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

• Market Cap: €299.86M
• Dividend Yield: N/A
• Average Volume (3M): 122.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -9.38%
• EPS Growth: -345.16%
• Country: IT
• Employees: 784
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.01
• Shares Outstanding: 132,976,120
• 10 Day Avg. Volume: 68,636
• 30 Day Avg. Volume: 122,258
• PEG Ratio: 5.82
• Price to Book (P/B): 2.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -52.75
• 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: 30.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: €2.50 ▲(6.84%Upside)

SECO S.p.A.'s stock score is primarily influenced by its financial challenges, including declining revenue and negative margins, which weigh heavily on the score. Technical indicators suggest potential for some upward movement, but valuation concerns persist due to negative profitability metrics. The absence of a dividend yield and earnings call data further limits positive sentiment.

Positive Factors

Business Momentum

Positive messages on recovery in order intake and a positive book-to-bill evolution with a record project pipeline.

Earnings

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

Market Expansion

SECO has worked on expanding its ecosystem in order to reinforce its IoT platform penetration and potentially boost growth among third-party users.

Negative Factors

Earnings Revisions

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. (IOT) is a leading company in the Internet of Things (IoT) sector, specializing in the design, manufacturing, and commercialization of cutting-edge hardware and software solutions. The company focuses on embedded computing systems, edge computing, and IoT solutions, catering to a diverse range of industries including healthcare, industrial automation, and telecommunications. SECO is renowned for its innovative approach, leveraging advanced technologies to provide customizable and scalable solutions that enhance operational efficiency and connectivity for its clients.

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 profitability challenges with declining revenue and negative margins, reflected in its income statement. While the balance sheet shows stable leverage, there are concerns over declining equity. Cash flow improvements are noted, but they are overshadowed by net income losses. The company needs to address operational inefficiencies to improve its financial standing.

Income Statement

SECO S.p.A. has experienced fluctuations in revenue and profitability. The company reported a decline in total revenue from 2023 to 2024, and significant negative EBIT and net income during 2024, indicating challenges in maintaining profitability. Margins have also deteriorated, with negative EBIT and net profit margins, suggesting operational inefficiencies.

Balance Sheet

SECO S.p.A. maintains a reasonable debt-to-equity ratio, suggesting manageable leverage. However, declining stockholders' equity and total assets from 2023 to 2024 indicate potential financial strain. The equity ratio remains solid, reflecting a stable capital structure despite recent challenges.

Cash Flow

The cash flow situation shows improvement with positive free cash flow in 2024. However, operating cash flow to net income ratio is negative due to the net loss, indicating inefficiencies in converting profits into cash. The free cash flow to net income ratio suggests some ability to generate cash despite profitability issues.

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	21.43M	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: 2.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.34 is above the 20-day moving average (MA) of 2.30, above the 50-day MA of 2.18, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 60.53 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
TNXT	70 Outperform	€558.04M	31.19	4.41%	2.15%	15.67%	-18.75%
TPRO	68 Neutral	€4.88B	73.37		―	32.71%	-37.38%
Sector *	66 Neutral	€2.82B	14.59	3.54%	2.79%	6.71%	-64.23%
WIIT	65 Neutral	€407.79M	42.91	25.87%	1.65%	24.38%	2.92%
TXT	62 Neutral	€398.76M	24.16	12.73%	0.64%	37.78%	-1.18%
IOT	54 Neutral	€299.86M	―	-8.20%	―	-9.38%	-345.16%