Board Change • May 20
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Donatella Busso was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • May 21
New major risk - Revenue and earnings growth Earnings have declined by 84% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Earnings have declined by 84% per year over the past 5 years. Market cap is less than US$10m (€7.26m market cap, or US$8.23m). Minor Risk Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). New Risk • May 20
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 2 years. Trailing 12-month net loss: €10m Forecast net loss in 2 years: €256k This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Market cap is less than US$10m (€6.53m market cap, or US$7.35m). Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Currently unprofitable and not forecast to become profitable over next 2 years (€256k net loss in 2 years). New Risk • Apr 30
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: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Market cap is less than US$10m (€3.15m market cap, or US$3.58m). Minor Risk Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). New Risk • Dec 17
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: €9.36m (US$9.83m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Market cap is less than US$10m (€9.36m market cap, or US$9.83m). Minor Risk Less than 1 year of cash runway based on current free cash flow (-€11m). New Risk • Nov 12
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 8.7% 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.7% average weekly change). Minor Risks Less than 1 year of cash runway based on current free cash flow (-€11m). Market cap is less than US$100m (€10.3m market cap, or US$11.0m). New Risk • Nov 01
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: €9.19m (US$9.99m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (€9.19m market cap, or US$9.99m). Minor Risks Less than 1 year of cash runway based on current free cash flow (-€11m). Share price has been volatile over the past 3 months (6.1% average weekly change). Major Estimate Revision • Oct 24
Consensus EPS estimates fall by 118% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from €44.2m to €41.4m. Losses expected to increase from €0.12 per share to €0.26. Semiconductor industry in Italy expected to see average net income growth of 1.8% next year. Consensus price target down from €1.69 to €1.33. Share price fell 6.4% to €0.67 over the past week. Reported Earnings • Oct 02
First half 2024 earnings released: €0.32 loss per share (vs €0.078 loss in 1H 2023) First half 2024 results: €0.32 loss per share (further deteriorated from €0.078 loss in 1H 2023). Revenue: €19.6m (up 7.4% from 1H 2023). Net loss: €5.12m (loss widened 306% from 1H 2023). Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Europe. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Price Target Changed • Jun 19
Price target decreased by 12% to €1.82 Down from €2.05, the current price target is an average from 4 analysts. New target price is 59% above last closing price of €1.14. Stock is down 61% over the past year. The company is forecast to post a net loss per share of €0.12 next year compared to a net loss per share of €0.38 last year. New Risk • Jun 10
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 6.1% 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 Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Share price has been volatile over the past 3 months (6.1% average weekly change). Market cap is less than US$100m (€16.3m market cap, or US$17.5m). Major Estimate Revision • May 07
Consensus revenue estimates fall by 16% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from €47.8m to €40.2m. Forecast losses increased from -€0.104 to -€0.132 per share. Semiconductor industry in Italy expected to see average net income decline 0.02% next year. Consensus price target down from €2.05 to €1.93. Share price was steady at €1.16 over the past week. Price Target Changed • May 06
Price target decreased by 10% to €1.93 Down from €2.15, the current price target is an average from 4 analysts. New target price is 66% above last closing price of €1.16. Stock is down 57% over the past year. The company is forecast to post a net loss per share of €0.13 next year compared to a net loss per share of €0.38 last year. Reported Earnings • Apr 24
Full year 2023 earnings: Revenues miss analyst expectations Full year 2023 results: Revenue: €41.5m (up 22% from FY 2022). Net loss: €6.16m (down €7.11m from profit in FY 2022). Revenue missed analyst estimates by 8.1%. Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Semiconductor industry in Europe. Buy Or Sell Opportunity • Apr 18
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.6% to €1.22. The fair value is estimated to be €1.55, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.7% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 48% in 2 years. Earnings are forecast to grow by 45% in the next 2 years. Price Target Changed • Apr 04
Price target decreased by 10% to €2.05 Down from €2.28, the current price target is an average from 4 analysts. New target price is 66% above last closing price of €1.24. Stock is down 58% over the past year. The company is forecast to post a net loss per share of €0.17 compared to earnings per share of €0.059 last year. Buy Or Sell Opportunity • Apr 03
