Interesting - thank you very much for the quick reply!
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Someone in the coffee room had linked a good interview about AI (Whitney Tilson, ex. fund manager).
One interesting point from DTâs perspective was the statement that AI will replace a large part of radiologistsâ work.
A similar topic was touched upon in a panel organized by Siemens Healthineers, which included, among others, a German pulmonologist specializing in lung cancer. Stating something along the lines that AI will hopefully enable widespread screening of risk groups. Currently, the still manual analysis of images is a limiting bottleneck, especially since a lot of data is imaged from one patient.
Probably more generally, regardless of the application, the analysis of X-ray images is a target where machine learning and AI are taking on an increasingly larger role. Which is perhaps good news from DTâs perspective, in that through the efficiency of analysis work, it would seem that the number of imaging procedures will not decrease.
On the other hand, although we have discussed the different levels of âintelligenceâ of DTâs various applications with Martola, in my opinion, there has been little talk about the effects of this fashionable AI in DTâs reports and CEO interviews. How it affects market size, interfaces with customers, and of course, the competitive situation.
So, the wish would be that AI would be tackled more in future info sessions and interviews to get a better understanding of how it affects DTâs business.
Yesterdayâs news was that SyrjĂ€lĂ€ is stepping aside and Vasara might then immediately grab the hammer 
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Yes, thereâs an interesting trend in the background. With the help of artificial intelligence (machine learning might be a better term), more can be extracted from images, and as I understand it, new applications have also been found. In China, COVID-induced lung changes were detected with X-rays, which apparently opened up new ways of thinking there. This is one factor that could later drive increasingly precise devices/sensors in medical applications, at least in the long term.
The reason I havenât emphasized this in the research is practically that, as I understand it, it doesnât have much direct impact on DT â perhaps over time, but currently, other things take precedence. DT does have the capabilities to bring âintelligenceâ (algorithms, software, machine learning, etc.) to devices, but in the medical field, OEM device manufacturers protect that area very carefully. Itâs somewhat their area of expertise and added value, and since itâs their device, they dictate the roles. In industry, and to some extent in Security, DT has a greater role to offer in image formation and interpretation. Offering this broader package might also be one reason why margins appear to be better in these areas. But this is a different segment and not directly related to this matter.
Itâs certainly a good thing if and when more devices are sold in the future. But my understanding is that the impact on the market is very limited, at least for now, and indeed, in the medical sector, those big customers are unlikely to let DT into this lucrative area.
In any case, a good point and we can add it to the question list! Itâs worth reminding us closer to Q4, just in case, otherwise it might be forgotten
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Proprius Partnersâ sons have taken a position (50,000 pcs) in DeeTee according to the year-end ownership list.
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Sijoittaja.fi researched First North and found three interesting companies there⊠one of them was DeeTee. The rest of the article, which includes a so-called stock comparison table, is behind a paywall.
We analyzed all First North stocks and selected stocks in which we are ready to invest ourselves. We first conducted a preliminary screening, where we examined the companiesâ revenue and profit figures. We chose companies that had positive revenue and profit development. This excluded stocks that are in the development phase.
Next, we delved into the companiesâ business operations and evaluated business models, market situation, and the companiesâ future prospects. We also examined other important features and key factors for investors, such as growth potential, financial ratios, risks, and valuation.
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Has it been discussed somewhere already, or can @Juha_Kinnunen tell what DT really intends to use its large net cash for? I tried to find sections on capital allocation in general from the latest comprehensive analysis (from which, of course, some time has already passed), and it seems that it has been discussed very little in DTâs case. I mainly found points stating that new acquisitions are unlikely to be seen for a while, and a statement that the large net cash should gradually be allocated productively.
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Youâve looked correctly. I havenât really found a use for it, but the company doesnât seem keen on returning it to shareholders at the moment either (my interpretation, the board may ultimately disagree). It does give the company nice room for maneuver, which can be useful â if opportunities arise.
Acquisitions are possible if something that strengthens its own offering could be found. But the product palette is now covered, and I donât see any âlogicalâ moves there. But opportunistically, the company could certainly be strengthened in different areas.
Somehow, it feels like a âletâs seeâ phase is underway. This is, in my opinion, quite understandable after the strong market changes of recent years, but if more and more money accumulates in the cash reserves in the future, there will be pressure to make moves (larger dividends or share buybacks). In the sharpest turns, there could have been difficulties if they had operated with high debt leverage. But it cannot be kept idle in accounts indefinitely.
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Thank you for your answer! Iâm also wondering, if net cash doesnât really seem to be utilized, are EV-based multiples very good for the company then, when the value creation of the cash is implicitly assumed into the equation.
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Thatâs a valid point, but you canât really ignore the cash either. If the business model required maintaining such a cash balance, I would primarily use P/E ratios. Since I donât think thatâs the case, I believe the best multiple is EV/EBIT(A). But itâs certainly worth using others alongside it.
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How much cash does the company have? I canât find it anywhere.? All other information can be found in the reports. @Juha_Kinnunen
Hi,
itâs usually also written in connection with earnings updates, as it was with the Q3 review. From the report ââŠDTâs balance sheet is naturally still very strong, and the company had a net cash position of 20.8 MEUR at the end of Q3.â Interest-bearing debts were paid off in the summer, if I recall correctly, so thatâs also the cash.
If not mentioned separately in the text, the annual situation can be seen from the Balance Sheet page of the report. In the previous report, the forecast for the end of 2024 was 24.2 MEUR under liquid assets. Our forecast isnât as strong as @Mailman2âs above, but itâs still a good cash flow
In those comments, only the front page is visible, and precise figures are probably rarely mentioned there. Of course, they can be found in the companyâs own reports.
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Hereâs a tip for checking the cash: if you canât easily find it without a premium subscription, you can always calculate the difference between the market capitalization and enterprise value from the companyâs page.
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Works very well with DTâs straightforward balance sheet.
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A new beginning for new opportunities
And DT immediately took a cue from this - even stealing a bit. Great!
How does this relate to Dt? I didnât see anything in the text that relates to the company. @Mailman2
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Hereâs Evliâs earnings preview ahead of Thursdayâs earnings release: https://www.evli.com/en/equity-research/article/detection-technology-earnings-and-multiples-should-gain
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Good figures from DeeTee. The most positive point of the report was this: âDetection Technology expects total revenue to be at the comparison period level in the first quarter and to grow by double digits in the second quarter of 2025.â
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Juha interviewed DTâs CEO Hannu Martola.
Topics:
00:00 Introduction 00:13 Q4 Highlights 01:12 Cost Structure 02:03 Border Security, Freight and Ports 04:32 2024 Highlights 05:35 Cash Flow 06:22 Dividend Proposal 07:50 Production in Finland 08:38 Impact of Tariffs 11:15 Investments in India 12:36 Guidance 14:10 Growth Drivers for Industrial Solutions 16:17 TFT Market 17:36 Profitability in 2025
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