contentSlug

type

ContentSlug_ContentQuery

slug

ContentPageContentQuery

content

trendingContent

query ContentSlug_ContentQuery(
  $contentSlug: String!
  $type: [ContentType!]
) {
  ...ContentPageContentQuery_13QmVO
}

fragment CompanyDetails_Content on Content {
  __isContent: __typename
  companies {
    name
    description
    pageUrl
    id
  }
}

fragment ContentBasicInfo on Content {
  __isContent: __typename
  id
  type
  title
  lang
  companies {
    viewerIsFollowing
    id
    name
    pageUrl
  }
  tags {
    viewerIsFollowing
    id
    name
    pageUrl
  }
  ...PublishingDetails
  ...Reactions
}

fragment ContentMetadata on Content {
  __isContent: __typename
  type
  title
  lang
  pageUrl
  alternatePageUrls: translations {
    __typename
    pageUrl
    lang
  }
  imgUrl
  description
  ... on Video {
    liveTime
    videoUrl
  }
  ... on Webcast {
    liveTime
    videoUrl
  }
}

fragment ContentPageContentQuery_13QmVO on Query {
  content(slug: $contentSlug, type: $type) {
    __typename
    id
    type
    title
    isPremium
    lang
    htmlBody
    summary
    companies {
      forum {
        latestPosts {
          ...ForumPosts
        }
      }
      name
      id
      viewerIsFollowing
      pageUrl
      defaultInstrument {
        isin
        id
        marketOpen
        marketClose
        marketplace {
          region
        }
        returns {
          total
        }
      }
    }
    tags {
      viewerIsFollowing
      id
      name
      pageUrl
    }
    createdAt
    ... on Video {
      liveTime
    }
    ... on Webcast {
      liveTime
    }
    slug
    ... on CompanyReport {
      reportUrl
    }
    ... on ThirdPartyCompanyReport {
      reportUrl
    }
    ... on StockExchangeRelease {
      reportUrl
    }
    ...ContentBasicInfo
    ...ContentMetadata
    ...PriceAndRecommendation_Content
    ...CompanyDetails_Content
    ...ReportLink_Content
    ...KeyFigures_Content
  }
  ...TrendingContent_1jQ2Cn
}

fragment ForumPosts on ForumPost {
  text
  likesCount
  url
  author
  postedAt
  authorImgUrl
}

fragment KeyFigures_Content on Content {
  __isContent: __typename
  companies {
    defaultInstrument {
      estimateData {
        modelType
        reportingCurrency
      }
      snapshot {
        transaction {
          date
          actualized {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
          }
          estimates {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
          }
        }
      }
      id
    }
    id
  }
}

fragment PriceAndRecommendation_Content on Content {
  __isContent: __typename
  createdAt
  companies {
    name
    pageUrl
    defaultInstrument {
      priceData {
        tradeCurrency
      }
      snapshot {
        priceData {
          date
          lastPrice
          tradeCurrency
        }
        transaction {
          date
          recommendation
          targetPrice
        }
        prevTransaction {
          recommendation
        }
      }
      id
    }
    id
  }
}

fragment PublishingDetails on Content {
  __isContent: __typename
  createdAt
  publishers {
    name
    imgUrl
  }
  authors {
    __typename
    id
    name
    slug
    imgUrl
    jobTitle
  }
  ... on Video {
    liveTime
  }
  ... on Webcast {
    liveTime
  }
}

fragment Reactions on Content {
  __isContent: __typename
  id
  reactionGroups {
    reactionType
    reactionsCount
    viewerReacted
  }
}

fragment ReportLink_Content on Content {
  __isContent: __typename
  type
  isPremium
  ... on CompanyReport {
    reportUrl
  }
  ... on ThirdPartyCompanyReport {
    reportUrl
  }
  ... on StockExchangeRelease {
    reportUrl
  }
}

fragment TrendingContent_1jQ2Cn on Query {
  trendingContent(type: ARTICLE) {
    __typename
    id
    title
    lang
    pageUrl
    createdAt
    type
    imgUrl
    companies {
      squareLogoUrl
      name
      id
    }
    authors {
      __typename
      imgUrl
      id
    }
    publishers {
      imgUrl
    }
  }
}


tietoevry-stable-return-potential-discount

__typename

title

isPremium

lang

htmlBody

summary

companies

createdAt

publishers

authors

reactionGroups

pageUrl

translations

imgUrl

description

Analyst

Joni Grönqvist

Tietoevry operates in the IT sector. The company offers a range of software and cloud-based solutions, with the greatest specialist expertise in SaaS solutions. Competence is found in business processes, application services, infrastructure solutions, and front-end solutions. Customers are found in several markets on a global level. The company was formed in 2019 through a merger of Tieto and EVRY. The headquarters are located in Helsinki.

Hi, Sorry for the delay in responding! I take my summer holidays during the winter (though I’ve been doing some targeted tasks at work here and there).. Tieto estimates that the 2025 dividend proposal will be 80% of the adjusted net profit, which is adjusted for non-cash impairment charges and the cost burden related to the IFRS 5 standard. That non-cash impairment charge was EUR 80 million or ~0.63 euros per share, which accounts for nearly half of our adjustments. The impact related to the IFRS 5 standard is then significantly smaller. Thus, the adjusted EPS based on Tieto’s guidance will be approximately 0.90 euros per share in our forecasts. Then 80% of this, and we are at the 0.70 euro level for the dividend. Regarding Tieto’s sale of Bekk, there probably won’t be dramatic changes to leverage, as the business being sold was small and very profitable (the company monitors the net debt/EBITDA ratio, which is also an important metric regarding potential extra dividend distribution). There will likely be a capital gain, but the scale depends on the allocated goodwill etc., and it is a one-off item and won’t significantly affect the aforementioned leverage. There won’t be much change in investments either, as the consulting business being sold is very capital-light and doesn’t require much investment, unlike the software business (or especially Tech Services previously). We will refine our forecasts in connection with the Q4 report, when more details of the transaction (balance sheet impact) will likely be released. I hope this clarified things, Joni

I’m also interested in that dividend question, i.e., the dividend estimate.

