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Itera

OB:ITE
Snowflake Description

Excellent balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ITE
OB
NOK671M
Market Cap
  1. Home
  2. NO
  3. Software
Company description

Itera ASA, together with its subsidiaries, designs, develops, and operates digital solutions for companies and organizations in Norway, Sweden, Denmark, Slovakia, and Ukraine. The last earnings update was 25 days ago. More info.


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ITE Share Price and Events
7 Day Returns
1.7%
OB:ITE
2.1%
NO IT
2.6%
NO Market
1 Year Returns
-37.6%
OB:ITE
-0.5%
NO IT
-9.1%
NO Market
ITE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Itera (ITE) 1.7% 13.5% 11.1% -37.6% 111.8% 199.6%
NO IT 2.1% 5.3% 2.8% -0.5% 48% 99%
NO Market 2.6% 8% 2.6% -9.1% 31.3% 13.2%
1 Year Return vs Industry and Market
  • ITE underperformed the IT industry which returned -0.5% over the past year.
  • ITE underperformed the Market in Norway which returned -9.1% over the past year.
Price Volatility
ITE
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Itera undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Itera to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Itera.

OB:ITE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year NO Government Bond Rate 1.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OB:ITE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NO Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.964 (1 + (1- 23%) (8.46%))
1.018
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.76% + (1.018 * 5.96%)
7.83%

Discounted Cash Flow Calculation for OB:ITE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Itera is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

OB:ITE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NOK, Millions) Source Present Value
Discounted (@ 7.83%)
2020 50.69 Est @ 9.15% 47.01
2021 54.20 Est @ 6.93% 46.62
2022 57.12 Est @ 5.38% 45.56
2023 59.57 Est @ 4.3% 44.07
2024 61.68 Est @ 3.53% 42.32
2025 63.53 Est @ 3% 40.43
2026 65.20 Est @ 2.63% 38.48
2027 66.75 Est @ 2.37% 36.53
2028 68.21 Est @ 2.19% 34.62
2029 69.61 Est @ 2.06% 32.77
Present value of next 10 years cash flows NOK408.00
OB:ITE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NOK69.61 × (1 + 1.76%) ÷ (7.83% – 1.76%)
NOK1,167.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NOK1,167.85 ÷ (1 + 7.83%)10
NOK549.76
OB:ITE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NOK408.00 + NOK549.76
NOK957.76
Equity Value per Share
(NOK)
= Total value / Shares Outstanding
= NOK957.76 / 81.43
NOK11.76
OB:ITE Discount to Share Price
Calculation Result
Value per share (NOK) From above. NOK11.76
Current discount Discount to share price of NOK8.24
= -1 x (NOK8.24 - NOK11.76) / NOK11.76
29.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Itera is available for.
Intrinsic value
30%
Share price is NOK8.24 vs Future cash flow value of NOK11.76
Current Discount Checks
For Itera to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Itera's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Itera's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Itera's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Itera's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OB:ITE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in NOK NOK0.47
OB:ITE Share Price ** OB (2019-09-13) in NOK NOK8.24
Norway IT Industry PE Ratio Median Figure of 6 Publicly-Listed IT Companies 18.12x
Norway Market PE Ratio Median Figure of 149 Publicly-Listed Companies 13.32x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Itera.

OB:ITE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OB:ITE Share Price ÷ EPS (both in NOK)

= 8.24 ÷ 0.47

17.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Itera is good value based on earnings compared to the NO IT industry average.
  • Itera is overvalued based on earnings compared to the Norway market.
Price based on expected Growth
Does Itera's expected growth come at a high price?
Raw Data
OB:ITE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-17.3%per year
Europe IT Industry PEG Ratio Median Figure of 85 Publicly-Listed IT Companies 1.32x
Norway Market PEG Ratio Median Figure of 110 Publicly-Listed Companies 0.72x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Itera, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Itera's assets?
Raw Data
OB:ITE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in NOK NOK0.59
OB:ITE Share Price * OB (2019-09-13) in NOK NOK8.24
Norway IT Industry PB Ratio Median Figure of 6 Publicly-Listed IT Companies 4.62x
Norway Market PB Ratio Median Figure of 238 Publicly-Listed Companies 1.13x
OB:ITE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OB:ITE Share Price ÷ Book Value per Share (both in NOK)

