New Risk • Jun 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (5.0% operating cash flow to total debt). Minor Risks Share price has been volatile over the past 3 months (6.3% average weekly change). Profit margins are more than 30% lower than last year (0.2% net profit margin). Market cap is less than US$100m (€21.3m market cap, or US$24.4m). New Risk • May 22
New major risk - Revenue and earnings growth Earnings have declined by 39% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (5.0% operating cash flow to total debt). Earnings have declined by 39% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (0.2% net profit margin). Market cap is less than US$100m (€30.2m market cap, or US$35.0m). New Risk • Mar 30
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 4.6% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (4.6% operating cash flow to total debt). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.1% net profit margin). Market cap is less than US$100m (€33.2m market cap, or US$38.2m). Reported Earnings • Nov 17
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: €25.6m (down 2.2% from 3Q 2024). Net loss: €15.0k (loss narrowed 99% from 3Q 2024). Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 1.3% decline forecast for the Real Estate industry in Europe. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 12
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: €31.3m (up 47% from 2Q 2024). Net loss: €255.0k (loss narrowed 88% from 2Q 2024). Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 1.8% decline forecast for the Real Estate industry in Europe. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Reported Earnings • May 18
First quarter 2025 earnings released: €0.01 loss per share (vs €0.012 loss in 1Q 2024) First quarter 2025 results: €0.01 loss per share (improved from €0.012 loss in 1Q 2024). Revenue: €27.2m (down 9.3% from 1Q 2024). Net loss: €620.0k (loss narrowed 16% from 1Q 2024). Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 2.3% decline forecast for the Real Estate industry in Europe. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 72 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Apr 30
Now 22% undervalued Over the last 90 days, the stock has risen 1.1% to €0.58. The fair value is estimated to be €0.74, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.1% over the last 3 years. Earnings per share has declined by 85%. Revenue is forecast to decline by 25% in a year. Earnings are forecast to grow by 674% in the next year. Reported Earnings • Apr 13
Full year 2024 earnings released: EPS: €0.018 (vs €0.017 in FY 2023) Full year 2024 results: EPS: €0.018 (up from €0.017 in FY 2023). Revenue: €218.2m (up 16% from FY 2023). Net income: €1.07m (up 2.8% from FY 2023). Profit margin: 0.5% (down from 0.6% in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 58 percentage points per year, which is a significant difference in performance. New Risk • Feb 17
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Italian stocks, typically moving 8.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.4% average weekly change). Minor Risk Market cap is less than US$100m (€43.1m market cap, or US$45.1m). Reported Earnings • Nov 18
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: €26.5m (down 53% from 3Q 2023). Net loss: €2.11m (loss widened 244% from 3Q 2023). New Risk • Sep 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 5.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.3x net interest cover). High level of non-cash earnings (27% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (5.1% average weekly change). Profit margins are more than 30% lower than last year (0.6% net profit margin). Market cap is less than US$100m (€29.7m market cap, or US$32.9m). Reported Earnings • Aug 04
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: €23.0m (down 31% from 2Q 2023). Net loss: €229.0k (loss narrowed 77% from 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 38% per year whereas the company’s share price has fallen by 33% per year. Reported Earnings • May 19
First quarter 2024 earnings released First quarter 2024 results: Revenue: €30.5m (up 16% from 1Q 2023). Net loss: €737.0k (loss widened €672.0k from 1Q 2023). Revenue is expected to decline by 8.3% p.a. on average during the next 2 years, while revenues in the Real Estate industry in Italy are expected to grow by 5.8%. New Risk • Apr 11
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 56% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.5x net interest cover). High level of non-cash earnings (56% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (0.5% net profit margin). Market cap is less than US$100m (€39.6m market cap, or US$42.5m). New Risk • Nov 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.9x net interest cover). Minor Risks Share price has been volatile over the past 3 months (5.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.6% net profit margin). Market cap is less than US$100m (€47.8m market cap, or US$52.2m). Reported Earnings • Nov 19
Third quarter 2023 earnings released: €0.01 loss per share (vs €0.043 profit in 3Q 2022) Third quarter 2023 results: €0.01 loss per share (down from €0.043 profit in 3Q 2022). Revenue: €56.1m (up 104% from 3Q 2022). Net loss: €613.0k (down 124% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. New Risk • Aug 04
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.1x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.1x net interest cover). Share price has been highly volatile over the past 3 months (7.4% average weekly change). High level of non-cash earnings (31% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (3.3% net profit margin). Market cap is less than US$100m (€50.6m market cap, or US$55.8m). Reported Earnings • Aug 03
Second quarter 2023 earnings released: €0.016 loss per share (vs €0.074 profit in 2Q 2022) Second quarter 2023 results: €0.016 loss per share (down from €0.074 profit in 2Q 2022). Revenue: €34.5m (down 37% from 2Q 2022). Net loss: €976.0k (down 122% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. New Risk • Jun 14
