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1. Company Snapshot

1.a. Company Description

Terveystalo Oyj provides occupational healthcare services in Finland.The company offers general practice and specialist medical care, diagnostic, outpatient surgery, dental, and other adjacent services; and outsourcing services, staffing services, child welfare services, oral health, laboratory, imaging, wellbeing, day surgery, healthcare outsourcing, healthcare staffing, and primary and specialty care services.It also provides a suite of digital healthcare services; and clinical research services.


The company serves private individuals, companies and communities, insurance companies, and public sector customers.It operates 360 clinics, which include 18 hospital units and 38 dental clinics; and 73 Rela hierojat massage therapy units.The company was founded in 2001 and is based in Helsinki, Finland.

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1.b. Last Insights on TTALO

Terveystalo Oyj's recent performance was driven by robust profitability, as evidenced by significant gains in adjusted EBITDA and EPS. The company's ability to maintain profitability despite revenue pressures from the Swedish market and contract expirations underscores its operational efficiency and cost management prowess. Additionally, the company's strong profitability metrics suggest a resilient business model, capable of withstanding market headwinds.

1.c. Company Highlights

2. Terveystalo's Q3: Margin Improvement Amidst Revenue Headwinds

Terveystalo reported a revenue decline of 5% in Q3, with adjusted EBIT slightly down in absolute terms. However, the adjusted EBIT margin developed positively, driven by efficiency improvements. EPS came in at €0.14, below analyst estimates of €0.2467. The company's operating cash flow remained strong, a testament to its improving operational efficiency. "Our efficiency is in place, and our machine is ticking," as noted by CFO Juuso Pajunen.

Publication Date: Oct -28

📋 Highlights
  • Revenue Decline Amid Margin Growth: Top-line revenue fell 5%, but adjusted EBIT margin improved with strong operating cash flow and EPS growth.
  • Sweden Turnaround Progress: Absolute EBIT in Sweden remains negative (-21% YoY), but efficiency gains and a solid sales pipeline signal long-term recovery.
  • Portfolio Profitability Boost: Portfolio businesses improved EBIT margin by 2.2 percentage points YoY, driven by cost efficiencies and public sector momentum.
  • Digital & M&A Investments: 3.4% of revenue allocated to tech investments (Ella, MedHelp, AI partnerships) and an active M&A pipeline for selective growth opportunities.
  • Guidance Reaffirmed: Adjusted EBIT guided to €155–165 million for 2024, supported by low morbidity rates and disciplined reinvestment in occupational health services.

Segment Performance

The company's Portfolio Businesses saw a profitability turnaround, with EBIT margins improving by 2.2 percentage points compared to the previous year. Sweden, although still facing challenges, showed improvement in both absolute and relative EBIT. Healthcare Services maintained a strong margin, driven by its solid position in the market. The public sector business is showing signs of recovery, with a positive momentum in Kela 65 consumer insurance market.

Guidance and Outlook

Terveystalo reiterated its guidance for adjusted EBIT to be between €155 million and €165 million. The company expects to invest around 4-5% of its revenues in the long term, currently at 3.4%, to drive growth through digital investments and M&A. Analysts estimate revenue growth of 2.7% for next year, indicating a gradual recovery.

Valuation

With a P/E Ratio of 13.49 and an EV/EBITDA of 7.23, the stock appears reasonably valued. The Dividend Yield of 5.05% is attractive, supported by a healthy Free Cash Flow Yield of 12.93%. The ROE of 16.19% indicates a strong return on equity. The Net Debt / EBITDA ratio of 2.18x suggests a manageable debt position, providing flexibility for future investments.

Investment Prospects

Terveystalo's focus on balancing profitability and volume growth, along with its active M&A pipeline, positions the company for potential long-term growth. The insurance business is growing steadily, and the company is well-positioned to deepen cooperation with insurance companies. With a solid technology roadmap and a strong sales pipeline, Terveystalo is poised to capitalize on emerging opportunities in the healthcare sector.

3. NewsRoom

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Terveystalo PLC (FRA:4TS) Q3 2025 Earnings Call Highlights: Navigating Revenue Challenges with ...

