Witted Megacorp

1.67 EUR

+2.14 %

WITTED

First North Finland

IT Services

Technology

1,450 following

+2.14%

+4.37%

+1.52%

+6.71%

-8.24%

-21.6%

-20.1%

-66.25%

witted.com

Witted Megacorp is an IT company. The company offers a wide range of consulting services and IT solutions, mainly services related to project and business development. The solutions are used by a number of corporate customers in various sectors. In addition to the main business, various services are offered. The largest business operations are in the Nordic market.

P/E (adj.) (24e)

19.39

EV/EBIT (adj.) (24e)

11.93

EV/S (24e)

0.34

Dividend yield-% (24e)

Target price

2.00 EUR

Recommendation

Accumulate

Updated

22.10.2024

First North Finland

WITTED

Daily low / high price

1.615 / 1.685 EUR

Market cap

25.83M EUR

Turnover

1.3K EUR

Volume

798

Business risk

Valuation risk

Current

Frans-Mikael Rostedt

Analyst

Antti Luiro

Head of Nordic ER Development, Analyst

Latest videos

inderesPodcast: 2.En djupdykning i Helsingforsbörsens IT-tjänstesektor

2022-10-05

IT-konsultsektorn har fortsatt medvind

2022-05-31

Income statement

	2020	2021	2022	2023	2024e	2025e	2026e	2027e
Revenue	15.7	30.0	52.9	64.1	53.3	54.1	57.3	60.2
growth-%	77.7 %	91.1 %	76.6 %	21.2 %	-16.8 %	1.4 %	6.0 %	5.0 %
EBITDA	0.6	0.7	-0.4	-0.7	1.2	2.2	2.7	3.0
EBIT (adj.)	0.6	0.7	0.3	-0.2	1.5	2.1	2.6	2.9
EBIT	0.6	0.7	-0.6	-1.8	0.2	1.1	1.7	1.9
Profit before taxes	0.7	0.7	-0.5	-1.5	0.4	1.4	1.9	2.2
Net income	0.5	0.6	-0.6	-1.6	0.0	0.9	1.3	1.6
EPS (adj.)	0.04	0.05	0.01	-0.01	0.09	0.12	0.15	0.16
growth-%	43.3 %	18.0 %	-76.2 %	-162.6 %		41.0 %	22.6 %	10.4 %
Dividend	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Dividend ratio

Profitability and return on capital

	2020	2021	2022	2023	2024e	2025e	2026e	2027e
EBITDA-%	4.1 %	2.5 %	-0.7 %	-1.2 %	2.2 %	4.0 %	4.7 %	4.9 %
EBIT-% (adj.)	4.1 %	2.4 %	0.5 %	-0.2 %	2.8 %	3.9 %	4.6 %	4.8 %
EBIT-%	4.1 %	2.3 %	-1.2 %	-2.8 %	0.3 %	2.1 %	2.9 %	3.2 %
ROE	53.6 %	31.1 %	-5.6 %	-9.8 %	0.3 %	6.0 %	8.1 %	8.8 %
ROI	70.3 %	35.1 %	-5.2 %	-9.5 %	3.0 %	9.4 %	12.0 %	12.7 %

Valuation

	2020	2021	2022	2023	2024e	2025e	2026e	2027e
Share price (EUR)	5.58	5.58	3.90	2.13	1.67	1.67	1.67	1.67
Shares	12.5	12.5	15.4	15.5	15.5	15.5	15.5	15.5
Market cap	70.0	70.0	60.0	32.9	25.8	25.8	25.8	25.8
Enterprise value	69.5	68.6	50.7	25.7	17.9	16.2	14.0	11.5
EV/S	4.4	2.3	1.0	0.4	0.3	0.3	0.2	0.2
EV/EBITDA	108.8	93.2	-	-	14.9	7.5	5.2	3.9
EV/EBIT (adj.)	108.8	96.7	196.7	-	11.9	7.7	5.3	4.0
EV/EBIT	108.8	99.7	-	-	114.9	14.2	8.4	5.9
P/E (adj.)	144.3	122.3	359.1	-	19.4	13.7	11.2	10.2
P/E	144.3	126.9	-	-	607.5	28.2	19.3	16.4
P/B	62.1	28.9	3.5	2.2	1.7	1.6	1.5	1.4
P/S	4.5	2.3	1.1	0.5	0.5	0.5	0.5	0.4
Dividend yield
Equity ratio	30.0 %	27.7 %	54.8 %	53.1 %	57.7 %	58.8 %	59.5 %	60.6 %
Gearing ratio	-45.2 %	-57.5 %	-53.1 %	-48.9 %	-53.1 %	-61.3 %	-69.4 %	-76.4 %

