New Risk • May 26
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 14% 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 (14% operating cash flow to total debt). Minor Risk Significant insider selling over the past 3 months (€990k sold). Reported Earnings • May 16
First quarter 2024 earnings released: EPS: €0.22 (vs €0.18 in 1Q 2023) First quarter 2024 results: EPS: €0.22 (up from €0.18 in 1Q 2023). Revenue: €200.3m (up 9.5% from 1Q 2023). Net income: €2.76m (up 15% from 1Q 2023). Profit margin: 1.4% (up from 1.3% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Professional Services industry in Italy. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Board Change • May 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. 7 experienced directors. 2 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Laura Guazzoni was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Recent Insider Transactions • May 12
Non-Executive Director recently sold €990k worth of stock On the 7th of May, Corrado Vittorelli sold around 60k shares on-market at roughly €16.50 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of €859k more than they bought in the last 12 months. Upcoming Dividend • Apr 29
Upcoming dividend of €0.50 per share Eligible shareholders must have bought the stock before 06 May 2024. Payment date: 08 May 2024. Payout ratio is a comfortable 50% and the cash payout ratio is 77%. Trailing yield: 3.1%. Lower than top quartile of Italian dividend payers (5.7%). Higher than average of industry peers (2.4%). Reported Earnings • Mar 15
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: €0.98 (down from €1.08 in FY 2022). Revenue: €748.8m (down 2.5% from FY 2022). Net income: €12.7m (down 11% from FY 2022). Profit margin: 1.7% (down from 1.9% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.0%. Earnings per share (EPS) also missed analyst estimates by 9.4%. Revenue is forecast to grow 2.2% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Professional Services industry in Italy. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Mar 09
Now 20% undervalued Over the last 90 days, the stock has risen 45% to €16.10. The fair value is estimated to be €20.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has declined by 18%. Revenue is forecast to grow by 3.6% in 2 years. Earnings are forecast to grow by 24% in the next 2 years. Price Target Changed • Dec 21
Price target increased by 15% to €13.63 Up from €11.83, the current price target is an average from 4 analysts. New target price is 15% below last closing price of €15.95. Stock is up 91% over the past year. The company is forecast to post earnings per share of €1.08 for next year compared to €1.08 last year. Announcement • Dec 21
Openjobmetis S.p.A. (BIT:OJM) signed a preliminary contract to acquire JOB Just On Business s.p.a. on December 19, 2023. Openjobmetis S.p.A. (BIT:OJM) signed a preliminary contract to acquire JOB Just On Business s.p.a. for €29.7 million on December 19, 2023. The transaction is financed by making use of the bank credit lines already available. In 2022, Just On Business SpA recorded revenues of approximately €97.1 million and EBITDA of approximately €2.5 million. The transaction is subject only to receipt of the authorisation from the National Competition Authority. The transaction is expected to take place by January 2024. Valuation Update With 7 Day Price Move • Dec 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €12.75, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Professional Services industry in Italy. Total returns to shareholders of 101% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €17.94 per share. Valuation Update With 7 Day Price Move • Nov 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to €10.80, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 9x in the Professional Services industry in Italy. Total returns to shareholders of 77% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €17.97 per share. Reported Earnings • Nov 14
Third quarter 2023 earnings released: EPS: €0.28 (vs €0.23 in 3Q 2022) Third quarter 2023 results: EPS: €0.28 (up from €0.23 in 3Q 2022). Revenue: €180.6m (down 2.2% from 3Q 2022). Net income: €3.83m (up 22% from 3Q 2022). Profit margin: 2.1% (up from 1.7% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Professional Services industry in Italy. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Reported Earnings • Aug 09
Second quarter 2023 earnings released: EPS: €0.29 (vs €0.40 in 2Q 2022) Second quarter 2023 results: EPS: €0.29 (down from €0.40 in 2Q 2022). Revenue: €197.1m (down 4.0% from 2Q 2022). Net income: €3.90m (down 26% from 2Q 2022). Profit margin: 2.0% (down from 2.6% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Professional Services industry in Italy. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Major Estimate Revision • Aug 08
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from €789.1m to €766.3m. EPS estimate also fell from €1.23 per share to €1.10 per share. Net income forecast to grow 10% next year vs 49% growth forecast for Professional Services industry in Italy. Consensus price target down from €12.70 to €12.15. Share price rose 4.1% to €9.10 over the past week. Buying Opportunity • Jun 26
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 6.9%. The fair value is estimated to be €11.39, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 5.6% in 2 years. Earnings is forecast to grow by 28% in the next 2 years. Buying Opportunity • May 24
Now 24% undervalued Over the last 90 days, the stock is up 3.2%. The fair value is estimated to be €12.30, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 5.6% in 2 years. Earnings is forecast to grow by 29% in the next 2 years. Reported Earnings • May 16
