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

• Market Cap: €430.84M
• Dividend Yield: N/A
• Average Volume (3M): 297.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -3.47%
• EPS Growth: -947.32%
• Country: IT
• Employees: 784
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.03
• Shares Outstanding: 132,976,120
• 10 Day Avg. Volume: 264,927
• 30 Day Avg. Volume: 297,441
• PEG Ratio: 0.04
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 16.70
• 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: €3.30
• Price Target Upside: -5.17% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: €3.50 ▲(0.57% Upside)

SECO S.p.A.'s stock score is primarily driven by its strong technical indicators, which suggest bullish momentum. However, the company's financial performance is mixed, with strengths in cash flow generation but challenges in profitability. The negative P/E ratio and lack of dividend yield weigh down the valuation score.

Positive Factors

Cash Flow Generation

SECO's strong free cash flow growth indicates robust cash generation capabilities, providing financial flexibility and supporting future investments.

Product Innovation

SECO's focus on innovation in IoT solutions positions it well to capitalize on digital transformation trends across industries, enhancing its competitive edge.

Strategic Partnerships

Strategic collaborations expand SECO's market reach and customer base, driving financial growth and strengthening its position in the IoT market.

Negative Factors

Profitability Challenges

Persistent profitability issues, as shown by negative margins, could hinder SECO's ability to reinvest in growth and maintain competitive positioning.

Negative Return on Equity

A negative return on equity indicates inefficiencies in generating returns for shareholders, potentially impacting investor confidence and capital raising.

Revenue Growth Decline

A decline in revenue growth suggests challenges in market expansion and product adoption, which could affect long-term growth prospects.

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. shows mixed financial health with strengths in cash flow generation but faces challenges in revenue growth and profitability. The balance sheet is moderately strong with a reasonable debt-to-equity ratio, but increasing debt and decreasing equity pose risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	188.20M	184.40M	210.04M	202.46M	113.66M	79.50M
Gross Profit	90.89M	93.52M	55.38M	77.51M	41.70M	32.70M
EBITDA	19.61M	20.72M	48.62M	39.66M	16.35M	12.12M
Net Income	-15.54M	-21.03M	11.86M	11.04M	4.15M	4.04M
Balance Sheet
Total Assets	486.23M	490.93M	538.50M	495.23M	403.50M	118.37M
Cash, Cash Equivalents and Short-Term Investments	55.87M	72.58M	74.82M	39.59M	58.83M	23.68M
Total Debt	115.68M	125.08M	139.90M	168.39M	168.30M	41.52M
Total Liabilities	192.23M	199.20M	226.00M	258.68M	240.50M	67.40M
Stockholders Equity	273.69M	271.91M	290.62M	215.78M	145.40M	43.83M
Cash Flow
Free Cash Flow	19.71M	14.41M	5.98M	-11.51M	-40.00K	1.47M
Operating Cash Flow	33.23M	34.89M	25.69M	6.76M	13.61M	10.21M
Investing Cash Flow	-16.98M	-20.20M	-19.99M	-18.42M	-143.81M	-13.47M
Financing Cash Flow	-24.21M	-18.13M	30.73M	-7.06M	164.72M	10.77M

SECO S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.48
• 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 3.48 is above the 20-day moving average (MA) of 3.41, above the 50-day MA of 3.14, and above the 200-day MA of 2.34, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 61.22 is Neutral, neither overbought nor oversold. The STOCH value of 71.93 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
TPRO	―	€5.87B	83.10	―	―	38.31%	-30.40%
TXT	―	€411.70M	24.42	13.06%	0.74%	39.23%	0.77%
IOT	―	€430.84M	―	-5.53%	―	-3.47%	-947.32%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TNXT	―	€684.70M	170.90	1.04%	2.01%	17.21%	-80.93%
WIIT	―	€518.72M	51.64	31.22%	1.52%	20.75%	-9.34%