TIETOEVRY OYJ (TIETO.OL) Stock Fundamental Analysis
Europe - OSL:TIETO - FI0009000277 - Common Stock
182.3 NOK
+0.8 (+0.44%)
Overall TIETO gets a fundamental rating of 4 out of 10. We evaluated TIETO 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TIETO was profitable.
TIETO had a positive operating cash flow in the past year.
TIETO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TIETO had a positive operating cash flow.
1.2 Ratios
TIETO has a Return On Assets of -8.53%. This is in the lower half of the industry: TIETO underperforms 78.08% of its industry peers.
TIETO's Return On Equity of -24.42% is on the low side compared to the rest of the industry. TIETO is outperformed by 76.71% of its industry peers.
With a Return On Invested Capital value of 6.46%, TIETO perfoms like the industry average, outperforming 41.10% of the companies in the same industry.
TIETO had an Average Return On Invested Capital over the past 3 years of 7.79%. This is below the industry average of 11.06%.
| 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
TIETO has a Operating Margin (7.13%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TIETO has grown nicely.
TIETO has a Gross Margin of 79.49%. This is in the better half of the industry: TIETO outperforms 72.60% 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
TIETO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
TIETO has a worse debt/assets ratio than last year.
2.2 Solvency
TIETO has an Altman-Z score of 2.28. 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 has a Altman-Z score of 2.28. This is comparable to the rest of the industry: TIETO outperforms 46.58% of its industry peers.
The Debt to FCF ratio of TIETO is 3.68, which is a good value as it means it would take TIETO, 3.68 years of fcf income to pay off all of its debts.
TIETO has a Debt to FCF ratio (3.68) which is in line with its industry peers.
A Debt/Equity ratio of 0.89 indicates that TIETO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, TIETO is doing worse than 61.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.87
WACC7.47%
2.3 Liquidity
TIETO has a Current Ratio of 1.23. This is a normal value and indicates that TIETO is financially healthy and should not expect problems in meeting its short term obligations.
TIETO's Current ratio of 1.23 is in line compared to the rest of the industry. TIETO outperforms 52.05% of its industry peers.
TIETO has a Quick Ratio of 1.22. This is a normal value and indicates that TIETO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TIETO (1.22) is better than 60.27% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 1.76% on average over the past years.
The Revenue for TIETO has decreased by -20.04% in the past year. This is quite bad
TIETO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.08% yearly.
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
TIETO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.48% yearly.
Based on estimates for the next years, TIETO will show a decrease in Revenue. The Revenue will decrease by -8.33% on average per year.
EPS Next Y-36.77%
EPS Next 2Y-10.98%
EPS Next 3Y-4.54%
EPS Next 5Y-0.48%
Revenue Next Year-31.17%
Revenue Next 2Y-16.02%
Revenue Next 3Y-9.71%
Revenue Next 5Y-8.33%
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 decreasing.
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
With a Price/Earnings ratio of 10.97, the valuation of TIETO can be described as very reasonable.
87.67% 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 27.70, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.31, the valuation of TIETO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TIETO is valued a bit cheaper than 78.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.15. TIETO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIETO is valued cheaper than 89.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TIETO is valued cheaper than 80.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 3.71 |
4.3 Compensation for Growth
A cheap valuation may be justified as TIETO's earnings are expected to decrease with -4.54% in the coming years.
PEG (NY)N/A
PEG (5Y)6.25
EPS Next 2Y-10.98%
EPS Next 3Y-4.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.66%, TIETO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.36, TIETO pays a better dividend. On top of this TIETO pays more dividend than 95.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TIETO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.66% |
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.
DP-72.12%
EPS Next 2Y-10.98%
EPS Next 3Y-4.54%
OSL:TIETO (10/9/2025, 7:00:00 PM)
182.3
+0.8 (+0.44%)
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 Cap21.63B
Analysts75
Price Target197.37 (8.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.66% |
Yearly Dividend17.16
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)-2.04%
PT rev (3m)-2.22%
EPS NQ rev (1m)14.47%
EPS NQ rev (3m)18.08%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-36.9%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)5.04%
Revenue NY rev (3m)-12.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.81 | ||
| P/FCF | 7.27 | ||
| P/OCF | 5.56 | ||
| P/B | 1.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.71 |
EPS(TTM)16.62
EY9.12%
EPS(NY)17.69
Fwd EY9.7%
FCF(TTM)25.06
FCFY13.75%
OCF(TTM)32.77
OCFY17.98%
SpS224.13
BVpS98.03
TBVpS-61.01
PEG (NY)N/A
PEG (5Y)6.25
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 | 2.28 |
F-Score4
WACC7.47%
ROIC/WACC0.87
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-36.77%
EPS Next 2Y-10.98%
EPS Next 3Y-4.54%
EPS Next 5Y-0.48%
Revenue 1Y (TTM)-20.04%
Revenue growth 3Y-0.25%
Revenue growth 5Y10.08%
Sales Q2Q%-35.23%
Revenue Next Year-31.17%
Revenue Next 2Y-16.02%
Revenue Next 3Y-9.71%
Revenue Next 5Y-8.33%
EBIT growth 1Y-36.61%
EBIT growth 3Y-11.29%
EBIT growth 5Y13.74%
EBIT Next Year-20.84%
EBIT Next 3Y2.89%
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%