Oct -23

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Terveystalo PLC (FRA:4TS) Q2 2025 Earnings Call Highlights: Record Profitability Amid Revenue ...

Jul -18

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European Value Stocks Trading At Estimated Discounts

Apr -29

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Terveystalo PLC (FRA:4TS) Q1 2025 Earnings Call Highlights: Strong Profitability Amid Revenue ...

Apr -26

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Terveystalo PLC (FRA:4TS) Q2 2024 Earnings Call Highlights: Record Growth and Strategic Advancements

Oct -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.87%)

6. Segments

Healthcare Services

Expected Growth: 3%

Terveystalo Oyj's 3% growth in Healthcare Services is driven by increasing demand for private healthcare in Finland, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital healthcare services, preventive care, and cost-effective solutions resonates with consumers, contributing to its growth momentum.

Portfolio

Expected Growth: 2%

Terveystalo Oyj's portfolio growth is driven by increasing demand for private healthcare services in Finland, fueled by an aging population and growing healthcare expenditure. Additionally, the company's strategic acquisitions and expansion into new markets, such as occupational healthcare, contribute to its growth momentum.

Swedish

Expected Growth: 4%

Terveystalo Oyj's 4% growth is driven by increasing demand for private healthcare services in Sweden, fueled by an aging population and government initiatives to reduce public healthcare waiting times. Additionally, the company's strategic acquisitions and investments in digital healthcare platforms have expanded its service offerings and improved operational efficiency.

7. Detailed Products

Occupational Healthcare

Terveystalo Oyj provides occupational healthcare services to companies, aiming to promote employee well-being and improve work ability.

Private Healthcare

Terveystalo Oyj offers private healthcare services, including specialist appointments, laboratory tests, and medical imaging, for individuals and families.

Digital Healthcare

Terveystalo Oyj provides digital healthcare services, including online consultations, health data tracking, and personalized wellness advice.

Medical Imaging and Diagnostics

Terveystalo Oyj offers medical imaging and diagnostic services, including X-rays, MRIs, and laboratory tests, for accurate diagnoses and treatment planning.

Rehabilitation and Physiotherapy

Terveystalo Oyj provides rehabilitation and physiotherapy services, including physical therapy, occupational therapy, and speech therapy, to help patients recover from injuries or illnesses.

8. Terveystalo Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Terveystalo Oyj is moderate due to the presence of alternative healthcare providers and digital health platforms.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power and the importance of healthcare services to customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers and the importance of high-quality medical equipment and services.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including regulatory requirements and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors in the Finnish healthcare market, leading to a competitive pricing environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.33%
Debt Cost 3.95%
Equity Weight 52.67%
Equity Cost 7.23%
WACC 5.68%
Leverage 89.87%

11. Quality Control: Terveystalo Oyj passed 2 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
Terveystalo

A-Score: 6.2/10

Value: 6.8

Growth: 5.4

Quality: 6.1

Yield: 7.5

Momentum: 5.0

Volatility: 6.7

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Ambea

A-Score: 6.1/10

Value: 6.3

Growth: 7.7

Quality: 4.7

Yield: 3.8

Momentum: 9.0

Volatility: 5.0

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Attendo

A-Score: 5.5/10

Value: 6.2

Growth: 7.7

Quality: 3.8

Yield: 1.2

Momentum: 9.0

Volatility: 5.0

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Spire Healthcare

A-Score: 4.4/10

Value: 5.4

Growth: 6.4

Quality: 2.4

Yield: 0.6

Momentum: 6.0

Volatility: 5.3

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Aevis Victoria

A-Score: 4.4/10

Value: 2.9

Growth: 4.8

Quality: 3.4

Yield: 2.5

Momentum: 5.5

Volatility: 7.0

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RHOEN-KLINIKUM

A-Score: 4.3/10

Value: 7.9

Growth: 5.6

Quality: 5.2

Yield: 0.6

Momentum: 1.5

Volatility: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.29$

Current Price

9.29$

Potential

-0.00%

Expected Cash-Flows