Relatech (BIT:RLT) - Share price, News & Analysis

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

RLT (€1.97) is trading below our estimate of [[fair value]] (€4.21)

RLT fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	6/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

RLT Stock Overview

Relatech S.p.A., a digital enabler solution knowledge company, provides various digital solutions.

Rewards

Trading at 53.2% below our estimate of its fair value

Earnings are forecast to grow 25.57% per year

Earnings have grown 29% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap (€72M)

Relatech Competitors

Doxee

BIT:DOX

€92.6m

Growens

BIT:GROW

€64.3m

TXT e-solutions

BIT:TXT

€124.8m

Almawave

BIT:AIW

€135.0m

Price History & Performance

Summary of all time highs, changes and price drops for Relatech
Historical stock prices
Current Share Price	€1.97
52 Week High	€3.18
52 Week Low	€1.82
Beta	-0.65
1 Month Change	-18.34%
3 Month Change	-20.65%
1 Year Change	-21.91%
3 Year Change	157.31%
5 Year Change	n/a
Change since IPO	127.08%

Recent News & Updates

May 26

Is Relatech (BIT:RLT) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Feb 25

Returns On Capital Signal Tricky Times Ahead For Relatech (BIT:RLT)

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

	RLT	IT Software	IT Market
7D	-7.6%	-1.6%	-1.0%
1Y	-21.9%	-8.7%	-17.4%

Return vs Industry: RLT underperformed the Italian Software industry which returned -6.9% over the past year.

Return vs Market: RLT underperformed the Italian Market which returned -15% over the past year.

Price Volatility

Is RLT's price volatile compared to industry and market?
RLT volatility
RLT Average Weekly Movement	5.6%
Software Industry Average Movement	5.2%
Market Average Movement	5.0%
10% most volatile stocks in IT Market	7.4%
10% least volatile stocks in IT Market	3.4%

Stable Share Price: RLT is not significantly more volatile than the rest of Italian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RLT's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	331	Pasquale Lambardi	https://www.relatech.com

Relatech S.p.A., a digital enabler solution knowledge company, provides various digital solutions. It offers solutions, including projects and services in digital customer experience, big data, artificial intelligence, Internet of Things, blockchain and cyber security, and hybrid cloud field through its digital platform RePlatform. The company operates RePlatform, a cloud based customizable platform for the digital transformation process of business.

Relatech Fundamentals Summary

How do Relatech's earnings and revenue compare to its market cap?
RLT fundamental statistics
Market Cap	€72.39m
Earnings (TTM)	€3.65m
Revenue (TTM)	€32.88m

19.8x

P/E Ratio

2.2x

P/S Ratio

Is RLT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RLT income statement (TTM)
Revenue	€32.88m
Cost of Revenue	€27.95m
Gross Profit	€4.93m
Other Expenses	€1.29m
Earnings	€3.65m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	0.099
Gross Margin	15.00%
Net Profit Margin	11.09%
Debt/Equity Ratio	32.4%

How did RLT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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 RLT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RLT. This is calculated by dividing RLT's market cap by their current preferred multiple.
What is RLT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€72.39m

RLT 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	2.2x
Enterprise Value/EBITDA	27.9x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

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

RLT PE Ratio vs Peers

The above table shows the PE ratio for RLT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	68.8x
DOX Doxee	55.5x	36.2%	€92.6m
GROW Growens	166.2x	55.6%	€64.3m
TXT TXT e-solutions	14.3x	10.5%	€124.8m
AIW Almawave	39x	24.0%	€135.0m
RLT Relatech	19.8x	25.6%	€72.4m

Forward PE

Price-To-Earnings vs Peers: RLT is good value based on its Price-To-Earnings Ratio (19.8x) compared to the peer average (68.8x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: RLT is good value based on its Price-To-Earnings Ratio (19.8x) compared to the Italian Software industry average (38.2x)

Price to Earnings Ratio vs Fair Ratio

What is RLT'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.

RLT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	19.8x
Fair PE Ratio	29.6x

Price-To-Earnings vs Fair Ratio: RLT is good value based on its Price-To-Earnings Ratio (19.8x) compared to the estimated Fair Price-To-Earnings Ratio (29.6x).

Share Price vs Fair Value

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

Below Fair Value: RLT (€1.97) is trading below our estimate of fair value (€4.21)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

6/6

Future Growth Score 6/6

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

25.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RLT's forecast earnings growth (25.6% per year) is above the savings rate (1.7%).

Earnings vs Market: RLT's earnings (25.6% per year) are forecast to grow faster than the Italian market (10.1% per year).

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

Revenue vs Market: RLT's revenue (22.9% per year) is forecast to grow faster than the Italian market (0.4% per year).

High Growth Revenue: RLT's revenue (22.9% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: RLT's Return on Equity is forecast to be high in 3 years time (20.4%)

Discover growth companies

Past Performance

How has Relatech performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

29.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RLT has a high level of non-cash earnings.

Growing Profit Margin: RLT's current net profit margins (11.1%) are higher than last year (10.9%).

Past Earnings Growth Analysis

Earnings Trend: RLT's earnings have grown significantly by 29% per year over the past 5 years.

Accelerating Growth: RLT's earnings growth over the past year (43%) exceeds its 5-year average (29% per year).

Earnings vs Industry: RLT earnings growth over the past year (43%) underperformed the Software industry 58.8%.

Return on Equity

High ROE: RLT's Return on Equity (15.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Relatech's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: RLT's short term assets (€24.4M) exceed its short term liabilities (€11.2M).

Long Term Liabilities: RLT's short term assets (€24.4M) exceed its long term liabilities (€12.5M).

Debt to Equity History and Analysis

Debt Level: RLT has more cash than its total debt.

Reducing Debt: RLT's debt to equity ratio has reduced from 91.7% to 32.4% over the past 5 years.

Debt Coverage: RLT's debt is well covered by operating cash flow (110.4%).

Interest Coverage: RLT earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

Notable Dividend: Unable to evaluate RLT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RLT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RLT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RLT's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RLT has not reported any payouts.

Discover strong dividend paying companies

Management

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

CEO

Pasquale Lambardi

no data

Tenure

Ing. Pasquale Lambardi is Founder, President, Chairman and Chief Executive Officer of Relatech Srl.

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.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31