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

• Market Cap: €67.52M
• Dividend Yield: N/A
• Average Volume (3M): 3.99M
• Price to Earnings (P/E): ―
• 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: €0.17
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €0.15 ▼(-14.12% Downside)

The overall stock score is primarily impacted by financial performance challenges, including declining revenues, high leverage, and cash flow issues. Technical analysis shows strong bullish momentum, but overbought indicators suggest caution. Valuation is poor due to negative earnings and lack of dividend yield.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, which can support long-term profitability if operational efficiencies are maintained.

Technological Advancements

Technological advancements in product offerings can enhance competitive advantage, driving demand and supporting revenue growth in infrastructure sectors.

Strategic Collaborations

Strategic collaborations can expand market reach and secure long-term contracts, providing stable revenue streams and enhancing market position.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting financial flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Declining Revenue Trend

A declining revenue trend suggests challenges in market demand or competitive positioning, which could hinder long-term growth prospects if not addressed.

Negative Cash Flow

Negative cash flow growth indicates challenges in generating sufficient cash to support operations and investments, potentially affecting financial health and growth capacity.

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

Company Description

Tesmec S.p.A. (TES) is an Italian multinational company that specializes in the design, manufacture, and marketing of technologically advanced machinery and equipment for the construction and maintenance of infrastructure in various sectors, including energy, telecommunications, and transportation. The company operates primarily in three main business areas: the production of trenchers and cable laying systems, the development of specialized vehicles for railway maintenance, and the provision of integrated solutions for the construction of electrical and telecommunication networks. Tesmec's core products include trenchers, aerial platforms, and wire pulling systems, which are utilized globally in various infrastructure projects.

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. faces challenges with declining revenues and profitability, high leverage, and cash flow issues. While operational margins are moderate, they are not sufficient to overcome net losses and financial risks associated with high debt levels.

Income Statement

Tesmec S.p.A. shows a declining revenue trend with a negative revenue growth rate of -5.73% in the TTM. The gross profit margin is relatively strong at 60.43%, but the net profit margin is negative, indicating losses. EBIT and EBITDA margins are moderate, suggesting operational efficiency but not translating into net profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 2.99, indicating significant leverage, which poses financial risk. Return on equity is negative, reflecting losses. The equity ratio is not provided, but the high leverage suggests a low equity ratio, indicating potential financial instability.

Cash Flow

Free cash flow growth is significantly negative, and the free cash flow to net income ratio is also negative, indicating cash flow challenges. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	203.66M	235.64M	251.92M	217.30M	180.49M	173.94M
Gross Profit	129.36M	129.52M	41.10M	94.02M	77.98M	63.08M
EBITDA	42.85M	40.28M	26.03M	36.78M	22.64M	9.55M
Net Income	-2.63M	-5.18M	-2.97M	7.86M	1.20M	-6.81M
Balance Sheet
Total Assets	416.96M	423.95M	440.11M	407.69M	358.13M	362.95M
Cash, Cash Equivalents and Short-Term Investments	27.03M	29.64M	53.75M	51.06M	50.29M	70.53M
Total Debt	197.62M	212.03M	235.06M	196.51M	187.88M	188.40M
Total Liabilities	342.91M	346.34M	361.86M	324.32M	285.49M	293.50M
Stockholders Equity	70.97M	74.53M	75.70M	80.85M	72.57M	69.39M
Cash Flow
Free Cash Flow	22.42M	-16.80M	-30.46M	-8.20M	-26.18M	-1.64M
Operating Cash Flow	44.77M	16.09M	9.50M	24.95M	9.08M	20.58M
Investing Cash Flow	-3.48M	-26.04M	-44.31M	-35.35M	-28.70M	-32.42M
Financing Cash Flow	-15.77M	-3.63M	37.98M	10.64M	-1.08M	64.73M

Tesmec S.p.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TES, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.13, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 87.05 is Negative, neither overbought nor oversold. The STOCH value of 96.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	57 Neutral	€157.10M	45.78	3.03%	4.00%	3.13%	-57.84%
TES	54 Neutral	€67.52M	―	6.78%	―	-1.90%	91.60%
FDA	38 Underperform	€4.17M	-0.06	-51.46%	―	-27.40%	82.08%