Tinexta SpA (TNXT) AI Stock Analysis

• Market Cap: €692.97M
• Dividend Yield: 2.02%
• Average Volume (3M): 178.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 14.90%
• EPS Growth: -123.79%
• Country: IT
• Employees: 2,938
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.19
• Shares Outstanding: 47,207,120
• 10 Day Avg. Volume: 163,120
• 30 Day Avg. Volume: 178,319
• PEG Ratio: -0.28
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 12.73
• 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: €15.00
• Price Target Upside: -1.51% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €15.50 ▲(1.77% Upside)

The overall stock score of 61 reflects stable revenue growth and positive technical momentum, but is weighed down by profitability challenges and unattractive valuation metrics. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Stable revenue growth indicates a strong market position and effective business model, supporting long-term sustainability and expansion.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single market, providing resilience against sector-specific downturns and enhancing stability.

Stable Leverage Position

A stable leverage position indicates prudent financial management, ensuring the company can manage its obligations and invest in growth opportunities.

Negative Factors

Profitability Challenges

Declining profitability margins suggest cost pressures and efficiency issues, which may hinder long-term earnings growth and shareholder returns.

Cash Flow Challenges

Decreasing free cash flow can limit the company's ability to invest in new projects, pay down debt, and return capital to shareholders, affecting future growth.

Decreased Return on Equity

A decrease in return on equity indicates reduced efficiency in generating profits from shareholders' investments, potentially impacting investor confidence.

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 generates revenue through a diversified business model that includes multiple key revenue streams. The company derives significant income from its digital identity services, particularly through the provision of digital signatures and electronic invoicing solutions. Additionally, Tinexta's cybersecurity segment contributes to its earnings by offering services that protect businesses from digital threats. Partnerships with various public and private organizations enhance its market reach and service offerings, while ongoing investments in technology and innovation help to maintain a competitive edge in the rapidly evolving digital landscape. The company's revenue is further supported by recurring income from subscription-based services and long-term contracts with clients.

Tinexta SpA Financial Statement Overview

Summary

Tinexta SpA demonstrates stable revenue growth but faces challenges in maintaining profitability margins. The balance sheet reflects a stable leverage position, though profitability from equity has decreased. Cash flow metrics indicate potential liquidity challenges, with declining free cash flow growth. Overall, the company shows resilience in growth but needs to address profitability and cash flow efficiency.

Income Statement

Tinexta SpA shows a stable revenue growth trend with a recent TTM growth rate of 2.15%. However, the gross profit margin has declined from 68.87% in 2024 to 62.97% in the TTM period, indicating increased cost pressures. The net profit margin also decreased significantly from 4.01% to 1.89% TTM, reflecting reduced profitability. Despite these challenges, the company maintains a positive EBIT and EBITDA margin, though both have seen a decline in the TTM period.

Balance Sheet

The company's debt-to-equity ratio has improved slightly in the TTM period to 0.77 from 0.78 in 2024, indicating a stable leverage position. Return on equity has decreased to 2.33% TTM from 4.47% in 2024, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, reflecting a balanced capital structure.

Cash Flow

Tinexta SpA's free cash flow has decreased by 8.74% in the TTM period, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.25, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio of 0.60 indicates a reasonable conversion of net income to free cash flow, though it has declined from previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	496.42M	454.94M	395.78M	357.14M	369.73M	269.08M
Gross Profit	335.83M	313.33M	149.55M	133.13M	135.25M	107.11M
EBITDA	88.64M	93.28M	101.85M	80.38M	69.77M	79.38M
Net Income	600.00K	18.24M	62.99M	32.60M	37.47M	37.14M
Balance Sheet
Total Assets	1.06B	1.17B	1.02B	977.54M	804.25M	521.95M
Cash, Cash Equivalents and Short-Term Investments	65.83M	90.81M	183.38M	239.49M	72.40M	95.78M
Total Debt	366.62M	320.00M	241.80M	211.49M	224.18M	164.36M
Total Liabilities	633.49M	704.44M	563.69M	575.53M	560.60M	348.06M
Stockholders Equity	373.21M	407.96M	409.71M	365.67M	196.66M	169.83M
Cash Flow
Free Cash Flow	51.74M	28.38M	37.21M	48.66M	56.38M	66.71M
Operating Cash Flow	86.20M	70.19M	75.10M	72.78M	72.54M	81.58M
Investing Cash Flow	-41.04M	-123.64M	29.32M	-63.13M	-103.50M	-12.26M
Financing Cash Flow	-71.95M	-35.76M	-95.39M	38.98M	6.40M	-10.11M

Tinexta SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.23
• 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:TNXT, the sentiment is Positive. The current price of 15.23 is above the 20-day moving average (MA) of 14.90, above the 50-day MA of 14.83, and above the 200-day MA of 12.88, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 71.86 is Negative, neither overbought nor oversold. The STOCH value of 83.39 is Negative, 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
REY	74 Outperform	€4.33B	18.39	18.54%	1.00%	9.04%	13.17%
SES	74 Outperform	€1.43B	21.51	15.29%	1.15%	9.50%	0.52%
TXT	67 Neutral	€368.77M	21.66	12.61%	0.80%	28.77%	-3.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TNXT	61 Neutral	€692.97M	-156.05	-1.19%	2.02%	14.90%	-123.79%
WIIT	61 Neutral	€540.11M	59.34	25.60%	1.54%	13.74%	-23.30%
IOT	48 Neutral	€396.27M	-44.17	-3.24%	―	1.84%	-15.49%