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 4.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 4.7% per year for the foreseeable future. Minor Risk Market cap is less than US$100m (€48.9m market cap, or US$53.1m). Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: €0.19 (vs €0.14 in FY 2021) Full year 2022 results: EPS: €0.19 (up from €0.14 in FY 2021). Revenue: €152.5m (down 8.3% from FY 2021). Net income: €11.6m (up 40% from FY 2021). Profit margin: 7.6% (up from 5.0% in FY 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has only increased by 61% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to €1.22, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 8x in the Real Estate industry in Europe. Total returns to shareholders of 251% over the past three years. Reported Earnings • Nov 18
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: €27.9m (down 31% from 3Q 2021). Net income: €2.59m (up 266% from 3Q 2021). Profit margin: 9.3% (up from 1.7% in 3Q 2021). Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. 2 highly experienced directors. 2 independent directors (7 non-independent directors). Chairman & CEO Fabrizio Prete was the last director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Annonce • Oct 01
Gabetti Property Solutions S.p.A. announced that it expects to receive €0.715 million in funding Gabetti Property Solutions S.p.A announced a private placement of common shares for gross proceeds of €715,000 on September 29, 2022. The company will receive funding in 2 tranches. The company will issue upto 1,595,000 shares for gross proceeds of €398,750 in its first tranche which is expected to complete by January 31,2025. The company will issue upto 1,265,000 shares for gross proceeds of € 316,250 in its second tranche which is expected to complete by January 31,2027. Reported Earnings • Aug 03
Second quarter 2022 earnings released: EPS: €0.074 (vs €0.05 in 2Q 2021) Second quarter 2022 results: EPS: €0.074 (up from €0.05 in 2Q 2021). Revenue: €55.6m (down 1.8% from 2Q 2021). Net income: €4.48m (up 47% from 2Q 2021). Profit margin: 8.1% (up from 5.4% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 120% per year but the company’s share price has only increased by 65% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 13
Investor sentiment improved over the past week After last week's 38% share price gain to €1.35, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 12x in the Real Estate industry in Italy. Total returns to shareholders of 333% over the past three years. Valuation Update With 7 Day Price Move • Jun 28
Investor sentiment deteriorated over the past week After last week's 15% share price decline to €1.07, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 11x in the Real Estate industry in Italy. Total returns to shareholders of 255% over the past three years. Reported Earnings • May 16
First quarter 2022 earnings released First quarter 2022 results: Revenue: €42.7m (up 10% from 1Q 2021). Net income: €2.33m (up 84% from 1Q 2021). Profit margin: 5.4% (up from 3.3% in 1Q 2021). The increase in margin was driven by higher revenue. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. 2 highly experienced directors. 2 independent directors (7 non-independent directors). CEO & Chairman Fabrizio Prete was the last director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorated over the past week After last week's 20% share price decline to €1.40, the stock trades at a trailing P/E ratio of 13.9x. Average trailing P/E is 40x in the Real Estate industry in Italy. Total returns to shareholders of 346% over the past three years. Reported Earnings • Nov 17
Third quarter 2021 earnings released: EPS €0.012 (vs €0.009 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €40.5m (up 155% from 3Q 2020). Net income: €708.0k (up €1.26m from 3Q 2020). Profit margin: 1.7% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 130% per year but the company’s share price has only increased by 102% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 29
Investor sentiment improved over the past week After last week's 17% share price gain to €2.18, the stock trades at a trailing P/E ratio of 31.1x. Average trailing P/E is 12x in the Real Estate industry in Europe. Total returns to shareholders of 852% over the past three years. Reported Earnings • Aug 12
Second quarter 2021 earnings released: EPS €0.05 (vs €0.005 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: €56.6m (up 325% from 2Q 2020). Net income: €3.05m (up €2.75m from 2Q 2020). Profit margin: 5.4% (up from 2.2% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 115% per year but the company’s share price has only increased by 76% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 20
Investor sentiment improved over the past week After last week's 25% share price gain to €1.74, the stock trades at a trailing P/E ratio of 70.6x. Average trailing P/E is 14x in the Real Estate industry in Europe. Total returns to shareholders of 471% over the past three years. Is New 90 Day High Low • Mar 02
New 90-day high: €0.70 The company is up 9.0% from its price of €0.64 on 02 December 2020. The Italian market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Real Estate industry, which is up 4.0% over the same period. Is New 90 Day High Low • Jan 31
New 90-day low: €0.57 The company is down 3.0% from its price of €0.59 on 02 November 2020. The Italian market is up 18% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Real Estate industry, which is up 3.0% over the same period. Reported Earnings • Nov 16
Third quarter 2020 earnings released: €0.009 loss per share The company reported a solid third quarter result with reduced losses and improved revenues and control over expenses. Third quarter 2020 results: Revenue: €15.9m (up 45% from 3Q 2019). Net loss: €563.0k (loss narrowed 19% from 3Q 2019). Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Oct 06
New 90-day high: €0.78 The company is up 136% from its price of €0.33 on 08 July 2020. The Italian market is down 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Real Estate industry, which is down 1.0% over the same period.