Talenom: Wrinkles in profitability
Talenom's Q1 result was a clear disappointment to the company due to weak profitability, which put our earnings estimates under pressure. Although earnings growth currently looks dismal due to heavily declining profitability it is a strategic choice by the company and profitability will eventually turn after the international growth spurt. In the longer term, the current valuation (2024e P/E 28x and EV/EBITDA 11x) is moderate but requires patience to look at the growth story beyond the profitability slump and confidence in international success.
Talenom
Talenom is an accounting agency that offers a wide range of services in bookkeeping, invoice management and payroll issues. In addition to the main business, financial analysis and the possibility of real-time control are offered via the company's web services. The largest proportion of customers can be found among small and medium-sized business customers within the Nordic market. The company was founded in 1972 and has its headquarters in Oulu.
Read more on company pageKey Estimate Figures2023-04-21
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 102.1 | 127.4 | 157.5 |
growth-% | 23.31 % | 24.81 % | 23.61 % |
EBIT (adj.) | 15.3 | 15.5 | 19.6 |
EBIT-% (adj.) | 14.95 % | 12.14 % | 12.43 % |
EPS (adj.) | 0.27 | 0.22 | 0.29 |
Dividend | 0.18 | 0.19 | 0.20 |
Dividend % | 1.98 % | 3.69 % | 3.88 % |
P/E (adj.) | 34.31 | 23.41 | 18.03 |
EV/EBITDA | 14.41 | 8.48 | 7.88 |