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

• Market Cap: €1.11B
• Dividend Yield: 1.15%
• Average Volume (3M): 57.25K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.04
• Revenue Growth: 9.50%
• EPS Growth: 0.52%
• Country: IT
• Employees: 6,367
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.83
• Shares Outstanding: 15,494,590
• 10 Day Avg. Volume: 27,604
• 30 Day Avg. Volume: 57,248
• PEG Ratio: -0.80
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 16.90
• 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: €117.67
• Price Target Upside: 63.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 7.01
• Revenue Forecast (FY): €3.60B

• Rating: 63 Neutral
• Price Target: €82.00 ▲(13.81% Upside)
• Action: Downgraded Date: 03/15/26
• Date: Action: Downgraded 03/15/26

The score is driven by solid operating progress and guidance confidence from the latest earnings call, supported by improving TTM cash generation and reasonable valuation. These positives are tempered by weak technical trends and ongoing profitability/margin-pressure risks alongside moderate leverage.

Positive Factors

Sustained Revenue Growth & Backlog

Consistent multi-year revenue expansion and a 25% backlog uplift provide durable top-line visibility. Greater scale strengthens vendor relationships and reseller pull-through, supporting recurring services and enabling steadier demand for higher-margin value‑added activities over the next several quarters.

Improving Cash Generation

Material TTM improvements in operating cash flow and free cash flow bolster financial resilience and fund organic investments. Strong FCF underpins the 40% payout, buybacks, and selective M&A while reducing refinancing pressure despite the business's working-capital intensity.

Diversified Model & Disciplined M&A

A hybrid model—value‑added distribution plus systems integration and managed services—creates diversified, recurring revenue streams. Disciplined, margin-accretive M&A and explicit capital-return policies help scale capabilities, preserve returns on capital and strengthen competitive positioning over time.

Negative Factors

Thin Net & Falling Gross Margins

Net margins are structurally thin and TTM gross margins have declined versus 2025, leaving limited buffer against cost or pricing shocks. Persistent margin pressure in software/system integration increases earnings volatility and constrains cash available for reinvestment or aggressive capital allocation.

Moderate Leverage

A roughly 1x debt-to-equity profile results in a leverage-tilted capital structure. With thin net margins and ongoing investment needs, leverage reduces financial flexibility for downside protection, limits capacity for opportunistic M&A, and increases sensitivity to interest-rate or profit-margin shocks.

Heavy Near-term Investments & Amortisation

Significant capex, M&A and higher amortisation/D&A depress reported EBIT and raise integration and execution risk. These sizeable near-term commitments constrain free cash deployment flexibility and could pressure reported profitability until synergies and revenue mix improvements materialize.

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

Company Description

SeSa S.p.A., through its subsidiaries, distributes value-added information technology (IT) products and solutions in Italy and internationally. Its Software and System Integration sector provides software, technological innovation, and digital transformation solutions for end user companies in the SME and enterprise segments; IT infrastructure and IoT solutions; artificial intelligence and machine learning solutions; digital and business application services; and HR management solutions, as well as operates solutions on the Microsoft Dynamics platform. This sector also provides cloud services; digital security services; digital manufacturing, processing, and transformation solutions; management, maintenance, technical assistance, and repair services for computers and IT products; and strategic outsourcing services, as well as operates in the cloud computing and systems assistance sectors. In addition, this sector develops and markets ERP software and applications; offers solutions and integrated services on the SAP Business One platform; develops 3cad products for the furniture industry; produces and markets software products, as well as provides IT services for the retail sector; offers project management services; and provides product lifecycle management solutions for manufacturing sector. The company's Business Services sector offers business process outsourcing, security, and digital transformation services for the finance segment. Its Value-Added Distribution sector engages in the value-added distribution of technological, enterprise software and datacenter solutions; management of networking solutions; provision of design services for IT solutions, as well as digital media Adobe solutions; and market of Hitachi data systems solutions. The company's Corporate sector offers logistic services, and marketing and promotion services for the ICT channel. SeSa S.p.A. is headquartered in Empoli, Italy. SeSa S.p.A. operates as a subsidiary of ITH SpA.

