| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 19.00 | 641 |
| Intrinsic value (DCF) | 1.28 | -50 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 1.40 | -45 |
Talenom Oyj is a Finland-based provider of accounting, financial management, and advisory services tailored for small and medium-sized enterprises (SMEs) across Finland, Sweden, and internationally. Founded in 1972 and headquartered in Oulu, the company offers a comprehensive suite of services, including sales invoicing, payroll accounting, financial performance monitoring, HR services, and legal and taxation consultancy. Talenom enhances operational efficiency through digital solutions like Talenom Online, a web-based financial management service, and Talenom App, a mobile platform for document handling. Additionally, the company provides financing and banking services, such as invoice financing and corporate loans, further supporting SME growth. Operating in the Specialty Business Services sector under Industrials, Talenom leverages technology to streamline financial workflows, positioning itself as a key player in the Nordic SME financial services market. With a market capitalization of approximately €164 million, Talenom continues to expand its digital-first approach to meet evolving SME needs.
Talenom Oyj presents a niche investment opportunity in the SME financial services sector, particularly in Nordic markets. The company's diversified service portfolio, including accounting, advisory, and financing, provides recurring revenue streams. However, its modest net income of €6.09 million and high beta of 1.249 suggest sensitivity to market volatility. Positive operating cash flow (€29.2 million) and a manageable debt-to-equity ratio indicate financial stability, but competition from larger players and regional economic fluctuations pose risks. The dividend yield (€0.10 per share) may appeal to income-focused investors, though growth prospects hinge on digital adoption and international expansion.
Talenom Oyj competes in the crowded SME financial services market by combining traditional accounting with digital solutions like Talenom Online and mobile apps, differentiating itself through integrated service offerings. Its competitive advantage lies in localized expertise in Finland and Sweden, where it understands regulatory and tax complexities. However, the company faces stiff competition from global accounting software providers (e.g., QuickBooks) and larger Nordic firms offering similar bundled services. Talenom’s focus on SMEs allows for personalized service but limits scalability compared to enterprise-focused competitors. Its financing services add value but expose the firm to credit risks. The company’s beta of 1.249 reflects higher volatility, possibly due to its small-cap status and regional concentration. To sustain growth, Talenom must invest in AI-driven automation and expand beyond the Nordic region while maintaining cost efficiency.