Quarter data

	Q4/23	2023	Q1/24	Q2/24	Q3/24	Q4/24e	2024e	Q1/25e	Q2/25e
Revenue	16.0	64.1	14.8	13.7	11.4	13.4	53.3	13.9	13.6
EBITDA	0.2	-0.7	0.1	0.4	0.2	0.4	1.2
EBIT	-0.0	-1.8	-0.1	0.2	-0.0	0.2	0.2
Profit before taxes	0.4	-1.5	-0.2	0.2	0.0	0.4	0.4
Net income	0.4	-1.6	-0.3	0.1	-0.1	0.3	0.0

ShowingAll content types

IT service sector: Market performance in Denmark and Norway better than in Finland and Sweden

Analyst Comment10/11/2024, 9:02 AM by

Frans-Mikael Rostedt, Joni Grönqvist

IT service sector: Market performance in Denmark and Norway better than in Finland and Sweden

In the rest of the Nordic countries, organic revenue development turned upwards and profitability was at a reasonably good level in Q2.

IT services sector 2024 expectations fell slightly in Q2, but H2 looks a little better

Analyst Comment10/9/2024, 7:33 AM by

Joni Grönqvist, Frans-Mikael Rostedt

IT services sector 2024 expectations fell slightly in Q2, but H2 looks a little better

With the Q2 reports and subsequent earnings warnings, our revenue and profitability expectations have declined slightly. The expected strengthening of the general economic development in Finland and Europe and the interest rate cuts provide some light at the end of the tunnel and create the conditions for a gradually improving demand outlook also for the IT services sector next year.

Digia Digital Workforce Gofore Innofactor Loihde Netum Group Siili Solutions Solteq Tietoevry Vincit Witted Megacorp

Q2 IT service sector summary: Slightly steeper revenue decline, improved profitability and signs of demand bottoming out

Analyst Comment9/5/2024, 9:27 AM by

Joni Grönqvist, Frans-Mikael Rostedt

Q2 IT service sector summary: Slightly steeper revenue decline, improved profitability and signs of demand bottoming out

Finnish listed IT services companies' organic revenue decline accelerated slightly, although the comparison period was already weak for several of them.

Digia Digital Workforce Gofore Innofactor Loihde Netum Group Siili Solutions Solteq Tietoevry Vincit Witted Megacorp

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IT services sector's 2024 expectations fell slightly in Q1 - revenue expected to remain flat and profitability to rise slightly

Analyst Comment5/28/2024, 10:11 AM by

Joni Grönqvist, Frans-Mikael Rostedt

IT services sector's 2024 expectations fell slightly in Q1 - revenue expected to remain flat and profitability to rise slightly

The strengthening of the general economic situation in Finland and Europe and the expected decline in interest rates provide some light at the end of the tunnel and, in our opinion, create the conditions for a gradually improving demand outlook also for the IT services sector next year.

Digia Digital Workforce Innofactor Loihde Netum Group Siili Solutions Solteq Tietoevry Vincit Witted Megacorp

IT service sector Q1 summary: Revenue and profitability down from a strong comparison period, but some defensive wins in profitability as well

Analyst Comment5/21/2024, 7:46 AM by

Joni Grönqvist, Frans-Mikael Rostedt

IT service sector Q1 summary: Revenue and profitability down from a strong comparison period, but some defensive wins in profitability as well

The organic revenue development of the Finnish listed IT service companies took a downturn from a strong comparison period. At the same time, profitability declined from the good comparison period, although slightly less than expected, helped by cost savings.

Gofore Digital Workforce Digia Innofactor Loihde Netum Group Siili Solutions Solteq Tietoevry Vincit Witted Megacorp

IT service sector: Our expectations for 2024 generally at the lower end of companies' guidance

Analyst Comment4/5/2024, 9:32 AM by

Joni Grönqvist, Frans-Mikael Rostedt

IT service sector: Our expectations for 2024 generally at the lower end of companies' guidance

We estimate that listed IT service companies will grow moderately in 2024, but well below historical growth rates. Overall, our expectations for 2024 are generally at the lower end of companies' guidance.

