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Sesa S.p.A. (IT:SES)
:SES
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Sesa S.p.A.
(SES)
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Select Model
Rating:71Outperform
Price Target:
€91.00
▲(12.42% Upside)
Sesa S.p.A. has a stable financial performance with consistent revenue growth and improved leverage management. The positive sentiment from the recent earnings call, highlighting significant growth in key sectors and strong financial management, enhances the outlook. However, technical indicators suggest short-term bearish momentum, and valuation metrics indicate moderate pricing. The company should focus on improving operating cash flow and addressing sector-specific challenges to sustain long-term growth.
Positive Factors
Revenue Growth
The 8% year-on-year revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.
Debt Management
Improved debt management enhances financial flexibility and reduces interest burden, supporting sustainable growth and investment capacity.
Digital Green VAS Growth
Strong growth in Digital Green VAS reflects successful adaptation to market trends and positions Sesa as a leader in sustainable tech solutions.
Negative Factors
ICT VAS Revenue Decline
Declining ICT VAS revenues suggest challenges in maintaining competitiveness in this segment, potentially impacting overall growth.
Margin Pressure
Decreasing gross profit margins indicate cost management challenges, which could affect profitability if not addressed.
Software and System Integration Challenges
Challenges in the Software and System Integration sector, with declining EBITDA, highlight potential operational inefficiencies and market demand issues.
Sesa S.p.A. (SES) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€1.28B
Dividend Yield1.21%
Average Volume (3M)57.25K
Price to Earnings (P/E)20.4
Beta (1Y)1.07
Revenue Growth3.50%
EPS Growth-19.19%
CountryIT
Employees6,367
SectorServices
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.39
Shares Outstanding15,494,590
10 Day Avg. Volume27,604
30 Day Avg. Volume57,248
Financial Highlights & Ratios
PEG Ratio-0.80
Price to Book (P/B)2.28
Price to Sales (P/S)0.32
P/FCF Ratio16.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€116.37Price Target Upside43.76% 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 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. Earnings Call Summary
Earnings Call Date:Sep 11, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 18, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant revenue and profit growth, notably in the Digital Green VAS and Business Services sectors. Despite some challenges in ICT VAS and Software and System Integration sectors, the company demonstrated strong financial management and commitment to sustainability, enhancing shareholder value.Q1-2026 Updates
Positive Updates
Revenue and Profit Growth
SeSa recorded revenues of EUR 846 million, up 8% year-on-year, and adjusted net profit of EUR 29.8 million, up 6.4% year-on-year. EBITDA also increased by 7.2% year-on-year to EUR 61 million.
Strong Performance in Digital Green VAS
Digital Green VAS revenues increased by 24.7% year-on-year with an EBITDA growth of 18%, driven by 20% organic growth and rising energy needs.
Business Services Sector Profitability
Business Services sector reported a 25% increase in EBITDA year-on-year, driven by focus on digital platforms and vertical applications.
Significant Reduction in Financial Expenses
Net financial position improved by 12% compared to first quarter '25 and by 36% compared to fourth quarter '25, supported by lower interest rates and efficiency measures.
Shareholder Value Enhancement
Approved a dividend of EUR 1 per share and increased share buyback program from EUR 10 million to EUR 25 million, enhancing shareholder value with a payout ratio increase from 30% to 40%.
Sustainability Commitment and ESG Improvements
Continued investments in sustainability and digital green initiatives, with significant improvement in ESG performance and achievement of sustainable development goals.
Negative Updates
ICT VAS Revenue Decline
ICT VAS revenues decreased by 2.7% year-on-year, though showing recovery from an 8.2% decline in the previous quarter.
Software and System Integration Sector Challenges
Software and System Integration sector reported a 2.7% year-on-year decrease in EBITDA due to slower demand and re-engineering activities.
