Education
About Us
Working with TipRanks
Follow Us
Sesa S.p.A. (IT:SES)
:SES
Top Page
Sesa S.p.A.
(LSE:SES)
Rating:73Outperform
Price Target:―
Positive Factors
Earnings
3Q results beat forecasts, especially in terms of cash flow, with revenues up 11.7% YoY and EBITDA rising 2.6% YoY.
Market Position
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
Financial Performance
2Q revenues/EBITDA were weaker than expected, hit by contraction in VAS and Digital Green segments.
Profitability
EBITDA margin decreased to 6.9% partly driven by the dilution effect from the GreenSun acquisition and continued investments in the SSI business.
Sesa S.p.A. (SES) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€1.25B
Dividend Yield1.24%
Average Volume (3M)28.16K
Price to Earnings (P/E)18.9
Beta (1Y)1.05
Revenue Growth3.48%
EPS Growth-19.83%
CountryIT
Employees6,367
SectorEnergy
Sector Strength47
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.67
Shares Outstanding15,494,590
10 Day Avg. Volume31,846
30 Day Avg. Volume28,161
Financial Highlights & Ratios
PEG Ratio3.65
Price to Book (P/B)2.40
Price to Sales (P/S)0.00
P/FCF Ratio14.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€157.07Price Target Upside98.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Sesa S.p.A. Business Overview & Revenue Model
Company DescriptionSeSa 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 MoneySesa S.p.A. generates revenue through a diversified business model that includes the distribution of IT products and services and the provision of IT consulting and system integration services. The company partners with leading technology vendors and leverages its extensive distribution network to deliver hardware and software products to a broad customer base. In addition to distribution, Sesa earns significant revenue from offering IT consulting services, helping clients with digital transformation initiatives, system integration, and managed services. Strategic partnerships with top technology firms and a focus on high-value segments contribute significantly to Sesa's earnings, allowing the company to provide comprehensive solutions that address complex business challenges.
Sesa S.p.A. Financial Statement Overview
Summary
Sesa S.p.A. exhibits healthy financial performance with consistent revenue growth and efficient cash management. The company shows a stable income statement with room for margin improvement, a balanced but debt-reliant balance sheet, and strong cash flow ratios despite a recent decline in free cash flow growth. Continued focus on improving profitability and reducing debt reliance could enhance financial stability further.Income Statement
Sesa S.p.A. demonstrated solid revenue growth with a 12% increase year-over-year from 2024 to TTM (Trailing-Twelve-Months). The gross profit margin stands at 8.88%, while the net profit margin is at 2.05%. These margins indicate moderate profitability but show room for improvement. EBIT and EBITDA margins of 4.73% and 7.31% respectively, suggest stable operational efficiency.80
Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 1.35, indicating a balanced capital structure with a manageable level of debt. The return on equity (ROE) is at 14.81%, showing effective use of shareholders' equity. The equity ratio of 18.39% points to a reliance on debt financing, which could pose risks in volatile markets.75
Positive
Cash Flow
Operating cash flow to net income ratio is strong at 1.82, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also robust at 1.22, suggesting healthy cash flow management. However, the free cash flow growth rate shows a decline of 18.56% from 2024 to TTM, which warrants attention.78
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.20B | 3.16B | 2.87B | 2.02B | 1.76B | 1.54B | Gross Profit |
| 284.46M | 263.91M | 235.29M | 151.59M | 83.72M | 88.97M | EBIT |
| 151.43M | 139.29M | 142.66M | 84.00M | 63.90M | 52.72M | EBITDA |
| 234.07M | 241.55M | 201.26M | 159.32M | 119.64M | 87.89M | Net Income Common Stockholders |
| 65.67M | 78.27M | 84.45M | 52.27M | 37.91M | 29.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 496.23M | 585.76M | 545.50M | 426.90M | 368.94M | 249.76M | Total Assets |
| 2.41B | 2.12B | 1.92B | 1.22B | 1.10B | 889.39M | Total Debt |
| 600.24M | 422.88M | 356.08M | 332.22M | 314.24M | 208.67M | Net Debt |
| 104.01M | -154.60M | -181.43M | -94.44M | -54.22M | -40.40M | Total Liabilities |
| 1.89B | 1.64B | 1.50B | 920.18M | 844.61M | 656.77M | Stockholders Equity |
| 443.60M | 429.58M | 374.93M | 278.63M | 236.39M | 219.28M |
| Cash Flow | Free Cash Flow | ||||
| 80.26M | 98.57M | 78.96M | 120.89M | 78.64M | 14.76M | Operating Cash Flow |
| 119.50M | 137.62M | 115.45M | 147.89M | 95.24M | 28.83M | Investing Cash Flow |
| -113.15M | -103.75M | -85.19M | -37.76M | -21.10M | -26.47M | Financing Cash Flow |
| 8.26M | 6.10M | 10.94M | -51.93M | 45.25M | -484.00K |
Sesa S.p.A. Technical Analysis
Neutral
78.95
Price Trends
73.41
Positive
70.75
Positive
77.03
Positive
Market Momentum
2.55
Positive
55.22
Neutral
41.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SES, the sentiment is Neutral. The current price of 78.95 is below the 20-day moving average (MA) of 80.83, above the 50-day MA of 73.41, and above the 200-day MA of 77.03, indicating a neutral trend. The MACD of 2.55 indicates Positive momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 41.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:SES.
Sesa S.p.A. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | €1.25B | 18.91 | 15.23% | 1.24% | 3.48% | -19.83% | |
57 Neutral | $7.14B | 3.01 | -3.46% | 5.69% | 0.76% | -49.20% | |
| €521.35M | 28.67 | 4.41% | 4.11% | ― | ― | ||
| €97.14M | 10.93 | 11.71% | ― | ― | ― | ||
74 Outperform | €283.05M | 8.00 | 3.42% | -3.76% | -9.21% | ||
| €57.99M | 127.72 | ― | ― | ― | |||
| €15.86M | ― | 4.05% | ― | ― |
* Energy Sector Average
Performance Comparison
IT:SES
Sesa S.p.A.
78.95
-28.43
-26.48%
DE:7T4
Tinexta SpA
11.18
-5.70
-33.77%
DE:101
Almawave S.p.A.
3.14
-1.37
-30.38%
IT:DGV
Digital Value SpA
28.25
-33.07
-53.93%
IT:SPN
Spindox S.P.A
9.86
0.42
4.45%
IT:VNT
Vantea Smart S.p.A.
1.22
-0.82
-40.20%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.