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 Analysis

Very undervalued with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

18.3%

TES

4.5%

IT Machinery

4.6%

IT Market


1 Year Return

-34.2%

TES

-27.8%

IT Machinery

-22.0%

IT Market

Return vs Industry: TES underperformed the Italian Machinery industry which returned -27.8% over the past year.

Return vs Market: TES underperformed the Italian Market which returned -22% over the past year.


Shareholder returns

TESIndustryMarket
7 Day18.3%4.5%4.6%
30 Day26.1%11.5%-1.4%
90 Day-27.8%-19.7%-26.2%
1 Year-34.2%-34.2%-26.5%-27.8%-18.6%-22.0%
3 Year-43.0%-43.0%-22.0%-25.3%-6.9%-16.3%
5 Year-56.5%-59.7%5.3%-1.6%-20.1%-48.5%

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?

22.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TES (€0.29) is trading below our estimate of fair value (€0.37)

Significantly Below Fair Value: TES is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TES is good value based on its PE Ratio (9.8x) compared to the Machinery industry average (13.2x).

PE vs Market: TES is good value based on its PE Ratio (9.8x) compared to the Italian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: TES is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: TES is good value based on its PB Ratio (0.6x) compared to the IT Machinery industry average (1.2x).


Next Steps

Future Growth

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

52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TES's forecast earnings growth (52.2% per year) is above the savings rate (1.2%).

Earnings vs Market: TES's earnings (52.2% per year) are forecast to grow faster than the Italian market (11.7% per year).

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

Revenue vs Market: TES's revenue (8.8% per year) is forecast to grow faster than the Italian market (-0.2% per year).

High Growth Revenue: TES's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TES's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has Tesmec performed over the past 5 years?

-42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TES has high quality earnings.

Growing Profit Margin: TES's current net profit margins (1.5%) are higher than last year (0.01%).


Past Earnings Growth Analysis

Earnings Trend: TES's earnings have declined by -42.6% per year over the past 5 years.

Accelerating Growth: TES's earnings growth over the past year (10496.4%) exceeds its 5-year average (-42.6% per year).

Earnings vs Industry: TES earnings growth over the past year (10496.4%) exceeded the Machinery industry -20.2%.


Return on Equity

High ROE: TES's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Tesmec's financial position?


Financial Position Analysis

Short Term Liabilities: TES's short term assets (€194.5M) exceed its short term liabilities (€175.3M).

Long Term Liabilities: TES's short term assets (€194.5M) exceed its long term liabilities (€75.1M).


Debt to Equity History and Analysis

Debt Level: TES's debt to equity ratio (119.4%) is considered high.

Reducing Debt: TES's debt to equity ratio has reduced from 160.3% to 119.4% over the past 5 years.

Debt Coverage: TES's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: TES's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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 the Italian market.


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

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

10.2yrs

Average board tenure


CEO

Ambrogio Dominioni (73yo)

no data

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 ($USD524.88K) is above average for companies of similar size in the Italian market ($USD345.54K).

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


Board Members

NamePositionTenureCompensationOwnership
Ambrogio Dominioni
Chairman & CEOno data€480.00k0.15% 44.4k
Gioacchino Attanzio
Lead Independent Director10.17yrs€30.00kno data
Gianluca Bolelli
Vice Chairmanno data€83.20k0.099% 28.8k
Paola Durante
Independent Directorno data€20.00kno data
Guido Giuseppe Corbetta
Independent Director10.17yrs€20.00kno data
Simone Cavalli
Chairman of Board of Statutory Auditorsno data€38.72kno data
Caterina Dominioni
Director10.17yrs€52.00k0.0093% 2.7k
Sergio Arnoldi
Independent Director10.17yrs€20.80kno data
Stefano Chirico
Statutory Auditor & Member of Supervisory Board10.17yrs€26.47k0.011% 3.3k
Lucia Dominioni
Directorno data€20.00k0.0093% 2.7k

10.2yrs

Average Tenure

60yo

Average Age

Experienced Board: TES's board of directors are seasoned and experienced ( 10.2 years average tenure).


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

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: €29.176m
  • 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
0MVJLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 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, and material transport in Italy, rest of Europe, the Middle East, Africa, North and Central America, and BRIC and other countries. It operates through Energy, Trencher, and Rail segments. The company offers stringing machines, accessories, and tools, including winches, pullers, tensioners, puller-tensioners, reel and drum elevators, ropes, pulleys, head boards, trolleys, light alloy structures, and safety devices, as well as additional devices, equipment, and accessories for underground cables laying. It also provides energy automation products comprising powerline communication systems, teleprotection equipment, remote terminal units, smart metering tools, protection relays, T-protection and measure relays, directional fault detectors, portable discoverers, pole discoverers, and smart sensors; and engineering, integration, training, commissioning, and after-sale support services. In addition, the company offers trenchers, surface miners, multifunctional machines, georadar explorer accessories, minitrenches, automatic machine guidance systems, control systems, and remote monitoring systems; and railway catenary installation products, including constant tension stringing units, catenary maintenance multipurpose units, track maintenance units, shunting locomotives, and the pantograph for catenary parameters measurement. Further, it provides consultancy and excavation services for power lines and fiber optic cables. Tesmec S.p.A. was founded in 1951 and is headquartered in Grassobbio, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 04:14
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.