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 18% to €1.24. The fair value is estimated to be €1.55, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.7% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 57% in 2 years. Earnings are forecast to grow by 98% in the next 2 years. Reported Earnings • Oct 02
First half 2023 earnings released First half 2023 results: Revenue: €18.7m (up 6.1% from 1H 2022). Net loss: €1.26m (down 360% from profit in 1H 2022). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Semiconductor industry in Europe. Valuation Update With 7 Day Price Move • Sep 18
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to €2.27, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 19x in the Semiconductor industry in Europe. Total loss to shareholders of 38% over the past year. Simply Wall St's valuation model estimates the intrinsic value at €3.71 per share. New Risk • Jun 14
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 5.2% 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 Interest payments are not well covered by earnings (2.4x net interest cover). High level of non-cash earnings (38% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (5.2% average weekly change). Market cap is less than US$100m (€46.4m market cap, or US$50.4m). Price Target Changed • Apr 06
Price target decreased by 7.6% to €4.08 Down from €4.41, the current price target is an average from 4 analysts. New target price is 38% above last closing price of €2.96. Stock is down 19% over the past year. The company is forecast to post earnings per share of €0.044 for next year compared to €0.06 last year. Price Target Changed • Apr 03
Price target decreased by 10% to €4.21 Down from €4.69, the current price target is an average from 4 analysts. New target price is 36% above last closing price of €3.10. Stock is down 16% over the past year. The company is forecast to post earnings per share of €0.046 for next year compared to €0.06 last year. Major Estimate Revision • Dec 26
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from €0.07 to €0.05 per share. Revenue forecast steady at €42.2m. Net income forecast to shrink 5.0% next year vs 19% growth forecast for Semiconductor industry in Italy . Consensus price target of €4.41 unchanged from last update. Share price fell 2.3% to €3.39 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. No highly experienced directors. 2 independent directors (3 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: Minority of independent directors. Insufficient board refreshment. Major Estimate Revision • Oct 29
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from €0.09 to €0.07. Revenue forecast unchanged from €41.8m at last update. Net income forecast to shrink 3.8% next year vs 21% growth forecast for Semiconductor industry in Italy . Consensus price target down from €4.69 to €4.41. Share price was steady at €3.30 over the past week. Price Target Changed • Oct 28
Price target decreased to €4.41 Down from €4.97, the current price target is an average from 4 analysts. New target price is 34% above last closing price of €3.30. Stock is down 33% over the past year. The company is forecast to post earnings per share of €0.089 for next year compared to €0.06 last year. Major Estimate Revision • Oct 18
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from €43.9m to €42.8m. EPS estimate also fell from €0.12 per share to €0.10 per share. Net income forecast to grow 23% next year vs 26% growth forecast for Semiconductor industry in Italy. Consensus price target down from €4.97 to €4.79. Share price fell 3.5% to €3.34 over the past week. Price Target Changed • Oct 15
Price target decreased to €4.97 Down from €5.50, the current price target is an average from 4 analysts. New target price is 46% above last closing price of €3.41. Stock is down 31% over the past year. Reported Earnings • Oct 03
First half 2022 earnings released: EPS: €0 (vs €0.031 loss in 1H 2021) First half 2022 results: EPS: €0 (improved from €0.031 loss in 1H 2021). Revenue: €18.0m (up 30% from 1H 2021). Net income: €484.0k (up €973.3k from 1H 2021). Profit margin: 2.7% (up from net loss in 1H 2021). The move to profitability was driven by higher revenue. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Semiconductor industry in Europe. Valuation Update With 7 Day Price Move • May 31
Investor sentiment improved over the past week After last week's 20% share price gain to €3.81, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 24x in the Semiconductor industry in Europe. Total loss to shareholders of 25% over the past year. Simply Wall St's valuation model estimates the intrinsic value at €6.59 per share. Price Target Changed • Apr 27
Price target decreased to €5.09 Down from €5.50, the current price target is an average from 4 analysts. New target price is 42% above last closing price of €3.58. Stock is down 27% over the past year. 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. No highly experienced directors. 2 independent directors (3 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: Minority of independent directors. Insufficient board refreshment. Price Target Changed • Apr 06
Price target decreased to €5.42 Down from €5.87, the current price target is an average from 4 analysts. New target price is 48% above last closing price of €3.66. Stock is down 27% over the past year. The company is forecast to post earnings per share of €0.071 for next year compared to €0.025 last year.