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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on TIETO

TietoEVRY Oyj's recent performance was positively driven by its Q3 2025 earnings call highlights, which included a 4% revenue growth and improved margins. The company is focusing on AI initiatives and international expansion, which could enhance its growth prospects. Strategic divestments and cost management efforts also contributed to the positive momentum. Additionally, the company's efforts to enhance its offerings and expand its presence in the market are likely to drive growth. TietoEVRY's valuation could be attractive, given its solid fundamentals.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.75%)

6. Segments

Data Evry Tech Services

Expected Growth: 2.5%

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.

Data Eve Create

Expected Growth: 3.5%

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.

Data Sheet Banking

Expected Growth: 2.8%

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.

Information Evry Industry

Expected Growth: 3.2%

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.

Data Cover

Expected Growth: 2.2%

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.

Eliminations

Expected Growth: 0.0%

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.

7. Detailed Products

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.

8. TietoEVRY Oyj's Porter Forces

Forces Ranking

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.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.91%
Debt Cost 6.35%
Equity Weight 58.09%
Equity Cost 9.08%
WACC 7.93%
Leverage 72.14%

11. Quality Control: TietoEVRY Oyj passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Wise

A-Score: 6.0/10

Value: 4.9

Growth: 9.2

Quality: 8.0

Yield: 0.0

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

Stock-Card
Sopra Steria

A-Score: 5.2/10

Value: 8.3

Growth: 5.7

Quality: 5.0

Yield: 4.4

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

Stock-Card
Softcat

A-Score: 5.2/10

Value: 2.0

Growth: 5.8

Quality: 8.0

Yield: 3.1

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

Stock-Card
Bechtle

A-Score: 4.8/10

Value: 5.3

Growth: 6.6

Quality: 4.9

Yield: 3.1

Momentum: 5.5

Volatility: 3.7

1-Year Total Return ->

Stock-Card
TietoEVRY

A-Score: 4.8/10

Value: 6.8

Growth: 1.9

Quality: 1.8

Yield: 9.4

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
Lagercrantz Group

A-Score: 4.4/10

Value: 0.7

Growth: 8.3

Quality: 6.2

Yield: 1.2

Momentum: 5.5

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.49$

Current Price

18.49$

Potential

-0.00%

Expected Cash-Flows