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Eurotech S.p.A. (IT:ETH)
:ETH

Eurotech S.p.A. (ETH) AI Stock Analysis

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Eurotech S.p.A.

(LSE:ETH)

Rating:52Neutral
Price Target:
€1.00
▲(23.46%Upside)
Eurotech S.p.A.'s stock score is primarily impacted by its poor financial performance, with declining revenues and profitability. The technical analysis provides some positive momentum indicators, but substantial valuation concerns remain due to the negative P/E ratio. Improvements in cash flow and manageable leverage offer some potential for future recovery.

Eurotech S.p.A. (ETH) vs. iShares MSCI Italy ETF (EWI)

Eurotech S.p.A. Business Overview & Revenue Model

Company DescriptionEurotech S.p.A. (ETH) is a global company specializing in the design, development, and production of embedded systems, IoT (Internet of Things) solutions, and edge computing platforms. The company operates in the technology sector, focusing on providing hardware and software solutions that enable digital transformation across various industries, including industrial, transportation, and healthcare. Eurotech's core products include edge computers, IoT gateways, and software frameworks that facilitate seamless connectivity and data management for enterprise applications.
How the Company Makes MoneyEurotech S.p.A. generates revenue primarily through the sale of its embedded systems and IoT solutions. The company's key revenue streams include the sale of edge computing platforms, IoT gateways, and related software solutions. Eurotech also makes money through service contracts, providing ongoing support and maintenance for its products. Additionally, the company engages in strategic partnerships and collaborations with other technology firms to expand its market reach and enhance its product offerings, contributing to its overall earnings. Eurotech's ability to innovate and provide comprehensive solutions tailored to the needs of various industries plays a significant role in its financial performance.

Eurotech S.p.A. Financial Statement Overview

Summary
Eurotech S.p.A. is experiencing revenue declines and profitability issues, with a negative net profit margin and decreasing equity ratio. However, the balance sheet shows manageable leverage and cash flow has improved slightly, indicating some recovery potential.
Income Statement
45
Neutral
Eurotech S.p.A. has been facing declining revenues, with a negative revenue growth rate of 36.5% from 2023 to TTM (Trailing-Twelve-Months). The company also reported negative net income and EBIT margins, indicating operational challenges. The gross profit margin stands at 40.9% for TTM, which is reasonable, but the negative net profit margin of -60.5% reflects significant profitability issues.
Balance Sheet
65
Positive
The balance sheet shows a moderate debt-to-equity ratio of 0.44 in TTM, reflecting manageable leverage. However, the equity ratio has decreased to 54.5%, indicating a reliance on external funding. The return on equity is negative, reflecting losses, but the company maintains a relatively stable asset base.
Cash Flow
50
Neutral
Free cash flow has improved to a positive $958,000 in TTM, a notable recovery from previous negative figures. The operating cash flow to net income ratio is positive due to non-cash expenses, yet the free cash flow to net income ratio is weak due to ongoing losses.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
59.57M93.76M94.46M63.35M69.38M
Gross Profit
33.62M44.42M31.42M19.36M27.97M
EBIT
-32.26M-118.00K1.13M-7.32M2.44M
EBITDA
-27.06M5.14M6.78M-2.98M6.32M
Net Income Common Stockholders
-36.16M-3.12M-1.55M-10.41M132.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.29M11.56M18.25M31.82M41.35M
Total Assets
111.37M155.52M175.75M165.05M179.72M
Total Debt
26.60M31.50M32.04M25.67M32.77M
Net Debt
20.43M20.07M13.93M-6.03M-8.45M
Total Liabilities
50.70M60.20M69.23M54.62M60.85M
Stockholders Equity
60.66M95.32M106.52M110.44M118.86M
Cash FlowFree Cash Flow
-1.18M-1.24M-5.50M-394.00K-1.39M
Operating Cash Flow
4.28M1.91M-1.61M3.28M3.39M
Investing Cash Flow
-4.96M-3.11M-13.40M-5.27M-5.09M
Financing Cash Flow
-4.18M-2.19M1.60M-8.06M13.46M

Eurotech S.p.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.81
Price Trends
50DMA
0.76
Positive
100DMA
0.79
Positive
200DMA
0.87
Negative
Market Momentum
MACD
<0.01
Positive
RSI
56.47
Neutral
STOCH
58.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:ETH, the sentiment is Positive. The current price of 0.81 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.76, and below the 200-day MA of 0.87, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 58.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:ETH.

Eurotech S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
€66.30M11.32
3.10%
62
Neutral
$11.81B10.34-7.44%2.91%7.41%-7.93%
ITDAL
60
Neutral
€242.48M116.800.50%2.67%-0.62%-83.77%
ITETH
52
Neutral
€28.84M-49.67%-31.33%-393.01%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:ETH
Eurotech S.p.A.
0.81
-0.44
-35.30%
IT:DAL
Datalogic SPA
4.52
-1.08
-19.23%
IT:CELL
Cellularline SpA
2.97
0.45
17.86%

Eurotech S.p.A. Corporate Events

Eurotech Appoints Massimo Milan as New CEO to Drive Transformation
Jun 5, 2025

Eurotech S.p.A. has appointed Dr. Massimo Milan as the new CEO, succeeding Dr. Paul Chawla, to lead the company through its next phase of transformation and relaunch after a challenging 2024. Dr. Milan brings extensive experience in leading high-tech industrial companies with international operations, and his expertise in business development and restructuring is expected to drive Eurotech’s sustainable growth and strengthen its market position.

