ITERA ASA (ITERA.OL) Stock Fundamental Analysis
OSL:ITERA - Euronext Oslo - NO0010001118 - Common Stock - Currency: NOK
Taking everything into account, ITERA scores 6 out of 10 in our fundamental rating. ITERA was compared to 65 industry peers in the IT Services industry. ITERA has an excellent profitability rating, but there are some minor concerns on its financial health. ITERA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ITERA was profitable.
In the past year ITERA had a positive cash flow from operations.
ITERA had positive earnings in each of the past 5 years.
In the past 5 years ITERA always reported a positive cash flow from operatings.
1.2 Ratios
ITERA's Return On Assets of 12.55% is amongst the best of the industry. ITERA outperforms 96.92% of its industry peers.
ITERA's Return On Equity of 74.86% is amongst the best of the industry. ITERA outperforms 96.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 39.50%, ITERA belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ITERA is significantly above the industry average of 10.96%.
The 3 year average ROIC (57.90%) for ITERA is well above the current ROIC(39.50%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.55% | ||
| ROE | 74.86% | ||
| ROIC | 39.5% |
ROA(3y)17.79%
ROA(5y)19%
ROE(3y)98.79%
ROE(5y)109.93%
ROIC(3y)57.9%
ROIC(5y)69.8%
1.3 Margins
The Profit Margin of ITERA (4.12%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ITERA has declined.
Looking at the Operating Margin, with a value of 6.17%, ITERA is in line with its industry, outperforming 49.23% of the companies in the same industry.
In the last couple of years the Operating Margin of ITERA has declined.
ITERA has a Gross Margin of 92.24%. This is amongst the best in the industry. ITERA outperforms 84.62% of its industry peers.
ITERA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.17% | ||
| PM (TTM) | 4.12% | ||
| GM | 92.24% |
OM growth 3Y-22%
OM growth 5Y-9.27%
PM growth 3Y-17.93%
PM growth 5Y-11.13%
GM growth 3Y-0.02%
GM growth 5Y1.36%
2. Health
2.1 Basic Checks
ITERA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ITERA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ITERA has about the same amount of shares outstanding.
Compared to 1 year ago, ITERA has an improved debt to assets ratio.
2.2 Solvency
ITERA has an Altman-Z score of 5.70. This indicates that ITERA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ITERA (5.70) is better than 93.85% of its industry peers.
The Debt to FCF ratio of ITERA is 1.07, which is an excellent value as it means it would take ITERA, only 1.07 years of fcf income to pay off all of its debts.
ITERA's Debt to FCF ratio of 1.07 is amongst the best of the industry. ITERA outperforms 87.69% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that ITERA has dependencies on debt financing.
The Debt to Equity ratio of ITERA (1.12) is worse than 72.31% of its industry peers.
Although ITERA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 5.7 |
ROIC/WACC4.99
WACC7.91%
2.3 Liquidity
ITERA has a Current Ratio of 0.95. This is a bad value and indicates that ITERA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.95, ITERA is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
A Quick Ratio of 0.95 indicates that ITERA may have some problems paying its short term obligations.
ITERA has a worse Quick ratio (0.95) than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
ITERA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.59%.
ITERA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.16% yearly.
ITERA shows a decrease in Revenue. In the last year, the revenue decreased by -2.58%.
ITERA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.67% yearly.
EPS 1Y (TTM)-37.59%
EPS 3Y-7.18%
EPS 5Y-3.16%
EPS Q2Q%-61.11%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y12.71%
Revenue growth 5Y8.67%
Sales Q2Q%-4.46%
3.2 Future
Based on estimates for the next years, ITERA will show a very strong growth in Earnings Per Share. The EPS will grow by 38.54% on average per year.
Based on estimates for the next years, ITERA will show a quite strong growth in Revenue. The Revenue will grow by 10.84% on average per year.
EPS Next Y48.51%
EPS Next 2Y46.83%
EPS Next 3Y38.54%
EPS Next 5YN/A
Revenue Next Year5.75%
Revenue Next 2Y9.64%
Revenue Next 3Y10.84%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ITERA is valuated rather expensively with a Price/Earnings ratio of 19.81.
Compared to the rest of the industry, the Price/Earnings ratio of ITERA is on the same level as its industry peers.
ITERA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.34, which indicates a correct valuation of ITERA.
Based on the Price/Forward Earnings ratio, ITERA is valued a bit cheaper than 64.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ITERA to the average of the S&P500 Index (21.38), we can say ITERA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 13.34 |
4.2 Price Multiples
ITERA's Enterprise Value to EBITDA is on the same level as the industry average.
