PITECO (BIT:PITE) - Share price, News & Analysis

Q: What is the Fair Price of PITE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PITE (€11.15) is trading below our estimate of [[fair value]] (€14.36)

PITE fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	5/6
Financial Health	2/6
Dividends	2/6

PITE Stock Overview

PITECO S.p.A. engages in the design, development, and implementation of software for treasury, finance, and financial planning management worldwide.

Rewards

Trading at 22.4% below our estimate of its fair value

Earnings are forecast to grow 2.25% per year

Earnings grew by 67.1% over the past year

Risk Analysis

Has a high level of debt

Volatile share price over the past 3 months

PITECO Competitors

Cy4gate

BIT:CY4

€221.1m

Digital Value

BIT:DGV

€588.2m

Vantea SMART

BIT:VNT

€76.4m

Sababa Security

BIT:SBB

€21.7m

Price History & Performance

Summary of all time highs, changes and price drops for PITECO
Historical stock prices
Current Share Price	€11.15
52 Week High	€12.20
52 Week Low	€7.42
Beta	0.74
1 Month Change	21.73%
3 Month Change	21.46%
1 Year Change	16.39%
3 Year Change	116.51%
5 Year Change	114.22%
Change since IPO	238.91%

Shareholder Returns

	PITE	IT Software	IT Market
7D	0.4%	-0.9%	0.6%
1Y	16.4%	-6.9%	-15.0%

Return vs Industry: PITE exceeded the Italian Software industry which returned -6.1% over the past year.

Return vs Market: PITE exceeded the Italian Market which returned -14.9% over the past year.

Price Volatility

Is PITE's price volatile compared to industry and market?
PITE volatility
PITE Average Weekly Movement	7.1%
Software Industry Average Movement	5.2%
Market Average Movement	5.1%
10% most volatile stocks in IT Market	7.4%
10% least volatile stocks in IT Market	3.4%

Stable Share Price: PITE is more volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PITE's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Italian stocks.

About the Company

Founded	Employees	CEO	Website
1980	174	Paolo Virenti	https://www.pitecolab.it

PITECO S.p.A. engages in the design, development, and implementation of software for treasury, finance, and financial planning management worldwide. It offers PITECO EVO5, a platform that provides management services in various areas, including cash and liquidity management, digital payments, financial planning, payment and collection factory, and global treasury management; CBC, a corporate banking communication platform that secures payment orders of the authorization workflows; IDM, an intelligent data matching tool that manages data matching processes; and FM, which supports corporate financial risk management processes. The company also provides consultancy and customer care, software customizing, and application management services.

PITECO Fundamentals Summary

How do PITECO's earnings and revenue compare to its market cap?
PITE fundamental statistics
Market Cap	€216.53m
Earnings (TTM)	€11.87m
Revenue (TTM)	€38.92m

18.2x

P/E Ratio

5.6x

P/S Ratio

Is PITE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PITE income statement (TTM)
Revenue	€38.92m
Cost of Revenue	€20.88m
Gross Profit	€18.03m
Other Expenses	€6.17m
Earnings	€11.87m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 28, 2022

Earnings per share (EPS)	0.61
Gross Margin	46.34%
Net Profit Margin	30.49%
Debt/Equity Ratio	125.9%

How did PITE perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

25%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PITE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PITE?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PITE. This is calculated by dividing PITE's market cap by their current preferred multiple.
What is PITE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€216.53m

PITE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	7.1x
Enterprise Value/EBITDA	20.7x
PEG Ratio	8.1x

Price to Earnings Ratio vs Peers

How does PITE's PE Ratio compare to its peers?

PITE PE Ratio vs Peers

The above table shows the PE ratio for PITE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	36.7x
CY4 Cy4gate	42.6x	32.1%	€221.1m
DGV Digital Value	19.5x	21.1%	€588.2m
VNT Vantea SMART	46.6x	63.0%	€76.4m
SBB Sababa Security	38.2x	37.8%	€21.7m
PITE PITECO	18.2x	2.3%	€216.5m

Forward PE

Price-To-Earnings vs Peers: PITE is good value based on its Price-To-Earnings Ratio (18.2x) compared to the peer average (36.7x).

Price to Earnings Ratio vs Industry

How does PITE's PE Ratio compare vs other companies in the European Software Industry?

Price-To-Earnings vs Industry: PITE is good value based on its Price-To-Earnings Ratio (18.2x) compared to the Italian Software industry average (38.2x)

Price to Earnings Ratio vs Fair Ratio

What is PITE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PITE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.2x
Fair PE Ratio	24.8x

Price-To-Earnings vs Fair Ratio: PITE is good value based on its Price-To-Earnings Ratio (18.2x) compared to the estimated Fair Price-To-Earnings Ratio (24.8x).

Share Price vs Fair Value

What is the Fair Price of PITE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PITE (€11.15) is trading below our estimate of fair value (€14.36)

Significantly Below Fair Value: PITE is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: PITE is poor value based on its PEG Ratio (8.1x)

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PITE's forecast earnings growth (2.3% per year) is above the savings rate (1.7%).

Earnings vs Market: PITE's earnings (2.3% per year) are forecast to grow slower than the Italian market (10.1% per year).

High Growth Earnings: PITE's earnings are forecast to grow, but not significantly.

Revenue vs Market: PITE's revenue (3.9% per year) is forecast to grow faster than the Italian market (0.3% per year).

High Growth Revenue: PITE's revenue (3.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PITE's Return on Equity is forecast to be low in 3 years time (17.2%).

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Past Performance

How has PITECO performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

27.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PITE has high quality earnings.

Growing Profit Margin: PITE's current net profit margins (30.5%) are higher than last year (28.9%).

Past Earnings Growth Analysis

Earnings Trend: PITE's earnings have grown significantly by 27.1% per year over the past 5 years.

Accelerating Growth: PITE's earnings growth over the past year (67.1%) exceeds its 5-year average (27.1% per year).

Earnings vs Industry: PITE earnings growth over the past year (67.1%) exceeded the Software industry 58.8%.

Return on Equity

High ROE: Whilst PITE's Return on Equity (23.34%) is high, this metric is skewed due to their high level of debt.

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Financial Health

How is PITECO's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PITE's short term assets (€19.6M) do not cover its short term liabilities (€20.9M).

Long Term Liabilities: PITE's short term assets (€19.6M) do not cover its long term liabilities (€71.9M).

Debt to Equity History and Analysis

Debt Level: PITE's net debt to equity ratio (110.4%) is considered high.

Reducing Debt: PITE's debt to equity ratio has increased from 28.1% to 125.9% over the past 5 years.

Debt Coverage: PITE's debt is well covered by operating cash flow (22.1%).

Interest Coverage: PITE's interest payments on its debt are well covered by EBIT (7x coverage).

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PITE's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.7%).

High Dividend: PITE's dividend (1.35%) is low compared to the top 25% of dividend payers in the Italian market (5.11%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PITE has been paying a dividend for less than 10 years.

Growing Dividend: PITE's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (24.6%), PITE's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23.7%), PITE's dividend payments are well covered by cash flows.

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Management

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

€5k

CEO Compensation

CEO

Paolo Virenti

no data

Tenure

€5,000

Compensation

Mr. Paolo Virenti serves as Chief Executive Officer and Director at PITECO S.p.A.

Ownership

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

Insider Trading Volume

Insider Buying: PITE 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31