tiprankstipranks
Trending News
More News >
Sesa S.p.A. (IT:SES)
:SES

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

Compare
14 Followers

Top Page

IT

Sesa S.p.A.

(LSE:SES)

Rating:73Outperform
Price Target:
Sesa S.p.A. demonstrates a solid financial foundation with healthy revenue growth and efficient cash management. Technical indicators show moderate positioning with some potential resistance, while the valuation is reasonable with a moderate P/E ratio and average dividend yield. Key strengths include effective cash flow management and a balanced capital structure. However, reliance on debt financing and potential margin improvement are areas to watch. The overall score highlights a stable but cautious outlook.
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)

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
80
Positive
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.
Balance Sheet
75
Positive
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.
Cash Flow
78
Positive
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.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
3.20B3.16B2.87B2.02B1.76B1.54B
Gross Profit
284.46M263.91M235.29M151.59M83.72M88.97M
EBIT
151.43M139.29M142.66M84.00M63.90M52.72M
EBITDA
234.07M241.55M201.26M159.32M119.64M87.89M
Net Income Common Stockholders
65.67M78.27M84.45M52.27M37.91M29.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
496.23M585.76M545.50M426.90M368.94M249.76M
Total Assets
2.41B2.12B1.92B1.22B1.10B889.39M
Total Debt
600.24M422.88M356.08M332.22M314.24M208.67M
Net Debt
104.01M-154.60M-181.43M-94.44M-54.22M-40.40M
Total Liabilities
1.89B1.64B1.50B920.18M844.61M656.77M
Stockholders Equity
443.60M429.58M374.93M278.63M236.39M219.28M
Cash FlowFree Cash Flow
80.26M98.57M78.96M120.89M78.64M14.76M
Operating Cash Flow
119.50M137.62M115.45M147.89M95.24M28.83M
Investing Cash Flow
-113.15M-103.75M-85.19M-37.76M-21.10M-26.47M
Financing Cash Flow
8.26M6.10M10.94M-51.93M45.25M-484.00K

Sesa S.p.A. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price78.95
Price Trends
50DMA
73.41
Positive
100DMA
70.75
Positive
200DMA
77.03
Positive
Market Momentum
MACD
2.55
Positive
RSI
55.22
Neutral
STOCH
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
ITSES
73
Outperform
€1.25B18.9115.23%1.24%3.48%-19.83%
57
Neutral
$7.14B3.01-3.46%5.69%0.76%-49.20%
DE7T4
€521.35M28.674.41%4.11%
DE101
€97.14M10.9311.71%
ITDGV
74
Outperform
€283.05M8.00
3.42%-3.76%-9.21%
ITSPN
€57.99M127.72
ITVNT
€15.86M
4.05%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.