How the Company Makes Money

Sesa makes money primarily by selling ICT products and solutions and by providing associated services. A major revenue stream comes from its value-added distribution activities: it purchases hardware, software, and cloud/IT products from technology vendors and resells them to a network of resellers, system integrators, and business customers, earning a gross margin on the resale and on value-added activities (e.g., configuration, logistics, pre/post-sales technical support, training, and marketing services for the channel). In addition, Sesa generates revenue from technology services/solutions activities, where it designs, implements, and manages IT environments for clients—typically earning fees from project-based delivery (systems integration, application/Infrastructure projects, cybersecurity implementations) and from recurring managed services and support contracts (e.g., ongoing operations, monitoring, maintenance, and subscription/consumption management for cloud services). The company’s earnings are influenced by vendor relationships that enable it to distribute and support major technology portfolios and by the scale of its reseller/customer network, which drives product volumes and pull-through for higher-margin services; any specific vendor partnership terms or revenue contribution by vendor are null.

Sesa S.p.A. Financial Statement Overview

Summary

Solid multi-year revenue growth and improved TTM free cash flow support fundamentals, but structurally thin net margins, signs of gross margin pressure, and moderate leverage (~1x debt-to-equity) limit the score.

Income Statement

Revenue has grown solidly over the last several years (from ~€2.0B in 2021 to ~€3.2B in 2025), and TTM (Trailing-Twelve-Months) revenue also increased to ~€3.49B. Profitability is steady at the operating level (EBIT margin ~4–5% and EBITDA margin ~6–7%), but net margin remains thin (~2–3%) and has trended lower versus the stronger 2022–2023 period. TTM (Trailing-Twelve-Months) gross margin also appears meaningfully lower than 2025, pointing to some pressure on value-added economics and/or mix.

Balance Sheet

Leverage looks manageable but not conservative: debt-to-equity sits around ~1.0 in TTM (Trailing-Twelve-Months) (and slightly above 1.0 in 2025). Equity has grown versus earlier years, and returns on equity remain healthy (roughly mid-teens in TTM (Trailing-Twelve-Months), higher in prior years), suggesting the company is still generating decent profitability on its capital base. The main offset is the consistently leverage-tilted structure, which can reduce flexibility if margins compress further.

Cash Flow

Cash generation strengthened materially in TTM (Trailing-Twelve-Months): operating cash flow (~€251M) and free cash flow (~€212M) both improved sharply, with strong free cash flow growth versus the prior annual period. Free cash flow is also a substantial share of net income in TTM (Trailing-Twelve-Months), supporting earnings quality. A watch item is that operating cash flow remains modest relative to revenue (low operating cash flow-to-revenue), implying the business may be working-capital intensive and cash conversion can fluctuate year to year (as seen in 2025).

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	3.49B	3.21B	3.16B	2.87B	2.36B	2.02B
Gross Profit	205.96M	389.57M	226.10M	205.88M	167.83M	126.78M
EBITDA	240.77M	235.04M	233.45M	201.26M	159.32M	119.64M
Net Income	68.32M	62.20M	78.27M	84.45M	73.52M	52.27M
Balance Sheet
Total Assets	2.52B	2.24B	2.12B	1.92B	1.22B	1.10B
Cash, Cash Equivalents and Short-Term Investments	515.80M	576.88M	585.76M	545.50M	498.90M	426.90M
Total Debt	433.40M	475.67M	422.88M	356.08M	406.94M	332.22M
Total Liabilities	2.01B	1.74B	1.64B	1.50B	920.18M	844.61M
Stockholders Equity	448.00M	445.92M	429.58M	374.93M	315.44M	278.63M
Cash Flow
Free Cash Flow	212.42M	60.14M	98.57M	78.96M	120.89M	78.64M
Operating Cash Flow	250.71M	117.23M	137.62M	115.45M	147.89M	95.24M
Investing Cash Flow	-136.93M	-114.91M	-103.75M	-85.19M	-37.76M	-21.10M
Financing Cash Flow	-94.23M	-17.83M	6.10M	10.94M	-51.93M	-51.93M

Sesa S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SES, the sentiment is Negative. The current price of 72.05 is below the 20-day moving average (MA) of 76.64, below the 50-day MA of 83.40, and below the 200-day MA of 81.59, indicating a bearish trend. The MACD of -2.18 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 5.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
DGV	71 Outperform	€296.29M	13.32	―	2.82%	-24.28%	-57.55%
SES	63 Neutral	€1.11B	12.37	15.29%	1.15%	9.50%	0.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TNXT	51 Neutral	€687.00M	-15.45	-1.19%	2.02%	14.90%	-123.79%