Digia Digital Workforce Gofore Innofactor Loihde Netum Group Siili Solutions Solteq Tietoevry Vincit Witted Megacorp

Q4 IT service sector summary: Growth and profitability in line with our expectations, 2023 can be seen as a defensive win

Analyst Comment3/21/2024, 8:11 PM by

Joni Grönqvist, Frans-Mikael Rostedt

Q4 IT service sector summary: Growth and profitability in line with our expectations, 2023 can be seen as a defensive win

Digia Digital Workforce Gofore Innofactor Loihde Netum Group Siili Solutions Solteq Tietoevry Vincit Witted Megacorp

Analyst Comment1/18/2024, 11:08 AM by

Frans-Mikael Rostedt

IT service sector valuation levels at the bottom of our 7-year monitoring history, justifiably?

We examined the development of valuation levels in the IT service sector through the forward-looking EV/S ratio in 2017-2024. The valuation levels have hit the bottom of the review period. The uncertain short-term outlook and the rise in interest rates partly justify a lower valuation, but we feel the sector’s expected return is at an attractive level as a whole.

Digital Workforce Digia Gofore Innofactor Loihde Netum Group Siili Solutions Solteq Tietoevry Vincit Witted Megacorp

Analyst Comment12/5/2023, 8:24 AM by

Joni Grönqvist, Frans-Mikael Rostedt

We expect the IT services sector to grow moderately and profitability to increase slightly in 2024

We expect the dual dynamics of the IT services market to continue next year and slow down growth. In our estimates, profitability in the sector improves slightly, driven by cost savings, but still stays below potential due to headwinds.

Digia Digital Workforce Gofore Innofactor Loihde Netum Group Siili Solutions Solteq Tietoevry Vincit Witted Megacorp

Analyst Comment11/21/2023, 9:31 AM by

Joni Grönqvist, Frans-Mikael Rostedt

IT services sector Q3 summary: Better than feared with several areas continuing to perform well

Overall, the Q3 earnings season was stronger than our cautious expectations and the market continued to be mixed. Many areas are still performing well and in the weaker areas it seems that, at least temporarily, the bottom of demand has been touched. There are already some cautious comments on the better, but in our view it is still too early to draw larger and broader conclusions.

Digia Gofore Innofactor Loihde Siili Solutions Solteq Tietoevry Vincit Witted Megacorp

IT service sector: Fast deceleration in figures in Q2 in Finland, better in other Nordic countries

Analyst Comment9/6/2023, 11:00 AM by

Joni Grönqvist, Frans-Mikael Rostedt

IT service sector: Fast deceleration in figures in Q2 in Finland, better in other Nordic countries

Uncertainty in customer demand was realized more widely in Q2, but development was even more mixed than before. Companies with a high weight of tailored software development and the private sector suffered more in relative terms. Reported figures included mainly negative surprises, which was also seen in the form of change negotiations and profit warnings. We predict that the duality will continue in 2023, but the demand outlook will remain more subdued as a whole in 2023 in the private sector, while public sector demand is expected to remain at a good level.

Press release8/22/2023, 6:00 PM

Witted Megacorp buys Loihde's Swedish business

Witted Megacorp

Analyst Comment5/22/2023, 4:56 AM by

Joni Grönqvist, Frans-Mikael Rostedt

IT service sector: Mainly a strong start to the year

Digia Digital Workforce Gofore Innofactor Loihde Netum Group Siili Solutions Solteq Tietoevry Vincit Witted Megacorp

Analyst Comment10/7/2022, 8:28 AM by

Juha Kinnunen, Frans-Mikael Rostedt

Case: Cost structures and profitability of expert companies

In this review, we examine the cost structures of Nasdaq Helsinki’s expert companies. The group clearly focuses on the IT service sector, but it also includes expert companies from accounting firms to engineers and legal services.

Aallon Group Digia Etteplan Fondia Gofore Innofactor Loihde Netum Group Nixu Siili Solutions Sitowise Group Solteq Solwers Talenom Witted Megacorp Vincit

inderesPodcast: 2.En djupdykning i Helsingforsbörsens IT-tjänstesektor

Video10/5/2022, 7:20 AM by

Isa Hudd

inderesPodcast: 2.En djupdykning i Helsingforsbörsens IT-tjänstesektor

Är IT-tjänstesektorn den hetaste på Helsingforsbörsen? Tillsammans med analytiker Joni Grönqvist gör vi en djupdykning i marknadens drivkrafter, efterfrågan och flaskhalsar. Vi tar även en närmare titt på bolagen: vem är bäst i klassen, vem kämpar med lönsamheten?