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.
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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 | |
---|---|---|---|
Revenue | 2,851.4 | 2,888.3 | 2,956.5 |
growth-% | -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 |
Dividend | 1.47 | 1.50 | 1.55 |
Dividend % | 6.82 % | 8.98 % | 9.28 % |
P/E (adj.) | 10.06 | 7.72 | 7.15 |
EV/EBITDA | 8.56 | 6.68 | 6.18 |