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WIIT SpA (IT:WIIT)
:WIIT

WIIT SpA (WIIT) AI Stock Analysis

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IT

WIIT SpA

(Frankfurt:WIIT)

Rating:72Outperform
Price Target:
€18.50
▲(11.31%Upside)
WIIT SpA scores well on financial performance due to strong revenue growth and operational efficiency, but high leverage and moderate net profit margins present risks. The technical analysis indicates positive momentum, though the high P/E ratio suggests potential overvaluation. The dividend yield provides limited compensation for investors.
Positive Factors
Cloud Adoption
WIIT remains well-positioned to benefit from secular cloud adoption trends, especially in mission-critical and secure environments, while offering high visibility on organic growth and cash generation.
Contract Renewal
WIIT announces the 7-year renewal of a €9.8mn contract with an industrial group active in the luxury and automotive sectors, strengthening the Cyber Security component through the adoption of the Secure Hybrid Cloud model.
Profitability
Wiit reported solid 1Q results, above our projection in terms of profitability.
Negative Factors
Financial Expenses
Higher D&A and financial expenses have led to a revision of the bottom line forecast, impacting EPS negatively.
Integration Challenges
Integration of recently-acquired businesses is initially dilutive on the EBITDA margin.
Revenue Forecast
Despite a revenue cut to account for the phase-out of lower-margin services, EBITDA estimates remain largely unchanged.

WIIT SpA (WIIT) vs. iShares MSCI Italy ETF (EWI)

WIIT SpA Business Overview & Revenue Model

Company DescriptionWIIT SpA (WIIT) is a leading Italian provider of cloud computing services, specializing in the provision of hybrid and private cloud solutions. The company focuses on managing critical applications and ensuring business continuity for medium and large enterprises across various sectors, including manufacturing, finance, and fashion. WIIT's infrastructure is designed to offer high levels of security, availability, and performance, tailoring its services to meet the unique needs of its clients.
How the Company Makes MoneyWIIT SpA primarily generates revenue through its cloud computing services, which include hosting, management, and maintenance of IT infrastructure for its clients. The company offers tailored solutions such as disaster recovery, business continuity, and application management, catering to the specific requirements of industries such as finance, fashion, and manufacturing. Revenue is earned through long-term contracts and subscription-based models, where clients pay for the ongoing use of WIIT's cloud infrastructure and services. Key revenue streams include service fees for cloud hosting and management, professional services for IT integration and consultancy, and additional charges for premium services. Strategic partnerships with major technology providers enhance WIIT's offerings, allowing it to deliver comprehensive and cutting-edge solutions that contribute significantly to its earnings.

WIIT SpA Financial Statement Overview

Summary
WIIT SpA exhibits strong revenue growth and efficient operations, reflected in high income statement and cash flow scores. However, the balance sheet reveals high leverage, posing potential risk. Overall, the company's financial performance is commendable with room for improvement in net profit margins and balance sheet strength.
Income Statement
85
Very Positive
WIIT SpA has demonstrated strong revenue growth over the years, with a significant increase from €33.9 million in 2019 to €160.5 million in 2024. The gross profit margin has consistently improved, indicating efficient cost management. EBIT and EBITDA margins are healthy, reflecting robust operational performance. However, the net profit margin is moderate, suggesting room for improvement in net income conversion.
Balance Sheet
70
Positive
The company's debt-to-equity ratio is quite high, reflecting a leveraged balance sheet. Despite this, the return on equity has improved over the years, indicating effective use of equity. The equity ratio is low, highlighting high reliance on debt financing, which poses a risk if not managed carefully.
Cash Flow
78
Positive
WIIT SpA has shown strong free cash flow growth, demonstrating effective cash generation capacity. The operating cash flow to net income ratio is healthy, suggesting good cash conversion. However, the free cash flow to net income ratio indicates potential volatility in cash flows relative to earnings.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
160.46M128.92M118.81M77.12M52.95M
Gross Profit
57.30M54.61M40.93M25.24M17.51M
EBIT
21.27M19.46M16.23M5.10M5.03M
EBITDA
56.33M46.35M39.39M23.15M16.13M
Net Income Common Stockholders
9.26M8.29M7.85M-409.72K2.47M
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.51M25.29M32.36M57.58M18.26M
Total Assets
328.67M309.09M302.97M285.56M152.30M
Total Debt
231.53M226.25M209.18M187.86M94.80M
Net Debt
216.02M212.56M177.72M150.42M76.55M
Total Liabilities
294.53M276.54M262.72M240.24M137.18M
Stockholders Equity
34.14M32.35M40.11M44.35M14.24M
Cash FlowFree Cash Flow
36.21M14.37M2.87M14.80M6.47M
Operating Cash Flow
42.52M35.37M23.06M26.66M13.60M
Investing Cash Flow
-13.60M-39.09M-19.69M-92.98M-60.17M
Financing Cash Flow
-27.10M-14.05M-9.35M85.53M52.98M

WIIT SpA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.62
Price Trends
50DMA
15.52
Positive
100DMA
16.38
Positive
200DMA
18.51
Negative
Market Momentum
MACD
0.23
Positive
RSI
52.88
Neutral
STOCH
38.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:WIIT, the sentiment is Negative. The current price of 16.62 is below the 20-day moving average (MA) of 16.76, above the 50-day MA of 15.52, and below the 200-day MA of 18.51, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 52.88 is Neutral, neither overbought nor oversold. The STOCH value of 38.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:WIIT.

WIIT SpA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ITREY
74
Outperform
€5.61B26.6317.49%0.76%8.40%13.09%
ITTXT
73
Outperform
€409.94M24.8312.73%0.72%37.78%-1.18%
72
Outperform
€438.96M46.1925.87%1.91%24.38%2.92%
62
Neutral
$11.72B10.43-7.10%2.91%7.41%-7.94%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:WIIT
WIIT SpA
16.48
-1.33
-7.47%
IT:REY
Reply SPA
149.10
14.14
10.48%
IT:TXT
TXT e solutions SPA
34.85
11.72
50.64%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.