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

• Market Cap: €445.47M
• Dividend Yield: N/A
• Average Volume (3M): 297.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 1.84%
• EPS Growth: -15.49%
• Country: IT
• Employees: 784
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.02
• 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: €3.47
• Price Target Upside: 23.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: €3.00 ▲(6.38% Upside)

SECO S.p.A.'s overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. While the company shows strength in cash flow generation, its profitability challenges and negative earnings significantly impact its valuation. The technical analysis suggests bearish momentum, further weighing down the overall 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. 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 primarily through the sale of its embedded computing products, including SoMs and SBCs, which are sold to manufacturers and system integrators across multiple industries. Additionally, the company offers software solutions and services that complement its hardware offerings, providing customers with integrated IoT solutions. Key revenue streams include direct product sales, recurring revenue from software licenses, and service agreements. Strategic partnerships with technology firms and industry leaders further enhance SECO's market reach and product offerings, contributing to its overall earnings. The company may also benefit from ongoing trends in digital transformation and smart technologies, driving sustained demand for its IoT solutions.

SECO S.p.A. Financial Statement Overview

Summary

SECO S.p.A. demonstrates a mixed financial performance. The company shows strength in revenue growth and cash flow generation, but faces challenges in profitability and return on equity. The balance sheet remains stable with a balanced debt-to-equity ratio, but the negative net income and return on equity highlight areas for improvement.

Income Statement

SECO S.p.A. shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight revenue growth of 2.17%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -12.57% and an EBIT margin of -7.52%. The gross profit margin remains healthy at 46.16%, suggesting efficient production processes. However, the negative net income and EBIT highlight challenges in managing operating expenses.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio of 0.45 indicates a balanced approach to leveraging, while the equity ratio of 56.29% suggests a strong equity base. However, the negative return on equity of -5.64% in the TTM period indicates inefficiencies in generating returns for shareholders, likely due to the negative net income.

Cash Flow

Cash flow analysis shows positive trends, with a significant free cash flow growth rate of 74.88% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.48 suggests that the company is generating cash efficiently relative to its net income, despite the latter being negative. The free cash flow to net income ratio of 0.37 further supports the company's ability to generate cash even in challenging profit conditions.

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: Negative
• Last Price: 2.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IOT, the sentiment is Negative. The current price of 2.82 is below the 20-day moving average (MA) of 3.28, below the 50-day MA of 3.25, and above the 200-day MA of 2.45, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 32.19 is Neutral, neither overbought nor oversold. The STOCH value of 7.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
TXT	64 Neutral	€383.47M	22.74	12.61%	0.82%	28.77%	-3.40%
TPRO	64 Neutral	€6.05B	85.78	―	―	38.31%	-30.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TNXT	60 Neutral	€676.90M	-151.13	-1.19%	2.03%	14.90%	-123.79%
WIIT	54 Neutral	€512.91M	51.06	25.60%	1.64%	13.74%	-25.04%
IOT	51 Neutral	€445.47M	-28.56	-3.24%	―	1.84%	-15.49%