0.81%
7.13%
8.95%
-0.53%
-13.51%
-29.16%
-36.80%
AI Spotlight on TIETO
Company Description
TietoEVRY Oyj operates as a software and services company.It operates through six segments: Digital Consulting, Cloud & Infra, Industry Software, Financial Services Solutions, International Operations, and Product Development Services.The Digital Consulting segment offers consulting services, including business and technology advisory, as well as system integration and managed application services.
The Cloud & Infra segment provides automated solutions, which include managed cloud, security, and end-user services, as well as cloud migration advisory and transformation services.The Industry Software segment provides with industry-specific software products for business-critical processes of clients in the public and healthcare, and welfare sectors, as well as in the forest industry, and energy and oil and gas segments.The Financial Services Solutions segment offers real-time solution in the areas of payments, cards, wealth management, and credit, as well as BPO services.
The Product Development Services segment offers software R&D services with a focus on the telecom sector, as well as new domains, such as automotive serving the communications infrastructure, consumer electronics, and semiconductor companies, and the automotive industry.It operates in Finland, Sweden, Norway, Austria, the Baltic countries, Russia, and internationally.The company was formerly known as Tieto Oyj and changed its name to TietoEVRY Oyj in December 2019.
TietoEVRY Oyj was founded in 1968 and is headquartered in Espoo, Finland.
Market Data
| Last Price | 18.63 |
| Change Percentage | 0.81% |
| Open | 18.52 |
| Previous Close | 18.48 |
| Market Cap ( Millions) | 2209 |
| Volume | 152044 |
| Year High | 22.32 |
| Year Low | 16.37 |
| M A 50 | 17.23 |
| M A 200 | 18.02 |
Financial Ratios
| FCF Yield | 12.07% |
| Dividend Yield | 0.00% |
| ROE | 10.74% |
| Debt / Equity | 75.88% |
| Net Debt / EBIDTA | 224.10% |
| Price To Book | 1.45 |
| Price Earnings Ratio | 13.33 |
| Price To FCF | 8.28 |
| Price To sales | 0.75 |
| EV / EBITDA | 7.3 |
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Data Evry Tech Services
Expected Growth : 2.5 %
What the company do ?
Data Evry Tech Services from TietoEVRY Oyj provides IT consulting, software development, and digital transformation services to businesses, enabling them to innovate and stay competitive.
Why we expect these perspectives ?
Data Evry Tech Services' 2.5% growth is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. Additionally, the segment benefits from TietoEVRY's strong presence in the Nordic region, its diversified client base, and strategic partnerships. Furthermore, the company's investments in emerging technologies such as AI, blockchain, and IoT also contribute to its growth.
Segment n°2 -> Data Eve Create
Expected Growth : 3.5 %
What the company do ?
Data Eve Create is a cloud-based data integration platform from TietoEVRY Oyj, enabling efficient data management and analytics for businesses.
Why we expect these perspectives ?
TietoEVRY Oyj's 3.5% growth is driven by increasing demand for digital transformation, cloud services, and cybersecurity solutions. The company's strong presence in the Nordic region, strategic partnerships, and investments in emerging technologies such as AI and 5G also contribute to its growth.
Segment n°3 -> Data Sheet Banking
Expected Growth : 2.8 %
What the company do ?
Data Sheet Banking from TietoEVRY Oyj provides a comprehensive overview of a bank's financial data, including balance sheets, income statements, and cash flow statements.
Why we expect these perspectives ?
The 2.8% growth in Data Sheet Banking from TietoEVRY Oyj is driven by increasing demand for digital banking services, rising adoption of cloud-based solutions, and growing need for regulatory compliance. Additionally, the segment benefits from the company's strong presence in the Nordic region and its ability to provide tailored solutions to banking clients.
Segment n°4 -> Information Evry Industry
Expected Growth : 3.2 %
What the company do ?
TietoEVRY Oyj's Information Every Industry segment provides industry-specific solutions and services for various industries, including healthcare, finance, and public sector.
Why we expect these perspectives ?
TietoEVRY Oyj's Information Evry Industry segment growth of 3.2% is driven by increasing demand for digital transformation, cloud services, and cybersecurity solutions. Additionally, the segment benefits from the growing need for data analytics, artificial intelligence, and automation in the Nordic region, as well as the company's strategic partnerships and acquisitions.
