WIIT SpA (WIIT) AI Stock Analysis

• Market Cap: €512.91M
• Dividend Yield: 1.58%
• Average Volume (3M): 41.83K
• Price to Earnings (P/E): 51.1
• Beta (1Y): 0.72
• 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: 33.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €18.00 ▼(-6.35% Downside)

WIIT SpA's overall stock score is primarily influenced by its solid financial performance, characterized by strong revenue growth and operational efficiency. However, the high leverage and relatively low net profit margin are concerns. The technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Generation

Positive cash flow growth enhances financial flexibility, enabling reinvestment in business operations and reducing reliance on external financing.

Operational Efficiency

Strong operational efficiency reflects effective cost management and resource utilization, contributing to sustained profitability and competitive advantage.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Low Net Profit Margin

A low net profit margin suggests limited profitability improvements, which may hinder the company's ability to generate shareholder value over time.

Debt Reliance

Heavy reliance on debt financing can constrain financial flexibility and increase vulnerability to interest rate fluctuations, impacting long-term sustainability.

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 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, 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

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	168.95M	160.46M	128.92M	118.81M	77.12M	52.95M
Gross Profit	62.95M	57.30M	54.61M	40.93M	25.24M	17.51M
EBITDA	65.17M	56.33M	46.35M	39.39M	23.15M	16.13M
Net Income	9.89M	9.26M	8.29M	7.85M	-409.72K	2.47M
Balance Sheet
Total Assets	323.58M	328.67M	309.09M	302.97M	285.56M	152.30M
Cash, Cash Equivalents and Short-Term Investments	12.27M	18.51M	25.29M	32.36M	57.58M	18.26M
Total Debt	237.43M	231.53M	226.25M	209.18M	187.86M	102.92M
Total Liabilities	291.79M	294.53M	276.54M	262.72M	240.24M	137.18M
Stockholders Equity	31.79M	34.14M	32.35M	40.11M	44.35M	14.24M
Cash Flow
Free Cash Flow	31.13M	36.21M	14.37M	2.87M	14.80M	6.47M
Operating Cash Flow	44.18M	42.52M	35.37M	23.06M	26.66M	13.60M
Investing Cash Flow	-21.89M	-13.60M	-39.09M	-19.69M	-92.98M	-60.17M
Financing Cash Flow	-29.73M	-27.10M	-14.05M	-9.35M	85.53M	52.98M

WIIT SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.22
• 50DMA: Negative
• 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 19.22 is above the 20-day moving average (MA) of 18.89, below the 50-day MA of 19.23, and above the 200-day MA of 17.09, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 87.35 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	€290.18M	15.39	―	2.84%	-24.28%	-57.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TNXT	60 Neutral	€677.82M	-151.23	-1.19%	2.03%	14.90%	-123.79%
TXT	58 Neutral	€383.47M	22.74	12.61%	0.81%	28.77%	-3.40%
WIIT	54 Neutral	€512.91M	51.06	25.60%	1.58%	13.74%	-23.30%