Tesmec S.p.A. (TES) AI Stock Analysis

• Market Cap: €74.98M
• Dividend Yield: N/A
• Average Volume (3M): 3.99M
• Price to Earnings (P/E): 45.7
• Beta (1Y): 0.42
• Revenue Growth: -1.90%
• EPS Growth: 91.60%
• Country: IT
• Employees: 967
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): <0.01
• Shares Outstanding: 606,460,200
• 10 Day Avg. Volume: 2,456,952
• 30 Day Avg. Volume: 3,990,734
• PEG Ratio: -0.09
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -2.31
• 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: €0.19
• Price Target Upside: 26.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.01
• Revenue Forecast (FY): €277.65M

• Rating: 54 Neutral
• Price Target: €0.15 ▼(-2.67% Downside)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 12/18/25

Tesmec S.p.A.'s overall stock score is driven primarily by its mixed financial performance and positive technical indicators. While the company shows some growth and operational efficiency, high leverage and negative profitability metrics weigh heavily. Technical analysis provides a more favorable outlook, but valuation concerns due to negative earnings and lack of dividends limit the stock's attractiveness.

Positive Factors

Revenue Growth

The positive revenue growth indicates that Tesmec is expanding its market presence and product adoption, which is crucial for long-term sustainability and competitiveness in the infrastructure sector.

Cash Flow Generation

Improved cash flow generation enhances Tesmec's ability to invest in growth opportunities, manage debt, and provide financial stability, supporting its long-term operational strategies.

Gross Profit Margin

A strong gross profit margin indicates efficient production processes, allowing Tesmec to maintain competitive pricing and invest in innovation, which is vital for sustaining long-term profitability.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting Tesmec's ability to invest in growth and increasing vulnerability to economic downturns, impacting long-term financial health.

Negative Net Profit Margin

A negative net profit margin reflects ongoing profitability challenges, which can hinder Tesmec's ability to reinvest in the business and compete effectively, affecting long-term growth prospects.

Negative Return on Equity

Negative return on equity indicates inefficiencies in generating returns on shareholders' investments, which can deter potential investors and affect the company's ability to raise capital for future growth.

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

Company Description

Tesmec S.p.A. designs, produces, and markets products and solutions for the construction, maintenance, and streamlining of infrastructures relating to the transmission of electrical power, data, and material transport in Italy, rest of Europe, the Middle East, Africa, North and Central America, and BRIC and other countries. It operates through Energy, Trencher, and Rail segments. The company offers stringing solutions, such as digital stringing machines, continuous linear puller, full electric machines, tower erection, OPGW installation and safety on crossing, essential machines, reels, ropes, and joints, drum elevators, and reel winders, stringing blocks, pivoting array blocks and head boards, bicycles and trolleys, aluminum structures, overhead tools and accessories, and underground machines, drum elevators and trailers, accessories. It also provides energy automation products comprising protection and control systems; remote control devices; service telecommunications, such as teleprotection and powerline carrier for high voltage grids, and line traps and line matching units for PLC; and smart metering tools. In addition, the company offers rocksaw, chainsaw, and bucket wheel trenchers; surface miners; detection and mapping solutions; mechanical laying solutions; and trenchers with integrated vacuum systems. Further, it provides catenary installation solutions, catenary and track maintenance vehicles, diagnostic solutions and systems, snow removal solutions, and wiring units for railway. Tesmec S.p.A. was founded in 1951 and is headquartered in Grassobbio, Italy.

How the Company Makes Money

Tesmec generates revenue through the sale of its machinery and equipment, which are critical for infrastructure development in energy and telecommunications sectors. The company’s revenue model is primarily based on direct sales of products, complemented by after-sales services, including maintenance, spare parts, and technical support. Key revenue streams include the sale of trenchers and cable laying systems, specialized railway maintenance vehicles, and integrated solutions for network construction. Additionally, Tesmec may engage in partnerships with construction firms and utility companies to provide tailored solutions, which can enhance revenue through long-term contracts and service agreements. Factors contributing to its earnings include global demand for infrastructure development, technological advancements in its product offerings, and strategic collaborations that expand its market reach.

Tesmec S.p.A. Financial Statement Overview

Summary

Tesmec S.p.A. exhibits mixed financial performance. Positive revenue growth and strong gross margins are offset by negative net profit margins and ROE. High leverage is a concern, impacting financial stability, though cash flow generation is improving.

Income Statement

Tesmec S.p.A. shows a mixed performance in its income statement. The company has a positive revenue growth rate of 3.09% in the TTM, indicating some growth momentum. However, the net profit margin is negative at -1.29%, reflecting ongoing profitability challenges. The gross profit margin is strong at 63.52%, suggesting efficient production processes. EBIT and EBITDA margins are moderate at 11.61% and 21.04%, respectively, indicating decent operational efficiency but room for improvement in profitability.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 2.78, which poses a risk in terms of financial stability. The return on equity is negative at -3.68%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at 16.71%, suggesting a relatively low proportion of equity financing, which could limit financial flexibility.

Cash Flow

Cash flow analysis shows some positive trends, with a free cash flow growth rate of 6.41% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 17.30%, suggesting that operating cash flows are covering net income, albeit at a modest level. The free cash flow to net income ratio is 50.07%, reflecting a reasonable conversion of earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	209.96M	235.64M	251.92M	217.30M	180.49M	173.94M
Gross Profit	112.12M	129.52M	41.10M	94.02M	77.98M	63.08M
EBITDA	42.29M	40.28M	26.03M	36.78M	22.64M	9.55M
Net Income	-621.00K	-5.18M	-2.97M	7.86M	1.20M	-6.81M
Balance Sheet
Total Assets	428.32M	423.95M	440.11M	407.69M	358.13M	362.95M
Cash, Cash Equivalents and Short-Term Investments	38.72M	29.64M	53.75M	51.06M	50.29M	70.53M
Total Debt	200.23M	212.03M	235.06M	196.51M	187.88M	188.40M
Total Liabilities	354.11M	346.34M	361.86M	324.32M	285.49M	293.50M
Stockholders Equity	71.58M	74.53M	75.70M	80.85M	72.57M	69.39M
Cash Flow
Free Cash Flow	23.86M	-16.80M	-30.46M	-8.20M	-26.18M	-1.64M
Operating Cash Flow	47.08M	16.09M	9.50M	24.95M	9.08M	20.58M
Investing Cash Flow	4.87M	-26.04M	-44.31M	-35.35M	-28.70M	-32.42M
Financing Cash Flow	-10.82M	-3.63M	37.98M	10.64M	-1.08M	64.73M

Tesmec S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TES, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.17, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 28.26 is Positive, neither overbought nor oversold. The STOCH value of 13.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:TES.

Tesmec S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SAB	60 Neutral	€150.97M	20.01	3.03%	4.22%	3.13%	-57.84%
TES	54 Neutral	€74.98M	45.71	4.08%	―	-1.90%	91.60%
SIT	52 Neutral	€70.91M	5.37	―	―	―	―
FDA	41 Neutral	€666.35K	-6.36	-51.46%	―	-27.40%	82.08%