New Risk • Apr 17
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 66% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (12% average weekly change). Minor Risk High level of debt (66% net debt to equity). Major Estimate Revision • Apr 14
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from €130.9m to €129.5m. EPS estimate also fell from €0.90 per share to €0.794 per share. Net income forecast to grow 232% next year vs 35% growth forecast for Commercial Services industry in Italy. Consensus price target of €11.90 unchanged from last update. Share price was steady at €11.60 over the past week. Announcement • Apr 08
Star7 S.p.A., Annual General Meeting, Apr 20, 2026 Star7 S.p.A., Annual General Meeting, Apr 20, 2026, at 11:00 W. Europe Standard Time. Announcement • Apr 02
Argos Wityu Italia S.P.A., STAR AG and Dante S.R.L. agreed to acquire 75% stake in Star7 S.p.A. (BIT:STAR7) from STAR AG and Dante S.R.L. for approximately €80.3 million. Argos Wityu Italia S.P.A., STAR AG and Dante S.R.L. agreed to acquire 75% stake in Star7 S.p.A. (BIT:STAR7) from STAR AG and Dante S.R.L. for approximately €80.3 million on April 1, 2026. A cash consideration of €80.32 million will be paid by Argos Wityu Italia S.P.A., STAR AG and Dante S.R.L. As part of consideration, €80.32million is paid towards common equity of Star7 S.p.A.
The transaction is subject to receipt of the required authorisations pursuant to the applicable antitrust regulations and the Golden Power regulation by the Presidency of the Council of Ministers of the Italian Republic.
Emintad Italy s.r.l. acted as financial advisor for STAR AG and Dante S.R.L. White & Case LLP acted as legal advisor for Dante S.R.L. PricewaterhouseCoopers SpA acted as due diligence provider for STAR AG and Dante S.R.L. Alantra S.r.l. acted as financial advisor for Argos Wityu Italia S.P.A. Giovannelli e Associati acted as legal advisor for Argos Wityu Italia S.P.A. Ernst & Young Corporate Finance Spa acted as financial advisor for Argos Wityu Italia S.P.A. Bain & Company Italy Inc acted as due diligence provider for Argos Wityu Italia S.P.A. Alvarez & Marsal Italia Srl acted as due diligence provider for Argos Wityu Italia S.P.A. Capgemini Italia S.p.A. acted as due diligence provider for Argos Wityu Italia S.P.A. Tauw Italia Srl acted as due diligence provider for Argos Wityu Italia S.P.A. WST Studio Associato acted as due diligence provider for Argos Wityu Italia S.P.A. New Risk • Apr 01
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 2.8% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment improves as stock rises 35% After last week's 35% share price gain to €11.30, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Commercial Services industry in Italy. Total returns to shareholders of 28% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €16.65 per share. New Risk • Nov 25
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 5.7% 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: Minor Risks High level of debt (90% net debt to equity). Share price has been volatile over the past 3 months (5.7% average weekly change). Market cap is less than US$100m (€76.0m market cap, or US$87.7m). Valuation Update With 7 Day Price Move • Oct 29
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to €7.20, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 14x in the Commercial Services industry in Italy. Total loss to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €8.17 per share. Buy Or Sell Opportunity • Oct 10
Now 22% undervalued Over the last 90 days, the stock has risen 6.0% to €6.20. The fair value is estimated to be €7.94, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 189% in the next 2 years. Reported Earnings • Sep 28
First half 2025 earnings released First half 2025 results: Revenue: €59.5m (down 1.6% from 1H 2024). Net income: €1.67m (up 76% from 1H 2024). Profit margin: 2.8% (up from 1.6% in 1H 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Commercial Services industry in Italy. New Risk • Jun 04
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 84% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (84% net debt to equity). Market cap is less than US$100m (€54.0m market cap, or US$61.5m). Announcement • Apr 15
Star7 S.p.A., Annual General Meeting, Apr 29, 2025 Star7 S.p.A., Annual General Meeting, Apr 29, 2025, at 11:00 W. Europe Standard Time. Major Estimate Revision • Apr 01
Consensus EPS estimates increase by 26%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from €128.8m to €126.4m. EPS estimate rose from €0.721 to €0.91. Net income forecast to grow 52% next year vs 24% growth forecast for Commercial Services industry in Italy. Consensus price target up from €11.45 to €11.70. Share price fell 3.7% to €6.45 over the past week. Reported Earnings • Mar 27
Full year 2024 earnings released Full year 2024 results: Revenue: €121.3m (up 15% from FY 2023). Net income: €3.73m (up 67% from FY 2023). Profit margin: 3.1% (up from 2.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.2% p.a. on average during the next 2 years, compared to a 4.9% growth forecast for the Commercial Services industry in Italy. Major Estimate Revision • Feb 12
Consensus EPS estimates increase by 34%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from €122.8m to €120.7m. EPS estimate rose from €0.599 to €0.80. Net income forecast to grow 148% next year vs 31% growth forecast for Commercial Services industry in Italy. Consensus price target of €11.45 unchanged from last update. Share price was steady at €6.10 over the past week. Major Estimate Revision • Oct 04
