| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 6.50 | 3 |
Digia Oyj is a Finland-based technology company specializing in software and services that enable digital transformation for businesses across various industries. Operating both domestically and internationally, Digia offers a comprehensive suite of solutions, including service design, e-commerce platforms, IoT integration, ERP systems (such as Digia Enterprise, Microsoft Dynamics 365, and Oracle NetSuite), and CRM solutions. The company serves diverse sectors such as banking, insurance, retail, healthcare, and public administration, helping clients optimize operations through digital innovation. Headquartered in Helsinki, Digia leverages its expertise in cloud-based ERP and analytics to drive efficiency and scalability for enterprises. With a strong focus on Finland’s digital ecosystem, Digia plays a pivotal role in the Nordic tech landscape, combining local market knowledge with global software partnerships.
Digia Oyj presents a stable investment opportunity with moderate growth potential, supported by its diversified software and consulting services. The company’s revenue of €205.7M (FY 2024) and net income of €13.3M reflect steady profitability, while a debt-free balance sheet (€0 total debt) and €18.2M in cash reserves underscore financial resilience. However, its small market cap (~€223M) and low beta (0.385) suggest limited volatility but also lower liquidity. The absence of dividends may deter income-focused investors. Digia’s niche in Finnish ERP and IoT solutions provides regional competitive advantages, though reliance on Finland’s economy and competition from global SaaS players could cap upside. Investors should weigh its stable cash flows against slower international expansion prospects.
Digia Oyj competes in the fragmented software services market, differentiating itself through deep vertical expertise in Finland and partnerships with Microsoft and Oracle. Its flagship ERP solutions (Digia Enterprise) cater to local SMEs, offering customization that global players often lack. However, Digia’s scale pales against multinational SaaS providers, limiting R&D budgets and cloud infrastructure reach. The company’s strength lies in hybrid deployments (cloud + on-premise), appealing to regulated industries like banking and healthcare. Its consulting arm adds sticky client relationships, though margins may lag pure-play software firms. Competitively, Digia must balance reliance on Microsoft Dynamics (a revenue driver but low-differentiation) with proprietary IP development. While IoT and analytics solutions show promise, they face stiff competition from hyperscalers (AWS, Azure). Geographic concentration (~80% Finland revenue) is both a moat and a growth constraint.