Tietoevry: Still looking good
In the big picture, the Q1 report was largely in line with our and market expectations. Revenue grew strongly organically and profitability improved year-on-year. As expected, the company reiterated its guidance for earnings growth, which is a strong level for Tietoevry as a whole. The company's continued good performance increases confidence that the positive development will continue in the coming years. The valuation picture of the share is still attractive from several angles (2023e adj. P/E 11x, DCF 35 and SOTP 35) and the business areas to be separated provide drivers to unwind 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 Figures04.05.2023
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 2,928.1 | 3,017.9 | 3,160.6 |
growth-% | 3.71 % | 3.07 % | 4.73 % |
EBIT (adj.) | 379.2 | 401.9 | 425.9 |
EBIT-% (adj.) | 12.95 % | 13.32 % | 13.48 % |
EPS (adj.) | 2.35 | 2.50 | 2.68 |
Dividend | 1.45 | 1.50 | 1.55 |
Dividend % | 5.47 % | 9.03 % | 9.33 % |
P/E (adj.) | 11.28 | 6.64 | 6.20 |
EV/EBITDA | 8.98 | 5.45 | 4.97 |