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

• Market Cap: €71.73M
• Dividend Yield: N/A
• Average Volume (3M): 8.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -2.77%
• EPS Growth: 2.22%
• 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: 9,419,036
• 30 Day Avg. Volume: 8,531,519
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €0.08
• Price Target Upside: -33.33% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: €0.00 ▼(-100.00% Downside)

Tesmec S.p.A.'s stock score is primarily impacted by its weak financial performance, characterized by declining revenues, high leverage, and cash flow issues. Despite these challenges, the stock shows positive technical momentum, which slightly offsets the poor valuation metrics. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Negative Factors

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

Company Description

Tesmec S.p.A. (TES) is an Italian company specializing in the production of machinery and equipment for the construction, maintenance, and management of infrastructure in various sectors, including energy, telecommunications, and transportation. The company is recognized for its advanced technologies and innovative solutions in the fields of trenchers, cable laying systems, and specialized vehicles designed for the efficient installation of underground and overhead networks.

How the Company Makes Money

Tesmec generates revenue primarily through the sale of its specialized machinery and equipment, including trenchers and cable laying systems, which are used in infrastructure projects worldwide. The company offers a range of products that cater to various sectors such as energy and telecommunications, allowing it to tap into diverse markets. Additionally, Tesmec earns revenue through after-sales services, including maintenance, spare parts, and technical support, which provide ongoing income beyond the initial equipment sales. Strategic partnerships with companies in the construction and utility sectors further enhance its market reach and sales opportunities. The company also benefits from government contracts and projects related to infrastructure development, contributing to its overall earnings.

Tesmec S.p.A. Financial Statement Overview

Summary

Tesmec S.p.A. faces growth and profitability challenges with declining revenues and persistent net losses. Despite operational efficiency with stable EBIT and EBITDA margins, the company is burdened by high leverage and weak cash flow generation, necessitating strategic improvements.

Income Statement

The company exhibits a mixed performance in terms of profitability and growth. Gross profit margin on a TTM basis remains strong at approximately 60.4%, but the net profit margin is negative due to consistent net losses, with TTM net income at -€5.5M. Revenue shows a declining trend with a 7.7% decrease in TTM compared to the previous period, indicating challenges in maintaining sales growth. However, EBIT and EBITDA margins are relatively stable at 10% and 18.8% respectively, suggesting operational efficiency despite top-line pressures.

Balance Sheet

The balance sheet indicates a concerning level of leverage with a high debt-to-equity ratio of approximately 2.99. The equity ratio is relatively low at 16.7%, reflecting significant reliance on debt financing. Despite these risks, the company maintains a reasonable level of liquidity with cash and short-term investments of €57.6M. Return on equity is negative due to net losses, highlighting profitability challenges.

Cash Flow

Cash flow statements show a decline in free cash flow, with a negative TTM free cash flow of -€4.87M. Despite this, the operating cash flow to net income ratio is positive at approximately -3.45, indicating better cash earnings than accounting profits. However, negative free cash flow to net income ratio signals issues in cash generation relative to reported losses.

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: 0.12
• 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 0.12 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 82.23 is Negative, neither overbought nor oversold. The STOCH value of 84.09 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
SAB	64 Neutral	158.23M	46.76	4.18%	4.11%	3.56%	-70.43%
TES	53 Neutral	€71.73M	―	3.93%	―	-2.77%	2.22%
FDA	38 Underperform	1.65M	>-0.01	-315.72%	―	-38.87%	-89.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%