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 70 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. TIETO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TIETO has reported negative net income.
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
Looking at the Return On Assets, with a value of -2.06%, TIETO is doing worse than 68.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of -4.84%, TIETO is doing worse than 65.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.62%, TIETO is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.06% | ||
| ROE | -4.84% | ||
| ROIC | 8.62% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TIETO has a better Operating Margin (8.22%) than 61.33% of its industry peers.
In the last couple of years the Operating Margin of TIETO has grown nicely.
TIETO has a Gross Margin of 80.84%. This is in the better half of the industry: TIETO outperforms 73.33% of its industry peers.
TIETO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.22% | ||
| PM (TTM) | N/A | ||
| GM | 80.84% |
OM growth 3Y-10.03%
OM growth 5Y4.05%
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.
There is no outstanding debt for TIETO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
TIETO has an Altman-Z score of 2.59. 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.
The Altman-Z score of TIETO (2.59) is comparable to the rest of the industry.
TIETO has a debt to FCF ratio of 4.57. This is a neutral value as TIETO would need 4.57 years to pay back of all of its debts.
TIETO's Debt to FCF ratio of 4.57 is in line compared to the rest of the industry. TIETO outperforms 46.67% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that TIETO is somewhat dependend on debt financing.
TIETO's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. TIETO outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.26
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.80 indicates that TIETO may have some problems paying its short term obligations.
TIETO's Current ratio of 0.80 is on the low side compared to the rest of the industry. TIETO is outperformed by 78.67% of its industry peers.
TIETO has a Quick Ratio of 0.80. This is a bad value and indicates that TIETO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.79, TIETO is not doing good in the industry: 78.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
TIETO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -136.54%.
TIETO shows a decrease in Revenue. In the last year, the revenue decreased by -1.71%.
The Revenue has been growing by 10.08% on average over the past years. This is quite good.
EPS 1Y (TTM)-136.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-404.37%
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y-0.25%
Revenue growth 5Y10.08%
Sales Q2Q%-7.11%
3.2 Future
The Earnings Per Share is expected to grow by 4.65% on average over the next years.
TIETO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.30% yearly.
EPS Next Y2.75%
EPS Next 2Y4.64%
EPS Next 3Y4.65%
EPS Next 5YN/A
Revenue Next Year-1.65%
Revenue Next 2Y0.43%
Revenue Next 3Y1.3%
Revenue Next 5YN/A
3.3 Evolution
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 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
TIETO is valuated reasonably with a Price/Forward Earnings ratio of 9.51.
Based on the Price/Forward Earnings ratio, TIETO is valued cheaply inside the industry as 85.33% of the companies are valued more expensively.
TIETO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TIETO is valued cheaper than 85.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TIETO is valued a bit cheaper than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.66 | ||
| EV/EBITDA | 5.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.64%
EPS Next 3Y4.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.61%, TIETO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.29, TIETO pays a better dividend. On top of this TIETO pays more dividend than 94.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, TIETO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.61% |
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
The earnings of TIETO are negative and hence is the payout ratio. TIETO will probably not be able to sustain this dividend level.
The dividend of TIETO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-277.39%
EPS Next 2Y4.64%
EPS Next 3Y4.65%
OSL:TIETO (3/7/2025, 7:00:00 PM)
229.8
-0.2 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners46.01%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap27.26B
Analysts72.17
Price Target234.28 (1.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.61% |
Yearly Dividend17.05
Dividend Growth(5Y)0.68%
DP-277.39%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-4.83%
Min Revenue beat(2)-5.33%
Max Revenue beat(2)-4.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.95%
Min Revenue beat(4)-5.33%
Max Revenue beat(4)-2.68%
Revenue beat(8)0
Avg Revenue beat(8)-4.19%
Revenue beat(12)0
Avg Revenue beat(12)-3.33%
Revenue beat(16)1
Avg Revenue beat(16)-2.87%
PT rev (1m)-4.4%
PT rev (3m)-4.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.3%
EPS NY rev (1m)-2.51%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.89%
Revenue NY rev (3m)-2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.51 | ||
| P/S | 0.83 | ||
| P/FCF | 9.66 | ||
| P/OCF | 7.12 | ||
| P/B | 1.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.4 |
EPS(TTM)-6.24
EYN/A
EPS(NY)24.17
Fwd EY10.52%
FCF(TTM)23.8
FCFY10.36%
OCF(TTM)32.28
OCFY14.05%
SpS277.78
BVpS128.66
TBVpS-65.8
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.06% | ||
| ROE | -4.84% | ||
| ROCE | 11.05% | ||
| ROIC | 8.62% | ||
| ROICexc | 9.5% | ||
| ROICexgc | N/A | ||
| OM | 8.22% | ||
| PM (TTM) | N/A | ||
| GM | 80.84% | ||
| FCFM | 8.57% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-10.03%
OM growth 5Y4.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.03%
GM growth 5Y-0.48%
F-Score4
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.57 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 23.53% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.59 |
F-Score4
WACC6.85%
ROIC/WACC1.26
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)-136.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-404.37%
EPS Next Y2.75%
EPS Next 2Y4.64%
EPS Next 3Y4.65%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y-0.25%
Revenue growth 5Y10.08%
Sales Q2Q%-7.11%
Revenue Next Year-1.65%
Revenue Next 2Y0.43%
Revenue Next 3Y1.3%
Revenue Next 5YN/A
EBIT growth 1Y-11.04%
EBIT growth 3Y-10.25%
EBIT growth 5Y14.53%
EBIT Next Year58.09%
EBIT Next 3Y15.79%
EBIT Next 5YN/A
FCF growth 1Y31.92%
FCF growth 3Y-5.74%
FCF growth 5Y1.13%
OCF growth 1Y22.4%
OCF growth 3Y-3.94%
OCF growth 5Y3.19%