Tiscali SPA (TSL) AI Stock Analysis

• Market Cap: €30.85M
• Dividend Yield: N/A
• Average Volume (3M): 5.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -6.23%
• EPS Growth: 19.42%
• Country: IT
• Employees: 970
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): -0.09
• Shares Outstanding: 359,927,700
• 10 Day Avg. Volume: 6,685,247
• 30 Day Avg. Volume: 5,976,957
• PEG Ratio: 0.04
• Price to Book (P/B): -3.78
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 38.98
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: €0.08 ▼(-2.50% Downside)

The overall stock score for Tiscali SPA is primarily impacted by its poor financial performance, characterized by declining revenues, persistent losses, and negative equity. Technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest significant risks and challenges for the company.

Positive Factors

Cash Flow Improvement

Improvement in free cash flow indicates better cash management, which can enhance financial flexibility and support strategic investments.

Strategic Partnerships

Strategic partnerships can enhance service delivery and expand market reach, supporting long-term revenue growth and competitive positioning.

Gross Profit Margin Improvement

An improvement in gross profit margin suggests better cost management, which can lead to enhanced profitability over time.

Negative Factors

Declining Revenue

Declining revenues reflect challenges in market demand or competitive pressures, which can undermine long-term growth prospects.

Negative Equity

Negative equity indicates financial instability, posing risks to solvency and limiting the company's ability to invest in growth opportunities.

Operational Inefficiencies

Negative margins suggest inefficiencies in operations, which can erode profitability and hinder competitive advantage over time.

Tiscali SPA Business Overview & Revenue Model

Company Description

Tessellis S.p.A. provides telecommunication services in Italy. The company offers broadband, ultrabroadband, fixed wireless access, and fiber to the home services. It also provides fixed, mobile, and value-added services for households, businesses, and public administrations, as well as operates newspapers web portals and digital shopping platforms; and offers advertisement services. The company was formerly known as Tiscali Spa and changed its name to Tessellis S.p.A. in January 2023. Tessellis S.p.A. was founded in 1998 and is headquartered in Cagliari, Italy.

How the Company Makes Money

Tiscali SPA generates revenue primarily through subscription fees from its broadband internet services, fixed-line telephony, and mobile services. The company's revenue model is based on a combination of monthly service plans, installation fees, and value-added services. Key revenue streams include broadband subscriptions, which often come with bundled offers that include voice services and TV options. Additionally, Tiscali may earn income from advertising partnerships and collaborations with content providers, enhancing its service offerings. The company also focuses on maintaining strategic partnerships with technology providers and infrastructure companies to optimize service delivery and expand its market reach, thus contributing to its overall earnings.

Tiscali SPA Financial Statement Overview

Summary

Tiscali SPA is facing significant financial challenges. The income statement indicates declining revenues and persistent losses, the balance sheet highlights negative equity and potential solvency concerns, and although cash flow has improved slightly, it remains constrained. These factors suggest a need for strategic restructuring to improve financial stability and performance.

Income Statement

Tiscali SPA has shown a declining revenue trend, with a notable decrease from 2023 to 2024. The company is operating at a net loss, and both EBIT and EBITDA margins are negative, indicating operational inefficiencies. Despite a slight gross profit margin improvement, the overall income statement reflects financial challenges, primarily due to increasing losses.

Balance Sheet

The balance sheet reveals significant financial instability, with negative stockholders' equity indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, highlighting a high-risk financial structure. The equity ratio is negative, suggesting that liabilities exceed assets by a large margin, which poses a substantial risk to financial health.

Cash Flow

Tiscali SPA's cash flow statement shows a slight improvement in free cash flow from negative to positive, which is a positive sign. However, the operating cash flow relative to net income indicates reliance on non-operational cash inflows. Overall, while cash flow has improved, the sustainability of this trend remains uncertain due to the continued net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	208.63M	216.99M	231.22M	100.06M	144.16M	144.01M
Gross Profit	-42.30M	61.57M	-33.54M	25.61M	38.98M	38.03M
EBITDA	15.03M	15.69M	26.97M	10.90M	30.60M	27.45M
Net Income	-57.91M	-57.98M	-62.37M	-36.90M	-20.62M	-22.20M
Balance Sheet
Total Assets	262.62M	290.73M	303.34M	344.69M	143.24M	151.40M
Cash, Cash Equivalents and Short-Term Investments	6.74M	6.38M	7.71M	8.27M	11.61M	4.43M
Total Debt	95.18M	104.88M	93.64M	106.71M	100.37M	97.34M
Total Liabilities	281.04M	303.51M	277.98M	276.68M	224.88M	224.37M
Stockholders Equity	-18.59M	-14.33M	24.40M	65.13M	-81.65M	-72.97M
Cash Flow
Free Cash Flow	15.80M	1.39M	-8.44M	-18.82M	-4.56M	-20.11M
Operating Cash Flow	25.07M	61.90M	42.25M	4.42M	34.87M	12.70M
Investing Cash Flow	-38.58M	-65.19M	-33.70M	7.10M	-39.26M	-13.60M
Financing Cash Flow	10.03M	851.00K	-9.18M	-7.54M	11.57M	-6.33M

Tiscali SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TSL, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:TSL.

Tiscali SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UD	70 Outperform	€88.03M	9.49	―	0.35%	1.59%	16.25%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
TIT	55 Neutral	€11.07B	-381.54	-1.26%	―	-7.91%	96.66%
TITR	50 Neutral	€11.07B	-437.69	-1.26%	―	-7.91%	96.66%
TSL	43 Neutral	€30.85M	-0.39	―	―	-6.23%	19.42%