Technoprobe S.p.A. (TPRO) AI Stock Analysis

• Market Cap: €4.53B
• Dividend Yield: N/A
• Average Volume (3M): 363.81K
• Price to Earnings (P/E): 68.2
• Beta (1Y): 1.01
• Revenue Growth: 32.71%
• EPS Growth: -37.38%
• Country: IT
• Employees: 2,876
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 0.10
• Shares Outstanding: 653,260,860
• 10 Day Avg. Volume: 404,067
• 30 Day Avg. Volume: 363,815
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €7.83
• Price Target Upside: 12.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: €6.50 ▼(-6.47% Downside)

Technoprobe S.p.A. shows strong financial fundamentals with robust revenue growth and a solid balance sheet. However, technical indicators point to bearish momentum, and the high P/E ratio suggests overvaluation. The absence of dividend yield further impacts its attractiveness.

Positive Factors

AI Growth

The company stated that it expects AI to continue its growth trajectory, helping the overall growth of the company.

Future Growth

2025 is anticipated to be a year of growth for Technoprobe, with strong demand for leading edge nodes and newer 2nm designs.

Negative Factors

Financial Performance

Technoprobe reported Q3-24 results and offered Q4-24 guidance yesterday afternoon and missed on all metrics.

Market Weakness

Auto & Industrial (~20% of sales) however, remain the weak spot, which shouldn't be surprising in light of recent news.

Profitability Challenges

Lack of scale and high costs for the AI probe card are leading to lower profitability for Technoprobe.

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

Company Description

Technoprobe S.p.A. (TPRO) is a leading company in the semiconductor industry, specializing in the design and production of probe cards. These are essential components used in the testing phase of integrated circuits (ICs), critical for ensuring the functionality and reliability of semiconductor devices. Technoprobe operates globally, serving major semiconductor manufacturers with high-quality, innovative testing solutions.

How the Company Makes Money

Technoprobe S.p.A. generates revenue primarily through the sale of its probe cards to semiconductor manufacturers. These cards are used in the testing of semiconductor wafers to ensure they meet quality standards before proceeding to the packaging stage. The company benefits from the growing demand for semiconductors across various industries, including consumer electronics, automotive, and telecommunications. In addition to direct sales, Technoprobe might engage in partnerships or collaborations with major semiconductor companies, enhancing its market reach and technological capabilities. The company's focus on innovation and customization allows it to cater to specific customer needs, providing a competitive advantage in the market.

Technoprobe S.p.A. Financial Statement Overview

Summary

Technoprobe S.p.A. demonstrates commendable financial health with strong revenue growth and stable cash flows. The company maintains a robust balance sheet with minimal leverage and high equity levels. While profitability margins are generally solid, a decline in EBIT margin suggests areas for operational improvements.

Income Statement

Technoprobe S.p.A. shows strong revenue growth with a 32.7% increase from 2023 to 2024. The gross profit margin is solid at 41.1%, and the company maintains a positive net profit margin of 11.8% in 2024. However, there is a noticeable decline in EBIT from 2023 to 2024, affecting the EBIT margin, which decreased to 12.4% from 19.5% in 2023. EBITDA margin remains robust at 30.9%.

Balance Sheet

The company's financial stability is underscored by a low debt-to-equity ratio of 0.015, indicating minimal leverage. The equity ratio is high at 87.9%, showcasing strong shareholder equity relative to total assets. Return on Equity (ROE) is healthy at 5.2%, although it has decreased from previous years.

Cash Flow

Technoprobe S.p.A. has shown significant improvement in free cash flow, turning positive in 2024 at €29.97 million. The operating cash flow to net income ratio is approximately 1.95, indicating effective conversion of net income into cash. The free cash flow to net income ratio has improved but remains a focus area for further strengthening.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	543.15M	409.27M	548.93M	391.74M	329.55M
Gross Profit	223.44M	199.33M	332.78M	234.72M	203.43M
EBITDA	167.94M	128.48M	244.18M	177.66M	153.54M
Net Income	63.83M	97.00M	147.90M	118.32M	101.58M
Balance Sheet
Total Assets	1.41B	928.39M	866.82M	537.35M	435.91M
Cash, Cash Equivalents and Short-Term Investments	666.38M	361.80M	411.03M	146.75M	158.30M
Total Debt	18.80M	13.53M	8.20M	11.95M	37.19M
Total Liabilities	171.13M	111.09M	129.84M	91.06M	111.69M
Stockholders Equity	1.24B	815.77M	735.94M	443.75M	324.22M
Cash Flow
Free Cash Flow	29.96M	-2.18M	127.52M	21.57M	46.25M
Operating Cash Flow	124.41M	61.75M	207.24M	81.26M	97.97M
Investing Cash Flow	-168.76M	-93.42M	-78.32M	-58.92M	-50.64M
Financing Cash Flow	343.97M	-15.04M	130.29M	-37.64M	22.82M

Technoprobe S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TPRO, the sentiment is Negative. The current price of 6.95 is below the 20-day moving average (MA) of 7.31, below the 50-day MA of 7.31, and above the 200-day MA of 6.37, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 24.43 is Positive, neither overbought nor oversold. The STOCH value of 11.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:TPRO.

Technoprobe S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REY	67 Neutral	€4.97B	21.07	18.54%	0.90%	9.04%	13.17%
TXT	66 Neutral	€388.17M	24.18	12.37%	0.75%	37.78%	-3.90%
Sector *	63 Neutral	€2.31B	27.67	4.40%	2.80%	4.53%	-66.68%
TNXT	60 Neutral	€670.48M	167.35	1.04%	2.05%	17.21%	-80.93%
TPRO	58 Neutral	€4.53B	68.18		―	32.71%	-37.38%
IOT	56 Neutral	€330.45M	―	-8.20%	―	-9.38%	-345.16%