WIIT SpA (WIIT) AI Stock Analysis

• Market Cap: €744.80M
• Dividend Yield: 1.54%
• Average Volume (3M): 41.83K
• Price to Earnings (P/E): 81.8
• Beta (1Y): 0.50
• Revenue Growth: 13.74%
• EPS Growth: -23.30%
• Country: IT
• Employees: 663
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.11
• Shares Outstanding: 28,020,660
• 10 Day Avg. Volume: 61,459
• 30 Day Avg. Volume: 41,831
• PEG Ratio: 4.28
• Price to Book (P/B): 14.99
• Price to Sales (P/S): 3.19
• P/FCF Ratio: 14.14
• 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: €30.00
• Price Target Upside: 51.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €27.00 ▲(36.64% Upside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

The score is driven mainly by decent financial performance (healthy margins and improving free cash flow) but is held back by high leverage and declining revenue growth. Technicals show a strong uptrend, yet extremely overbought indicators increase near-term risk. Valuation is the largest constraint due to the very high P/E relative to the modest dividend yield.

Positive Factors

Recurring B2B revenue model

WIIT’s revenue mix centers on recurring cloud, managed hosting, security and resilience services for enterprises. Long-term contracts and mission-critical workloads create high switching costs and predictable recurring cash flows, enabling stable operations and easier multi-year planning.

Operational profitability and cash generation

Healthy gross and EBIT margins alongside ~13% FCF growth indicate efficient service delivery and improving cash conversion. Operating cash flow to net income (~0.58) and FCF to net income (~0.70) suggest durable cash generation to fund capex, service expansion or debt reduction over the medium term.

Strong return on equity

A ROE near 29% signals effective use of shareholder capital and operational leverage in generating profits. Over time, this reflects management’s ability to extract value from invested equity, supporting reinvestment or shareholder returns if capital structure and growth are maintained.

Negative Factors

High financial leverage

Very high debt-to-equity raises refinancing and interest-rate risk and limits financial flexibility. Sustained leverage can constrain investments, increase vulnerability to demand shocks, and force priority on deleveraging over growth unless cash generation materially exceeds debt servicing needs.

Declining revenue growth

A negative revenue growth trend undermines the scalability of WIIT’s fixed-cost data center and managed services base. Persistent top-line weakness pressures future margin expansion and free cash flow, making it harder to sustain investments, cross-sell, and justify long-term operating leverage.

Modest net profitability

A single-digit net margin limits retained earnings available for debt reduction and strategic reinvestment. With high leverage and modest net profitability, earnings are more sensitive to rising costs or interest expenses, reducing resilience and slowing capacity to self-fund growth initiatives.

WIIT SpA Business Overview & Revenue Model

Company Description

WIIT SpA (WIIT) is a leading provider of cloud computing and managed services, primarily focused on delivering high-performance IT solutions tailored for businesses across various sectors. The company specializes in offering cloud services, disaster recovery, and managed hosting, with a strong emphasis on security, compliance, and operational efficiency. WIIT serves a diverse clientele, including enterprises in finance, healthcare, and e-commerce, ensuring that their IT infrastructure is robust and scalable.

How the Company Makes Money

WIIT generates revenue through a subscription-based model, charging clients for its cloud infrastructure, managed services, and IT solutions on a recurring basis. Key revenue streams include monthly or annual fees for cloud storage, hosting services, and disaster recovery solutions. The company also benefits from long-term contracts with clients, providing a stable income flow. Significant partnerships with technology providers enhance its service offerings and market reach, contributing to its overall earnings. Additionally, WIIT's focus on compliance and security allows it to cater to industries with stringent regulatory requirements, further solidifying its position in the market.

WIIT SpA Financial Statement Overview

Summary

Solid operational profitability and cash generation (gross margin 37.26%, EBIT margin 15.70%, free cash flow growth 12.96%), but revenue growth is declining (-9.1%) and leverage is high (debt-to-equity 7.47), which increases financial risk.

Income Statement

WIIT SpA's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data reveals a decline in revenue growth rate by 9.1%, indicating potential challenges in maintaining sales momentum. However, the company maintains healthy gross and EBIT margins at 37.26% and 15.70% respectively, suggesting efficient cost management and operational profitability. The net profit margin is modest at 5.85%, reflecting room for improvement in net profitability.

Balance Sheet

The balance sheet indicates a high leverage position with a debt-to-equity ratio of 7.47, which could pose financial risks if not managed carefully. The return on equity is strong at 28.77%, showcasing effective use of equity to generate profits. However, the equity ratio is low, highlighting a reliance on debt financing. Overall, the balance sheet reflects a need for improved capital structure stability.

Cash Flow

WIIT SpA's cash flow statement is relatively strong, with a 12.96% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.58, suggesting a decent conversion of earnings into cash. The free cash flow to net income ratio of 0.70 further supports the company's ability to generate cash relative to its net income, providing a cushion for future investments or debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	168.80M	160.46M	128.92M	118.81M	77.12M	52.95M
Gross Profit	58.15M	57.30M	54.61M	40.93M	25.24M	17.51M
EBITDA	61.69M	56.33M	46.35M	39.39M	23.15M	16.13M
Net Income	8.95M	9.26M	8.29M	7.85M	-409.72K	2.47M
Balance Sheet
Total Assets	318.48M	328.67M	309.09M	302.97M	285.56M	152.30M
Cash, Cash Equivalents and Short-Term Investments	13.93M	18.51M	25.29M	32.36M	57.58M	18.26M
Total Debt	231.34M	231.53M	226.25M	209.18M	187.86M	102.92M
Total Liabilities	283.83M	294.53M	276.54M	262.72M	240.24M	137.18M
Stockholders Equity	34.64M	34.14M	32.35M	40.11M	44.35M	14.24M
Cash Flow
Free Cash Flow	35.17M	36.21M	14.37M	2.87M	14.80M	6.47M
Operating Cash Flow	46.58M	42.52M	35.37M	23.06M	26.66M	13.60M
Investing Cash Flow	-18.34M	-13.60M	-39.09M	-19.69M	-92.98M	-60.17M
Financing Cash Flow	-35.68M	-27.10M	-14.05M	-9.35M	85.53M	52.98M

WIIT SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:WIIT, the sentiment is Positive. The current price of 19.76 is below the 20-day moving average (MA) of 26.14, below the 50-day MA of 23.09, and above the 200-day MA of 19.08, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 65.74 is Neutral, neither overbought nor oversold. The STOCH value of 81.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:WIIT.

WIIT SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGV	71 Outperform	€284.58M	15.10	―	2.82%	-24.28%	-57.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TXT	61 Neutral	€283.49M	16.65	12.61%	0.80%	28.77%	-3.40%
TNXT	61 Neutral	€696.64M	-155.43	-1.19%	2.02%	14.90%	-123.79%
WIIT	57 Neutral	€744.80M	81.83	25.60%	1.54%	13.74%	-23.30%