Rankings Software, cloud & internet Tieto
Tieto
56
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Quality of growth−7
- Downgrade−4
- Margin−3
Strengths
- Execution on margin+2
- Insider buying+1
How the score is built
From 100 to 56, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 18.63 EUR
- Median analyst target
- 18.55 EUR
- Upside to median
- −0.4%
- Analysts
- 8
- Target range
- 16.10 – 22.50 EUR
- 52-week change
- +1%
- P/E (trailing)
- 9.5
- Forward P/E
- 11.3
- PEG
- 4.61
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 4 findings−15 of −30
- −7Quality of growthOrganic revenue decline of 5% in Q2 2026 and guidance for the full year 2026 cut to −5 to −3%; Tech Consulting has shrunk from EUR 852m to 728m since 2023, and analysts expect −5.8% in 2026. The company is getting smaller year by year.
- −3MarginAdjusted EBITA margin rose 5.5 pp to 14.9% in Q2, but solely via a cost program (EUR 130m in savings) and not via growth or pricing power; gross margin is only 23%, and reported earnings were negative in both 2024 and 2025.
- −3Future segmentDigital consulting operations (about 40% of revenue) are exposed to AI-driven price and volume pressure and weak Nordic IT demand; old contracts are running out.
- −2Capital allocationVertical software, which the company itself calls the core, is being sold (Edlevo and HR & Payroll in Indtech) to fund buybacks of EUR 90m on top of an ongoing programme of EUR 150m – short-term returns rather than strengthening the business.
Price
Today's multiples against the company's own history and its peers. · 2 findings−2 of −35
- −1Multiples vs own historyForward P/E 10.6 is below its own history (11.5–12.9 in 2021–2024 and 18.5 in 2025); EV/FCF 9.9 vs 10–17 previously. Cheap, but with a falling revenue base.
- −1PeersNordic IT consultancies generally trade at low multiples amid weak demand; Tieto's discount is not significant relative to a sector with negative growth.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−8 of −35
- −4DowngradeInside information in July 2026: organic growth outlook for 2026 lowered from -2–0% to -5 to -3%; the profitability target was maintained.
- −2Recurring one-off itemsNet loss of EUR 63 and 141m in 2024 and 2025 despite a positive operating result – write-downs and restructurings recur year after year, and the TTM result is now conversely lifted by disposal gains.
- −2DividendThe dividend was cut 41% (EUR 1.50 to 0.88) for 2025, and the payout ratio is 117% of reported earnings; buybacks plus dividend (EUR 226m TTM) exceed FCF after leasing (approx. EUR 205m).
Plus
Only documented strengths. · 2 findings+3 of +15
- +2Execution on marginAdjusted EBITA margin of 14.9% in Q2 2026 (+5.5 pp) and maintained margin guidance of 14.8–15.8% despite lower growth; net debt fell from EUR 905m to 375m since 2024.
- +1Insider buyingCEO Endre Rangnes bought 35,000 shares at approx. EUR 14.67 in July 2025 shortly after taking office.
Caveats
What the score does not capture, or where the data is weak.
Formerly Tietoevry; Tech Services has been divested, so 2021–2023 in stockanalysis contains a larger group (the revenue decline of 34% in 2024 is reclassification); TTM operating result and trailing P/E 9.8 are inflated by gains on the sale of Edlevo and HR & Payroll – forward P/E is used; stockanalysis' FCF is before leasing (about EUR 38m); the Nordnet line is Helsinki (EUR), the stock also trades in Stockholm and Oslo
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