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

• Market Cap: €1.31B
• Dividend Yield: 1.18%
• Average Volume (3M): 25.07K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.03
• Revenue Growth: 3.48%
• EPS Growth: -19.83%
• Country: IT
• Employees: 6,367
• Sector: Energy
• Sector Strength: 51
• Industry: Information Technology Services
• EPS (TTM): 1.67
• Shares Outstanding: 15,494,590
• 10 Day Avg. Volume: 24,024
• 30 Day Avg. Volume: 25,066
• PEG Ratio: 0.33
• Price to Book (P/B): 4.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.83
• 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: €157.07
• Price Target Upside: 84.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• 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

Financial Performance

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

Earnings

Weaker-than-expected 2Q25 results with top-line growth of +1.3% (-0.6% organic) to €735m and EBITDA decreasing 11% to €51m.

Segment Performance

Weakness in the Digital Green and VAS segments dragged top-line growth, with group total revenue growing only 0.9% year over year to €734.5m.

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 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.

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.

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.

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	1.76B
Gross Profit	284.46M	263.91M	235.29M	151.59M	83.72M	111.29M
EBITDA	234.07M	241.55M	201.26M	159.32M	119.64M	85.18M
Net Income	65.67M	78.27M	84.45M	52.27M	37.91M	37.91M
Balance Sheet
Total Assets	2.41B	2.12B	1.92B	1.22B	1.10B	889.39M
Cash, Cash Equivalents and Short-Term Investments	496.23M	585.76M	545.50M	426.90M	368.94M	249.76M
Total Debt	600.24M	422.88M	356.08M	332.22M	314.24M	208.67M
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

• Technical Analysis Sentiment: Positive
• Last Price: 84.95
• 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 84.95 is above the 20-day moving average (MA) of 80.38, above the 50-day MA of 78.54, and above the 200-day MA of 75.76, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 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
Sector *	76 Outperform	€12.52B	14.44	12.55%	5.15%	3.28%	-1.80%
SES	73 Outperform	€1.31B	19.95	15.23%	1.18%	3.48%	-19.83%
7T4		€576.86M	30.98	4.41%	2.10%	―	―
101		€96.54M	10.96	11.71%	―	―	―
DGV	83 Outperform	€306.47M	8.66		3.16%	-3.76%	-9.21%
SPN		€64.04M	139.90		―	―	―
VNT		€16.31M	32.07		4.17%	―	―