Buy Or Sell Opportunity • Apr 08
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 41% to €7.44. The fair value is estimated to be €6.04, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Reported Earnings • Mar 30
Full year 2025 earnings released Full year 2025 results: Revenue: €46.2m (up 7.3% from FY 2024). Net income: €12.6m (up 12% from FY 2024). Profit margin: 27% (up from 26% in FY 2024). The increase in margin was driven by higher revenue. Announcement • Mar 27
Directa Sim S.p.A. announces Annual dividend, payable on May 20, 2026 Directa Sim S.p.A. announced Annual dividend of EUR 0.6000 per share payable on May 20, 2026, ex-date on May 18, 2026 and record date on May 19, 2026. New Risk • Mar 26
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 3.6% 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: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (21% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (3.6% average weekly change). Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €6.40, the stock trades at a trailing P/E ratio of 10.2x. Average forward P/E is 11x in the Capital Markets industry in Italy. Total returns to shareholders of 82% over the past three years. Reported Earnings • Sep 28
First half 2025 earnings released: EPS: €0.39 (vs €0.36 in 1H 2024) First half 2025 results: EPS: €0.39 (up from €0.36 in 1H 2024). Revenue: €22.8m (up 5.5% from 1H 2024). Net income: €7.23m (up 8.1% from 1H 2024). Profit margin: 32% (in line with 1H 2024). Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. New Risk • Sep 25
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. 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 Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (21% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Upcoming Dividend • May 12
Upcoming dividend of €0.30 per share Eligible shareholders must have bought the stock before 19 May 2025. Payment date: 21 May 2025. Payout ratio is a comfortable 50% and this is well supported by cash flows. Trailing yield: 5.6%. Within top quartile of Italian dividend payers (5.4%). In line with average of industry peers (5.5%). New Risk • Apr 11
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks High level of debt (117% net debt to equity). Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Declared Dividend • Apr 03
Dividend increased to €0.30 Dividend of €0.30 is 76% higher than last year. Ex-date: 19th May 2025 Payment date: 21st May 2025 Dividend yield will be 6.0%, which is higher than the industry average of 4.6%. Sustainability & Growth The dividend has increased by an average of 4.3% per year over the past 3 years and payments have been stable during that time. Earnings per share has grown by 88% over the last year. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Apr 02
Directa Sim S.p.A. announces Annual dividend, payable on May 21, 2025 Directa Sim S.p.A. announced Annual dividend of EUR 0.3000 per share payable on May 21, 2025, ex-date on May 19, 2025 and record date on May 20, 2025. Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to €5.10, the stock trades at a trailing P/E ratio of 8.6x. Average forward P/E is 11x in the Capital Markets industry in Italy. Total returns to shareholders of 14% over the past three years. Buy Or Sell Opportunity • Nov 13
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 5.3% to €3.99. The fair value is estimated to be €3.31, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 25%. Price Target Changed • Oct 24
Price target increased by 17% to €6.90 Up from €5.90, the current price target is provided by 1 analyst. New target price is 68% above last closing price of €4.10. Stock is up 21% over the past year. The company posted earnings per share of €0.48 last year. Buy Or Sell Opportunity • Oct 09
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to €4.10. The fair value is estimated to be €3.41, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 25%. Reported Earnings • Sep 27
First half 2024 earnings released: EPS: €0.36 (vs €0.22 in 1H 2023) First half 2024 results: EPS: €0.36 (up from €0.22 in 1H 2023). Revenue: €21.7m (up 31% from 1H 2023). Net income: €6.69m (up 78% from 1H 2023). Profit margin: 31% (up from 23% in 1H 2023). The increase in margin was driven by higher revenue. Buy Or Sell Opportunity • Sep 24
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 14% to €4.08. The fair value is estimated to be €3.36, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • Jul 01
Now 20% overvalued Over the last 90 days, the stock has fallen 3.3% to €3.51. The fair value is estimated to be €2.92, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • May 31
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 3.8% to €3.55. The fair value is estimated to be €2.91, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Upcoming Dividend • May 06
Upcoming dividend of €0.17 per share Eligible shareholders must have bought the stock before 13 May 2024. Payment date: 15 May 2024. Trailing yield: 4.3%. Lower than top quartile of Italian dividend payers (5.7%). In line with average of industry peers (4.7%). Price Target Changed • Apr 03
Price target increased by 9.9% to €5.90 Up from €5.37, the current price target is provided by 1 analyst. New target price is 63% above last closing price of €3.63. Stock is down 11% over the past year. New Risk • Jul 26
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.2% 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 (9.6% operating cash flow to total debt). Minor Risks Short dividend paying track record (1 year of continuous dividend payments). Shareholders have been diluted in the past year (5.2% increase in shares outstanding). Market cap is less than US$100m (€73.1m market cap, or US$81.0m). Upcoming Dividend • May 01
Upcoming dividend of €0.16 per share at 4.0% yield Eligible shareholders must have bought the stock before 08 May 2023. Payment date: 10 May 2023. Trailing yield: 4.0%. Lower than top quartile of Italian dividend payers (5.1%). Lower than average of industry peers (5.3%). Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €4.27, the stock trades at a trailing P/E ratio of 14.1x. Average forward P/E is 10x in the Capital Markets industry in Italy. Total loss to shareholders of 15% over the past year. Board Change • Nov 16
No independent directors 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. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Oct 03
First half 2022 earnings released: EPS: €0 (vs €0 in 1H 2021) First half 2022 results: EPS: €0 (in line with 1H 2021). Revenue: €15.4m (down 2.0% from 1H 2021). Net income: €3.75m (down 4.2% from 1H 2021). Profit margin: 24% (in line with 1H 2021). Board Change • Apr 27
No independent directors 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. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorated over the past week After last week's 16% share price decline to €4.25, the stock trades at a trailing P/E ratio of 15.4x. Average forward P/E is 11x in the Capital Markets industry in Italy. Board Change • Dec 23
No independent directors 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. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment.