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

• Market Cap: €104.70M
• Dividend Yield: N/A
• Average Volume (3M): 3.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• 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: 13.33% Upside
• 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 ▼(-2.67% Downside)

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. (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	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: Positive
• Last Price: 0.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.16, above the 50-day MA of 0.14, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.63 is Neutral, neither overbought nor oversold. The STOCH value of 73.84 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

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	€157.10M	37.32	3.03%	4.22%	3.13%	-57.84%
TES	54 Neutral	€104.70M	-170.00	6.78%	―	-1.90%	91.60%
SIT	52 Neutral	€71.65M	-3.26	―	―	―	―
FDA	41 Neutral	€3.72M	-0.03	-51.46%	―	-27.40%	82.08%