BIT:EDGE

Stock Analysis Report

Executive Summary

Techedge S.p.A. provides business solutions and services worldwide.

Snowflake

Fundamentals

Very undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

11.9%

EDGE

2.2%

IT IT

0.5%

IT Market


1 Year Return

n/a

EDGE

8.8%

IT IT

11.6%

IT Market

Return vs Industry: Insufficient data to determine how EDGE performed against the Italian IT industry.

Return vs Market: Insufficient data to determine how EDGE performed against the Italian Market.


Shareholder returns

EDGEIndustryMarket
7 Day11.9%2.2%0.5%
30 Day2.6%1.2%0.1%
90 Day3.3%-0.5%1.7%
1 Yearn/a9.7%8.8%16.5%11.6%
3 Yearn/a86.6%82.4%25.2%8.0%
5 Yearn/a150.1%123.2%21.3%-26.0%

Price Volatility Vs. Market

How volatile is Techedge's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Techedge undervalued compared to its fair value and its price relative to the market?

43.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: EDGE (€5.06) is trading below our estimate of fair value (€8.89)

Significantly Undervalued: EDGE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EDGE is good value based on its PE Ratio (10.9x) compared to the IT industry average (31.4x).

PE vs Market: EDGE is good value based on its PE Ratio (10.9x) compared to the Italian market (17.8x).


Price to Earnings Growth Ratio

Low PEG Ratio: EDGE is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: EDGE is good value based on its PB Ratio (1.7x) compared to the IT IT industry average (2.9x).


Next Steps

Future Growth

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

34.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDGE's forecast earnings growth (34.6% per year) is above the savings rate (2.9%).

Earnings vs Market: EDGE's earnings (34.6% per year) are forecast to grow faster than the Italian market (8.5% per year).

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

Revenue vs Market: EDGE's revenue (14.9% per year) is forecast to grow faster than the Italian market (3% per year).

High Growth Revenue: EDGE's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if EDGE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Techedge performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EDGE's earnings have grown significantly by 22.6% per year over the past 5 years.

Accelerating Growth: EDGE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EDGE had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the IT industry average (10%).


Return on Equity

High ROE: EDGE's Return on Equity (14.4%) is considered low.


Return on Assets

ROA vs Industry: EDGE has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: EDGE has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Techedge's financial position?


Financial Position Analysis

Short Term Liabilities: EDGE's short term assets (€100.7M) exceeds its short term liabilities (€60.2M)

Long Term Liabilities: EDGE's short term assets (100.7M) exceeds its long term liabilities (24.2M)


Debt to Equity History and Analysis

Debt Level: EDGE's debt to equity ratio (30.1%) is considered satisfactory

Reducing Debt: Insufficient data to determine if EDGE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: EDGE's debt is well covered by operating cash flow (50.1%).

Interest Coverage: EDGE's interest payments on its debt are well covered by EBIT (44.5x coverage).


Balance Sheet

Inventory Level: EDGE has a low level of unsold assets or inventory.

Debt Coverage by Assets: EDGE's debt is covered by short term assets (assets are 4.269220x debt).


Next Steps

Dividend

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

1.15%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.1%markettop25%4.4%industryaverage1.8%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EDGE's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (2.09%).

High Dividend: EDGE's dividend (1.15%) is low compared to the top 25% of dividend payers in the Italian market (4.41%).

Stable Dividend: Too early to tell whether EDGE's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if EDGE's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.5%), EDGE's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Techedge's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Domenico Restuccia 0

0yrs

Tenure

0

Mr. Domenico Restuccia is a Founder of TechEdge S.P.A. and serves as its Managing Director, Managing Partner and Director. From January 2001 to October 2003, Mr. Restuccia served as General Manager of Real ...


Management Age and Tenure

2.5yrs

Average Tenure

Experienced Management: EDGE's management team is considered experienced (2.5 years average tenure).


Insider Trading

Insider Buying: EDGE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€16,31716 Aug 19
Domenico Restuccia
EntityIndividual
Role
Chief Executive Officer
Founder
Shares3,515
Max Price€4.68
Buy€16,56502 Apr 19
Domenico Restuccia
EntityIndividual
Role
Chief Executive Officer
Founder
Shares3,513
Max Price€4.73
Buy€493,32727 Feb 19
Domenico Restuccia
EntityIndividual
Role
Chief Executive Officer
Founder
Shares107,000
Max Price€4.62
Buy€421,76429 Jan 19
Domenico Restuccia
EntityIndividual
Role
Chief Executive Officer
Founder
Shares100,420
Max Price€4.20

Ownership Breakdown


Management Team

  • Domenico Restuccia

    Founder

    • Tenure: 0yrs
  • Pietro Migliavacca

    Co-Founder

    • Tenure: 0yrs
  • Antonio Di Perna

    Co-Founder

    • Tenure: 0yrs
  • Florideo Fabrizio

    Co-Founder

    • Tenure: 0yrs
  • Giorgio Racca

    Partner of Brazil & Councilor

    • Tenure: 0yrs
  • Erika Giannetti

    CFO, Councilor & Partner

    • Tenure: 0yrs
  • José Pablo De Rodriguez

    Co-Founder

    • Tenure: 0yrs
  • José Manuel Navarro

    Councilor & Partner of Operations LATAM

    • Tenure: 0yrs
  • Gabriel Puente

    Managing Director of Mexico

    • Tenure: 2.5yrs
  • José Soares

    Managing Director of Portugal

    • Tenure: 3.6yrs

Board Members

  • Domenico Restuccia

    Founder

    • Tenure: 0yrs
  • Antonio Di Perna

    Co-Founder

    • Tenure: 0yrs
  • Giorgio Racca

    Partner of Brazil & Councilor

    • Tenure: 0yrs
  • Erika Giannetti

    CFO, Councilor & Partner

    • Tenure: 0yrs
  • José Pablo De Rodriguez

    Co-Founder

    • Tenure: 0yrs
  • José Manuel Navarro

    Councilor & Partner of Operations LATAM

    • Tenure: 0yrs
  • Enrico Negroni

    Chairman of the Board

    • Tenure: 2.3yrs
  • Giuseppe Vegas

    Councilor

    • Tenure: 0yrs
  • Beatriz Reyero

    Councilor

    • Tenure: 0yrs
  • Fabio Monti

    Chairman of Board of Statutory Auditors

    • Tenure: 0yrs

Company Information

Techedge S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Techedge S.p.A.
  • Ticker: EDGE
  • Exchange: BIT
  • Founded: 2004
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: €130.306m
  • Shares outstanding: 25.75m
  • Website: https://www.techedgegroup.com

Location

  • Techedge S.p.A.
  • Building B2
  • Via Caldera 21
  • Milan
  • Milan
  • 20153
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5TEDB (Deutsche Boerse AG)YesShare CapitalDEEURDec 2018
EDGEBIT (Borsa Italiana)YesShare CapitalITEURDec 2018
5TEMUN (Boerse Muenchen)YesShare CapitalDEEURDec 2018
EDGEMBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURDec 2018

Biography

Techedge S.p.A. provides business solutions and services worldwide. The company offers artificial intelligence, cloud expedition, corporate and business function, customer relationship management, data int ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:48
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.