Siili Solutions as an Investment

Good result, but Inderes will probably be disappointed in this too, as their forecasts were once again overly optimistic.

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I watched the CEO’s interview and got a positive impression, thanks Inderes.

If I quote from the discussion above, it seems that the things written are coming true: cash flow, profitability, dividend, continuity.

Apparently, Siili’s coders and other experts have been happy there, which is probably the most important asset in this industry?

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Well, the forecasts are already promising a rising target price for tomorrow :wink:
When I crunched the numbers in Excel, if an EBITDA margin of 10% is achieved in 2021, the current share price is quite low. Will the P/E ratio return above 15? That would mean a 30% annual return at the current price.

Of course, management forecasts have been flushed down the toilet before.

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Very affordable valuation and a well-deserved buy recommendation from Inderes :slight_smile:

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Yesterday’s CEO interview was good to hear. However, regarding Siili Auto, Somerma did evade Mikael’s direct question. There was no longer any talk about growth percentages…

https://www.inderes.fi/en/releases/minority-owner-siili-solutions-oyj-sells-its-holding-robocorp-technologies-inc

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Later, I would have gotten a better price, but this is fine too.

I’m waiting for the Inderes update.

Generally, or in regards to the capital gains from the day before yesterday?

after the capital gain. Doesn’t that essentially change at least EPS and P/E, and also P/B?

I agree, but it doesn’t seem to be coming.

I personally valued Robocorp higher than Siili’s entire market capitalization. This is with US valuations where there’s no ceiling as long as there’s a promising idea. Anyway, one less reason to own Siili. I think the market reaction to this should have been negative.

I’m wondering the same thing. TJ praised it a lot at Siili’s latest capital markets day. You’d think it could have fetched an even larger sum in a few years.

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It’s good to remember that Siili’s business is not investing in early-stage startups. If one were to heavily enter that game, one would need 20-30 such cards in hand. Additionally, opportunities to convert investments into cash are so rare in these cases that I consider it very sensible capital allocation by the company’s board. Especially in this situation where a strong balance sheet is valued.

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Now that all the figures have changed with the acquisition, is an update coming from Inderes?

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This is great! Excellent response from the company in the current situation.

https://www.inderes.fi/fi/tiedotteet/siili-solution-oyjn-aloittaa-liiketoimintakatsaukset-vuosineljanneksittain

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I don’t think it changes very dramatically, 50 cents more EPS, but on the other hand, in the long run, there will be less EPS due to the sale.

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So if an additional 0.66 is added to Inderes’ forecast, making it 0.41+0.66=1.07. This changes, for example, the P/E (Price-to-Earnings) ratio quite a bit; it’s currently around twenty in the forecast, but now it’s actually below ten.

What a great thing that you are bringing a new earnings release, this has been awaited.

Surely Siili pays taxes, right?