First quarter 2023 earnings released: EPS: €0.18 (vs €0.23 in 1Q 2022) First quarter 2023 results: EPS: €0.18 (down from €0.23 in 1Q 2022). Revenue: €183.0m (flat on 1Q 2022). Net income: €2.39m (down 23% from 1Q 2022). Profit margin: 1.3% (down from 1.7% in 1Q 2022). Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Professional Services industry in Italy. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Buying Opportunity • May 08
Now 21% undervalued Over the last 90 days, the stock is up 6.2%. The fair value is estimated to be €12.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 6.4%. For the next 3 years, revenue is forecast to grow by 2.1% per annum. Earnings is also forecast to grow by 7.5% per annum over the same time period. Upcoming Dividend • May 01
Upcoming dividend of €0.50 per share at 5.0% yield Eligible shareholders must have bought the stock before 08 May 2023. Payment date: 10 May 2023. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 5.0%. Lower than top quartile of Italian dividend payers (5.1%). Higher than average of industry peers (2.7%). Buying Opportunity • Apr 14
Now 22% undervalued Over the last 90 days, the stock is up 18%. The fair value is estimated to be €12.87, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 6.4%. For the next 3 years, revenue is forecast to grow by 2.1% per annum. Earnings is also forecast to grow by 7.2% per annum over the same time period. Reported Earnings • Mar 16
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: €1.07 (up from €0.80 in FY 2021). Revenue: €768.4m (up 6.6% from FY 2021). Net income: €14.4m (up 36% from FY 2021). Profit margin: 1.9% (up from 1.5% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.7%. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Professional Services industry in Italy. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Buying Opportunity • Mar 16
Now 20% undervalued Over the last 90 days, the stock is up 9.5%. The fair value is estimated to be €11.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 6.4%. For the next 3 years, revenue is forecast to grow by 2.2% per annum. Earnings is also forecast to grow by 8.7% per annum over the same time period. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: €0.23 (vs €0.28 in 3Q 2021) Third quarter 2022 results: EPS: €0.23 (down from €0.28 in 3Q 2021). Revenue: €184.7m (down 5.4% from 3Q 2021). Net income: €3.14m (down 17% from 3Q 2021). Profit margin: 1.7% (down from 1.9% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Professional Services industry in Italy. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Lucia Giancaspro was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: €0.23 (vs €0.28 in 3Q 2021) Third quarter 2022 results: EPS: €0.23 (down from €0.28 in 3Q 2021). Revenue: €184.7m (down 5.4% from 3Q 2021). Net income: €3.14m (down 17% from 3Q 2021). Profit margin: 1.7% (down from 1.9% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 9.6% growth forecast for the Professional Services industry in Italy. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Aug 08
Second quarter 2022 earnings released: EPS: €0.39 (vs €0.29 in 2Q 2021) Second quarter 2022 results: EPS: €0.39 (up from €0.29 in 2Q 2021). Revenue: €205.2m (up 15% from 2Q 2021). Net income: €5.25m (up 28% from 2Q 2021). Profit margin: 2.6% (up from 2.3% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 1.3% while the industry in Italy is not expected to grow. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jun 23
Price target decreased to €12.73 Down from €13.93, the current price target is an average from 3 analysts. New target price is 48% above last closing price of €8.58. Stock is down 16% over the past year. The company is forecast to post earnings per share of €1.23 for next year compared to €0.80 last year. Reported Earnings • May 15
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: €0.23 (up from €0.13 in 1Q 2021). Revenue: €183.0m (up 29% from 1Q 2021). Net income: €3.11m (up 95% from 1Q 2021). Profit margin: 1.7% (up from 1.1% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 11%. Over the next year, revenue is forecast to grow 3.6%, compared to a 17% growth forecast for the industry in Italy. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 02
Upcoming dividend of €0.31 per share Eligible shareholders must have bought the stock before 09 May 2022. Payment date: 11 May 2022. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of Italian dividend payers (4.7%). Higher than average of industry peers (2.3%). Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Member Lucia Giancaspro was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Apr 02
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Member Lucia Giancaspro was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 18
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: €0.81 (down from €1.81 in FY 2020). Revenue: €720.8m (up 39% from FY 2020). Net income: €10.6m (down 55% from FY 2020). Profit margin: 1.5% (down from 4.6% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates by 11%. Over the next year, revenue is forecast to grow 8.6%, compared to a 9.4% growth forecast for the industry in Italy. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorated over the past week After last week's 22% share price decline to €8.62, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 18x in the Professional Services industry in Europe. Total returns to shareholders of 30% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €14.70 per share. Buying Opportunity • Feb 08
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 1.7%. The fair value is estimated to be €15.16, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 39% per annum over the last 3 years. Price Target Changed • Dec 03