The most recent analyst rating on (IT:ETH) stock is a Hold with a EUR0.80 price target. To see the full list of analyst forecasts on Eurotech S.p.A. stock, see the IT:ETH Stock Forecast page.

Eurotech Publishes Minutes of April 2025 Ordinary Meeting
May 28, 2025

Eurotech S.p.A. has made available the minutes of its ordinary meeting held on April 28, 2025. This announcement underscores Eurotech’s commitment to transparency and communication with its stakeholders, reinforcing its position in the IoT and Edge Computing industry by keeping investors and partners informed about its corporate activities.

The most recent analyst rating on (IT:ETH) stock is a Hold with a EUR1.20 price target. To see the full list of analyst forecasts on Eurotech S.p.A. stock, see the IT:ETH Stock Forecast page.

Eurotech S.p.A. Reports Q1 2025 Revenue Decline Amid Order Intake Recovery
May 15, 2025

Eurotech S.p.A. reported a 31% decline in revenues for the first quarter of 2025, attributed to a significant slowdown in order intake during the last quarter of 2024. Despite the revenue drop, the company saw a 29% increase in orders and improved its first margin by 90 basis points. Operating costs were reduced by €1.3 million, which helped mitigate the impact on EBITDA. The company faced challenges in the European market, particularly in Germany, due to macroeconomic factors and an industrial sector crisis. However, there was a positive shift in order intake, driven by the recovery in the ADAS business in Germany, the railway sector, and engineering services in Japan.

The most recent analyst rating on (IT:ETH) stock is a Hold with a EUR1.50 price target. To see the full list of analyst forecasts on Eurotech S.p.A. stock, see the IT:ETH Stock Forecast page.

Eurotech S.p.A. Shareholders’ Meeting Approves 2024 Financials and Strategic Changes
Apr 29, 2025

Eurotech S.p.A.’s Ordinary Shareholders’ Meeting approved the financial statements for 2024, revealing a significant decline in revenues and an increased net loss compared to the previous year. The meeting also resulted in several key decisions, including the renewal of authorization for the purchase and disposal of treasury shares, approval of the remuneration policy, and a reduction in the number of board members, which reflects the company’s efforts to streamline operations amid financial challenges.

Eurotech Appoints New Director Amid Board Restructuring
Apr 15, 2025

Eurotech S.p.A. has appointed Dr. Tiziana Olivieri as a new non-executive and independent director, following the resignation of Massimo Russo. This appointment aligns with the company’s proposal to reduce the number of directors and adhere to gender balance regulations. Dr. Olivieri will also serve as president of the related parties committee and a member of the nomination and remuneration committee. Her appointment is set to be confirmed at the upcoming Shareholders’ Meeting.

Eurotech Releases Remuneration Policy Report
Apr 7, 2025

Eurotech S.p.A. has made its report on remuneration policy and compensation publicly available, adhering to legislative requirements. This announcement reflects the company’s commitment to transparency and regulatory compliance, which may strengthen its trustworthiness and appeal to investors and stakeholders.

Eurotech Releases 2024 Annual Financial Report
Mar 31, 2025

Eurotech S.p.A. has announced the availability of its Annual Financial Report for the year ending December 31, 2024, ahead of its Shareholders’ Meeting on April 28, 2025. The report, which includes financial statements, management reports, and audit findings, is accessible to the public through various channels, reflecting the company’s transparency and commitment to stakeholder engagement.

Eurotech Announces Shareholders’ Meeting Notice and Agenda
Mar 29, 2025

Eurotech S.p.A. has announced the publication of the notice for its upcoming ordinary Shareholders’ Meeting scheduled for April 28, 2025. The notice and illustrative reports on the agenda items are available on the company’s website and other authorized platforms. This announcement is significant as it ensures transparency and keeps stakeholders informed about the company’s governance and strategic decisions.

Eurotech Board Restructuring: Director Resigns Amidst Strategic Changes
Mar 27, 2025

Eurotech S.p.A. announced the resignation of Massimo Russo from his role as a non-executive and independent director, coinciding with the board’s proposal to reduce the number of directors from nine to seven. This move is part of a broader strategy to comply with gender balance regulations by appointing a new female board member, reflecting Eurotech’s commitment to diversity and governance improvements.

Eurotech S.p.A. Navigates Challenges with Strategic Focus on Cybersecurity
Mar 17, 2025

In 2024, Eurotech S.p.A. faced significant challenges, including a decline in revenue from its main customer and a global investment freeze in industrial automation. Despite these setbacks, the company improved its margins and launched four new product families with a focus on cybersecurity, aligning with regulatory requirements. Looking ahead to 2025, Eurotech plans to concentrate on cybersecurity applications in industrial automation, smart grids, and intelligent infrastructures, leveraging partnerships with AWS, NVIDIA, and Inductive Automation to drive growth.

Eurotech S.p.A. Reports Revenue Decline Amid Market Challenges
Mar 14, 2025

Eurotech S.p.A. reported a significant decline in revenues for 2024, primarily due to the exit of a major customer in the U.S. and economic challenges in Germany. Despite a 36.9% drop in consolidated revenues, the company improved its first margin by 330 basis points and reduced operating costs by €5.1 million. The financial results were impacted by goodwill impairment related to the U.S. subsidiary, leading to a negative EBITDA and a substantial net loss. The company’s strategic management of working capital helped maintain a stable net financial position.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.