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

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IT:ETH

Eurotech S.p.A.

(LSE:ETH)

Rating:46Neutral
Price Target:
€1.00
▲(9.89%Upside)
The overall stock score of 46 reflects significant financial and valuation challenges. Declining revenues and negative profitability weigh heavily on the score, supported by a poor valuation with a negative P/E ratio. Technical indicators suggest overbought conditions, further contributing to the low score.

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

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

Company DescriptionEurotech S.p.A. engages in the research and development, production, and marketing of miniaturized computers and high-performance computers featuring high computing capacity in Italy and internationally. The company offers embedded boards and modules, such as COM Express CPU-modules, small form factor boards, single board computers, VME boards, compact peripheral component interconnect boards, PC/104 boards, and development kits. It also provides embedded and edge computers, HMIs and displays, and expansion modules; mobile access routers, data loggers and storage systems, and networking modules; and high performance embedded computing systems, switches, and boards for data access and management. In addition, the company offers intelligent sensors, such as people counters and environmental monitoring systems; multi-service IoT edge gateways, IoT edge framework, and IoT integration platform; wearable devices and handheld computers, as well as G-Station, a supercomputer solution. Further, it provides IoT consulting and solutions and product design and manufacturing services. The company serves industrial and automation, transportation and mobility, energy and utilities, defense and aerospace, and medical and healthcare markets. Eurotech S.p.A. was founded in 1992 and is headquartered in Amaro, Italy.
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. faces significant financial challenges with declining revenues and profitability. The income statement reveals negative growth and margins, while the balance sheet shows manageable leverage but a decreasing equity ratio. Cash flow has improved but remains weak due to ongoing losses.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue59.57M93.76M94.46M63.35M69.38M
Gross Profit33.62M44.42M31.42M19.36M27.97M
EBITDA-27.06M5.14M6.78M-2.98M6.32M
Net Income-36.16M-3.12M-1.55M-10.41M132.00K
Balance Sheet
Total Assets111.37M155.52M175.75M165.05M179.72M
Cash, Cash Equivalents and Short-Term Investments6.29M11.56M18.25M31.82M41.35M
Total Debt26.60M31.50M32.04M25.67M32.77M
Total Liabilities50.70M60.20M69.23M54.62M60.85M
Stockholders Equity60.66M95.32M106.52M110.44M118.86M
Cash Flow
Free Cash Flow-1.18M-1.24M-5.50M-394.00K-1.39M
Operating Cash Flow4.28M1.91M-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 Price0.91
Price Trends
50DMA
0.85
Positive
100DMA
0.80
Positive
200DMA
0.83
Positive
Market Momentum
MACD
0.02
Positive
RSI
56.39
Neutral
STOCH
17.01
Positive
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 0.91 is below the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.85, and above the 200-day MA of 0.83, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 56.39 is Neutral, neither overbought nor oversold. The STOCH value of 17.01 is Positive, 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$34.55B5.25-11.40%1.91%5.47%-20.39%
46
Neutral
€34.99M-49.67%-31.33%-393.01%
€249.72M113.700.50%2.73%
€37.30M28.874.54%
70
Outperform
€65.18M8.55
3.22%
€74.31M
€61.67M125.91
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:ETH
Eurotech S.p.A.
0.91
-0.25
-21.50%
GB:0E3C
Datalogic SPA
4.64
-0.64
-12.12%
DE:1EP
ELES Semiconductor Equipment SpA
2.07
0.29
16.29%
IT:CELL
Cellularline SpA
2.89
0.47
19.42%
IT:E9IA
e-Novia SpA
2.10
-2.24
-51.61%
IT:SPN
Spindox S.P.A
10.55
0.15
1.44%

Eurotech S.p.A. Corporate Events

Eurotech Announces New Shareholders’ Agreement
Jul 19, 2025

Eurotech S.p.A. announced the signing of a new shareholders’ agreement, replacing previous agreements, as per Italian legislative requirements. This development may impact Eurotech’s corporate governance and stakeholder relations, potentially influencing its strategic direction in the IoT and Edge Computing sectors.

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 Announces Share Capital Increase to Support Growth
Jul 9, 2025

Eurotech S.p.A. has announced a change in its share capital following a capital increase reserved for its relative majority shareholder, Emera S.r.l. The capital increase involved the issuance of 3,113,325 new ordinary shares, which have been admitted to trading on the Euronext STAR Milan. This move is part of Eurotech’s strategy to strengthen its financial position and support its growth in the IoT and Edge Computing sectors.

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 Appoints Laura Amadesi as New Director Following Resignation
Jul 7, 2025

Eurotech S.p.A. has appointed Laura Amadesi as a new non-executive and independent director following the resignation of Simona Elena Pesce due to personal and professional reasons. Amadesi will also serve as the chair of the nomination and remuneration committee and a member of other key committees, reinforcing Eurotech’s governance structure. This change is expected to maintain the company’s strategic direction and uphold its corporate governance standards.

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 Announces Capital Increase Transaction with Emera S.r.l.
Jun 30, 2025

Eurotech S.p.A. has announced the availability of an information document concerning a capital increase transaction with its shareholder and related party, Emera S.r.l. This document, prepared in compliance with regulatory standards, includes opinions from the Related Parties Committee and Ambromobiliare S.p.A. The transaction underscores Eurotech’s strategic financial maneuvers to strengthen its market position and enhance its operational capabilities.

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 Approves Capital Increase Reserved for Majority Shareholder Emera
Jun 23, 2025

Eurotech’s Board of Directors has approved a capital increase of 2.5 million Euros, reserved for its relative majority shareholder, Emera S.r.l. This move converts payments made by Emera in 2024 into share capital, strengthening Emera’s stake to approximately 24.725% of Eurotech’s share capital. The capital increase aims to enhance Eurotech’s financial position and market transparency, with the transaction being classified as a related party transaction due to Emera’s significant influence. The Board has ensured compliance with regulatory requirements and transparency by publishing relevant documents and opinions.

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 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 01, 2025