ITERA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.06 | ||
| EV/EBITDA | 8.73 |
4.3 Compensation for Growth
ITERA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ITERA may justify a higher PE ratio.
ITERA's earnings are expected to grow with 38.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y46.83%
EPS Next 3Y38.54%
5. Dividend
5.1 Amount
ITERA has a Yearly Dividend Yield of 4.26%, which is a nice return.
Compared to an average industry Dividend Yield of 7.76, ITERA pays a bit more dividend than its industry peers.
ITERA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of ITERA has a limited annual growth rate of 1.80%.
Dividend Growth(5Y)1.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ITERA pays out 139.40% of its income as dividend. This is not a sustainable payout ratio.
ITERA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP139.4%
EPS Next 2Y46.83%
EPS Next 3Y38.54%
OSL:ITERA (4/25/2025, 7:00:00 PM)
8.52
-0.78 (-8.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners2.46%
Inst Owner ChangeN/A
Ins Owners5.37%
Ins Owner ChangeN/A
Market Cap700.26M
Analysts40
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend0.6
Dividend Growth(5Y)1.8%
DP139.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-81.12%
Min EPS beat(2)-110.79%
Max EPS beat(2)-51.46%
EPS beat(4)0
Avg EPS beat(4)-52.16%
Min EPS beat(4)-110.79%
Max EPS beat(4)-7.54%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.21%
Min Revenue beat(2)-7.79%
Max Revenue beat(2)-4.62%
Revenue beat(4)0
Avg Revenue beat(4)-7.03%
Min Revenue beat(4)-9.08%
Max Revenue beat(4)-4.62%
Revenue beat(8)2
Avg Revenue beat(8)-2.42%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.14%
EPS NY rev (1m)-15.07%
EPS NY rev (3m)-40.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 13.34 | ||
| P/S | 0.82 | ||
| P/FCF | 11.06 | ||
| P/OCF | 9.5 | ||
| P/B | 15 | ||
| P/tB | 50.1 | ||
| EV/EBITDA | 8.73 |
EPS(TTM)0.43
EY5.05%
EPS(NY)0.64
Fwd EY7.5%
FCF(TTM)0.77
FCFY9.04%
OCF(TTM)0.9
OCFY10.53%
SpS10.33
BVpS0.57
TBVpS0.17
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.55% | ||
| ROE | 74.86% | ||
| ROCE | 51.82% | ||
| ROIC | 39.5% | ||
| ROICexc | 82.45% | ||
| ROICexgc | 254.14% | ||
| OM | 6.17% | ||
| PM (TTM) | 4.12% | ||
| GM | 92.24% | ||
| FCFM | 7.46% |
ROA(3y)17.79%
ROA(5y)19%
ROE(3y)98.79%
ROE(5y)109.93%
ROIC(3y)57.9%
ROIC(5y)69.8%
ROICexc(3y)104.91%
ROICexc(5y)157.14%
ROICexgc(3y)385.2%
ROICexgc(5y)N/A
ROCE(3y)75.95%
ROCE(5y)91.56%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-0.24%
ROICexc growth 3Y-21.57%
ROICexc growth 5Y-5.81%
OM growth 3Y-22%
OM growth 5Y-9.27%
PM growth 3Y-17.93%
PM growth 5Y-11.13%
GM growth 3Y-0.02%
GM growth 5Y1.36%
F-Score5
Asset Turnover3.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 31.63% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 59.43 | ||
| Cash Conversion | 86.41% | ||
| Profit Quality | 181.14% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 5.7 |
F-Score5
WACC7.91%
ROIC/WACC4.99
Cap/Depr(3y)47.64%
Cap/Depr(5y)59.62%
Cap/Sales(3y)1.9%
Cap/Sales(5y)2.8%
Profit Quality(3y)142.72%
Profit Quality(5y)136.17%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.59%
EPS 3Y-7.18%
EPS 5Y-3.16%
EPS Q2Q%-61.11%
EPS Next Y48.51%
EPS Next 2Y46.83%
EPS Next 3Y38.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y12.71%
Revenue growth 5Y8.67%
Sales Q2Q%-4.46%
Revenue Next Year5.75%
Revenue Next 2Y9.64%
Revenue Next 3Y10.84%
Revenue Next 5YN/A
EBIT growth 1Y-33.17%
EBIT growth 3Y-12.08%
EBIT growth 5Y-1.41%
EBIT Next Year78.18%
EBIT Next 3Y40.02%
EBIT Next 5YN/A
FCF growth 1Y-14%
FCF growth 3Y19.66%
FCF growth 5Y0.68%
OCF growth 1Y-21.05%
OCF growth 3Y1.87%
OCF growth 5Y-1.62%