BIT:EDGE

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 5% below our estimate of its fair value

Risk Analysis

No risks detected for EDGE from our risk checks.


Snowflake Analysis

Flawless balance sheet and good value.

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

-0.7%

EDGE

4.2%

IT IT

-1.1%

IT Market


1 Year Return

14.5%

EDGE

75.1%

IT IT

-12.8%

IT Market

Return vs Industry: EDGE underperformed the Italian IT industry which returned 75.1% over the past year.

Return vs Market: EDGE exceeded the Italian Market which returned -12.8% over the past year.


Shareholder returns

EDGEIndustryMarket
7 Day-0.7%4.2%-1.1%
30 Day-0.4%14.2%-0.4%
90 Day22.0%18.3%0.07%
1 Year14.5%14.5%75.5%75.1%-10.6%-12.8%
3 Yearn/a88.8%84.1%-9.9%-18.1%
5 Yearn/a76.9%60.2%-0.5%-31.7%

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?

5.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EDGE (€5.38) is trading below our estimate of fair value (€5.66)

Significantly Below Fair Value: EDGE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EDGE is good value based on its PE Ratio (13x) compared to the IT IT industry average (27x).

PE vs Market: EDGE is good value based on its PE Ratio (13x) compared to the Italian market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EDGE's PEG Ratio to determine if it is good value.


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 (2.4x).


Next Steps

Future Growth

How is Techedge forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.3%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Techedge has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Techedge performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDGE has high quality earnings.

Growing Profit Margin: EDGE's current net profit margins (5.3%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: EDGE's earnings have grown by 10.2% 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 (-2.1%) over the past year, making it difficult to compare to the IT industry average (9.6%).


Return on Equity

High ROE: EDGE's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is Techedge's financial position?


Financial Position Analysis

Short Term Liabilities: EDGE's short term assets (€116.2M) exceed its short term liabilities (€59.1M).

Long Term Liabilities: EDGE's short term assets (€116.2M) exceed its long term liabilities (€29.9M).


Debt to Equity History and Analysis

Debt Level: EDGE's debt to equity ratio (26.7%) is considered satisfactory.

Reducing Debt: EDGE's debt to equity ratio has reduced from 88.2% to 26.7% over the past 5 years.

Debt Coverage: EDGE's debt is well covered by operating cash flow (74%).

Interest Coverage: EDGE's interest payments on its debt are well covered by EBIT (16.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EDGE's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.57%).

High Dividend: EDGE's dividend (1.08%) is low compared to the top 25% of dividend payers in the Italian market (5.29%).


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 (14%), 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?

3.4yrs

Average management tenure


CEO

Domenico Restuccia

no data

Tenure

€295,657

Compensation

Engineer Domenico Restuccia is Chairman of the Board at Techedge S.p.A. since April 2020. He is a Founder of TechEdge S.P.A. and serves as its Managing Director, Managing Partner and Director. From January ...


CEO Compensation Analysis

Compensation vs Market: Domenico's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD699.51K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Domenico Restuccia
Chairman of the Board & CEOno data€295.66k31.68%
€ 43.9m
Erika Giannetti
CFO, Partner & Directorno data€2.63m0.20%
€ 279.2k
Giorgio Racca
Partner of Brazil & Directorno data€150.00k0.39%
€ 538.0k
José Manuel Navarro
Partner of Operations LATAM & Directorno data€310.00kno data
Pietro Migliavacca
Co-Founderno datano data6.54%
€ 9.1m
Florideo Fabrizio
Co-Founderno datano data1.23%
€ 1.7m
Gabriel Puente
Managing Director of Mexico3.42yrsno datano data
José Soares
Managing Director of Portugal4.5yrsno datano data
Massimo Compagnoni
no datano data4.83%
€ 6.7m
Kai-Olaf Dammenhain
Partner of Germany Operationsno datano datano data
Roberto Candido
Partner & Industrial & Services Sector Director3.33yrsno data0.38%
€ 527.2k
Andrea Lavazzi
Partner of Energy & Utilities Sectorno datano datano data

3.4yrs

Average Tenure

Experienced Management: EDGE's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Domenico Restuccia
Chairman of the Board & CEOno data€295.66k31.68%
€ 43.9m
Erika Giannetti
CFO, Partner & Directorno data€2.63m0.20%
€ 279.2k
Giorgio Racca
Partner of Brazil & Directorno data€150.00k0.39%
€ 538.0k
José Manuel Navarro
Partner of Operations LATAM & Directorno data€310.00kno data
Vincenzo Giannelli
Director0.42yrno datano data
Vincenzo Perrone
Independent Directorno data€1.86kno data
Enrico Negroni
Director3.17yrs€42.17kno data
Giuseppe Carlo Vegas
Independent Directorno data€9.24kno data
Annachiara Svelto
Independent Directorno data€2.00kno data
Fabio Monti
Chairman of Board of Statutory Auditorsno datano datano data
Cesare Ciccolini
Statutory Auditorno datano datano data
Marcello Guadalupi
Statutory Auditorno datano datano data

0.4yrs

Average Tenure

Experienced Board: EDGE's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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: €138.547m
  • 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 SAP S/4HANA, customer relationship management, data intelligence, cloud expedition, industry 4.0, corporate and busine ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 03:26
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.