= 8.24 ÷ 0.59

13.96x

* Primary Listing of Itera.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Itera is overvalued based on assets compared to the NO IT industry average.
X
Value checks
We assess Itera's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Itera has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Itera expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Itera, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-17.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Itera expected to grow at an attractive rate?
  • Itera's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.8%.
Growth vs Market Checks
  • Itera's earnings are expected to decrease over the next 1-3 years, this is below the Norway market average.
  • Unable to compare Itera's revenue growth to the Norway market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
OB:ITE Future Growth Rates Data Sources
Data Point Source Value (per year)
OB:ITE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -17.3%
Norway IT Industry Earnings Growth Rate Market Cap Weighted Average 13.7%
Europe IT Industry Revenue Growth Rate Market Cap Weighted Average 9%
Norway Market Earnings Growth Rate Market Cap Weighted Average 15.1%
Norway Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OB:ITE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in NOK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OB:ITE Future Estimates Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
OB:ITE Past Financials Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income *
2019-06-30 549 65 38
2019-03-31 543 57 35
2018-12-31 531 57 32
2018-09-30 525 48 29
2018-06-30 512 58 29
2018-03-31 488 42 28
2017-12-31 475 50 30
2017-09-30 457 54 29
2017-06-30 441 46 29
2017-03-31 438 51 31
2016-12-31 425 48 25
2016-09-30 421 41 21

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Itera's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Itera is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OB:ITE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Itera Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:ITE Future Estimates Data
Date (Data in NOK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
OB:ITE Past Financials Data
Date (Data in NOK Millions) EPS *
2019-06-30 0.47
2019-03-31 0.43
2018-12-31 0.39
2018-09-30 0.36
2018-06-30 0.36
2018-03-31 0.34
2017-12-31 0.36
2017-09-30 0.36
2017-06-30 0.36
2017-03-31 0.38
2016-12-31 0.31
2016-09-30 0.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Itera will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Itera's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Norway market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Itera has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Itera performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Itera's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Itera has delivered over 20% year on year earnings growth in the past 5 years.
  • Itera's 1-year earnings growth is less than its 5-year average (30.2% vs 37.3%)
  • Itera's earnings growth has exceeded the NO IT industry average in the past year (30.2% vs 28.5%).
Earnings and Revenue History
Itera's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Itera Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:ITE Past Revenue, Cash Flow and Net Income Data
Date (Data in NOK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 548.67 37.96 9.94
2019-03-31 542.94 34.66 336.05
2018-12-31 531.32 31.68
2018-09-30 525.02 29.44 29.60
2018-06-30 511.68 29.16 24.03
2018-03-31 487.61 27.83 8.60
2017-12-31 475.03 29.64
2017-09-30 457.35 29.06 19.19
2017-06-30 441.18 29.00 7.44
2017-03-31 437.71 31.10 3.71
2016-12-31 424.79 25.31
2016-09-30 420.59 20.56 -11.57
2016-06-30 422.79 20.67 136.78
2016-03-31 427.10 15.55 69.74
2015-12-31 435.39 13.06
2015-09-30 432.66 -1.76 206.88
2015-06-30 440.90 -4.60
2015-03-31 441.38 -6.51
2014-12-31 439.85 -4.88
2014-09-30 454.53 10.26
2014-06-30 454.75 11.19
2014-03-31 463.97 16.04
2013-12-31 465.19 15.80
2013-09-30 453.36 10.78
2013-06-30 444.64 6.00
2013-03-31 432.68 2.63
2012-12-31 438.21 4.62
2012-09-30 446.36 1.74

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Itera made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Itera used its assets more efficiently than the NO IT industry average last year based on Return on Assets.
  • Itera has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Itera's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Itera has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Itera's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Itera's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Itera's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Itera's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Itera's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Itera has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Itera Company Filings, last reported 2 months ago.

OB:ITE Past Debt and Equity Data
Date (Data in NOK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 48.08 0.00 44.09
2019-03-31 56.96 0.00 43.22
2018-12-31 47.44 0.00 55.28
2018-09-30 32.97 0.00 19.58
2018-06-30 20.70 0.00 15.34
2018-03-31 54.01 0.00 44.01
2017-12-31 50.64 0.00 59.85
2017-09-30 59.63 0.00 59.07
2017-06-30 56.07 0.00 52.49
2017-03-31 62.92 0.00 65.30
2016-12-31 54.32 0.00 63.50
2016-09-30 55.52 0.00 51.58
2016-06-30 51.43 0.00 52.58
2016-03-31 56.84 0.00 59.84
2015-12-31 54.40 0.00 60.98
2015-09-30 61.51 0.00 53.78
2015-06-30 55.75 0.00 43.73
2015-03-31 53.05 0.00 54.05
2014-12-31 53.87 0.00 59.26
2014-09-30 60.56 0.00 25.01
2014-06-30 59.49 0.00 32.28
2014-03-31 87.34 0.00 53.05
2013-12-31 86.94 0.00 61.01
2013-09-30 78.87 0.00 38.15
2013-06-30 75.75 0.00 37.12
2013-03-31 74.29 0.00 30.83
2012-12-31 72.44 0.00 21.48
2012-09-30 71.93 0.00 14.78
  • Itera has no debt.
  • Itera has not taken on any debt in the past 5 years.
  • Itera has no debt, it does not need to be covered by operating cash flow.
  • Itera has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Itera's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Itera has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Itera's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.03%
Current annual income from Itera dividends.
If you bought NOK2,000 of Itera shares you are expected to receive NOK61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Itera's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.49%).
  • Itera's dividend is below the markets top 25% of dividend payers in Norway (6.47%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OB:ITE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Norway IT Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 5.1%
Norway Market Average Dividend Yield Market Cap Weighted Average of 115 Stocks 4.5%
Norway Minimum Threshold Dividend Yield 10th Percentile 1.5%
Norway Bottom 25% Dividend Yield 25th Percentile 2.5%
Norway Top 25% Dividend Yield 75th Percentile 6.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OB:ITE Future Dividends Estimate Data
Date (Data in NOK) Dividend per Share (annual) Avg. No. Analysts
OB:ITE Past Annualized Dividends Data
Date (Data in NOK) Dividend per share (annual) Avg. Yield (%)
2019-05-21 0.250 3.193
2018-04-30 0.250 2.790
2017-03-20 0.430 6.169
2016-04-27 0.120 2.687
2016-03-21 0.120 3.273
2015-10-29 0.150 4.378
2015-10-28 0.150 4.645
2014-05-02 0.350 12.819
2014-02-26 0.350 10.588
2013-04-30 0.060 2.556
2012-10-31 0.000 0.000
2012-07-12 0.000 0.000
2012-07-11 0.000 0.000
2012-05-09 0.000 0.000
2012-04-18 0.000 0.000
2012-02-29 0.000 0.000
2011-05-03 0.100 3.694
2010-04-15 0.200 6.635
2010-02-16 0.200 5.221
2009-07-09 0.200 5.869
2009-04-20 0.200 8.421
2009-03-02 0.200 9.191
2009-02-17 0.200 9.128

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Itera's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Itera's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Itera afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Itera has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Itera's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Arne Mjøs
COMPENSATION NOK3,791,000
CEO Bio

Mr. Arne Mjøs serves as the Chief Executive Officer of Itera ASA. Mr. Mjøs serves as the Chief Executive Officer at Itera Consulting Group ASA and Itera ASA. Mr. Mjøs serves as a Director of Itera Consulting Group ASA. He served as a Director of Itera ASA.

CEO Compensation
  • Arne's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Arne's remuneration is about average for companies of similar size in Norway.
Management Team

Arne Mjøs

TITLE
Chief Executive Officer
COMPENSATION
NOK4M

Bent Hammer

TITLE
Chief Financial Officer
COMPENSATION
NOK2M
AGE
50
TENURE
3.9 yrs

Jon Høgberg

TITLE
Chief Operating Officer
COMPENSATION
NOK2M
TENURE
0.7 yrs

Ane Gjennestad

TITLE
Chief Communication Officer
COMPENSATION
NOK1M

Marte Hansen

TITLE
Human Resource Manager

Oddvar Håland

TITLE
Chief Executive Officer of Compendia

Henrik Sølver

TITLE
Chief Executive Officer of Itera Consulting Denmark

Anne-Marit Aamlid

TITLE
Interim Group Controller
Board of Directors

Morten Thorkildsen

TITLE
Chairman of the Board
AGE
58

Mimi Berdal

TITLE
Director
AGE
60

Jan Karlsson

TITLE
Director
AGE
70

Ronny Løken

TITLE
Observer
TENURE
3 yrs

Gyrid Ingerø

TITLE
Director
AGE
52
TENURE
2.1 yrs

Erik Solheim

TITLE
Employee Representative Director

Charlotte Blindheim

TITLE
Employee Representative Director
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Itera individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NOK) Value (NOK)
28. Jun 19 Buy Arne Mjøs Individual 28. Jun 19 28. Jun 19 9,235 NOK7.78 NOK71,880
25. Jun 19 Buy John Aalling Individual 25. Jun 19 25. Jun 19 2,615 NOK7.65 NOK20,005
25. Jun 19 Buy Odd Khalifi Individual 25. Jun 19 25. Jun 19 2,615 NOK7.65 NOK20,005
25. Jun 19 Buy Niko Nystrom Individual 25. Jun 19 25. Jun 19 2,615 NOK7.65 NOK20,005
25. Jun 19 Buy Jon Høgberg Individual 25. Jun 19 25. Jun 19 2,615 NOK7.65 NOK20,005
25. Jun 19 Buy Oddvar Håland Individual 25. Jun 19 25. Jun 19 2,615 NOK7.65 NOK20,005
25. Jun 19 Buy Kristian Enger Individual 25. Jun 19 25. Jun 19 2,615 NOK7.65 NOK20,005
25. Jun 19 Buy Bent Hammer Individual 25. Jun 19 25. Jun 19 2,615 NOK7.65 NOK20,005
21. Mar 19 Buy Morten Thorkildsen Individual 21. Mar 19 21. Mar 19 22,700 NOK7.90 NOK179,330
21. Mar 19 Buy Jan Karlsson Individual 21. Mar 19 21. Mar 19 17,300 NOK7.90 NOK136,670
21. Mar 19 Buy Mimi Berdal Individual 21. Mar 19 21. Mar 19 10,000 NOK7.90 NOK79,000
06. Mar 19 Buy Morten Thorkildsen Individual 06. Mar 19 06. Mar 19 16,298 NOK7.40 NOK120,605
06. Mar 19 Buy Mimi Berdal Individual 06. Mar 19 06. Mar 19 16,298 NOK7.40 NOK120,605
X
Management checks
We assess Itera's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Itera has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Should Investors React To Itera ASA's (OB:ITE) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … See our latest analysis for Itera How Does Arne Mjøs's Compensation Compare With Similar Sized Companies? … We looked at a group of companies with market capitalizations under kr1.8b, and the median CEO total compensation was kr3.0m.

Simply Wall St -

Does The Data Make Itera ASA (OB:ITE) An Attractive Investment?

When we build an investment case, we need to look at the stock with a holistic perspective. … Take a look at our free research report of analyst consensus for ITE’s outlook. … The intrinsic value infographic in our free research report helps visualize whether ITE is currently mispriced by the market.

Simply Wall St -

Need To Know: Itera ASA (OB:ITE) Insiders Have Been Buying Shares

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Itera The Last 12 Months Of Insider Transactions At Itera Chief Executive Officer Arne Mjøs made the biggest insider purchase in the last 12 months. … OB:ITE Recent Insider Trading, August 5th 2019 Itera Insiders Bought Stock Recently Over the last three months, we've seen a bit of insider buying at Itera. … Insiders bought kr212k worth of shares in that time.

Simply Wall St -

Should You Be Adding Itera (OB:ITE) To Your Watchlist Today?

But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' In contrast to all that, I prefer to spend time on companies like Itera (OB:ITE), which has not only revenues, but also profits. … View our latest analysis for Itera How Quickly Is Itera Increasing Earnings Per Share? … So if you like the sound of Itera, you'll probably love this free list of growing companies that insiders are buying.

Simply Wall St -

Does Itera ASA's (OB:ITE) P/E Ratio Signal A Buying Opportunity?

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Itera: P/E of 18.48 = NOK7.96 ÷ NOK0.43 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Probably the most important factor in determining what P/E a company trades on is the earnings growth. … Its net cash position supports a higher P/E ratio, as does its solid recent earnings growth.

Simply Wall St -

Is Itera ASA (OB:ITE) A Smart Pick For Income Investors?

When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Itera has grown its earnings per share at 18% per annum over the past five years. Earnings per share have been growing rapidly, but given that it is paying out more than half of its earnings as dividends, we wonder how Itera will keep funding its growth projects in the future. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Has Itera ASA (OB:ITE) Improved Earnings Growth In Recent Times?

However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 35%, indicating the rate at which ITE is growing has slowed down. … Furthermore, its return on assets (ROA) of 14% exceeds the NO IT industry of 8.0%, indicating Itera has used its assets more efficiently. … You should continue to research Itera to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for ITE’s future growth?

Simply Wall St -

Should You Like Itera ASA’s (OB:ITE) High Return On Capital Employed?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Itera: 0.46 = øre47m ÷ (øre256m - øre154m) (Based on the trailing twelve months to March 2019.) Therefore, Itera has an ROCE of 46%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Calculating The Fair Value Of Itera ASA (OB:ITE)

Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (NOK, Millions) NOK38.14 NOK38.95 NOK39.74 NOK40.51 NOK41.27 NOK42.03 NOK42.80 NOK43.57 NOK44.35 NOK45.14 Growth Rate Estimate Source Est @ 2.28% Est @ 2.13% Est @ 2.02% Est @ 1.94% Est @ 1.89% Est @ 1.85% Est @ 1.82% Est @ 1.8% Est @ 1.79% Est @ 1.78% Present Value (NOK, Millions) Discounted @ 8.22% NOK35.24 NOK33.26 NOK31.35 NOK29.53 NOK27.80 NOK26.17 NOK24.62 NOK23.16 NOK21.79 NOK20.49 Present Value of 10-year Cash Flow (PVCF)= NOK273.42m "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 1.8%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = øre45m × (1 + 1.8%) ÷ (8.2% – 1.8%) = øre711m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = NOKøre711m ÷ ( 1 + 8.2%)10 = NOK322.80m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is NOK596.21m.

Simply Wall St -

Itera ASA (OB:ITE): Time For A Financial Health Check

While small-cap stocks, such as Itera ASA (OB:ITE) with its market cap of øre690m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies,

Simply Wall St -

Company Info

Description

Itera ASA, together with its subsidiaries, designs, develops, and operates digital solutions for companies and organizations in Norway, Sweden, Denmark, Slovakia, and Ukraine. It delivers projects and services in the consulting and strategy, design and development, and operations and management areas. The company also provides strategic advisory, design and development, and managed cloud services, as well as hosting and operations, and infrastructure services. It primarily serves clients in insurance, banking and finance, high tech, energy, media, and public sectors. Itera ASA was founded in 1989 and is headquartered in Oslo, Norway.

Details
Name: Itera ASA
ITE
Exchange: OB
Founded: 1989
NOK671,020,329
81,434,506
Website: http://www.itera.no
Address: Itera ASA
Nydalsveien 28,
PO Box 4814,
Oslo,
Oslo, 0422,
Norway
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OB ITE Ordinary Shares Oslo Bors NO NOK 27. Jan 1999
BATS-CHIXE ITEO Ordinary Shares BATS 'Chi-X Europe' GB NOK 27. Jan 1999
Number of employees
Current staff
Staff numbers
499
Itera employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/09/14 20:57
End of day share price update: 2019/09/13 00:00
Last estimates confirmation: 2017/02/17
Last earnings filing: 2019/08/20
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.