TIETOEVRY OYJ (TIETO.OL) Stock Fundamental Analysis
OSL:TIETO - Oslo Bors ASA - FI0009000277 - Common Stock - Currency: NOK
Overall TIETO gets a fundamental rating of 5 out of 10. We evaluated TIETO against 71 industry peers in the IT Services industry. TIETO has a medium profitability rating, but doesn't score so well on its financial health evaluation. TIETO is valued correctly, but it does not seem to be growing. Finally TIETO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TIETO had positive earnings in the past year.
In the past year TIETO had a positive cash flow from operations.
In the past 5 years TIETO has always been profitable.
TIETO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TIETO (4.87%) is comparable to the rest of the industry.
With a Return On Equity value of 10.90%, TIETO perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
With a Return On Invested Capital value of 8.96%, TIETO perfoms like the industry average, outperforming 55.38% 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 10.97%.
The 3 year average ROIC (8.32%) for TIETO is below the current ROIC(8.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 10.9% | ||
| ROIC | 8.96% |
ROA(3y)6.19%
ROA(5y)4.65%
ROE(3y)12.55%
ROE(5y)9.63%
ROIC(3y)8.32%
ROIC(5y)6.93%
1.3 Margins
TIETO's Profit Margin of 5.60% is fine compared to the rest of the industry. TIETO outperforms 63.08% of its industry peers.
TIETO's Profit Margin has declined in the last couple of years.
TIETO has a Operating Margin of 9.08%. This is in the better half of the industry: TIETO outperforms 67.69% of its industry peers.
In the last couple of years the Operating Margin of TIETO has remained more or less at the same level.
Looking at the Gross Margin, with a value of 80.48%, TIETO is in the better half of the industry, outperforming 69.23% 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 | 9.08% | ||
| PM (TTM) | 5.6% | ||
| GM | 80.48% |
OM growth 3Y2.15%
OM growth 5Y-1.01%
PM growth 3Y21.21%
PM growth 5Y-4.75%
GM growth 3Y2.09%
GM growth 5Y-1.06%
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.
TIETO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TIETO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.49 indicates that TIETO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.49, TIETO perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
The Debt to FCF ratio of TIETO is 4.33, which is a neutral value as it means it would take TIETO, 4.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TIETO (4.33) is comparable to the rest of the industry.
TIETO has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.50, TIETO is in line with its industry, outperforming 47.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.59
WACC5.65%
2.3 Liquidity
A Current Ratio of 0.76 indicates that TIETO may have some problems paying its short term obligations.
With a Current ratio value of 0.76, TIETO is not doing good in the industry: 89.23% of the companies in the same industry are doing better.
A Quick Ratio of 0.76 indicates that TIETO may have some problems paying its short term obligations.
The Quick ratio of TIETO (0.76) is worse than 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
TIETO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.06%.
TIETO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.46% yearly.
The Revenue has decreased by -0.38% in the past year.
TIETO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.26% yearly.
EPS 1Y (TTM)-11.06%
EPS 3Y-2.69%
EPS 5Y3.46%
EPS Q2Q%-7.55%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y0.77%
Revenue growth 5Y12.26%
Sales Q2Q%-0.71%
3.2 Future
Based on estimates for the next years, TIETO will show a small growth in Earnings Per Share. The EPS will grow by 2.92% on average per year.
Based on estimates for the next years, TIETO will show a small growth in Revenue. The Revenue will grow by 1.29% on average per year.
EPS Next Y-3.98%
EPS Next 2Y-0.04%
EPS Next 3Y2.35%
EPS Next 5Y2.92%
Revenue Next Year-1.26%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.61%
Revenue Next 5Y1.29%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
TIETO is valuated reasonably with a Price/Earnings ratio of 9.16.
Based on the Price/Earnings ratio, TIETO is valued cheaper than 87.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of TIETO to the average of the S&P500 Index (28.47), we can say TIETO is valued rather cheaply.
TIETO is valuated reasonably with a Price/Forward Earnings ratio of 8.73.
Based on the Price/Forward Earnings ratio, TIETO is valued cheaper than 86.15% of the companies in the same industry.
TIETO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.16 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIETO is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
72.31% 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 | 8.49 | ||
| EV/EBITDA | 7.34 |
4.3 Compensation for Growth
The decent profitability rating of TIETO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.65
EPS Next 2Y-0.04%
EPS Next 3Y2.35%
5. Dividend
5.1 Amount
TIETO has a Yearly Dividend Yield of 7.89%, which is a nice return.
