Sesa S.p.A. (SES) AI Stock Analysis

• Market Cap: €1.13B
• Dividend Yield: 1.37%
• Average Volume (3M): 42.35K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.07
• Revenue Growth: 1.58%
• EPS Growth: -20.33%
• Country: IT
• Employees: 6,367
• Sector: Services
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 0.65
• Shares Outstanding: 15,494,590
• 10 Day Avg. Volume: 19,469
• 30 Day Avg. Volume: 42,350
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €105.42
• Price Target Upside: 39.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: €83.00 ▲(9.57% Upside)

Sesa S.p.A. demonstrates strong revenue growth and improved operational efficiency, which are significant strengths. However, challenges in profitability, cash flow management, and increased leverage are notable risks. The technical indicators suggest caution due to potential overbought conditions. The valuation is reasonable, providing a balanced outlook.

Positive Factors

Growth Outlook

Management guidance for FY25/26 expects revenues to increase by 5-7.5% YoY and EBITDA to rise by 5-10%, indicating a positive outlook for the company's growth.

Shareholder Returns

The Board proposed a stable dividend of EUR 1.0/share and a new buyback programme of up to EUR 25M, confirming continued shareholders’ remuneration.

Strategic Positioning

SeSa is praised for its leading position in the Italian ICT market, with a proven ability to capture market trends and demand-side needs.

Negative Factors

Debt Levels

Net debt was approximately Eu40mn higher than expected due to increased CapEx and NWC absorption, suggesting financial pressures on the company.

Financial Performance

Quarterly adjusted net profit was 21% below estimates and down 8% YoY, highlighting a weaker-than-expected financial performance.

Margin Pressure

EBITDA margin decreased to 6.9% partly driven by the dilution effect from the GreenSun acquisition and the continued investments in the SSI business.

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

Company Description

Sesa S.p.A. (SES) is a leading Italian technology and services company that specializes in the IT and digital transformation sectors. Founded in 1970, Sesa operates through various business units that focus on software solutions, IT services, and consulting for a wide range of industries, including finance, healthcare, and manufacturing. The company is known for its innovative approach, leveraging advanced technologies such as cloud computing, cybersecurity, and data analytics to help clients enhance their operational efficiency and digital capabilities.

How the Company Makes Money

Sesa generates revenue primarily through the provision of IT services and solutions, including software development, system integration, and consulting. The company's revenue model is built on a combination of service contracts, project-based engagements, and recurring services such as maintenance and support. Key revenue streams include payments from clients for customized software solutions, subscription fees for cloud services, and consulting fees for strategic IT guidance. Significant partnerships with major technology providers and a diverse client portfolio across various sectors further contribute to its earnings, allowing Sesa to capitalize on emerging trends in digital transformation and IT innovation.

Sesa S.p.A. Financial Statement Overview

Summary

Sesa S.p.A. shows strong revenue growth and improved gross profit margins, indicating effective operational strategies. However, the decrease in net profit margin and return on equity, along with increased debt levels, highlight areas for improvement. Cash flow challenges, particularly the decline in free cash flow, suggest the need for enhanced cash management.

Income Statement

Sesa S.p.A. has demonstrated strong revenue growth over the years, with a notable increase of 38.3% in the most recent year. The gross profit margin has improved significantly from 4.75% in 2021 to 12.12% in 2025, indicating better cost management. However, the net profit margin has slightly decreased from 2.47% in 2024 to 1.94% in 2025, suggesting some pressure on net income. Overall, the company shows robust growth with room for improvement in profitability.

Balance Sheet

The debt-to-equity ratio has increased from 0.95 in 2020 to 1.07 in 2025, indicating a higher reliance on debt financing. Return on equity has decreased from 22.52% in 2023 to 13.95% in 2025, reflecting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure. While the company maintains a solid equity base, the rising debt levels pose a potential risk.

Cash Flow

Free cash flow has declined by 25.08% in the most recent year, indicating challenges in cash generation. The operating cash flow to net income ratio is relatively low at 10.20%, suggesting limited cash conversion efficiency. The free cash flow to net income ratio has decreased from 71.63% in 2024 to 51.30% in 2025, highlighting potential cash flow constraints. While the company has a history of positive cash flow, recent declines warrant attention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.23B	3.21B	3.16B	2.87B	2.02B	1.76B
Gross Profit	142.79M	389.57M	263.91M	235.29M	151.59M	83.72M
EBITDA	222.96M	235.04M	241.55M	201.26M	159.32M	119.64M
Net Income	62.20M	62.20M	78.27M	84.45M	52.27M	37.91M
Balance Sheet
Total Assets	2.24B	2.24B	2.12B	1.92B	1.22B	1.10B
Cash, Cash Equivalents and Short-Term Investments	576.88M	576.88M	585.76M	545.50M	426.90M	368.94M
Total Debt	475.67M	475.67M	422.88M	356.08M	332.22M	314.24M
Total Liabilities	1.74B	1.74B	1.64B	1.50B	920.18M	844.61M
Stockholders Equity	445.92M	445.92M	429.58M	374.93M	278.63M	236.39M
Cash Flow
Free Cash Flow	71.26M	60.14M	98.57M	78.96M	120.89M	78.64M
Operating Cash Flow	117.23M	117.23M	137.62M	115.45M	147.89M	95.24M
Investing Cash Flow	-114.46M	-114.91M	-103.75M	-85.19M	-37.76M	-21.10M
Financing Cash Flow	-17.83M	-17.83M	6.10M	10.94M	-51.93M	45.25M

Sesa S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SES, the sentiment is Positive. The current price of 75.75 is above the 20-day moving average (MA) of 69.86, above the 50-day MA of 75.12, and above the 200-day MA of 72.99, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 62.66 is Neutral, neither overbought nor oversold. The STOCH value of 85.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:SES.

Sesa S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SES	70 Outperform	€1.13B	17.89	14.21%	1.37%	1.58%	-20.33%
Sector *	57 Neutral	$1.87B	9.43	8.02%	2.45%	5.38%	-37.86%
7T4	―	€673.23M	164.60	1.04%	―	―	―
101	―	€91.60M	11.59	10.23%	―	―	―
DGV	74 Outperform	€321.23M	9.08		2.58%	-3.76%	-9.21%
SPN	―	€74.71M	152.54		―	―	―
VNT	―	€14.51M	28.54		2.20%	―	―