TIETOEVRY OYJ (TIETO.OL) Stock Fundamental Analysis
OSL:TIETO - Euronext Oslo - FI0009000277 - Common Stock - Currency: NOK
Taking everything into account, TIETO scores 4 out of 10 in our fundamental rating. TIETO was compared to 71 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 cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TIETO had positive earnings in the past year.
TIETO had a positive operating cash flow in the past year.
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
TIETO has a worse Return On Assets (-5.87%) than 78.87% of its industry peers.
TIETO's Return On Equity of -16.46% is on the low side compared to the rest of the industry. TIETO is outperformed by 77.46% of its industry peers.
TIETO has a Return On Invested Capital (8.51%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TIETO is below the industry average of 10.64%.
The last Return On Invested Capital (8.51%) for TIETO is above the 3 year average (7.79%), which is a sign of increasing profitability.
| 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
TIETO has a Operating Margin of 7.66%. This is comparable to the rest of the industry: TIETO outperforms 59.15% of its industry peers.
TIETO's Operating Margin has improved in the last couple of years.
The Gross Margin of TIETO (80.33%) is better than 71.83% of its industry peers.
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 below the Cost of Capital (WACC), which means it is destroying 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 2.15. 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 2.15, TIETO is in line with its industry, outperforming 40.85% of the companies in the same industry.
The Debt to FCF ratio of TIETO is 3.53, which is a good value as it means it would take TIETO, 3.53 years of fcf income to pay off all of its debts.
TIETO has a Debt to FCF ratio (3.53) which is in line with its industry peers.
A Debt/Equity ratio of 0.55 indicates that TIETO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, TIETO is not doing good in the industry: 60.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.61
WACC14.01%
2.3 Liquidity
A Current Ratio of 0.92 indicates that TIETO may have some problems paying its short term obligations.
TIETO's Current ratio of 0.92 is on the low side compared to the rest of the industry. TIETO is outperformed by 80.28% of its industry peers.
TIETO has a Quick 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.
TIETO has a worse Quick ratio (0.92) than 78.87% of its industry peers.
| 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.
The Revenue for TIETO has decreased by -10.61% in the past year. This is quite bad
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
The Earnings Per Share is expected to decrease by -1.88% on average over the next years.
Based on estimates for the next years, TIETO will show a decrease in Revenue. The Revenue will decrease by -9.07% on average per year.
EPS Next Y0.2%
EPS Next 2Y3.74%
EPS Next 3Y4.31%
EPS Next 5Y-1.88%
Revenue Next Year-21.47%
Revenue Next 2Y-10.07%
Revenue Next 3Y-6.87%
Revenue Next 5Y-9.07%
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
The Price/Earnings ratio is 9.73, which indicates a very decent valuation of TIETO.
Based on the Price/Earnings ratio, TIETO is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. TIETO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.91, the valuation of TIETO can be described as very cheap.
TIETO's Price/Forward Earnings ratio is rather cheap when compared to the industry. TIETO is cheaper than 91.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. TIETO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIETO is valued cheaper than 91.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TIETO is valued cheaper than 80.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 3.9 |
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)47.72
PEG (5Y)5.55
EPS Next 2Y3.74%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
TIETO has a Yearly Dividend Yield of 9.16%, which is a nice return.
TIETO's Dividend Yield is rather good when compared to the industry average which is at 6.93. TIETO pays more dividend than 97.18% of the companies in the same industry.
TIETO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.16% |
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-95.87%
EPS Next 2Y3.74%
EPS Next 3Y4.31%
OSL:TIETO (7/4/2025, 7:00:00 PM)
194.2
+0.7 (+0.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners55.87%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap23.04B
Analysts71.3
Price Target201.85 (3.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.16% |
Yearly Dividend17.42
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)-7.1%
PT rev (3m)-12.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-29.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-20.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.76 | ||
| P/FCF | 7.19 | ||
| P/OCF | 5.52 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.9 |
EPS(TTM)19.95
EY10.27%
EPS(NY)24.54
Fwd EY12.64%
FCF(TTM)27.03
FCFY13.92%
OCF(TTM)35.15
OCFY18.1%
SpS254.19
BVpS110.46
TBVpS-65.48
PEG (NY)47.72
PEG (5Y)5.55
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-30.89%
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-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 | 2.15 |
F-Score7
WACC14.01%
ROIC/WACC0.61
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 5Y-1.88%
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 5Y-9.07%
EBIT growth 1Y-22.54%
EBIT growth 3Y-11.29%
EBIT growth 5Y13.74%
EBIT Next Year7.6%
EBIT Next 3Y6.92%
EBIT Next 5Y2.76%
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%