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

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IT:TES

Tesmec S.p.A.

(TES)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
€0.39
▲(162.67% Upside)
Action:Reiterated
Date:06/20/26
The score is driven primarily by mixed financial performance: improving and positive cash generation is outweighed by heavy leverage and near-breakeven net income. Technicals are supportive but overbought, while valuation is a major negative due to the extremely high P/E.
Positive Factors
Cash generation
Tesmec's material positive free cash flow and improving FCF growth (TTM operating cash flow ~€54M; FCF ~€27M, +45.8% TTM) provide durable internal funding. Strong cash conversion versus recent years supports investment, working-capital resilience and the ability to service or reduce debt over time.
Negative Factors
High leverage
Substantial leverage materially constrains financial flexibility. With debt roughly 2.7x equity, interest and refinancing risk are elevated, limiting capacity to fund growth or withstand demand weakness without eroding credit metrics or requiring asset sales or equity issuance.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Tesmec's material positive free cash flow and improving FCF growth (TTM operating cash flow ~€54M; FCF ~€27M, +45.8% TTM) provide durable internal funding. Strong cash conversion versus recent years supports investment, working-capital resilience and the ability to service or reduce debt over time.
Read all positive factors

Tesmec S.p.A. (TES) vs. iShares MSCI Italy ETF (EWI)

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

Company Description
Tesmec S.p.A., headquartered in Grassobbio, Italy since its founding in 1951, develops, manufactures, and distributes specialized solutions globally. The company focuses on the construction, maintenance, and optimization of critical infrastructure...
How the Company Makes Money
Tesmec makes money mainly by selling specialized machinery, systems, and project solutions used to build and maintain critical infrastructure (power grids, telecom/fiber networks, pipelines, and rail networks). Key revenue streams typically includ...

Tesmec S.p.A. Financial Statement Overview

Summary
Cash flow is a key positive (TTM operating cash flow ~€54M; free cash flow ~€27M with strong growth), but overall fundamentals are held back by very thin net profitability (TTM net income ~€0.1M; ~0.03% net margin) and high leverage (TTM debt ~€201M vs equity ~€72.8M; ~2.7x debt-to-equity).
Income Statement
54
Neutral
Balance Sheet
38
Negative
Cash Flow
67
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue271.14M257.61M235.64M251.92M217.30M180.49M
Gross Profit58.83M74.56M129.52M41.10M94.02M77.98M
EBITDA42.90M33.62M40.28M26.03M36.78M22.64M
Net Income48.00K-2.43M-5.18M-2.97M7.86M1.20M
Balance Sheet
Total Assets416.13M402.38M423.95M440.11M407.69M358.13M
Cash, Cash Equivalents and Short-Term Investments30.77M40.98M29.64M53.75M51.06M50.29M
Total Debt201.01M193.30M212.03M235.06M196.51M187.88M
Total Liabilities340.30M328.64M346.34M361.86M324.32M285.49M
Stockholders Equity72.76M70.75M74.53M75.70M80.85M72.57M
Cash Flow
Free Cash Flow27.21M27.64M-16.80M-30.46M-8.20M-26.18M
Operating Cash Flow54.41M48.43M16.09M9.50M24.95M9.08M
Investing Cash Flow-42.84M-18.16M-26.04M-44.31M-35.35M-28.70M
Financing Cash Flow-7.16M-18.37M-3.63M37.98M10.64M-1.08M

Tesmec S.p.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.15
Price Trends
50DMA
0.26
Positive
100DMA
0.21
Positive
200DMA
0.18
Positive
Market Momentum
MACD
0.04
Positive
RSI
64.64
Neutral
STOCH
58.62
Neutral
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 0.15 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.26, and below the 200-day MA of 0.18, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
€4.53B14.648.18%0.92%-9.13%-12.95%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
€3.71B17.4010.16%0.72%0.97%-3.24%
49
Neutral
€242.50M3,930.004.08%8.52%
44
Neutral
€150.71M-5.62-2.86%0.57%-12.22%-631.07%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:TES
Tesmec S.p.A.
0.40
0.35
607.02%
IT:BSS
Biesse SPA
5.50
-2.08
-27.44%
IT:DANR
Danieli & C.Officine Meccaniche SPA
50.20
24.15
92.70%
IT:IP
Interpump Group SPA
34.82
0.70
2.05%
IT:ESAU
Esautomotion SpA
3.06
-0.34
-10.00%
IT:MARP
Marzocchi Pompe S.p.A.
2.24
-0.54
-19.54%
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.Date of analysis: Jun 20, 2026