Segment n°5 -> Data Cover
Expected Growth : 2.2 %
What the company do ?
Data Cover from TietoEVRY Oyj is a data-driven insurance product providing real-time coverage for unexpected IT system failures and data losses.
Why we expect these perspectives ?
TietoEVRY Oyj's 2.2% growth is driven by increasing demand for digital transformation services, expansion in the Nordic region, and strategic acquisitions. The company's strong presence in the financial services sector, coupled with its investments in cloud-based solutions and cybersecurity, have contributed to its growth momentum.
Segment n°6 -> Eliminations
Expected Growth : 0.0 %
What the company do ?
Eliminations from TietoEVRY Oyj refer to the removal of redundant or duplicate financial data to present a consolidated view of the company's financial performance.
Why we expect these perspectives ?
TietoEVRY Oyj's stagnant growth is attributed to intense competition in the IT services market, limited innovation, and lack of diversification. Additionally, high operational costs, inefficient cost structure, and failure to adapt to changing market trends have hindered growth. Furthermore, the company's inability to expand into new markets and lack of strategic acquisitions have also contributed to the stagnant growth.
Tietoevry Oyj Products
| Product Range | What is it ? |
|---|---|
| Cloud and Infrastructure Services | TietoEVRY's Cloud and Infrastructure Services provide scalable, secure, and efficient IT infrastructure solutions, enabling businesses to focus on their core operations. |
| Industry Software Solutions | TietoEVRY's Industry Software Solutions offer tailored software applications for specific industries, such as healthcare, finance, and retail, to streamline operations and improve efficiency. |
| Cyber Security Services | TietoEVRY's Cyber Security Services provide comprehensive security solutions to protect businesses from cyber threats, ensuring the confidentiality, integrity, and availability of sensitive data. |
| Data-Driven Business | TietoEVRY's Data-Driven Business solutions help organizations harness the power of data analytics, artificial intelligence, and machine learning to drive business growth and innovation. |
| Customer Experience Services | TietoEVRY's Customer Experience Services provide tailored solutions to enhance customer engagement, loyalty, and retention, across various channels and touchpoints. |
| Application Services | TietoEVRY's Application Services offer a range of solutions, from application development and maintenance to modernization and migration, to support business agility and innovation. |
TietoEVRY Oyj's Porter Forces
Threat Of Substitutes
The threat of substitutes for TietoEVRY Oyj is medium due to the presence of alternative digital services and solutions that can replace traditional IT services.
Bargaining Power Of Customers
The bargaining power of customers is high due to the concentration of large customers in the Nordic region, giving them significant negotiating power.
Bargaining Power Of Suppliers
The bargaining power of suppliers is low due to the availability of multiple suppliers and the company's ability to negotiate favorable terms.
Threat Of New Entrants
The threat of new entrants is medium due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles, but also the potential for new digital players to disrupt the market.
Intensity Of Rivalry
The intensity of rivalry is high due to the presence of several established players in the Nordic IT services market, leading to intense competition for market share.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 41.91% |
| Debt Cost | 6.35% |
| Equity Weight | 58.09% |
| Equity Cost | 9.08% |
| WACC | 7.93% |
| Leverage | 72.14% |
TietoEVRY Oyj : Quality Control
TietoEVRY Oyj passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| WISE.L | Wise plc provides cross-border money transfer services for personal and business customers in the United Kingdom, rest of Europe, the Asia-Pacific, North America, and internationally. The company's transfer infrastructure includes … |
| SOP.PA | Sopra Steria Group SA provides consulting, digital, and software development services in France and internationally. The company operates through five segments: France, United Kingdom, Other Europe, Sopra Banking Software, and … |
| SCT.L | Softcat plc primarily acts as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, procures, designs, implements, and manages technology, such as software … |
| LAGR-B.ST | Lagercrantz Group AB (publ) operates as a technology company in Sweden, Denmark, Norway, Finland, the United Kingdom, Germany, Poland, rest of Europe, and internationally. The company operates through five divisions: … |
| BC8.DE | Bechtle AG provides information technology (IT) services primarily in Europe. The company operates in two segments, IT System House & Managed Services, and IT E-Commerce. The IT System House & … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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TietoEVRY
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Softcat
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Lagercrantz Group
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4
Bechtle
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5
Sopra Steria
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