BIT:EDGE

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: EDGE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.4%

EDGE

10.1%

IT IT

3.5%

IT Market


1 Year Return

-11.6%

EDGE

6.7%

IT IT

-22.4%

IT Market

Return vs Industry: EDGE underperformed the Italian IT industry which returned 1.7% over the past year.

Return vs Market: EDGE exceeded the Italian Market which returned -23.9% over the past year.


Shareholder returns

EDGEIndustryMarket
7 Day8.4%10.1%3.5%
30 Day-11.3%-5.9%-11.8%
90 Day-10.2%1.5%-26.2%
1 Year-10.6%-11.6%7.7%6.7%-19.0%-22.4%
3 Yearn/a50.0%46.6%-8.8%-18.0%
5 Yearn/a62.7%45.8%-22.6%-40.9%

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?

20.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EDGE (€4.4) is trading below our estimate of fair value (€5.54)

Significantly Below Fair Value: 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 (9.5x) compared to the IT industry average (31.3x).

PE vs Market: EDGE is good value based on its PE Ratio (9.5x) compared to the Italian market (13x).


Price to Earnings Growth Ratio

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 (1.4x) compared to the IT IT industry average (2.6x).


Next Steps

Future Growth

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

34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDGE's forecast earnings growth (34.7% per year) is above the savings rate (1.2%).

Earnings vs Market: EDGE's earnings (34.7% per year) are forecast to grow faster than the Italian market (11.6% per year).

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

Revenue vs Market: EDGE's revenue (13.3% per year) is forecast to grow faster than the Italian market (-0.04% per year).

High Growth Revenue: EDGE's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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

Quality Earnings: EDGE has high quality earnings.

Growing Profit Margin: EDGE's current net profit margins (5.9%) are lower than last year (7.3%).


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 (4%).


Return on Equity

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


Next Steps

Financial Health

How is Techedge's financial position?


Financial Position Analysis

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

Long Term Liabilities: EDGE's short term assets (€100.7M) exceed 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


Next Steps

Dividend

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

1.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EDGE's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (2.29%).

High Dividend: EDGE's dividend (1.32%) is low compared to the top 25% of dividend payers in the Italian market (5.61%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Domenico Restuccia

no data

Tenure

€295,657

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Domenico's total compensation ($USD319.73K) is about average for companies of similar size in the Italian market ($USD349.16K).

Compensation vs Earnings: Insufficient data to compare Domenico's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Domenico Restuccia
Founderno data€295.66k30.43% 34.5m
Antonio Di Perna
Co-Founderno data€103.36kno data
José Pablo De Rodriguez
Co-Founderno data€564.03kno data
Erika Giannetti
CFO, Director & Partnerno data€2.63mno data
Giorgio Racca
Partner of Brazil & Directorno data€150.00kno data
José Manuel Navarro
Partner of Operations LATAM & Directorno data€310.00kno data
Pietro Migliavacca
Co-Founderno datano data7.31% 8.3m
Florideo Fabrizio
Co-Founderno datano datano data
Gabriel Puente
Managing Director of Mexico3yrsno datano data
José Soares
Managing Director of Portugal4.08yrsno datano data

3.0yrs

Average Tenure

Experienced Management: EDGE's management team is considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: €113.310m
  • 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 intelligence, industry 4.0, and SAP S/4HANA solutions. It serves automotive, consumer goods, energy and utility, fashion, financial services, life sciences, and manufacturing industries. Techedge S.p.A. has a strategic collaboration agreement with Openbravo to offer retailers with a joint offering of omnichannel, mobile, and cloud services and solutions. The company was founded in 2004 and is based in Milan, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 23:01
End of Day Share Price2020/04/07 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.