WIIT SpA (WIIT) AI Stock Analysis

• Market Cap: €588.98M
• Dividend Yield: 1.54%
• Average Volume (3M): 41.83K
• Price to Earnings (P/E): 64.7
• Beta (1Y): 0.56
• 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: €25.57
• Price Target Upside: 29.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €24.50 ▲(23.99% Upside)

WIIT SpA's stock score is primarily driven by its solid financial performance and positive technical indicators. However, the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Recurring revenue stability

WIIT’s subscription and long-term contract model creates predictable, recurring revenue and high customer retention typical of managed services. This durable income base supports multi-year capacity planning, recurring cash flow and lower customer churn risk, aiding steady investment in infrastructure.

Robust gross and EBIT margins

Sustained gross and EBIT margins indicate structural cost advantages and efficient service delivery in cloud/managed services. Strong margins provide room to reinvest in security/compliance capabilities, absorb competitive pricing pressure, and support profitability resilience across business cycles.

Improving free cash flow generation

Double-digit FCF growth and solid conversion of earnings into cash enhance WIIT’s ability to fund capex, service obligations and strategic initiatives. Reliable cash generation underpins medium-term financial flexibility and can support deleveraging or targeted investment in scalable cloud infrastructure.

Negative Factors

High financial leverage

A very high debt-to-equity ratio signals heavy reliance on external financing, increasing interest and refinancing risk. Over the medium term this constrains strategic flexibility, raises breakeven requirements and makes the company more vulnerable to rate or demand shocks without clear deleveraging progress.

Slowing revenue growth trend

A material slowdown in revenue growth suggests challenges scaling sales or competitive pressure in core segments. If persistent, slower top-line momentum limits operating leverage, reduces incremental margin expansion and may force higher spending to regain growth, pressuring medium-term returns.

Earnings volatility and modest net margin

Declining EPS and a modest net margin highlight earnings sensitivity to costs, pricing or one-off items. This limits retained earnings for balance sheet repair and investment, and suggests profit generation remains vulnerable, which can impede sustainable ROE improvement without margin recovery.

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

WIIT SpA demonstrates solid revenue growth and operational efficiency, with healthy EBIT and EBITDA margins. However, the high leverage indicated by the debt-to-equity ratio poses a potential risk. The company maintains strong cash flow generation, which supports its financial stability. Overall, WIIT SpA is performing well but should focus on improving net profitability and managing leverage to enhance financial health.

Income Statement

WIIT SpA has demonstrated consistent revenue growth with a TTM growth rate of 3.32%, building on previous years' growth. The gross profit margin is stable at 34.66%, indicating efficient cost management. However, the net profit margin is relatively low at 6.94%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy at 15.18% and 38.08%, respectively, reflecting strong operational performance.

Balance Sheet

The company exhibits a high debt-to-equity ratio of 6.43, indicating significant leverage, which could pose financial risks. However, the return on equity is robust at 33.05%, showcasing effective use of equity to generate profits. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

WIIT SpA's free cash flow growth rate is positive at 7.35%, indicating improving cash generation. The operating cash flow to net income ratio is 0.52, showing moderate cash conversion efficiency. The free cash flow to net income ratio of 0.70 suggests that a substantial portion of earnings is converted into free cash flow, supporting financial flexibility.

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: Negative
• 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 20.71, above the 50-day MA of 19.70, and above the 200-day MA of 17.71, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 82.46 is Negative, neither overbought nor oversold. The STOCH value of 91.17 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	€291.70M	15.47	―	2.82%	-24.28%	-57.55%
TXT	67 Neutral	€359.36M	21.11	12.61%	0.80%	28.77%	-3.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WIIT	61 Neutral	€588.98M	64.71	25.60%	1.54%	13.74%	-23.30%
TNXT	61 Neutral	€696.64M	-155.12	-1.19%	2.02%	14.90%	-123.79%