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

• Market Cap: €320.47M
• Dividend Yield: N/A
• Average Volume (3M): 92.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -9.38%
• EPS Growth: -345.16%
• Country: IT
• Employees: 784
• Sector: Technology
• Sector Strength: 98
• Industry: Semiconductors
• EPS (TTM): 0.01
• Shares Outstanding: 132,976,120
• 10 Day Avg. Volume: 93,841
• 30 Day Avg. Volume: 92,030
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• 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: €3.10
• Price Target Upside: 28.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: €2.50 ▲(3.73% 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, as already outlined in the recent conference calls, confirming the improvement in business momentum.

Financial Performance

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

IoT Platform 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 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. (IOT) is an Italian company specializing in the design, development, and production of technology solutions for the Internet of Things (IoT). The company offers a range of products including miniaturized computers, embedded systems, and IoT solutions that cater to various industries such as healthcare, industrial automation, and transportation. SECO is known for its innovative and customizable technology platforms that enable businesses to enhance their digital transformation processes.

How the Company Makes Money

SECO S.p.A. generates revenue primarily through the sale of its IoT technology solutions and products. The company's key revenue streams include the development and sale of embedded computers and systems, IoT-enabled devices, and related software and services. SECO collaborates with various industry partners to integrate its products into broader solutions, enhancing its market reach and customer base. Additionally, the company offers design and consulting services that cater to specific industry needs, further contributing to its income. Strategic partnerships and collaborations with technology leaders and industry players also play a significant role in expanding SECO's market presence and driving its financial growth.

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: 2.41
• 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 2.41 is below the 20-day moving average (MA) of 2.44, above the 50-day MA of 2.37, and above the 200-day MA of 1.96, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 65.62 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
WIIT	67 Neutral	€519.78M	51.75	31.22%	1.60%	20.75%	-9.34%
TXT	66 Neutral	€366.41M	21.78	13.06%	0.79%	39.23%	0.52%
Sector *	61 Neutral	$35.87B	6.13	-9.30%	2.06%	7.63%	-6.38%
TNXT	60 Neutral	€669.56M	167.12	1.04%	2.06%	17.21%	-80.93%
TPRO	58 Neutral	€4.09B	57.99		―	38.31%	-30.40%
IOT	56 Neutral	€320.47M	―	-8.20%	―	-9.38%	-345.16%