Company Overview
Tieto Corporation is a Finnish technology company that was founded in 1981. The company has a strong presence in the Nordic region, with offices in Finland, Sweden, Norway, and Denmark. Tieto has also established a significant global footprint, with operations in Europe, Asia, and North America.
The company's revenue is primarily generated from its IT services and software solutions, as well as from its banking-as-a-Service (BaaS) solutions. Tieto's clients include some of the largest companies in the world, across various industries such as finance, healthcare, and retail.
Tieto Corporation provides a wide range of services and solutions to its clients across various industries. With a strong presence in the Nordic region and a growing global footprint, Tieto has established itself as a leading provider of digitalization and technological expertise. The company's mission is to enable its clients to achieve their goals by providing them with innovative solutions and expert services.
Tieto's primary mission is to become a leader in the European market for IT services and software, while maintaining its strong presence in the Nordic region. The company's core values include innovation, customer satisfaction, and collaboration. Tieto is committed to delivering high-quality services and solutions that meet the evolving needs of its clients.
Key Products/Services
Tieto offers a range of products and services that cater to the needs of various industries, including:
- Digitalization and technological expertise
- IT services and software solutions
- Banking-as-a-Service (BaaS) solutions
- Healthcare and social services solutions
- Fintech and payment solutions
- Data analytics and artificial intelligence (AI) services
Tieto's products and services are designed to help its clients achieve their goals by providing them with innovative solutions, expert services, and a strong understanding of the latest technological trends.
Benefits
The benefits of Tieto's products and services include:
- Improved efficiency and productivity
- Enhanced customer experience
- Increased competitiveness in the market
- Access to latest technological trends and expertise
- Cost savings through optimized operations
Tieto's products and services are designed to help its clients achieve their goals and stay ahead of the competition in their respective markets.
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 118.4 | 118.4 | 118.6 | 118.6 | 118.6 | 118.6 | 118.6 |
| Target Valuation (MEur) | 2860.7 | 2854.2 | 2198.4 | 2039.5 | 1615.2 | 1231.6 | 1231.6 |
| Target Price | 24.16 | 24.1 | 18.53 | 17.19 | 13.61 | 10.38 | 10.38 |
| Potential, % | -8.9 | 11.9 | 7.8 | -6.1 | -26.4 | -43.9 | -43.9 |
| Recommendation | Hold | Hold | Hold | Hold | Sell | Sell | Sell |
| MCAP (MEur) | 3140.6 | 2550.9 | 2039.4 | 2171.1 | 2196.0 | 2196.0 | 2196.0 |
| Price | 26.52 | 21.54 | 17.19 | 18.3 | 18.51 | 18.51 | 18.51 |
| EV | 3820.0 | 3463.0 | 2911.0 | 2727.0 | 2459.0 | 2240.0 | 2048.0 |
| P/S | 1.07 | 0.89 | 0.73 | 1.17 | 1.17 | 1.2 | 1.13 |
| EV/S | 1.3 | 1.21 | 1.04 | 1.47 | 1.31 | 1.23 | 1.05 |
| EV/EBIT | 12.89 | 13.55 | 11.06 | 17.27 | 8.37 | 7.65 | 7.25 |
| P/E | 14.79 | 14.81 | 16.46 | 18.3 | 9.64 | 9.38 | 9.71 |
| P/B | 1.83 | 1.58 | 1.57 | 2.0 | 1.88 | 1.56 | 1.35 |
| P/OCF | 11.34 | 9.59 | 6.26 | 7.34 | 8.24 | 7.6 | 8.4 |
| EV/OCF | 13.79 | 13.01 | 8.94 | 9.22 | 9.23 | 7.76 | 7.83 |
| P/FCF | 16.99 | 69.51 | 8.03 | 5.04 | 5.05 | 10.01 | 11.44 |
| EV/FCF | 20.66 | 94.35 | 11.47 | 6.33 | 5.66 | 10.21 | 10.67 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 2928.1 | 2851.4 | 2802.6 | 1852.3 | 1870.3 | 1824.4 | 1951.1 |
| Rev. Growth, % | 3.7 | -2.6 | -1.7 | -33.9 | 1.0 | -2.5 | 6.9 |
| Ebit | 296.3 | 255.6 | 263.3 | 157.9 | 293.9 | 292.7 | 282.6 |
| Ebit Growth, % | -1.9 | -13.7 | 3.0 | -40.0 | 86.1 | -0.4 | -3.5 |
| Ebit, % | 10.1 | 9.0 | 9.4 | 8.5 | 15.7 | 16.0 | 14.5 |
| Profit | 212.3 | 172.2 | 123.9 | 118.7 | 227.8 | 234.1 | 226.1 |
| EPS | 1.79 | 1.45 | 1.04 | 1.0 | 1.92 | 1.97 | 1.91 |
| Profit Growth, % | -6.7 | -18.9 | -28.0 | -4.2 | 91.9 | 2.8 | -3.4 |
| Profit, % | 7.3 | 6.0 | 4.4 | 6.4 | 12.2 | 12.8 | 11.6 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 5.6 | 8.6 | 7.1 | 6.3 | 4.4 | 4.5 | 4.5 |
| Acc. Receivable | 547.8 | 653.6 | 550.7 | 288.9 | 272.5 | 276.0 | 279.0 |
| Cash | 249.7 | 219.6 | 195.1 | 146.4 | 427.4 | 646.7 | 838.6 |
| Equity | 1719.2 | 1612.3 | 1298.1 | 1083.8 | 1170.2 | 1404.4 | 1630.5 |
| ROE, % | 12.3 | 10.7 | 9.5 | 11.0 | 19.5 | 16.7 | 13.9 |
| ROCE, % | 11.2 | 9.3 | 11.1 | 8.8 | 15.8 | 14.0 | 12.2 |
| Net Debt | 679.1 | 911.8 | 871.8 | 555.5 | 262.9 | 43.6 | -148.3 |
| Gearing, % | 39.5 | 56.6 | 67.2 | 51.3 | 22.5 | 3.1 | -9.1 |
| Equity ratio, % | 50.7 | 45.8 | 42.5 | 48.2 | 52.1 | 59.4 | 65.6 |
| Acc. Payable | 616.7 | 636.0 | 545.4 | 335.0 | 339.4 | 322.0 | 317.4 |
| Total Assets | 3393.8 | 3518.4 | 3054.3 | 2247.4 | 2247.9 | 2366.2 | 2486.4 |
| ROA, % | 6.3 | 4.9 | 4.1 | 5.3 | 10.1 | 9.9 | 9.1 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 276.9 | 266.1 | 325.7 | 295.8 | 266.4 | 288.8 | 261.4 |
| Investment Cash Flow | -92.0 | -229.4 | -71.8 | 135.0 | 168.4 | -69.5 | -69.5 |
| Free Cash Flow | 184.9 | 36.7 | 253.9 | 430.8 | 434.8 | 219.3 | 191.9 |
| OCF/CAPEX | 3.01 | 1.16 | 4.54 | 0.0 | 0.0 | 4.16 | 3.76 |
| Financial Cash Flow | -250.4 | -61.2 | -275.5 | -470.8 | -161.8 | 0.0 | 0.0 |
Disclaimer
Risk Disclosure: Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
The data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes.
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