Company Guidance
In the recent conference call discussing the first quarter results for fiscal year 2026, SeSa reported a notable recovery in financial performance. The company achieved consolidated revenues of EUR 846 million, reflecting an 8% year-on-year increase, and an EBITDA of EUR 61 million, up 7.2%. Adjusted net profit grew by 6.4% to EUR 29.8 million, with a group net profit of EUR 27.9 million, marking a 4.5% increase. Organic revenue growth was 2.2%, while EBITDA and adjusted group net profit rose by 4% and 2.3% respectively. Sector-specific performance included a 24.7% revenue growth in Digital Green VAS, driven by 20% organic growth. The Software and System Integration sector saw a 2.8% revenue increase, despite a slower demand in some areas. Business Services grew by 3% organically, bolstered by new agreements with Italian banks. The net financial position improved significantly, with a net debt reduction to EUR 65 million, aided by operational cash flow and reduced financial expenses. The company also reiterated its commitment to achieving its fiscal year 2026 guidance, projecting a 5% to 7.5% growth in revenues and a 5% to 10% increase in EBITDA.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, coupled 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.75
Positive
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.70
Positive
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.68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.29B | 3.21B | 3.16B | 2.87B | 2.02B | 1.76B |
| Gross Profit | 215.87M | 389.57M | 263.91M | 235.29M | 151.59M | 83.72M |
| EBITDA | 225.04M | 235.04M | 241.55M | 201.26M | 159.32M | 119.64M |
| Net Income | 62.54M | 62.20M | 78.27M | 84.45M | 52.27M | 37.91M |
Balance Sheet | ||||||
| Total Assets | 2.23B | 2.24B | 2.12B | 1.92B | 1.22B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 498.95M | 576.88M | 585.76M | 545.50M | 426.90M | 368.94M |
| Total Debt | 419.72M | 475.67M | 422.88M | 356.08M | 332.22M | 314.24M |
| Total Liabilities | 1.71B | 1.74B | 1.64B | 1.50B | 920.18M | 844.61M |
| Stockholders Equity | 463.79M | 445.92M | 429.58M | 374.93M | 278.63M | 236.39M |
Cash Flow | ||||||
| Free Cash Flow | 80.07M | 60.14M | 98.57M | 78.96M | 120.89M | 78.64M |
| Operating Cash Flow | 119.14M | 117.23M | 137.62M | 115.45M | 147.89M | 95.24M |
| Investing Cash Flow | -104.86M | -114.91M | -103.75M | -85.19M | -37.76M | -21.10M |
| Financing Cash Flow | -47.73M | -17.83M | 6.10M | 10.94M | -51.93M | 45.25M |
Sesa S.p.A. Technical Analysis
Negative
80.95
Price Trends
82.93
Negative
79.19
Positive
75.12
Positive
Market Momentum
-0.73
Positive
43.47
Neutral
65.54
Neutral
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 80.95 is below the 20-day moving average (MA) of 85.73, below the 50-day MA of 82.93, and above the 200-day MA of 75.12, indicating a neutral trend. The MACD of -0.73 indicates Positive momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 65.54 is Neutral, 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
UnderperformOutperform
Sector (55)
IT:SES
Sesa S.p.A.
80.95
1.10
1.38%
IT:TNXT
Tinexta SpA
14.89
4.15
38.64%
IT:AIW
Almawave S.p.A.
4.29
1.00
30.40%
IT:DGV
Digital Value SpA
28.85
17.58
155.99%
IT:SPN
Spindox S.P.A
12.95
2.00
18.26%
IT:VNT
Vantea Smart S.p.A.
1.08
0.02
1.89%
Sesa S.p.A. Corporate Events
Sesa S.p.A. Earnings Call Highlights Growth and Sustainability
Sep 12, 2025
The recent earnings call of Sesa S.p.A. painted a generally positive picture, highlighting significant revenue and profit growth, particularly in the Digital Green VAS and Business Services sectors. Despite facing some hurdles in the ICT VAS and Software and System Integration sectors, the company showcased robust financial management and a strong commitment to sustainability, aiming to enhance shareholder value.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.