Tietoevry: Price rise has reversed the clearest undervaluation
Tietoevry’s comments in the analyst call were in line with earlier. Uncertainty remains in a few areas, while the demand for the software business continues as good. Our forecasts include a milder decline in the areas that suffer from the market, and our forecasts for the full year are at the bottom of the guidance. Thus, there is still a slight risk of a profit warning for Q4. On the other hand, we believe the stock market is well aware of this risk. The price increase has reversed the clearest short-term undervaluation (adj. 2024 EV/ EBIT 9x).
Tietoevry
Tietoevry is active in the IT sector. The company offers a range of software and cloud-based solutions, with the greatest specialist expertise in SaaS solutions. Expertise is found in business processes, application services, infrastructure solutions, and front-end solutions. Customers are found in a number of markets on a global level. The company was created in 2019 via a merger of Tieto and EVRY. The head office is located in Helsinki.
Read more on company pageKey Estimate Figures16.01
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 2,928.1 | 2,848.7 | 2,911.9 |
growth-% | 3.71 % | -2.71 % | 2.22 % |
EBIT (adj.) | 379.0 | 359.6 | 374.9 |
EBIT-% (adj.) | 12.95 % | 12.62 % | 12.88 % |
EPS (adj.) | 2.35 | 2.19 | 2.27 |
Dividend | 1.45 | 1.50 | 1.55 |
Dividend % | 5.47 % | 9.02 % | 9.32 % |
P/E (adj.) | 11.29 | 7.60 | 7.31 |
EV/EBITDA | 8.99 | 7.12 | 6.22 |