DB:1S3

Stock Analysis Report

Executive Summary

SeSa S.p.A., through its subsidiaries, distributes value-added information technology (IT) products and solutions in Italy.


Snowflake Analysis

Solid track record with adequate balance sheet.

Share Price & News

How has SeSa's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1S3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.9%

1S3

4.2%

DE Electronic

7.1%

DE Market


1 Year Return

25.8%

1S3

-26.4%

DE Electronic

-17.5%

DE Market

Return vs Industry: 1S3 exceeded the German Electronic industry which returned -26.4% over the past year.

Return vs Market: 1S3 exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

1S3IndustryMarket
7 Day10.9%4.2%7.1%
30 Day-24.8%-23.5%-20.0%
90 Day-25.0%-23.7%-26.1%
1 Year27.9%25.8%-24.9%-26.4%-15.0%-17.5%
3 Year77.4%67.1%-2.4%-5.6%-18.8%-25.8%
5 Yearn/a55.0%43.6%-17.9%-29.2%

Price Volatility Vs. Market

How volatile is SeSa's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SeSa undervalued compared to its fair value and its price relative to the market?

1.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1S3 (€35.55) is trading below our estimate of fair value (€35.86)

Significantly Below Fair Value: 1S3 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1S3 is poor value based on its PE Ratio (16.7x) compared to the Electronic industry average (15.8x).

PE vs Market: 1S3 is poor value based on its PE Ratio (16.7x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: 1S3 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 1S3 is overvalued based on its PB Ratio (2.5x) compared to the DE Electronic industry average (1.1x).


Next Steps

Future Growth

How is SeSa forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1S3's forecast earnings growth (12.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1S3's earnings (12.6% per year) are forecast to grow slower than the German market (14.2% per year).

High Growth Earnings: 1S3's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1S3's revenue (9.1% per year) is forecast to grow faster than the German market (4.2% per year).

High Growth Revenue: 1S3's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1S3's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has SeSa performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1S3 has high quality earnings.

Growing Profit Margin: 1S3's current net profit margins (2.1%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: 1S3's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: 1S3's earnings growth over the past year (23.9%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: 1S3 earnings growth over the past year (23.9%) exceeded the Electronic industry -7.4%.


Return on Equity

High ROE: 1S3's Return on Equity (16.2%) is considered low.


Next Steps

Financial Health

How is SeSa's financial position?


Financial Position Analysis

Short Term Liabilities: 1S3's short term assets (€926.4M) exceed its short term liabilities (€676.5M).

Long Term Liabilities: 1S3's short term assets (€926.4M) exceed its long term liabilities (€175.8M).


Debt to Equity History and Analysis

Debt Level: 1S3's debt to equity ratio (83.2%) is considered high.

Reducing Debt: 1S3's debt to equity ratio has increased from 38.9% to 83.2% over the past 5 years.

Debt Coverage: 1S3's debt is well covered by operating cash flow (28.5%).

Interest Coverage: 1S3's interest payments on its debt are well covered by EBIT (23.9x coverage).


Balance Sheet

Inventory Level: 1S3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1S3's debt is covered by short term assets (assets are 4.4x debt).


Next Steps

Dividend

What is SeSa's current dividend yield, its reliability and sustainability?

1.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1S3's dividend (1.75%) is higher than the bottom 25% of dividend payers in the German market (1.71%).

High Dividend: 1S3's dividend (1.75%) is low compared to the top 25% of dividend payers in the German market (4.98%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1S3 has been paying a dividend for less than 10 years.

Growing Dividend: 1S3's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.2%), 1S3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1S3's dividends in 3 years are forecast to be well covered by earnings (31.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average board tenure


CEO

Alessandro Fabbroni (47yo)

no data

Tenure

€254,605

Compensation

Mr. Alessandro Fabbroni serves as the Managing Director, Director of Internal Audit, Financial Reporting Manager and Director at SeSa S.p.A. Mr. Fabbroni served as the Chief Executive Officer, Financial Re ...


CEO Compensation Analysis

Compensation vs Market: Alessandro's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD1.40M).

Compensation vs Earnings: Alessandro's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Alessandro Fabbroni
MD, Director of Internal Auditno data€254.61kno data
Moreno Gaini
Executive Vice-Chairman & Executive VPno data€281.81kno data
Giovanni Moriani
Executive Vice-Chairman & Executive VPno data€244.95kno data
Paolo Castellacci
Chairman of the Boardno data€341.98kno data
Angelica Pelizzari
Non Executive Directorno data€15.00kno data
Luca Parenti
Member of Supervisory Board & Standing Auditor2.17yrs€34.71kno data
Chiara Pieragnoli
Member of Supervisory Board & Standing Auditor2.17yrs€14.00kno data
Angela Oggionni
Independent Director4.5yrsno datano data
Giuseppe Cerati
President of Board of Auditors & Member of Supervisory Board1.58yrsno datano data
Maria Mosca
Independent Director1.58yrsno datano data

2.2yrs

Average Tenure

57yo

Average Age

Experienced Board: 1S3's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SeSa S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SeSa S.p.A.
  • Ticker: 1S3
  • Exchange: DB
  • Founded:
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: €557.510m
  • Shares outstanding: 15.44m
  • Website: https://www.sesa.it

Number of Employees


Location

  • SeSa S.p.A.
  • Via Piovola no. 138
  • Empoli
  • Florence
  • 50053
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SESBIT (Borsa Italiana)YesOrdinary SharesITEURFeb 2013
0QHKLSE (London Stock Exchange)YesOrdinary SharesGBEURFeb 2013
SESMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURFeb 2013
1S3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2013

Biography

SeSa S.p.A., through its subsidiaries, distributes value-added information technology (IT) products and solutions in Italy. It operates through Value Added Distribution, Software and System Integration, and Corporate segments. The Value Added Distribution segment distributes IT products in the categories of servers, storage, software, and networking for operators in the enterprise and small/medium enterprise segment. It also distributes data center solutions; provides financial services and solutions; and markets data systems solutions. The Software and System Integration segment markets software and IT products and services; markets ICT products and solutions, as well as offers system integration services; and develops and markets hardware, software, and applications for the SME market. It also provides IT solutions; digital agency services; digital transformation solutions; management, maintenance, technical assistance, and repair services for computers and IT products; and strategic outsourcing services, as well as operates in the telecommunications services, cloud computing, and systems assistance sectors. In addition, this segment develops and markets ERP software and applications; offers solutions and integrated services on the SAP Business One platform; develops 3cad products for the furniture industry; produces and markets software products, as well as provides IT services for the retail sector; offers integrated solutions and project management services for industrial sectors; and provides PLM solutions for companies in the manufacturing sector. The Corporate segment offers logistics services; designs, implements, and develops cloud computing solutions; and provides marketing and promotion services for the ICT channel. The company is headquartered in Empoli, Italy. SeSa S.p.A. is a subsidiary of ITH S.p.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:23
End of Day Share Price2020/03/27 00:00
Earnings2020/01/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.