BIT:TXT

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TXT e-solutions

Executive Summary

TXT e-solutions S.p.A., together with its subsidiaries, provides software solutions in Italy and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

How has TXT e-solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.8%

TXT

-2.1%

IT Software

-3.7%

IT Market


1 Year Return

-9.6%

TXT

6.1%

IT Software

-15.8%

IT Market

Return vs Industry: TXT underperformed the Italian Software industry which returned 7.6% over the past year.

Return vs Market: TXT exceeded the Italian Market which returned -15.1% over the past year.


Shareholder returns

TXTIndustryMarket
7 Day-2.8%-2.1%-3.7%
30 Day-5.5%-7.3%-4.6%
90 Day-0.9%-1.3%-2.3%
1 Year-9.6%-9.6%6.4%6.1%-13.7%-15.8%
3 Year-24.6%-33.9%-3.2%-7.1%-14.1%-21.9%
5 Year17.4%-2.8%83.6%69.6%-4.5%-26.3%

Price Volatility Vs. Market

How volatile is TXT e-solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TXT e-solutions undervalued compared to its fair value and its price relative to the market?

98.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TXT (€7.4) is trading above our estimate of fair value (€2.56)

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


Price To Earnings Ratio

PE vs Industry: TXT is poor value based on its PE Ratio (98.3x) compared to the IT Software industry average (19.4x).

PE vs Market: TXT is poor value based on its PE Ratio (98.3x) compared to the Italian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: TXT is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: TXT is good value based on its PB Ratio (1x) compared to the IT Software industry average (3.9x).


Next Steps

Future Growth

How is TXT e-solutions forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

41.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXT's forecast earnings growth (41.8% per year) is above the savings rate (2%).

Earnings vs Market: TXT's earnings (41.8% per year) are forecast to grow faster than the Italian market (23.8% per year).

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

Revenue vs Market: TXT's revenue (8.6% per year) is forecast to grow faster than the Italian market (3.5% per year).

High Growth Revenue: TXT's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TXT's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has TXT e-solutions performed over the past 5 years?

-33.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TXT has a large one-off loss of €1.4M impacting its June 30 2020 financial results.

Growing Profit Margin: TXT's current net profit margins (1.4%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: TXT's earnings have declined by 33.2% per year over the past 5 years.

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

Earnings vs Industry: TXT had negative earnings growth (-50.6%) over the past year, making it difficult to compare to the Software industry average (27.4%).


Return on Equity

High ROE: TXT's Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

How is TXT e-solutions's financial position?


Financial Position Analysis

Short Term Liabilities: TXT's short term assets (€127.7M) exceed its short term liabilities (€45.5M).

Long Term Liabilities: TXT's short term assets (€127.7M) exceed its long term liabilities (€35.8M).


Debt to Equity History and Analysis

Debt Level: TXT's debt to equity ratio (61.4%) is considered high.

Reducing Debt: TXT's debt to equity ratio has increased from 3.1% to 61.4% over the past 5 years.

Debt Coverage: TXT's debt is not well covered by operating cash flow (3.7%).

Interest Coverage: TXT's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

What is TXT e-solutions's current dividend yield, its reliability and sustainability?

1.64%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: TXT is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TXT's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Daniele Misani (43 yo)

0.67

Tenure

€313,077

Compensation

Mr. Daniele Stefano Misani serves as Director at TXT e-solutions S.p.A. since July 15, 2019 and also serves as Group Chief Executive Officer since 2020. He served as Managing Director at TXT e-solutions S. ...


CEO Compensation Analysis

Compensation vs Market: Daniele's total compensation ($USD363.75K) is about average for companies of similar size in the Italian market ($USD419.91K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniele Misani
Group CEO & Director0.67yr€313.08k0.0085%
€ 7.4k
Paolo Matarazzo
Chief Compliance Officer & Investor Relations Managerno data€240.74kno data
Eugenio Forcinito
Group Chief Financial Officer1.67yrsno datano data
Jens Fabian
Senior Vice President of Business Developmentno datano datano data
Francesco Cusaro
Group Director of Human Resources9.33yrsno datano data
Paolo Colombo
Executive Vice Presidentno data€207.47kno data
Luca Galbiati
COO of Continental Europe & Senior VP5.67yrsno datano data
Bernd Näther
Senior Vice President of Product & Operations - Germanyno datano datano data
Riccardo Proni
Senior Vice President of Solution Center & Product5.67yrsno datano data

5.7yrs

Average Tenure

56.5yo

Average Age

Experienced Management: TXT's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniele Misani
Group CEO & Director0.67yr€313.08k0.0085%
€ 7.4k
Stefania Saviolo
Lead Independent Director2.42yrs€30.00k0.0070%
€ 6.1k
Enrico Magni
Chairman0.67yr€365.00kno data
Luisa Cameretti
Standing Auditor3.42yrs€21.00kno data
Fabienne Anne Schwalbe
Independent Director5.33yrs€30.00kno data
Mario Basilico
Chairman of Board of Statutory Auditors3.42yrsno datano data
Giampaolo Vianello
Standing Auditor3.42yrsno datano data
Valentina Cogliati
Independent Director2.42yrs€25.00kno data
Alessandro Arrigoni
Independent Director1.17yrs€10.00kno data

2.4yrs

Average Tenure

55yo

Average Age

Experienced Board: TXT's board of directors are not considered experienced ( 2.4 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

TXT e-solutions S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TXT e-solutions S.p.A.
  • Ticker: TXT
  • Exchange: BIT
  • Founded: 1989
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €86.626m
  • Shares outstanding: 11.71m
  • Website: https://www.txtgroup.com

Number of Employees


Location

  • TXT e-solutions S.p.A.
  • Via Frigia, 27
  • Milan
  • Milan
  • 20126
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TXTBIT (Borsa Italiana)YesOrdinary SharesITEURJul 2000
0NLDLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2000
TXEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2000
TXTMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2000

Biography

TXT e-solutions S.p.A., together with its subsidiaries, provides software solutions in Italy and internationally. The company operates through two divisions, Aerospace, Aviation & Automotive, and Fintech. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 03:07
End of Day Share Price2020/09/25 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.