Tietoevry: Stable return potential at a discount
Tietoevry's Q3 was well in line with our expectations in terms of operational activities and comments. We made only minor adjustments to our forecasts and expect moderate earnings growth from the company driven by revenue and profitability. Tietoevry's good track record maintain confidence in continued positive development in the coming years, although our estimates are clearly below the company's target level. The share's valuation picture is still attractive from several angles (2023e P/E 13x, adj. P/E 10x, DCF EUR 30, SOTP EUR 31 and expected return over 15%) and business areas to be separated provide drivers to dismantle the undervaluation.
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 Figures26.10.2023
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 % | 8.81 % | 9.10 % |
P/E (adj.) | 11.29 | 7.78 | 7.49 |
EV/EBITDA | 8.99 | 7.23 | 6.33 |