Tinexta SpA (TNXT) AI Stock Analysis

• Market Cap: €564.47M
• Dividend Yield: 2.47%
• Average Volume (3M): 196.82K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.02
• Revenue Growth: 15.67%
• EPS Growth: -18.75%
• Country: IT
• Employees: 2,938
• Sector: Technology
• Sector Strength: 91
• Industry: Information Technology Services
• EPS (TTM): -0.07
• Shares Outstanding: 47,207,120
• 10 Day Avg. Volume: 141,201
• 30 Day Avg. Volume: 196,825
• PEG Ratio: -12.07
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.78
• 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: €14.63
• Price Target Upside: 22.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: €13.50 ▲(13.45%Upside)

Tinexta SpA exhibits strong technical momentum and solid financial performance, contributing significantly to the overall score. Valuation concerns due to a high P/E ratio slightly offset these strengths. With no earnings call or corporate events data available, these components were excluded from the analysis.

Positive Factors

Financial Performance

The company delivered results ahead of expectations, particularly on margins and cash generation.

Market Confidence

The stock price reacted positively, over +14% on the day of the CMD, indicating market confidence in restructuring measures and performance of recently acquired companies.

Strategic Integration

The strategic integration of Defence Tech started to unlock synergies, while ABF showed initial signs of recovery.

Negative Factors

Delayed Contracts

Digital Trust was weaker due to delayed contracts at Ascertia, and Cybersecurity had a soft start in its legacy business.

Financial Challenges

FY24 results were below expectations in terms of revenues and adjusted EBITDA, indicating challenges in achieving anticipated financial performance.

Revenue Shortfall

4Q24 results, despite being better than feared, fell short of initial projections, with quarterly revenues missing the initial Eu154.6mn projection.

Tinexta SpA Business Overview & Revenue Model

Company Description

Tinexta SpA (TNXT) is an Italian company that operates in multiple sectors, primarily focusing on digital trust, cybersecurity, innovation, and marketing services. The company provides a range of services including digital identity management, cybersecurity solutions, and business information services. Tinexta is dedicated to supporting businesses and institutions in their digital transformation efforts, ensuring secure and efficient operations through its specialized offerings.

How the Company Makes Money

Tinexta SpA generates revenue through a diversified business model that includes several key streams. The company's digital trust sector offers services such as electronic invoicing, digital signature, and certified email, which are essential for companies operating in regulated industries. Its cybersecurity division provides comprehensive security solutions to protect organizations from digital threats. Additionally, the company's innovation and marketing services division supports businesses with tools and strategies to enhance their market presence and competitiveness. Tinexta also benefits from strategic partnerships and acquisitions that expand its service offerings and market reach, contributing to its financial performance.

Tinexta SpA Financial Statement Overview

Summary

Tinexta SpA demonstrates solid financial health with significant revenue growth and robust cash flow generation, though experiencing some margin compression in the income statement. The balance sheet reflects a stable leverage position and strong equity financing, supporting the company’s long-term growth potential despite some moderation in profitability metrics.

Income Statement

Tinexta SpA has shown strong revenue growth with a TTM revenue of €475.51M, up from €454.94M annually. The gross profit margin for TTM is 55.74%, a decrease from the previous year’s 68.87%, indicating a potential increase in cost of sales. The net profit margin for TTM is 3.73%, slightly below last year’s 4.01%. EBIT and EBITDA margins are stable, suggesting a consistent operating performance.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.99 for TTM, reflecting a balanced leverage position. The return on equity (ROE) for TTM is 4.33%, which is lower than the previous year, indicating decreased efficiency in generating profits from equity. The equity ratio stands at 35.27%, highlighting solid equity financing and stability in the asset base.

Cash Flow

Tinexta SpA exhibits a strong cash flow position with free cash flow growth of 39.63% in TTM. The operating cash flow to net income ratio is 4.43 in TTM, showcasing robust cash generation relative to net income. Additionally, the free cash flow to net income ratio of 2.24 reinforces efficient cash utilization.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	454.94M	395.78M	357.14M	369.73M	269.08M
Gross Profit	313.33M	149.55M	133.13M	135.25M	107.11M
EBITDA	93.28M	101.28M	80.38M	69.77M	79.38M
Net Income	18.24M	62.99M	32.60M	37.47M	37.14M
Balance Sheet
Total Assets	1.17B	1.02B	977.54M	804.25M	521.95M
Cash, Cash Equivalents and Short-Term Investments	90.81M	183.38M	239.49M	72.40M	95.78M
Total Debt	320.00M	170.45M	211.49M	224.18M	164.36M
Total Liabilities	704.44M	563.69M	575.53M	560.60M	348.06M
Stockholders Equity	407.96M	409.71M	365.67M	196.66M	169.83M
Cash Flow
Free Cash Flow	28.38M	37.21M	48.66M	56.38M	66.71M
Operating Cash Flow	70.19M	75.10M	72.78M	72.54M	81.58M
Investing Cash Flow	-123.64M	29.32M	-63.13M	-103.50M	-12.26M
Financing Cash Flow	-35.76M	-95.39M	38.98M	6.40M	-10.11M

Tinexta SpA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TNXT, the sentiment is Neutral. The current price of 11.9 is below the 20-day moving average (MA) of 11.96, above the 50-day MA of 11.28, and above the 200-day MA of 9.27, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 18.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:TNXT.

Tinexta SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXT	75 Outperform	€414.64M	25.12	12.37%	0.71%	37.78%	-3.90%
TNXT	74 Outperform	€564.47M	31.55	4.41%	2.47%	15.67%	-18.75%
SES	73 Outperform	€1.29B	19.61	15.23%	1.20%	3.48%	-19.83%
REY	67 Neutral	€5.25B	24.93	17.49%	0.82%	8.40%	13.09%
WIIT	65 Neutral	€400.93M	42.19	25.87%	1.98%	24.38%	2.92%
Sector *	62 Neutral	£513.95M	25.14	-8.61%	2.53%	4.27%	-25.32%
IOT	56 Neutral	€325.13M	―	-8.20%	―	-9.38%	-345.16%