Consensus EPS estimates fall by 15%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from €120.2m to €122.8m. EPS estimate fell from €0.705 to €0.599 per share. Net income forecast to grow 99% next year vs 32% growth forecast for Commercial Services industry in Italy. Consensus price target up from €11.15 to €11.45. Share price was steady at €6.20 over the past week. Reported Earnings • Sep 30
First half 2024 earnings released First half 2024 results: Revenue: €60.8m (up 19% from 1H 2023). Net income: €1.50m (up 91% from 1H 2023). Profit margin: 2.5% (up from 1.5% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Commercial Services industry in Italy. Buy Or Sell Opportunity • Sep 24
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 7.6% to €6.35. The fair value is estimated to be €5.28, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has declined by 104%. For the next 3 years, revenue is forecast to grow by 8.7% per annum. Earnings are also forecast to grow by 32% per annum over the same time period. Price Target Changed • May 22
Price target decreased by 12% to €11.05 Down from €12.50, the current price target is an average from 2 analysts. New target price is 77% above last closing price of €6.25. Stock is down 22% over the past year. New Risk • Apr 02
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.2x 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 Risk Interest payments are not well covered by earnings (2.2x net interest cover). Minor Risks Profit margins are more than 30% lower than last year (2.1% net profit margin). Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (€61.6m market cap, or US$66.2m). Reported Earnings • Mar 31
Full year 2023 earnings released Full year 2023 results: Revenue: €105.3m (up 25% from FY 2022). Net income: €2.23m (down 28% from FY 2022). Profit margin: 2.1% (down from 3.7% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 2.8% growth forecast for the Commercial Services industry in Italy. Valuation Update With 7 Day Price Move • Dec 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €7.50, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Commercial Services industry in Italy. Total loss to shareholders of 13% over the past year. Reported Earnings • Oct 02
First half 2023 earnings released: EPS: €0.087 (vs €0.17 in 1H 2022) First half 2023 results: EPS: €0.087 (down from €0.17 in 1H 2022). Revenue: €51.3m (up 28% from 1H 2022). Net income: €783.0k (down 41% from 1H 2022). Profit margin: 1.5% (down from 3.3% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 9.7% growth forecast for the Commercial Services industry in Italy. Major Estimate Revision • Sep 28
Consensus EPS estimates fall by 27% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from €0.667 to €0.485 per share. Revenue forecast steady at €107.8m. Net income forecast to grow 29% next year vs 18% growth forecast for Commercial Services industry in Italy. Consensus price target of €12.50 unchanged from last update. Share price fell 3.4% to €7.05 over the past week. New Risk • Aug 14
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 18% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (5.3% operating cash flow to total debt). Minor Risks Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (€64.8m market cap, or US$70.9m). Major Estimate Revision • Apr 03
Consensus revenue estimates increase by 12% The consensus outlook for revenues in fiscal year 2023 has improved. 2023 revenue forecast increased from €96.1m to €107.9m. EPS estimate increased from €0.652 to €0.687 per share. Net income forecast to grow 185% next year vs 19% growth forecast for Commercial Services industry in Italy. Consensus price target up from €12.40 to €12.95. Share price fell 7.8% to €8.80 over the past week. 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. 8 experienced directors. 2 highly experienced directors. 1 independent director (6 non-independent directors). Independent Board Member Paolo Rebaudengo was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 04
First half 2022 earnings released: EPS: €0 (vs €3.95 in 1H 2021) First half 2022 results: EPS: €0 (down from €3.95 in 1H 2021). Revenue: €40.4m (up 42% from 1H 2021). Net income: €1.33m (down 25% from 1H 2021). Profit margin: 3.3% (down from 6.3% in 1H 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Commercial Services industry in Italy. Announcement • Jul 27
Star7 S.p.A. (BIT:STAR7) entered into an agreement to acquire Vertere S.R.L. for €0.84 million from Franco Chiodaroli and Luca Menozzi Star7 S.p.A. (BIT:STAR7) entered into an agreement to acquire Vertere S.R.L. for €0.84 million from Franco Chiodaroli and Luca Menozzi on July 26, 2022. STAR7 is funding the acquisition of Vertere s.r.l. through existing liquidity. The deal also includes deferred payments according to Vertere’s 2022 and 2023 financial results. In 2021, Vertere s.r.l. achieved revenues of €1.3 million and an EBITDA of €0.1 million. Vertere will remain a separate legal entity until 2023. Franco Chiodaroli will be appointed as Chairman of the new Board of Directors, and remains chief executive officer of Vertere s.r.l. and Luca Menozzi, will instead join STAR7’s staff with a managerial role, as Head of Language Digital Transformation. BDO Italia S.p.A. provided financial, tax, legal and personnel due diligence to STAR7. Farina and Partners acted as legal advisors to Star7 S.p.A. 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. 8 experienced directors. 2 highly experienced directors. 1 independent director (6 non-independent directors). Independent Board Member Paolo Rebaudengo was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment.