Talenom: Europe's big markets on the horizon
Talenom's Q3 figures were below our estimates, but the main focus was on the company's new financial targets for 2023-2025. Strong international growth is expected in the coming years, which will, however, come at the expense of profitability. With the growth, Talenom’s future earnings potential undoubtedly increases but our earnings growth estimates for the next few years collapsed. Thus, the valuation (2023e P/E 33x and EV/EBIT 29x) looks challenging also after the strong share price drop, especially as proof of the strategy working will not be seen in years.
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 Figures26.10.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 82.8 | 103.0 | 128.4 |
growth-% | 27.08 % | 24.33 % | 24.75 % |
EBIT (adj.) | 14.8 | 16.4 | 17.5 |
EBIT-% (adj.) | 17.83 % | 15.97 % | 13.62 % |
EPS (adj.) | 0.25 | 0.28 | 0.28 |
Dividend | 0.17 | 0.18 | 0.19 |
Dividend % | 1.45 % | 3.45 % | 3.55 % |
P/E (adj.) | 47.47 | 18.86 | 18.29 |
EV/EBITDA | 19.94 | 8.81 | 8.32 |