Tietoevry: Business demergers in focus
Tietoevry's Q4 was operationally in line with expectations, guidance was slightly soft and dividend a bit below expectations. Driven by a challenging market, we cut our forecasts a tad. We expect the earnings to be at the level of the comparison period, due to a challenging market, but to grow moderately in the coming years. Our forecasts are clearly below the company’s target levels. The share's valuation picture is still moderate from several angles (2024e P/E 14x, adj. P/E 10x, DCF EUR 29, SOTP EUR 28 and expected return ~15%) and business areas to be demerged provide drivers to dissolve 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 Figures15.02
2023 | 24e | 25e | |
---|---|---|---|
Omsætning | 2.851,4 | 2.888,3 | 2.956,5 |
vækst-% | -2,62 % | 1,30 % | 2,36 % |
EBIT (adj.) | 358,7 | 360,2 | 383,5 |
EBIT-% (adj.) | 12,58 % | 12,47 % | 12,97 % |
EPS (adj.) | 2,14 | 2,16 | 2,34 |
Udbytte | 1,47 | 1,50 | 1,55 |
Udbytte % | 6,82 % | 8,96 % | 9,25 % |
P/E (adj.) | 10,06 | 7,74 | 7,17 |
EV/EBITDA | 8,56 | 6,69 | 6,20 |