I read Inderes’ new Tietoevry company report, which states the following, among other things:  At the beginning of December, Tieto announced that it had agreed on the sale of the Norwegian Bekk Consulting AS to the private equity firm Axcel for a debt-free cash purchase price of ~EUR 140 million. Customary adjustments will be made to the purchase price at the time of closing, and according to the company’s estimate, the transaction will be completed in Q1’26. The company will use the proceeds from the sale to reduce debt and for distribution of funds to shareholders. We estimate a relatively good capital gain will be recorded from the sale, which is, however, naturally one-off. In our estimation, the sale will not affect the dividend paid for the current year, but it will reduce leverage and improve the possibilities for paying extra dividends in the coming years. […] We lowered our forecasts driven by the Bekk sale. We removed the business from our forecasts starting from February. Bekk’s revenue for the previous 12 months was NOK 1,056 million and EBIT was NOK 150 million (approx. EUR 90 million and EUR 13 million), representing about 5% of the group’s revenue and a slightly larger share of the profit.  I was left wondering how the Bekk sale has been handled in Inderes’ forecasts. In the income statement forecasts, Bekk’s contribution to revenue and EBIT has indeed been removed starting from 3/2026e, but the purchase price from Bekk, the estimated capital gain, and consequential effects on, for example, the amount of interest-bearing debt or gross investments have not, in my view, been taken into account in the forecasts at all—not in the income statement, not in the balance sheet, nor in the gross investments of the DCF calculation. Could @Joni_Gronqvist explain in more detail what (numerical) changes have been made to Inderes’ forecasts regarding the Bekk deal? At the same time, I hope for an answer to my old post-CMD dividend question (see my message from 25 days ago).

Joni has written a new company report as Tietoevry sells Bekk.  Tieto is selling its Norwegian consulting business, Bekk, at a fairly good price. The sale did not come as a direct surprise, but we had expected divestments from another business area. The company will use the proceeds from the transaction for debt reduction and distribution of funds to shareholders. We lowered our forecasts in line with the transaction, but next year would have been a transitional year for revenue growth anyway. However, substantial cost savings will support the result next year. We reiterate our target price of EUR 18.0 and Reduce recommendation for the share. In our view, the valuation picture for the share remains neutral.                   Inderes              Tietoevry: Bekkistä saadaan melko hyvä hinta - Inderes    Yhtiö käyttää kaupasta saatavat varat velkojen vähentämiseen ja varojenjakoon osakkeenomistajille.

Napkin math shows that this will be billed at a commendable hourly rate of €114.3 with the estimated budget and duration. That’s not how it’s actually distributed, but we’re talking about an average of 25 full-time employees. Sounds really good for Tieto. It’s also interesting to consider how the deal came about in such a highly competitive market situation, where prices for public sector projects have been severely driven down elsewhere. Do listed companies have more pricing power, or is Tieto’s combined Finnishness and size still a significant advantage?

News Powered by Cision              Tieto Tech Consulting valittiin Traficomin laadunvarmistus- ja...    Liikenne- ja viestintävirasto Traficom on valinnut Tiedon Tech Consulting -yksikön (aiemmin                             The Finnish Transport and Communications Agency Traficom has selected Tieto’s Tech Consulting unit (formerly Tietoevry Create) as a provider of quality assurance and testing services based on an extensive tender process during the autumn. The procurement is for a comprehensive service, where Tieto Tech Consulting is responsible for providing the services throughout the entire software development and maintenance lifecycle. The procurement consists of two phases: an implementation project and a continuous service. The contract period is five years, and it can be extended by two one-year option periods. The estimated value of the procurement for the entire contract period is approximately 24 million euros, and its scope is estimated at 28,000 person-days. Tieto received the highest quality scores in the tender. The service covers, among other things, testing services, quality assurance development, and performance testing. The quality assurance and testing services primarily target systems implemented by Traficom itself. Test automation will be widely utilized, and the goal is at least 30% cost savings during the contract period. The service scales flexibly according to Traficom’s needs. Tieto Tech Consulting offers its clients agile and scalable digital development services that support business renewal and growth. Traficom’s procurement strengthens Tieto’s position as a reliable technology partner in the public sector.

This time, Tieto seems to have received a reasonable price for the acquisition. My confidence improved enough that I still believe in a dividend of about one euro.

Tietoevry

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.

<p>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.</p> 

	2022	23e	24e
Revenue	2,928.1	2,848.7	2,911.9
growth-%	3.7 %	-2.7 %	2.2 %
EBIT (adj.)	379.0	359.6	374.9
EBIT-% (adj.)	12.9 %	12.6 %	12.9 %
EPS (adj.)	2.35	2.19	2.27
Dividend	1.45	1.50	1.55
Dividend %	5.5 %	8.1 %	8.4 %
P/E (adj.)	11.3	8.4	8.1
EV/EBITDA	9.0	7.6	6.7

Tietoevry: Stable return potential at a discount

Key Estimate Figures26.10.2023

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