-0.92%
-3.79%
-3.14%
-3.79%
-3.57%
-7.69%
188.00%

Company Description

Gofore Oyj provides digitalization consultancy services for private and public sector operators in Finland, and internationally.The company provides digital transformation consulting; services design and digital service development; and maintenance services.It also engages in the management of digital change, service design, and software development and testing, as well as provides cloud services utilization and cloud capacity consulting services.


The company was incorporated in 2001 and is headquartered in Tampere, Finland.

Market Data

Last Price 21.6
Change Percentage -0.92%
Open 21.75
Previous Close 21.8
Market Cap ( Millions) 339
Volume 4837
Year High 26.55
Year Low 20.2
M A 50 22.16
M A 200 22.8

Financial Ratios

FCF Yield 10.57%
Dividend Yield 2.18%
ROE 18.86%
Debt / Equity 23.35%
Net Debt / EBIDTA -74.40%
Price To Book 3.39
Price Earnings Ratio 18.55
Price To FCF 9.46
Price To sales 1.8
EV / EBITDA 10.09

News

Business Breakdown

Expected Mid-Term Growth

Segment nยฐ1 -> Time and Material Based Projects

Expected Growth : 7 %

What the company do ?

Time and Material Based Projects from Gofore Oyj: A project model where clients pay for actual time and materials used, providing flexibility and transparency in project execution.

Why we expect these perspectives ?

Gofore Oyj's 7% growth in Time and Material Based Projects is driven by increasing demand for digital transformation, expansion into new markets, and strategic partnerships. Additionally, the company's expertise in cloud-based solutions, data analytics, and cybersecurity has led to a rise in project volumes. Furthermore, the adoption of agile methodologies and efficient project management have enabled Gofore to deliver projects quickly, resulting in higher revenue and growth.

Segment nยฐ2 -> Fixed Price Projects

Expected Growth : 9 %

What the company do ?

Fixed Price Projects from Gofore Oyj are projects with a predetermined scope, timeline, and budget, where the client pays a fixed price for the entire project, regardless of the actual time and resources used.

Why we expect these perspectives ?

Gofore Oyj's 9% growth in Fixed Price Projects is driven by increasing demand for digital transformation, expansion into new industries, and strategic partnerships. The company's expertise in cloud-based solutions, agile methodologies, and strong project management capabilities also contribute to its growth. Additionally, the company's ability to deliver projects on time and within budget has led to repeat business and positive word-of-mouth, further fueling growth.

Segment nยฐ3 -> Maintenance Services

Expected Growth : 6 %

What the company do ?

Gofore Oyj's Maintenance Services provide proactive and reactive maintenance solutions, ensuring optimal equipment performance, minimizing downtime, and reducing operational costs.

Why we expect these perspectives ?

Gofore Oyj's Maintenance Services growth is driven by increasing demand for digitalization in industries, expansion into new markets, and strategic partnerships. Additionally, the company's focus on cloud-based services, cybersecurity, and data analytics has contributed to its growth. Furthermore, the rising need for efficient maintenance and cost reduction in industries has also fueled the segment's growth.

Segment nยฐ4 -> Products

Expected Growth : 10 %

What the company do ?

Gofore Oyj offers a range of products including digital transformation services, software development, and data analytics solutions to help businesses innovate and grow.

Why we expect these perspectives ?

Gofore Oyj's 10% growth is driven by increasing demand for digital transformation services, expansion into new markets, and strategic acquisitions. The company's expertise in cloud-based solutions, artificial intelligence, and cybersecurity also contributes to its growth. Additionally, the rising need for companies to adapt to changing technology landscapes and improve operational efficiency further fuels Gofore's growth.

Segment nยฐ5 -> Third Party Commissions

Expected Growth : 5 %

What the company do ?

Third Party Commissions from Gofore Oyj refers to fees paid to external parties for services rendered, such as consulting or subcontracting, in relation to Gofore Oyj's business operations.

Why we expect these perspectives ?

Gofore Oyj's 5% growth in Third Party Commissions is driven by increasing demand for digital transformation services, expansion into new markets, and strategic partnerships. Additionally, the company's expertise in cloud-based solutions and cybersecurity has led to higher commission rates. Furthermore, the growing need for companies to outsource IT services has also contributed to this growth.

Gofore Oyj Products

Product Range What is it ?
Digital Transformation Services Gofore Oyj provides digital transformation services to help businesses adapt to the changing digital landscape. This includes strategy development, process re-engineering, and technology implementation.
Cloud and Infrastructure Services Gofore Oyj offers cloud and infrastructure services to help businesses optimize their IT infrastructure. This includes cloud migration, infrastructure design, and managed services.
Cybersecurity Services Gofore Oyj provides cybersecurity services to help businesses protect themselves from cyber threats. This includes risk assessments, penetration testing, and incident response.
Data and Analytics Services Gofore Oyj offers data and analytics services to help businesses make data-driven decisions. This includes data strategy development, data warehousing, and business intelligence.
Software Development Services Gofore Oyj provides software development services to help businesses build custom software solutions. This includes application development, maintenance, and modernization.

Gofore Oyj's Porter Forces

Gofore Oyj operates in the IT services industry, which is characterized by a moderate threat of substitutes. While there are some substitutes available, such as automation and artificial intelligence, they are not yet mature enough to pose a significant threat to the company's business.

Gofore Oyj's customers are primarily large corporations and government agencies, which have limited bargaining power due to their dependence on the company's specialized IT services.

Gofore Oyj relies on a network of suppliers for its IT services, but it has a moderate level of bargaining power due to its size and reputation in the industry.

The IT services industry is characterized by a high threat of new entrants, as the barriers to entry are relatively low and the industry is attractive to new players.

The IT services industry is highly competitive, with many established players competing for market share. Gofore Oyj faces intense rivalry from both domestic and international competitors.

Capital Structure

Value
Debt Weight 14.81%
Debt Cost 3.95%
Equity Weight 85.19%
Equity Cost 7.01%
WACC 6.55%
Leverage 17.38%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
ECONB.BR Econocom Group SE conceives, finances, and facilitates the digital transformation of large firms and public organizations. It operates in two segments, Technology Management and Financing, and Digital Services and Solutions. โ€ฆ
SGN.WA Sygnity S.A. provides IT products and services in Poland and internationally. The company engages in the manufacture, purchase, and sale of integrated IT systems, infrastructure, and hardware for the banking, โ€ฆ
DGV.MI Digital Value S.p.A. provides technology and service solutions to the telecommunications, utilities, finance, automotive, defense and security, and IT services and solutions sectors in Italy. It offers security, Internet of โ€ฆ
EXS.ST Exsitec Holding AB (publ) provides business support software and services in the Nordic region. It offers business system, invoice management, decision support, budget and forecast, CRM, e-commerce, warehouse optimization, storage โ€ฆ
SHF.DE SNP Schneider-Neureither & Partner SE, a software-oriented business consulting firm, provides data processing services worldwide. It operates through Services, Software, and EXA segments. The Services segment offers consulting and training โ€ฆ

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
21.6$
Current Price
21.6$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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