Sourcesense (BIT:SOU) - Share price, News & Analysis

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

SOU (€4.14) is trading above our estimate of [[fair value]] (€3.94)

SOU fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

SOU Stock Overview

Sourcesense S.p.A. develops and sells software applications with open source and cloud native technologies in Italy.

Rewards

Revenue is forecast to grow 17.15% per year

Earnings grew by 56.5% over the past year

Risk Analysis

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (€35M)

Sourcesense Competitors

Reti

BIT:RETI

€28.7m

Softlab

BIT:SOF

€31.6m

Fos

BIT:FOS

€20.5m

Spindox

BIT:SPN

€64.8m

Price History & Performance

Summary of all time highs, changes and price drops for Sourcesense
Historical stock prices
Current Share Price	€4.14
52 Week High	€4.25
52 Week Low	€2.36
Beta	-0.32
1 Month Change	-0.24%
3 Month Change	18.29%
1 Year Change	70.37%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	112.31%

Recent News & Updates

Jun 23

Estimating The Intrinsic Value Of Sourcesense S.p.A. (BIT:SOU)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Sourcesense S.p.A...

May 12

Here's What To Make Of Sourcesense's (BIT:SOU) Decelerating Rates Of Return

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Shareholder Returns

	SOU	IT IT	IT Market
7D	0%	5.8%	1.1%
1Y	70.4%	-36.5%	-15.4%

Return vs Industry: SOU exceeded the Italian IT industry which returned -36.9% over the past year.

Return vs Market: SOU exceeded the Italian Market which returned -16% over the past year.

Price Volatility

Is SOU's price volatile compared to industry and market?
SOU volatility
SOU Average Weekly Movement	6.3%
IT Industry Average Movement	5.2%
Market Average Movement	4.9%
10% most volatile stocks in IT Market	7.7%
10% least volatile stocks in IT Market	3.1%

Stable Share Price: SOU is more volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SOU's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of Italian stocks.

About the Company

Founded	Employees	CEO	Website
2001	140	Marco Bruni	https://www.sourcesense.com

Sourcesense S.p.A. develops and sells software applications with open source and cloud native technologies in Italy. The company offers solutions for business transformation. It serves manufacturing and services, telco and utility, media, insurance and finance, fashion and gaming, retail, and public administration sectors.

Sourcesense Fundamentals Summary

How do Sourcesense's earnings and revenue compare to its market cap?
SOU fundamental statistics
Market Cap	€35.13m
Earnings (TTM)	€1.42m
Revenue (TTM)	€22.44m

24.7x

P/E Ratio

1.6x

P/S Ratio

Is SOU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOU income statement (TTM)
Revenue	€22.44m
Cost of Revenue	€19.08m
Gross Profit	€3.36m
Other Expenses	€1.94m
Earnings	€1.42m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.17
Gross Margin	14.96%
Net Profit Margin	6.34%
Debt/Equity Ratio	27.8%

How did SOU perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SOU. This is calculated by dividing SOU's market cap by their current preferred multiple.
What is SOU's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€35.13m

SOU 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	1.4x
Enterprise Value/EBITDA	15.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

SOU PE Ratio vs Peers

The above table shows the PE ratio for SOU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.9x
RETI Reti	26.6x	n/a	€28.7m
SOF Softlab	17.4x	n/a	€31.6m
FOS Fos	19.1x	22.7%	€20.5m
SPN Spindox	24.3x	31.9%	€64.8m
SOU Sourcesense	24.7x	n/a	€35.1m

Price-To-Earnings vs Peers: SOU is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the peer average (21.9x).

Price to Earnings Ratio vs Industry

How does SOU's PE Ratio compare vs other companies in the European IT Industry?

Price-To-Earnings vs Industry: SOU is expensive based on its Price-To-Earnings Ratio (24.7x) compared to the Italian IT industry average (24.5x)

Price to Earnings Ratio vs Fair Ratio

What is SOU'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.

SOU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SOU's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: SOU (€4.14) is trading above our estimate of fair value (€3.94)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Sourcesense 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

17.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SOU's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if SOU's earnings are forecast to grow faster than the Italian market

High Growth Earnings: Insufficient data to determine if SOU's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOU's revenue (17.1% per year) is forecast to grow faster than the Italian market (-0.1% per year).

High Growth Revenue: SOU's revenue (17.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SOU's Return on Equity is forecast to be high in 3 years time (23%)

Discover growth companies

Past Performance

How has Sourcesense 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

56.5%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: SOU has high quality earnings.

Growing Profit Margin: SOU's current net profit margins (6.3%) are higher than last year (5.4%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if SOU's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare SOU's past year earnings growth to its 5-year average.

Earnings vs Industry: SOU earnings growth over the past year (56.5%) exceeded the IT industry 26.9%.

Return on Equity

High ROE: SOU's Return on Equity (18.9%) is considered low.

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Financial Health

How is Sourcesense's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: SOU's short term assets (€16.5M) exceed its short term liabilities (€7.8M).

Long Term Liabilities: SOU's short term assets (€16.5M) exceed its long term liabilities (€3.5M).

Debt to Equity History and Analysis

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

Reducing Debt: Insufficient data to determine if SOU's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SOU's debt is well covered by operating cash flow (159.5%).

Interest Coverage: SOU's interest payments on its debt are well covered by EBIT (33.6x coverage).

Balance Sheet

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Dividend

What is Sourcesense 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
Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate SOU'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 SOU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOU'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 SOU 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

Marco Bruni

no data

Tenure

Mr. Marco Bruni serves as Chairman of the Board of Directors and Chief Executive Officer of Sourcesense S.p.A.

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 been diluted in the past year, with total shares outstanding growing by 2.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31