)-28.15%
Max Revenue beat(4)-2.68%
Revenue beat(8)0
Avg Revenue beat(8)-7.34%
Revenue beat(12)0
Avg Revenue beat(12)-5.56%
Revenue beat(16)1
Avg Revenue beat(16)-4.45%
PT rev (1m)-2.64%
PT rev (3m)-8.06%
EPS NQ rev (1m)-24.97%
EPS NQ rev (3m)-28.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.4%
Revenue NQ rev (1m)-29.89%
Revenue NQ rev (3m)-30.85%
Revenue NY rev (1m)-12.39%
Revenue NY rev (3m)-20.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 7.77 | ||
| P/S | 0.75 | ||
| P/FCF | 7.06 | ||
| P/OCF | 5.43 | ||
| P/B | 1.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.84 |
EPS(TTM)19.31
EY10.46%
EPS(NY)23.75
Fwd EY12.87%
FCF(TTM)26.16
FCFY14.17%
OCF(TTM)34.03
OCFY18.43%
SpS246.04
BVpS106.92
TBVpS-63.38
PEG (NY)46.87
PEG (5Y)5.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.87% | ||
| ROE | -16.46% | ||
| ROCE | 10.91% | ||
| ROIC | 8.51% | ||
| ROICexc | 9.98% | ||
| ROICexgc | N/A | ||
| OM | 7.66% | ||
| PM (TTM) | N/A | ||
| GM | 80.33% | ||
| FCFM | 10.63% |
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-30.92%
ROICexcg growth 5Y-50.18%
ROICexc growth 3Y-8.05%
ROICexc growth 5Y16.46%
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-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 17.25% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 2.13 |
F-Score7
WACC5.86%
ROIC/WACC1.45
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)-17.65%
EPS 3Y-2.48%
EPS 5Y1.76%
EPS Q2Q%-48%
EPS Next Y0.2%
EPS Next 2Y3.74%
EPS Next 3Y4.31%
EPS Next 5Y5.95%
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y-0.25%
Revenue growth 5Y10.08%
Sales Q2Q%-35.85%
Revenue Next Year-21.47%
Revenue Next 2Y-10.07%
Revenue Next 3Y-6.87%
Revenue Next 5Y0.89%
EBIT growth 1Y-22.54%
EBIT growth 3Y-11.29%
EBIT growth 5Y13.74%
EBIT Next Year7.6%
EBIT Next 3Y6.92%
EBIT Next 5YN/A
FCF growth 1Y21.13%
FCF growth 3Y-5.74%
FCF growth 5Y1.13%
OCF growth 1Y10.23%
OCF growth 3Y-3.94%
OCF growth 5Y3.19%