SECO S.p.A. (IOT) AI Stock Analysis

• Market Cap: €326.46M
• Dividend Yield: N/A
• Average Volume (3M): 83.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -9.38%
• EPS Growth: -345.16%
• Country: IT
• Employees: 784
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 0.01
• Shares Outstanding: 132,976,120
• 10 Day Avg. Volume: 133,172
• 30 Day Avg. Volume: 83,861
• PEG Ratio: 0.34
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.49
• 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: €3.05
• Price Target Upside: 23.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: €2.50 ▲(1.63%Upside)

The overall score is driven by mixed financial performance, with strengths in cash flow but challenges in profitability. Technical analysis suggests bullish momentum but highlights potential overbought conditions. Valuation concerns arise from a negative P/E ratio and lack of dividends, impacting the stock's attractiveness.

Positive Factors

Business Momentum

Messages on commercial activity were positive, confirming the improvement in business momentum.

Earnings

SECO delivered results above guidance and estimates at the gross margin level, resulting in a beat across all P/L lines.

Negative Factors

Earnings Revision

EPS revised as a more gradual recovery pace is factored in, translating into a 9% average cut in FY25-26E EBITDA.

Guidance Visibility

FY guidance will be disclosed only in September, limiting the current visibility on the scale and sustainability of the recovery.

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

Company Description

Seco S.p.A. develops embedded micro-computers, integrated systems, and IoT solutions. The company offers modules, single board computers, boxed solutions, HMI solutions, carrier boards, starter kits, and accessories, as well as custom hardware and software solutions, and system integration. Its products are used in various applications, including transportation, industrial automation, medical, vending, digital signage, building automation/domotics, aerospace, defense, securities/surveillance, utilities, and devices. The company was founded in 1979 and is headquartered in Arezzo, Italy.

How the Company Makes Money

SECO S.p.A. generates revenue through multiple channels, primarily centered around its product offerings and services in the IoT and embedded computing markets. The company earns income by designing and selling embedded computing systems and edge computing solutions, which are integral components in various industrial applications. Additionally, SECO provides IoT platforms and software services that enable clients to manage and analyze data from connected devices, thereby offering a recurring revenue stream through software licensing and subscriptions. Strategic partnerships with technology providers and collaborations in research and development further enhance its revenue potential, allowing SECO to integrate cutting-edge technologies into its offerings and expand its market reach.

SECO S.p.A. Financial Statement Overview

Summary

SECO S.p.A. faces challenges in revenue growth and profitability, with a negative net profit margin and operational losses. However, the company benefits from positive and growing free cash flow, maintaining a moderate financial position with a reasonable balance sheet structure.

Income Statement

The income statement reveals declining revenue and profitability. The TTM report shows a decrease in total revenue from the previous year, and the company has been operating at a net loss. The gross profit margin remains reasonable at around 46.1% for TTM, but the negative EBIT and net profit margins indicate operational and overall profitability challenges.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is approximately 0.45, indicating moderate leverage. The equity ratio is about 55.7%, suggesting a strong equity position. However, the decreasing stockholders' equity and increased total debt over the years highlight potential risks.

Cash Flow

Cash flow analysis shows some strength in operating cash flow, with a positive operating cash flow to net income ratio in TTM. Free cash flow is positive and growing, which is a positive sign. However, the volatility and decline in operating cash flow compared to previous years raise concerns about future liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	184.40M	210.04M	202.46M	113.66M	79.50M
Gross Profit	93.52M	55.38M	77.51M	41.70M	32.70M
EBITDA	20.72M	48.62M	38.84M	18.68M	12.78M
Net Income	-21.03M	11.86M	11.04M	6.50M	5.48M
Balance Sheet
Total Assets	490.93M	538.50M	495.23M	403.50M	118.37M
Cash, Cash Equivalents and Short-Term Investments	72.58M	74.82M	39.59M	58.83M	23.68M
Total Debt	125.08M	139.90M	168.39M	168.30M	41.52M
Total Liabilities	199.20M	226.00M	258.68M	240.50M	67.40M
Stockholders Equity	271.91M	290.62M	215.78M	145.40M	43.83M
Cash Flow
Free Cash Flow	14.41M	5.98M	-11.51M	-40.00K	1.47M
Operating Cash Flow	34.89M	25.69M	6.76M	13.61M	10.21M
Investing Cash Flow	-20.20M	-19.99M	-18.42M	-143.81M	-13.47M
Financing Cash Flow	-18.13M	30.73M	-7.06M	164.72M	10.77M

SECO S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IOT, the sentiment is Positive. The current price of 2.46 is above the 20-day moving average (MA) of 2.37, above the 50-day MA of 2.34, and above the 200-day MA of 1.91, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 46.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:IOT.

SECO S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$34.60B	5.43	-11.64%	1.84%	5.30%	-18.55%
IOT	56 Neutral	€326.46M	―	-8.20%	―	-9.38%	-345.16%
0NLD	―	€407.00M	25.61	12.37%	0.72%	―	―
7T4	―	€623.21M	31.83	4.41%	2.50%	―	―
1EP	―	€37.65M	29.15	4.54%	―	―	―
9PC	―	€412.55M	41.30	25.87%	1.94%	―	―
TPRO	68 Neutral	€5.17B	78.41		―	32.71%	-37.38%