TIETO's Dividend Yield is rather good when compared to the industry average which is at 4.29. TIETO pays more dividend than 96.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, TIETO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.89% |
5.2 History
The dividend of TIETO has a limited annual growth rate of 0.68%.
Dividend Growth(5Y)0.68%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TIETO pays out 108.13% of its income as dividend. This is not a sustainable payout ratio.
TIETO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP108.13%
EPS Next 2Y-0.04%
EPS Next 3Y2.35%
TIETOEVRY OYJ
OSL:TIETO (2/4/2025, 7:00:00 PM)
215.8
+1.2 (+0.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners40.17%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap25.60B
Analysts71.3
Price Target245.06 (13.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.89% |
Yearly Dividend1.45
Dividend Growth(5Y)0.68%
DP108.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.65%
Min EPS beat(2)-1.66%
Max EPS beat(2)-1.64%
EPS beat(4)0
Avg EPS beat(4)-5.83%
Min EPS beat(4)-12.36%
Max EPS beat(4)-1.64%
EPS beat(8)1
Avg EPS beat(8)-4.7%
EPS beat(12)2
Avg EPS beat(12)-3.95%
EPS beat(16)3
Avg EPS beat(16)-4.07%
Revenue beat(2)0
Avg Revenue beat(2)-3.51%
Min Revenue beat(2)-4.33%
Max Revenue beat(2)-2.68%
Revenue beat(4)0
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)-2.52%
Revenue beat(8)0
Avg Revenue beat(8)-3.9%
Revenue beat(12)0
Avg Revenue beat(12)-2.99%
Revenue beat(16)1
Avg Revenue beat(16)-2.95%
PT rev (1m)-1.64%
PT rev (3m)-2%
EPS NQ rev (1m)-2.04%
EPS NQ rev (3m)-7.76%
EPS NY rev (1m)-1.37%
EPS NY rev (3m)-1.37%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-4.01%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.16 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.76 | ||
| P/FCF | 8.49 | ||
| P/OCF | 6.22 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.34 |
EPS(TTM)23.56
EY10.92%
EPS(NY)24.71
Fwd EY11.45%
FCF(TTM)25.42
FCFY11.78%
OCF(TTM)34.69
OCFY16.07%
SpS282.17
BVpS144.98
TBVpS-68.85
PEG (NY)N/A
PEG (5Y)2.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 10.9% | ||
| ROCE | 11.52% | ||
| ROIC | 8.96% | ||
| ROICexc | 9.77% | ||
| ROICexgc | N/A | ||
| OM | 9.08% | ||
| PM (TTM) | 5.6% | ||
| GM | 80.48% | ||
| FCFM | 9.01% |
ROA(3y)6.19%
ROA(5y)4.65%
ROE(3y)12.55%
ROE(5y)9.63%
ROIC(3y)8.32%
ROIC(5y)6.93%
ROICexc(3y)9.3%
ROICexc(5y)7.71%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.8%
ROCE(5y)8.99%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y6.81%
ROICexc growth 5Y-15.33%
OM growth 3Y2.15%
OM growth 5Y-1.01%
PM growth 3Y21.21%
PM growth 5Y-4.75%
GM growth 3Y2.09%
GM growth 5Y-1.06%
F-Score5
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.33 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 57.72% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.26% | ||
| Profit Quality | 160.91% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.49 |
F-Score5
WACC5.65%
ROIC/WACC1.59
Cap/Depr(3y)50.6%
Cap/Depr(5y)47.9%
Cap/Sales(3y)3.02%
Cap/Sales(5y)3.01%
Profit Quality(3y)100.08%
Profit Quality(5y)174.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.06%
EPS 3Y-2.69%
EPS 5Y3.46%
EPS Q2Q%-7.55%
EPS Next Y-3.98%
EPS Next 2Y-0.04%
EPS Next 3Y2.35%
EPS Next 5Y2.92%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y0.77%
Revenue growth 5Y12.26%
Sales Q2Q%-0.71%
Revenue Next Year-1.26%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.61%
Revenue Next 5Y1.29%
EBIT growth 1Y-12.52%
EBIT growth 3Y2.94%
EBIT growth 5Y11.12%
EBIT Next Year44.62%
EBIT Next 3Y15.66%
EBIT Next 5Y10.34%
FCF growth 1Y39.53%
FCF growth 3Y-12.45%
FCF growth 5Y7.09%
OCF growth 1Y25.44%
OCF growth 3Y-9.14%
OCF growth 5Y8.84%