WIIT SpA (WIIT) AI Stock Analysis

• Market Cap: €419.94M
• Dividend Yield: 1.89%
• Average Volume (3M): 24.51K
• Price to Earnings (P/E): 44.2
• Beta (1Y): 0.67
• Revenue Growth: 24.38%
• EPS Growth: 2.92%
• Country: IT
• Employees: 663
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): 0.12
• Shares Outstanding: 28,020,660
• 10 Day Avg. Volume: 20,086
• 30 Day Avg. Volume: 24,513
• PEG Ratio: N/A
• Price to Book (P/B): 10.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.59
• 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: €24.03
• Price Target Upside: 51.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: €17.00 ▲(6.92%Upside)

WIIT SpA's overall score is primarily driven by its strong financial performance, underscored by consistent revenue growth and solid cash flow management. However, high leverage remains a concern. Technical analysis presents mixed signals, and the stock's high P/E ratio suggests a premium valuation, impacting its attractiveness. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

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.

Financial Performance

Wiit reported solid 1Q results, above projection in terms of profitability.

Growth Prospects

The successful launch of the Wiit Cloud Native Platform, which recently won its first large contract in Germany, positions Wiit as a credible European alternative in a context where data sovereignty is gaining relevance.

Negative Factors

Impact on Earnings

Higher D&A and financial expenses have led to a revision of the bottom line forecast, impacting EPS negatively.

Revenue Adjustment

Despite a revenue cut to account for the phase-out of lower-margin services, EBITDA estimates remain largely unchanged.

WIIT SpA Business Overview & Revenue Model

Company Description

Wiit S.p.A. provides cloud services for various businesses in Italy and internationally. It offers hybrid, hosted private, and public cloud services; cloud services for critical applications; business continuity and disaster recovery services; cyber security services; technology migration programs; digital business transformation services; and services desk and desktop management solutions, as well as infrastructure configuration, management, and control services. The company was founded in 2001 and is headquartered in Milan, Italy. Wiit S.p.A. is a subsidiary of Wiit Fin S.r.l.

How the Company Makes Money

WIIT SpA generates revenue through a subscription-based model, where clients pay for access to its cloud services and solutions over time. The company's key revenue streams include fees from managed cloud services, where WIIT manages and operates cloud infrastructure on behalf of its clients, and cybersecurity services, where the company provides security solutions to protect client data. Another significant source of income is its consulting services, through which WIIT advises and assists clients in optimizing their IT infrastructure. Additionally, WIIT has strategic partnerships with key technology providers, enhancing its service offerings and contributing to its revenue growth.

WIIT SpA Financial Statement Overview

Summary

WIIT SpA exhibits strong financial performance with consistent revenue growth and solid profitability metrics. Despite efficient cash flow management, high leverage poses a potential risk. Improvement in operating efficiencies and debt management is crucial.

Income Statement

WIIT SpA has shown consistent revenue growth, with a notable increase from 2020 to TTM 2025. The gross profit margin and EBITDA margin are strong, reflecting efficient cost management and operational performance. Net profit margin has improved, suggesting enhanced profitability over time. However, the EBIT margin, while positive, indicates room for improvement in operating efficiency.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, suggesting potential leverage risks. However, the return on equity (ROE) is positive and improving, indicating effective use of shareholder equity to generate profits. The equity ratio is lower, highlighting reliance on debt financing, which may affect financial stability in adverse conditions.

Cash Flow

WIIT SpA demonstrates a robust operating cash flow, consistently outpacing net income, which signifies strong cash-generating capabilities. The free cash flow growth rate is positive, although capital expenditures have increased, impacting free cash flow levels. The company maintains a healthy operating cash flow to net income ratio, underscoring effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.53M	160.46M	128.92M	118.81M	77.12M	52.95M
Gross Profit	56.68M	57.30M	54.61M	40.93M	25.24M	17.51M
EBITDA	62.28M	56.33M	46.35M	39.39M	23.15M	16.13M
Net Income	11.34M	9.26M	8.29M	7.85M	-409.72K	2.47M
Balance Sheet
Total Assets	330.12M	328.67M	309.09M	302.97M	285.56M	152.30M
Cash, Cash Equivalents and Short-Term Investments	19.30M	15.51M	25.29M	32.36M	57.58M	18.26M
Total Debt	233.36M	231.53M	226.25M	209.18M	187.86M	94.80M
Total Liabilities	293.81M	294.53M	276.54M	262.72M	240.24M	137.18M
Stockholders Equity	36.32M	34.14M	32.35M	40.11M	44.35M	14.24M
Cash Flow
Free Cash Flow	29.00M	36.21M	14.37M	2.87M	14.80M	6.47M
Operating Cash Flow	41.65M	42.52M	35.37M	23.06M	26.66M	13.60M
Investing Cash Flow	-17.80M	-13.60M	-39.09M	-19.69M	-92.98M	-60.17M
Financing Cash Flow	-25.55M	-27.10M	-14.05M	-9.35M	85.53M	52.98M

WIIT SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.90
• 50DMA: Negative
• 100DMA: Positive
• 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:WIIT, the sentiment is Positive. The current price of 15.9 is above the 20-day moving average (MA) of 15.49, below the 50-day MA of 15.93, and below the 200-day MA of 17.57, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 68.50 is Neutral, 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
WIIT	68 Neutral	€419.94M	44.19	25.87%	1.89%	24.38%	2.92%
Sector *	63 Neutral	$34.27B	4.89	-11.70%	1.94%	5.41%	-20.02%
0NLD	―	€407.00M	25.61	12.37%	0.73%	―	―
7T4	―	€627.80M	34.80	4.41%	3.64%	―	―
101	―	€90.55M	10.25	11.71%	―	―	―
CYB	―	€68.34M	16.01		―	―	―
DGV	74 Outperform	€297.81M	8.42		2.74%	-3.76%	-9.21%