BIT:PITE

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.4%

PITE

3.9%

IT Software

3.5%

IT Market


1 Year Return

18.8%

PITE

7.2%

IT Software

-22.4%

IT Market

Return vs Industry: PITE exceeded the Italian Software industry which returned 6.2% over the past year.

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


Shareholder returns

PITEIndustryMarket
7 Day2.4%3.9%3.5%
30 Day9.1%7.0%-11.8%
90 Day-7.7%-9.8%-26.2%
1 Year22.3%18.8%8.4%7.2%-19.0%-22.4%
3 Year29.6%18.6%-7.5%-11.4%-8.8%-18.0%
5 Yearn/a43.0%31.7%-22.6%-40.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PITE (€5.8) is trading above our estimate of fair value (€5.59)

Significantly Below Fair Value: PITE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PITE is good value based on its PE Ratio (20.4x) compared to the Software industry average (36.9x).

PE vs Market: PITE is poor value based on its PE Ratio (20.4x) compared to the Italian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: PITE is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: PITE is good value based on its PB Ratio (3.4x) compared to the IT Software industry average (3.6x).


Next Steps

Future Growth

How is PITECO forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

26.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PITE's forecast earnings growth (26.5% per year) is above the savings rate (1.2%).

Earnings vs Market: PITE's earnings (26.5% 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: PITE's revenue (5.5% per year) is forecast to grow faster than the Italian market (-0.04% per year).

High Growth Revenue: PITE's revenue (5.5% 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 (18.4%).


Next Steps

Past Performance

How has PITECO performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PITE has high quality earnings.

Growing Profit Margin: PITE's current net profit margins (12.5%) are lower than last year (26.3%).


Past Earnings Growth Analysis

Earnings Trend: PITE's earnings have grown by 6.9% per year over the past 5 years.

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

Earnings vs Industry: PITE had negative earnings growth (-42.7%) over the past year, making it difficult to compare to the Software industry average (-25.5%).


Return on Equity

High ROE: PITE's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is PITECO's financial position?


Financial Position Analysis

Short Term Liabilities: PITE's short term assets (€10.7M) do not cover its short term liabilities (€16.0M).

Long Term Liabilities: PITE's short term assets (€10.7M) do not cover its long term liabilities (€25.4M).


Debt to Equity History and Analysis

Debt Level: PITE's debt to equity ratio (98.3%) is considered high.

Reducing Debt: PITE's debt to equity ratio has increased from 64.9% to 98.3% over the past 5 years.

Debt Coverage: PITE's debt is well covered by operating cash flow (23.5%).

Interest Coverage: PITE's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.50%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PITE's dividend (2.59%) is higher than the bottom 25% of dividend payers in the Italian market (2.29%).

High Dividend: PITE's dividend (2.59%) is low compared to the top 25% of dividend payers in the Italian market (5.61%).


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.7%), PITE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PITE's dividends in 3 years are forecast to be covered by earnings (55.9% payout ratio).


Next Steps

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.


Top Shareholders

Company Information

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


Key Information

  • Name: PITECO S.p.A.
  • Ticker: PITE
  • Exchange: BIT
  • Founded: 1980
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: €109.058m
  • Shares outstanding: 18.18m
  • Website: https://www.pitecolab.it

Number of Employees


Location

  • PITECO S.p.A.
  • Via Mercalli, 16
  • Milan
  • Milan
  • 20122
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PITEBIT (Borsa Italiana)YesCommon SharesITEURJul 2015
PITEMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJul 2015

Biography

PITECO S.p.A. engages in the design, development, and implementation of solutions for treasury, finance, and financial planning management worldwide. The company offers PITECO EVO, a platform designed to manage cash management, payment factory, financial planning, global liquidity management, and supply chain finance; PITECO CBC, a corporate banking communication platform that manages automation of the authorization workflows; and PITECO FRM that supports corporate financial risk management processes in compliance with the international accounting codes and observing financial risk exposures. It also provides MATCH.IT, a solution to analyze and match complex data; and PITECO AT.PRO, an information system for the back and middle office management of securities portfolio. In addition, the company offers consultancy and assistance services, including consultancy tailored to client needs, customer care, software customizing, customizable product releases, and application management. It serves various customers in automation and paper, automotive, chemical and pharmaceutical, healthcare, construction and tile, consumer goods, fashion, finance and insurance, food, logistics and travelling, mechanics and steel, media, retail, services, telecom, utilities, and oil and gas industries. The company was founded in 1980 and is headquartered in Milan, Italy. PITECO S.p.A. is a subsidiary of DEDAGROUP spa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 01:00
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.