TXT e solutions SPA (TXT) AI Stock Analysis

• Market Cap: €362.30M
• Dividend Yield: 0.8%
• Average Volume (3M): 35.51K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.62
• Revenue Growth: 35.72%
• EPS Growth: 0.10%
• Country: IT
• Employees: 2,254
• Sector: Technology
• Sector Strength: 45
• Industry: Software
• EPS (TTM): 1.31
• Shares Outstanding: 13,006,250
• 10 Day Avg. Volume: 27,027
• 30 Day Avg. Volume: 35,507
• PEG Ratio: 251.18
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.45
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €46.50
• Price Target Upside: 46.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

TXT e solutions SPA receives a solid overall score of 70, driven by strong financial performance with impressive revenue growth and robust cash flow generation. The technical analysis presents a mixed outlook, with some bearish momentum indicators. Valuation appears fair, with a reasonable P/E ratio but limited dividend yield. The absence of significant earnings call insights or corporate events further emphasizes the importance of financial fundamentals in this assessment.

Positive Factors

Market Positioning

The CEO confirmed a promising outlook for 2025, supported by a solid order backlog and strengthened market positioning, with expected margin improvements.

Revenue Growth

Preliminary FY24 revenues showed strong growth, up 35% YoY, particularly driven by the Digital Advisory segment, which continued double-digit growth despite challenging comparisons.

Stock Profile

Inclusion in the FTSE Italia Mid Cap index is expected to provide a positive catalyst for the stock, potentially boosting its profile among investors.

Negative Factors

Debt Levels

Net debt at the end of September was higher than expected, mainly due to acquisitions and buybacks.

EBITDA Performance

EBITDA for 4Q24 was below expectations, which was attributed to investments supporting growth and a change in revenue mix, leading to slightly lower percentage margins.

Margin Pressure

EBITDA margin narrowed by c.110bps to 13% driven by increased investments and a series of low-margin contracts in the Software Engineering segment.

TXT e solutions SPA Business Overview & Revenue Model

Company Description

TXT e-solutions S.p.A. is an international company specializing in software and services for digital transformation. The company operates in several sectors, including aerospace, automotive, and financial services, offering a range of solutions for engineering and software development. Its core products and services include advanced software applications, IT consulting, and system integration services designed to enhance operational efficiency and innovation for its clients.

How the Company Makes Money

TXT e-solutions S.p.A. generates revenue through a diversified model that includes the sale of software licenses, consulting services, and support and maintenance contracts. The company earns money by providing tailored software solutions and services to clients in industries such as aerospace, automotive, and financial services. Key revenue streams include long-term contracts for software development and IT consulting, as well as recurring income from software maintenance and support services. Additionally, TXT may engage in strategic partnerships and collaborations that expand its market reach and enhance its service offerings, further contributing to its earnings.

TXT e solutions SPA Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
284.60M	224.39M	150.76M	96.36M	68.75M	59.09M
	Gross Profit
48.20M	35.20M	109.32M	75.60M	55.19M	47.57M
	EBIT
25.53M	20.19M	13.91M	9.60M	3.15M	3.55M
	EBITDA
39.33M	35.80M	24.60M	15.31M	9.74M	5.45M
	Net Income Common Stockholders
17.70M	15.51M	11.99M	7.87M	4.47M	448.01K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
66.43M	61.99M	81.50M	84.37M	80.09M	98.75M
	Total Assets
305.92M	302.24M	300.78M	226.06M	173.45M	161.69M
	Total Debt
113.31M	108.80M	114.53M	87.95M	52.42M	46.44M
	Net Debt
72.64M	70.87M	81.51M	51.87M	40.49M	35.02M
	Total Liabilities
187.10M	188.37M	191.40M	132.99M	87.58M	79.67M
	Stockholders Equity
118.75M	113.85M	109.37M	92.65M	85.45M	81.85M
Cash Flow		Free Cash Flow
-1.25M	8.03M	16.37M	7.07M	-2.31M	-2.22M
	Operating Cash Flow
15.74M	22.19M	18.16M	8.53M	-1.16M	-1.30M
	Investing Cash Flow
-28.32M	11.09M	-32.48M	-10.27M	7.14M	22.13M
	Financing Cash Flow
5.89M	-28.77M	11.01M	25.88M	-5.46M	-15.01M

TXT e solutions SPA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TXT, the sentiment is Neutral. The current price of 31.7 is above the 20-day moving average (MA) of 31.33, below the 50-day MA of 35.33, and above the 200-day MA of 31.40, indicating a neutral trend. The MACD of -1.17 indicates Negative momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 82.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:TXT.

TXT e solutions SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REY	77 Outperform	€5.36B	25.17	17.49%	0.68%	8.40%	13.09%
DAN	75 Outperform	€1.82B	5.59	10.20%	1.08%	1.26%	37.35%
FNM	72 Outperform	€167.44M	2.82	16.26%	5.36%	1.81%	-26.63%
MOL	71 Outperform	€1.46B	35.32	13.76%	0.31%	12.32%	19.12%
TXT	70 Outperform	€362.30M	24.87	12.06%	0.80%	35.72%	0.10%
Sector *	59 Neutral	$10.59B	10.09	-6.37%	3.05%	7.44%	-10.67%