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WIIT SpA (IT:WIIT)
:WIIT
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WIIT SpA (WIIT) AI Stock Analysis

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IT:WIIT

WIIT SpA

(Frankfurt:WIIT)

Rating:66Neutral
Price Target:
€19.50
▲(6.79% Upside)
WIIT SpA's overall stock score is driven by strong financial performance and positive technical indicators. The company's solid revenue growth and operational efficiency are significant strengths, although high leverage and a high P/E ratio present risks. The stock's positive trend and momentum further support its attractiveness, but valuation concerns may limit upside potential.
Positive Factors
Cloud Services
Management expects continued ARR growth and further margin expansion as M&A synergies materialise and demand for secure, hybrid and AI-integrated cloud services accelerates.
Earnings
WIIT reported solid results above projections, showing double-digit growth across all key metrics.
Valuation
WIIT trades at undemanding multiples significantly below its 5-year historical EV/EBITDA average, making it an attractive valuation.
Negative Factors
Market Competition
WIIT has secured a new €9mn contract in Germany, after winning a tender against American hyperscalers.
Strategic Shift
The company is expected to exceed the consensus EBITDA for the year, despite a strategic shift that resulted in some churn.

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

WIIT SpA Business Overview & Revenue Model

Company DescriptionWiit 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 MoneyWIIT 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 demonstrates solid revenue growth and operational efficiency, as evidenced by 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
72
Positive
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
65
Positive
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
68
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue168.95M160.46M128.92M118.81M77.12M52.95M
Gross Profit62.95M57.30M54.61M40.93M25.24M17.51M
EBITDA65.17M56.33M46.35M39.39M23.15M16.13M
Net Income9.89M9.26M8.29M7.85M-409.72K2.47M
Balance Sheet
Total Assets323.58M328.67M309.09M302.97M285.56M152.30M
Cash, Cash Equivalents and Short-Term Investments12.27M18.51M25.29M32.36M57.58M18.26M
Total Debt237.43M231.53M226.25M209.18M187.86M94.80M
Total Liabilities291.79M294.53M276.54M262.72M240.24M137.18M
Stockholders Equity31.79M34.14M32.35M40.11M44.35M14.24M
Cash Flow
Free Cash Flow31.13M36.21M14.37M2.87M14.80M6.47M
Operating Cash Flow44.18M42.52M35.37M23.06M26.66M13.60M
Investing Cash Flow-21.89M-13.60M-39.09M-19.69M-92.98M-60.17M
Financing Cash Flow-29.73M-27.10M-14.05M-9.35M85.53M52.98M

WIIT SpA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.26
Price Trends
50DMA
16.94
Positive
100DMA
16.47
Positive
200DMA
17.02
Positive
Market Momentum
MACD
0.39
Positive
RSI
53.58
Neutral
STOCH
19.27
Positive
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 18.26 is below the 20-day moving average (MA) of 18.44, above the 50-day MA of 16.94, and above the 200-day MA of 17.02, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 19.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:WIIT.

WIIT SpA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
€482.27M47.5931.22%1.64%20.75%-9.34%
61
Neutral
$35.52B8.84-11.04%1.87%8.55%-8.14%
€359.36M21.4013.06%
€667.73M164.951.04%
€92.95M11.8310.23%
€76.00M17.42
74
Outperform
€308.50M8.73
2.64%-3.76%-9.21%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:WIIT
WIIT SpA
18.26
-2.31
-11.23%
GB:0NLD
TXT e solutions SPA
30.60
4.78
18.51%
DE:7T4
Tinexta SpA
14.38
2.75
23.65%
DE:101
Almawave S.p.A.
3.02
-0.92
-23.35%
IT:CYB
Cyberoo S.p.A.
1.87
-1.15
-38.08%
IT:DGV
Digital Value SpA
30.30
-14.83
-32.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 20, 2025