Company Overview
Witted Megacorp Oyj is a Finnish IT services company that provides software development, consulting, and project management services to clients worldwide. The company was founded in 2016 with the mission of helping clients build successful software development projects and drive digital transformation. Witted's primary focus is on delivering high-quality software solutions that meet the evolving needs of its clients.
The company's core values include innovation, customer satisfaction, and teamwork. Witted prioritizes continuous learning and improvement to stay ahead in the rapidly changing IT landscape. Its mission is to make a positive impact on both its customers' and employees' work lives.
Key Products/Services
Witted offers a range of software development services, including:
- Software development: Witted provides custom software solutions for clients across various industries.
- Consulting: The company offers consulting services to help clients improve their software development processes and strategies.
- Project management: Witted provides project management services to ensure successful delivery of software projects.
The benefits of Witted's products and services include:
- Increased efficiency: Witted's software development services help clients streamline their software development processes, reducing time-to-market and increasing productivity.
- Improved quality: The company's consulting services enable clients to improve the quality of their software solutions, ensuring they meet the evolving needs of their customers.
- Enhanced collaboration: Witted's project management services facilitate effective collaboration between stakeholders, ensuring successful delivery of software projects.
Investment Highlights
Witted Megacorp Oyj offers several investment highlights:
- Diversified revenue streams: Witted generates revenue from a range of sources, including software development, consulting, and project management services.
- Experienced management team: The company's management team has extensive experience in the IT industry, ensuring effective leadership and decision-making.
Risk Analysis
Witted Megacorp Oyj faces several risks, including:
- Market competition: The company operates in a competitive market, with numerous other players offering similar services.
- Regulatory changes: Witted is exposed to regulatory changes that could impact its operations and profitability.
- Economic downturn: A decline in the overall economy could reduce demand for software development services.
In conclusion, Witted Megacorp Oyj is a promising investment opportunity for those looking to capitalize on the growing demand for software development services. The company's strong growth potential, diversified revenue streams, and experienced management team make it an attractive choice for investors.
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 14.5 | 15.4 | 15.5 | 15.5 | 15.5 | 15.5 | 15.5 |
| Target Valuation (MEur) | 0.0 | 32.7 | 23.6 | 27.2 | 27.2 | 24.8 | 24.8 |
| Targer Price | 0.0 | 2.11 | 1.53 | 1.76 | 1.76 | 1.6 | 1.6 |
| Potential, % | 0.0 | -3.3 | -3.3 | 24.8 | 13.3 | 3.3 | 3.3 |
| Recommendation | Hold | Hold | Hold | Buy | Hold | Hold | Hold |
| MCAP (MEur) | 56.6 | 33.8 | 24.4 | 21.8 | 24.0 | 24.0 | 24.0 |
| Price | 3.9 | 2.19 | 1.58 | 1.41 | 1.55 | 1.55 | 1.55 |
| EV | 47.0 | 27.0 | 17.0 | 17.0 | 18.0 | 18.0 | 18.0 |
| P/S | 1.07 | 0.53 | 0.46 | 0.41 | 0.45 | 0.43 | 0.42 |
| EV/S | 0.9 | 0.41 | 0.31 | 0.32 | 0.34 | 0.33 | 0.33 |
| EV/EBIT | -77.93 | -15.03 | -41.52 | -21.57 | 45.34 | -29.01 | -28.46 |
| P/E | -102.53 | -21.32 | -61.4 | -31.65 | 75.38 | -48.92 | -46.1 |
| P/B | 3.26 | 2.28 | 1.67 | 1.62 | 1.75 | 1.82 | 1.89 |
| P/OCF | 134.12 | -14.21 | 40.06 | -59.5 | 24.76 | 217.93 | -399.54 |
| EV/OCF | 112.27 | -11.16 | 27.09 | -46.38 | 18.82 | 166.16 | -308.33 |
| P/FCF | -67.06 | -13.59 | 45.85 | -14.23 | 43.16 | -461.01 | -107.98 |
| EV/FCF | -56.14 | -10.68 | 31.0 | -11.09 | 32.82 | -351.5 | -83.33 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 52.9 | 64.1 | 53.5 | 52.7 | 52.9 | 55.7 | 56.5 |
| Rev. Growth, % | 76.3 | 21.2 | -16.5 | -1.5 | 0.4 | 5.3 | 1.4 |
| Ebit | -0.6 | -1.8 | -0.4 | -0.8 | 0.4 | -0.6 | -0.6 |
| Ebit Growth, % | -185.7 | -200.0 | 77.8 | -100.0 | 150.0 | -250.0 | -0.0 |
| Ebit, % | -1.1 | -2.8 | -0.7 | -1.5 | 0.8 | -1.1 | -1.1 |
| Profit | -0.6 | -1.6 | -0.4 | -0.7 | 0.3 | -0.5 | -0.5 |
| EPS | -0.04 | -0.1 | -0.03 | -0.05 | 0.02 | -0.03 | -0.03 |
| Profit Growth, % | -200.0 | -166.7 | 75.0 | -75.0 | 142.9 | -266.7 | -0.0 |
| Profit, % | -1.1 | -2.5 | -0.7 | -1.3 | 0.6 | -0.9 | -0.9 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Acc. Receivable | 10.3 | 10.7 | 8.1 | 9.0 | 8.7 | 8.5 | 8.3 |
| Cash | 10.4 | 7.3 | 7.9 | 4.9 | 6.2 | 6.1 | 5.9 |
| Equity | 17.4 | 14.8 | 14.6 | 13.5 | 13.7 | 13.2 | 12.7 |
| ROE, % | -3.4 | -10.8 | -2.7 | -5.2 | 2.2 | -3.8 | -3.9 |
| ROCE, % | -3.2 | -12.2 | -2.7 | -5.9 | 2.8 | -4.4 | -4.6 |
| Net Debt | -9.2 | -7.3 | -7.9 | -4.8 | -5.7 | -5.7 | -5.5 |
| Gearing, % | -53.1 | -48.9 | -54.2 | -35.6 | -42.0 | -43.2 | -43.2 |
| Equity ratio, % | 54.8 | 53.1 | 58.8 | 56.5 | 55.1 | 52.9 | 51.2 |
| Acc. Payable | 8.0 | 8.2 | 6.3 | 6.2 | 6.3 | 6.5 | 6.7 |
| Total Assets | 31.7 | 27.9 | 24.9 | 23.9 | 24.8 | 24.9 | 24.7 |
| ROA, % | -1.9 | -5.7 | -1.6 | -2.9 | 1.2 | -2.0 | -2.0 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 0.4 | -2.4 | 0.6 | -0.4 | 1.0 | 0.1 | -0.1 |
| Investment Cash Flow | -1.3 | -0.1 | -0.1 | -1.2 | -0.4 | -0.2 | -0.2 |
| Free Cash Flow | -0.8 | -2.5 | 0.5 | -1.5 | 0.6 | -0.1 | -0.2 |
| OCF/CAPEX | 0.33 | 0.0 | 7.92 | 0.0 | 2.34 | 0.68 | 0.0 |
| Financial Cash Flow | 8.0 | -0.7 | 0.1 | -0.9 | 0.0 | 0.0 | 0.0 |
Disclaimer
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