TIETOEVRY OYJ (TIETO.OL) Stock Fundamental Analysis
Europe - OSL:TIETO - FI0009000277 - Common Stock
207.4 NOK
-3.6 (-1.71%)
We assign a fundamental rating of 4 out of 10 to TIETO. TIETO was compared to 70 industry peers in the IT Services industry. The financial health of TIETO is average, but there are quite some concerns on its profitability. 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.
In the past year TIETO had a positive cash flow from operations.
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 worse Return On Assets (-8.53%) than 78.57% of its industry peers.
With a Return On Equity value of -24.42%, TIETO is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 6.46%, TIETO is doing worse than 60.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TIETO is below the industry average of 11.52%.
| 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.
TIETO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 79.49%, TIETO is in the better half of the industry, outperforming 72.86% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TIETO 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.
Compared to 1 year ago, TIETO has a worse debt to assets ratio.
2.2 Solvency
TIETO has an Altman-Z score of 2.37. 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 (2.37) which is comparable to the rest of the industry.
TIETO has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as TIETO would need 3.68 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.68, TIETO perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that TIETO is somewhat dependend on debt financing.
TIETO has a worse Debt to Equity ratio (0.89) than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.86
WACC7.5%
2.3 Liquidity
A Current Ratio of 1.23 indicates that TIETO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.23, TIETO perfoms like the industry average, outperforming 52.86% of the companies in the same industry.
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.
TIETO has a Quick ratio (1.22) which is in line with 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%.
TIETO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.76% yearly.
Looking at the last year, TIETO shows a very negative growth in Revenue. The Revenue has decreased by -20.04% in the last year.
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
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
TIETO is valuated correctly with a Price/Earnings ratio of 12.47.
Based on the Price/Earnings ratio, TIETO is valued cheaply inside the industry as 81.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.83, TIETO is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.72, the valuation of TIETO can be described as very reasonable.
TIETO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TIETO is cheaper than 74.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, TIETO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIETO is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TIETO indicates a somewhat cheap valuation: TIETO is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.27 | ||
| EV/EBITDA | 4.12 |
4.3 Compensation for Growth
TIETO's earnings are expected to decrease with -4.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)7.1
EPS Next 2Y-10.98%
EPS Next 3Y-4.54%
5. Dividend
5.1 Amount
TIETO has a Yearly Dividend Yield of 8.24%, which is a nice return.
TIETO's Dividend Yield is rather good when compared to the industry average which is at 3.95. TIETO pays more dividend than 97.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, TIETO pays a better dividend.
| 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-72.12%
EPS Next 2Y-10.98%
EPS Next 3Y-4.54%
OSL:TIETO (10/28/2025, 7:00:00 PM)
207.4
-3.6 (-1.71%)
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 Cap24.61B
Revenue(TTM)2.29B
Net Income(TTM)-244300000
Analysts75
Price Target197.37 (-4.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.24% |
Yearly Dividend17.08
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)-0.1%
PT rev (3m)-2.22%
EPS NQ rev (1m)33.7%
EPS NQ rev (3m)30.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-36.9%
Revenue NQ rev (1m)2.67%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)5.09%
Revenue NY rev (3m)-12.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 11.72 | ||
| P/S | 0.92 | ||
| P/FCF | 8.27 | ||
| P/OCF | 6.32 | ||
| P/B | 2.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.12 |
EPS(TTM)16.63
EY8.02%
EPS(NY)17.7
Fwd EY8.53%
FCF(TTM)25.08
FCFY12.09%
OCF(TTM)32.8
OCFY15.81%
SpS224.29
BVpS98.09
TBVpS-61.05
PEG (NY)N/A
PEG (5Y)7.1
Graham Number191.58
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%
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-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 | 2.37 |
F-Score4
WACC7.5%
ROIC/WACC0.86
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%
TIETOEVRY OYJ / TIETO.OL FAQ
What is the fundamental rating for TIETO stock?
ChartMill assigns a fundamental rating of 4 / 10 to TIETO.OL.
What is the valuation status for TIETO stock?
ChartMill assigns a valuation rating of 5 / 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 12.47 and the Price/Book (PB) ratio is 2.11.
Can you provide the financial health for TIETO stock?
The financial health rating of TIETOEVRY OYJ (TIETO.OL) is 4 / 10.