Tinexta SpA (TNXT) AI Stock Analysis

• Market Cap: €514.45M
• Dividend Yield: 2.33%
• Average Volume (3M): 208.67K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.00
• Revenue Growth: 15.67%
• EPS Growth: -18.75%
• Country: IT
• Employees: 2,938
• Sector: Technology
• Sector Strength: 81
• Industry: Information Technology Services
• EPS (TTM): -0.07
• Shares Outstanding: 47,207,120
• 10 Day Avg. Volume: 147,566
• 30 Day Avg. Volume: 208,673
• PEG Ratio: -2.60
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.52
• 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: 30.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: €12.50 ▲(11.51%Upside)

Tinexta SpA's overall stock score is primarily driven by strong technical momentum and solid financial performance, despite some concerns over profitability and rising debt. The valuation is somewhat high, but the dividend yield provides a compensating factor.

Positive Factors

Financial Performance

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

Market Positioning

The streamlined ‘One group, One brand’ approach is expected to further enhance the market positioning over the coming quarters.

Stock Valuation

The stock is currently trading at attractive levels of 7.4x EV/EBITDA and 8.8x P/E on 2025 numbers, offering sizeable upside to the current price.

Negative Factors

Business Segment Performance

Profitability probably affected by less favourable mix: expected top line trends should be reflected in margins, which are expected to have expanded in Digital Trust and Cybersecurity, but to have come under pressure in Business Innovation.

Financial Challenges

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

Revenue Performance

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 S.p.A. provides digital trust, cybersecurity, credit information and management, and innovation and marketing services to large companies, banks, insurance and financial companies, SMEs, associations, and professionals in Italy and internationally. The company offers digital trust products, such as certified e-mail, digital signature, time stamps, e- invoicing, digital preservation, and digital identity, as well as dematerialization solutions; data distribution platforms, software and electronic services; commercial information and credit recovery services; real estate information and appraisal services; marketing consulting services; innovation consulting services for businesses that invest in productivity, innovation, research, and development in order to obtain incentives, contributions, and subsidized financing; cybersecurity and IT services; and other innovation services. The company was formerly known as Tecnoinvestimenti S.p.A. and changed its name to Tinexta S.p.A. in November 2018. The company was founded in 2009 and is headquartered in Rome, Italy. Tinexta S.p.A. is a subsidiary of Tecno Holding S.p.A.

How the Company Makes Money

Tinexta SpA generates revenue through a diversified business model that includes several key streams. The Digital Trust segment provides services such as electronic invoicing, digital signatures, and identity verification, which are critical for secure digital transactions and compliance with regulatory requirements. The Cybersecurity division offers solutions to protect against data breaches and cyber threats, catering to the growing demand for robust security infrastructure. The Credit Information & Management segment provides credit assessment, debt collection, and other financial services that support businesses in managing their credit risk effectively. Additionally, the Innovation & Marketing Services division helps enterprises with business development strategies and digital transformation initiatives. Strategic partnerships and collaborations with financial institutions, governments, and other corporations further enhance the company's market reach and revenue potential.

Tinexta SpA Financial Statement Overview

Summary

Tinexta SpA demonstrates strong revenue growth and operational efficiency, especially in its income statement. However, challenges in profitability and increased leverage present potential risks. The balance sheet remains stable, supported by a solid equity base, but rising debt levels should be monitored. Cash flows indicate effective operational cash generation but highlight pressures from capital investments.

Income Statement

Tinexta SpA has shown consistent revenue growth with a significant increase from €395.8 million in 2023 to €454.9 million in 2024, marking a 14.9% growth rate. The gross profit margin improved, indicating more efficient cost management. However, the net profit margin decreased from 15.9% to 4.0% in 2024, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

The company's balance sheet shows a robust equity position with a debt-to-equity ratio of 0.79, which is manageable. However, the increase in total debt to €320 million in 2024 raises some concerns about leverage. The equity ratio remains stable at around 35%, indicating a solid foundation. Return on equity has decreased, reflecting the decline in net income relative to equity.

Cash Flow

Tinexta SpA's operating cash flow remains strong, but there is a noticeable decline in free cash flow from €37.2 million to €28.4 million, indicating increased capital expenditures or other cash outflows. The free cash flow to net income ratio has decreased, aligning with lower profitability. Despite these challenges, the operating cash flow to net income ratio suggests good cash generation capacity relative to profits.

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
	EBIT
39.12M	52.40M	51.61M	56.94M	52.88M
	EBITDA
93.28M	101.28M	80.38M	69.77M	79.38M
	Net Income Common Stockholders
18.24M	62.99M	32.60M	37.47M	37.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
90.81M	183.38M	239.49M	72.40M	95.78M
	Total Assets
1.17B	1.02B	977.54M	804.25M	521.95M
	Total Debt
320.00M	170.45M	211.49M	224.18M	164.36M
	Net Debt
247.25M	8.77M	96.21M	155.93M	71.55M
	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: Positive
• Last Price: 11.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TNXT, the sentiment is Positive. The current price of 11.21 is above the 20-day moving average (MA) of 11.06, above the 50-day MA of 10.09, and above the 200-day MA of 9.23, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 59.36 is Neutral, neither overbought nor oversold. The STOCH value of 60.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:TNXT.

Tinexta SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TNXT	73 Outperform	€514.45M	28.75	4.41%	2.33%	15.67%	-18.75%
Sector *	62 Neutral	$11.89B	9.95	-7.22%	4.98%	7.31%	-8.91%
0RV0		€5.31B	25.23	17.49%	0.81%	―	―
0QHK		€1.21B	18.69	15.23%	1.26%	―	―
0NLD		€385.23M	24.51	12.73%	0.73%	―	―
7GV		€294.54M	―	-8.20%	―	―	―
9PC		€394.59M	39.74	25.87%	2.10%	―	―