BIT:TES

Stock Analysis Report

Executive Summary

Tesmec S.p.A. designs, produces, and markets products and integrated solutions for the construction, maintenance, and streamlining of infrastructures relating to the transmission of electrical power, data, and material transport in Italy, rest of Europe, the Middle East, Africa, North and Central America, and BRIC and other countries.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

TES

-1.0%

IT Machinery

3.1%

IT Market


1 Year Return

-9.9%

TES

-17.5%

IT Machinery

8.8%

IT Market

Return vs Industry: TES exceeded the Italian Machinery industry which returned -17.5% over the past year.

Return vs Market: TES underperformed the Italian Market which returned 8.8% over the past year.


Shareholder returns

TESIndustryMarket
7 Day-1.0%-1.0%3.1%
30 Day-4.1%-6.8%0.06%
90 Day-12.9%-8.0%-0.2%
1 Year-9.9%-9.9%-16.1%-17.5%13.6%8.8%
3 Year-19.2%-19.2%34.3%28.8%29.2%11.3%
5 Year-32.4%-37.5%81.3%70.2%23.6%-25.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TES (€0.4) is trading below our estimate of fair value (€0.44)

Significantly Undervalued: TES is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TES is poor value based on its PE Ratio (2409.6x) compared to the Machinery industry average (16.4x).

PE vs Market: TES is poor value based on its PE Ratio (2409.6x) compared to the Italian market (17x).


Price to Earnings Growth Ratio

Low PEG Ratio: TES is poor value based on its PEG Ratio (43.6x)


Price to Book Ratio

PB vs Industry: TES is good value based on its PB Ratio (0.9x) compared to the IT Machinery industry average (1.5x).


Next Steps

Future Growth

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

55.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TES's forecast earnings growth (55.2% per year) is above the savings rate (2.9%).

Earnings vs Market: TES's earnings (55.2% per year) are forecast to grow faster than the Italian market (8.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TES's revenue (5.3% per year) is forecast to grow faster than the Italian market (3.1% per year).

High Growth Revenue: TES's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TES's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Tesmec performed over the past 5 years?

-49.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TES's earnings have declined by -49.2% per year over the past 5 years.

Accelerating Growth: TES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TES had negative earnings growth (-98.1%) over the past year, making it difficult to compare to the Machinery industry average (-13.2%).


Return on Equity

High ROE: TES's Return on Equity (0.09%) is considered low.


Return on Assets

ROA vs Industry: TES's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: TES's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tesmec's financial position?


Financial Position Analysis

Short Term Liabilities: TES's short term assets (€193.9M) exceeds its short term liabilities (€173.5M)

Long Term Liabilities: TES's short term assets (193.9M) exceeds its long term liabilities (76.4M)


Debt to Equity History and Analysis

Debt Level: TES's debt to equity ratio (280.4%) is considered high

Reducing Debt: TES's debt to equity ratio has increased from 200.1% to 280.4% over the past 5 years.

Debt Coverage: TES's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: TES's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet

Inventory Level: TES has a high level of physical assets or inventory.

Debt Coverage by Assets: TES's debt is covered by short term assets (assets are 1.576730x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.1%markettop25%4.4%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate TES's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TES's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if TES's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TES's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TES is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TES's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

What is the CEO of Tesmec's salary, the management and board of directors tenure and is there insider trading?

9.7yrs

Average board tenure


CEO

Ambrogio Dominioni (73yo)

0yrs

Tenure

€480,000

Compensation

Mr. Ambrogio Caccia Dominioni serves as the Chairman of the Board and Chief Executive Officer of Tesmec S.p.A. and served as its Managing Director. From 1971 to 1979, Mr. Dominioni served for Andersen Cons ...


CEO Compensation Analysis

Compensation vs. Market: Ambrogio's total compensation ($USD529.74K) is about average for companies of similar size in the Italian market ($USD0.00).

Compensation vs Earnings: Ambrogio's compensation has been consistent with company performance over the past year.


Board Age and Tenure

9.7yrs

Average Tenure

60yo

Average Age

Experienced Board: TES's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Ambrogio Dominioni (73yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: €480.00k
  • Marco Paredi

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Ambrogio Dominioni (73yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: €480.00k
  • Gioacchino Attanzio (76yo)

    Lead Independent Director

    • Tenure: 9.7yrs
    • Compensation: €30.00k
  • Gianluca Bolelli (60yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: €83.20k
  • Paola Durante

    Independent Director

    • Tenure: 0yrs
    • Compensation: €20.00k
  • Guido Giuseppe Corbetta (60yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: €20.00k
  • Simone Cavalli (54yo)

    Chairman of Board of Statutory Auditors

    • Tenure: 0yrs
    • Compensation: €38.72k
  • Caterina Dominioni (40yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: €52.00k
  • Sergio Arnoldi (72yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: €20.80k
  • Stefano Chirico (52yo)

    Statutory Auditor & Member of Supervisory Board

    • Tenure: 9.7yrs
    • Compensation: €26.47k
  • Lucia Dominioni

    Director

    • Tenure: 0yrs
    • Compensation: €20.00k

Company Information

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


Key Information

  • Name: Tesmec S.p.A.
  • Ticker: TES
  • Exchange: BIT
  • Founded: 1951
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: €40.949m
  • Shares outstanding: 102.37m
  • Website: https://www.tesmec.com

Number of Employees


Location

  • Tesmec S.p.A.
  • Via Zanica, 17/O
  • Grassobbio
  • Bergamo
  • 24050
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TESBIT (Borsa Italiana)YesOrdinary SharesITEURJul 2010
2GVDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2010
TESMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2010

Biography

Tesmec S.p.A. designs, produces, and markets products and integrated solutions for the construction, maintenance, and streamlining of infrastructures relating to the transmission of electrical power, data, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 21:05
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.