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Tesmec S.p.A. (IT:TES)
:TES
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Tesmec S.p.A.
(LSE:TES)
Rating:58Neutral
Price Target:―
Positive Factors
Debt Reduction
The transaction with OT Engineering has a material positive impact on Tesmec, leading to a reduction of Eu9.5mn in net debt.
Earnings
1Q25 results came in slightly above expectations, denoting a solid start to the year despite macro uncertainties.
Partnership
Management also announced a partnership with Alstom for the supply of catenary and diagnostic services which should support results in the years to come.
Negative Factors
Financial Structure
Despite a challenging macroeconomic environment and a weak financial structure, the company is executing in line with expectations.
Macroeconomic Environment
Despite a challenging macroeconomic environment, the recommendation for Tesmec was upgraded to OUTPERFORM, as the risk/return profile looks attractive.
Tesmec S.p.A. (TES) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€32.92M
Dividend YieldN/A
Average Volume (3M)1.90M
Price to Earnings (P/E)―
Beta (1Y)0.37
Revenue Growth-4.80%
EPS Growth-237.04%
CountryIT
Employees967
SectorIndustrials
Sector Strength93
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding606,460,200
10 Day Avg. Volume1,209,274
30 Day Avg. Volume1,902,943
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.50
Price to Sales (P/S)0.00
P/FCF Ratio-1.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€0.08Price Target Upside60.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Tesmec S.p.A. Business Overview & Revenue Model
Company DescriptionTesmec 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 MoneyTesmec S.p.A. generates revenue primarily through the sale and leasing of its specialized equipment and systems across its three business sectors. The stringing equipment segment provides substantial income through the manufacturing and sale of machinery used in the installation of power lines and fiber optic cables. In the railway electrification sector, the company earns by supplying equipment and services for the construction and maintenance of railway infrastructures. The surface mining segment contributes to revenue through the sale and rental of trenchers and surface miners used in mining and quarrying operations. Additionally, Tesmec offers after-sales services, including maintenance, spare parts, and support, which provide a recurring revenue stream. Strategic partnerships and collaborations with major energy and telecom companies, as well as their global presence, further bolster their market reach and revenue potential.
Tesmec S.p.A. Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 222.96M | 251.92M | 217.30M | 180.49M | 173.94M | 192.29M | Gross Profit |
| 113.66M | 41.10M | 94.02M | 77.98M | 63.08M | 77.25M | EBIT |
| 20.44M | 11.06M | 13.12M | 8.83M | -2.66M | 8.37M | EBITDA |
| 40.41M | 26.03M | 36.78M | 22.64M | 9.55M | 19.25M | Net Income Common Stockholders |
| -5.18M | -2.97M | 7.86M | 1.20M | -6.81M | 2.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 29.64M | 53.75M | 51.06M | 50.29M | 70.53M | 17.99M | Total Assets |
| 423.95M | 440.11M | 407.69M | 358.13M | 362.95M | 296.55M | Total Debt |
| 212.03M | 235.06M | 196.51M | 187.88M | 188.40M | 148.04M | Net Debt |
| 182.47M | 181.38M | 145.53M | 137.69M | 117.98M | 130.11M | Total Liabilities |
| 346.34M | 361.86M | 324.32M | 285.49M | 293.50M | 250.40M | Stockholders Equity |
| 74.53M | 75.70M | 80.85M | 72.57M | 69.39M | 46.10M |
| Cash Flow | Free Cash Flow | ||||
| -16.80M | -30.46M | -8.20M | -26.18M | -1.64M | -24.86M | Operating Cash Flow |
| 16.09M | 9.50M | 24.95M | 9.08M | 20.58M | -1.06M | Investing Cash Flow |
| -26.04M | -44.31M | -35.35M | -28.70M | -32.42M | -22.30M | Financing Cash Flow |
| -3.63M | 37.98M | 10.64M | -1.08M | 64.73M | -1.78M |
Tesmec S.p.A. Technical Analysis
Negative
0.05
Price Trends
0.06
Negative
0.06
Negative
0.07
Negative
Market Momentum
>-0.01
Negative
36.36
Neutral
40.00
Neutral
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 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.36 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.49B | 12.28 | 5.32% | 248.53% | 4.08% | -12.00% | |
58 Neutral | €32.92M | ― | 1.52% | ― | -4.80% | -237.04% | |
| €4.55M | ― | ― | ― | ― | |||
| €164.96M | 27.85 | 3.89% | 4.03% | ― | ― | ||
| €37.04M | 40.72 | 1.67% | ― | ― | |||
| €18.83M | 57.14 | 7.09% | ― | ― | |||
| €33.47M | ― | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
IT:TES
Tesmec S.p.A.
0.05
-0.04
-41.30%
GB:0EFO
Fidia Spa
7.26
0.00
0.00%
GB:0NIG
Sabaf Technology and Safety
14.40
-4.83
-25.12%
IT:ESAU
Esautomotion SpA
3.16
-0.49
-13.42%
IT:MARP
Marzocchi Pompe S.p.A.
2.88
-1.00
-25.77%
IT:SIT
SIT S.p.A.
1.30
-0.54
-29.35%
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.