Price target increased to €14.20 Up from €13.17, the current price target is an average from 3 analysts. New target price is 23% above last closing price of €11.55. Stock is up 68% over the past year. The company is forecast to post earnings per share of €0.90 for next year compared to €1.81 last year. Reported Earnings • Nov 13
Third quarter 2021 earnings released: EPS €0.28 (vs €0.11 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €195.3m (up 47% from 3Q 2020). Net income: €3.76m (up 175% from 3Q 2020). Profit margin: 1.9% (up from 1.0% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 08
Second quarter 2021 earnings released: EPS €0.30 (vs €0.091 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: €177.8m (up 68% from 2Q 2020). Net income: €4.10m (up 244% from 2Q 2020). Profit margin: 2.3% (up from 1.1% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 08
Price target increased to €11.67 Up from €10.83, the current price target is an average from 3 analysts. New target price is 12% above last closing price of €10.40. Stock is up 76% over the past year. Price Target Changed • Jul 20
Price target increased to €10.83 Up from €9.98, the current price target is an average from 3 analysts. New target price is 9.0% above last closing price of €9.94. Stock is up 66% over the past year. Price Target Changed • May 18
Price target increased to €10.87 Up from €10.10, the current price target is an average from 3 analysts. New target price is 19% above last closing price of €9.16. Stock is up 76% over the past year. Reported Earnings • May 15
First quarter 2021 earnings released: EPS €0.13 (vs €0.09 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: €142.2m (up 9.5% from 1Q 2020). Net income: €1.59m (up 34% from 1Q 2020). Profit margin: 1.1% (up from 0.9% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Upcoming Dividend • May 04
Upcoming dividend of €0.11 per share Eligible shareholders must have bought the stock before 10 May 2021. Payment date: 12 May 2021. Trailing yield: 1.2%. Lower than top quartile of Italian dividend payers (3.9%). Lower than average of industry peers (2.0%). Reported Earnings • Mar 19
Full year 2020 earnings released: EPS €1.81 (vs €0.79 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: €517.0m (down 8.6% from FY 2019). Net income: €23.6m (up 128% from FY 2019). Profit margin: 4.6% (up from 1.8% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Mar 10
New 90-day high: €8.00 The company is up 21% from its price of €6.60 on 09 December 2020. The Italian market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €10.24 per share. Price Target Changed • Jan 18
Price target raised to €8.58 Up from €7.90, the current price target is an average from 3 analysts. The new target price is 15% above the current share price of €7.44. As of last close, the stock is down 14% over the past year. Is New 90 Day High Low • Jan 11
New 90-day high: €7.98 The company is up 35% from its price of €5.90 on 13 October 2020. The Italian market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €7.42 per share. Is New 90 Day High Low • Dec 24
New 90-day high: €7.10 The company is up 29% from its price of €5.50 on 24 September 2020. The Italian market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 27% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €7.33 per share. Is New 90 Day High Low • Dec 04
New 90-day high: €6.86 The company is up 17% from its price of €5.88 on 04 September 2020. The Italian market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €6.35 per share. Is New 90 Day High Low • Nov 19
New 90-day high: €6.40 The company is up 10.0% from its price of €5.84 on 20 August 2020. The Italian market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €6.32 per share. Analyst Estimate Surprise Post Earnings • Nov 14
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) missed analyst estimates by 10.0%. Over the next year, revenue is forecast to grow 3.2%, compared to a 1.4% growth forecast for the Professional Services industry in Italy. Reported Earnings • Nov 14
Third quarter 2020 earnings released: EPS €0.11 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: €132.7m (down 4.2% from 3Q 2019). Net income: €1.37m (down 57% from 3Q 2019). Profit margin: 1.0% (down from 2.3% in 3Q 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has fallen by 21% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Nov 10
Market bids up stock over the past week After last week's 20% share price gain to €5.68, the stock is trading at a trailing P/E ratio of 9.1x, up from the previous P/E ratio of 7.6x. This compares to an average P/E of 27x in the Professional Services industry in Europe. Total return to shareholders over the past three years is a loss of 50%. Valuation Update With 7 Day Price Move • Oct 29
Market pulls back on stock over the past week After last week's 16% share price decline to €4.75, the stock is trading at a trailing P/E ratio of 7.6x, down from the previous P/E ratio of 9.1x. This compares to an average P/E of 25x in the Professional Services industry in Europe. Total return to shareholders over the past three years is a loss of 63%. Is New 90 Day High Low • Oct 26
New 90-day low: €5.36 The company is down 9.0% from its price of €5.92 on 28 July 2020. The Italian market is down 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is up 28% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €3.25 per share. Is New 90 Day High Low • Sep 25
New 90-day low: €5.50 The company is down 9.0% from its price of €6.02 on 26 June 2020. The Italian market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is up 33% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €3.25 per share.