BIT:TXT

Stock Analysis Report

TXT e-solutions

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.1%

TXT

0.7%

IT Software

1.3%

IT Market


1 Year Return

1.2%

TXT

27.2%

IT Software

13.9%

IT Market

Return vs Industry: TXT underperformed the Italian Software industry which returned 27.2% over the past year.

Return vs Market: TXT underperformed the Italian Market which returned 13.9% over the past year.


Shareholder returns

TXTIndustryMarket
7 Day0.1%0.7%1.3%
30 Day-1.3%-3.3%0.8%
90 Day-1.8%-4.2%1.3%
1 Year6.8%1.2%29.1%27.2%19.1%13.9%
3 Year22.5%4.9%67.2%58.0%24.5%6.2%
5 Year38.4%11.9%108.1%91.9%23.0%-26.0%

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?

53.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TXT (€8.18) is trading above our estimate of fair value (€1.13)

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 (53.9x) compared to the Software industry average (42.7x).

PE vs Market: TXT is poor value based on its PE Ratio (53.9x) compared to the Italian market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: TXT is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: TXT is good value based on its PB Ratio (1.2x) compared to the IT Software industry average (3.4x).


Next Steps

Future Growth

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

34.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXT's forecast earnings growth (34.6% per year) is above the savings rate (2.9%).

Earnings vs Market: TXT's earnings (34.6% per year) are forecast to grow faster than the Italian market (8.4% per year).

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

Revenue vs Market: TXT's revenue (18.3% per year) is forecast to grow faster than the Italian market (3% per year).

High Growth Revenue: TXT's revenue (18.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TXT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-27.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TXT's earnings have declined by -27.8% per year over the past 5 years.

Accelerating Growth: TXT's earnings growth over the past year (7.8%) exceeds its 5-year average (-27.8% per year).

Earnings vs Industry: TXT earnings growth over the past year (7.8%) exceeded the Software industry 7.3%.


Return on Equity

High ROE: TXT's Return on Equity (2.2%) is considered low.


Return on Assets

ROA vs Industry: TXT's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: TXT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is TXT e-solutions's financial position?


Financial Position Analysis

Short Term Liabilities: TXT's short term assets (€124.6M) exceeds its short term liabilities (€34.5M)

Long Term Liabilities: TXT's short term assets (124.6M) exceeds its long term liabilities (40.8M)


Debt to Equity History and Analysis

Debt Level: TXT's debt to equity ratio (55.9%) is considered high

Reducing Debt: TXT's debt to equity ratio has increased from 17.9% to 55.9% over the past 5 years.

Debt Coverage: TXT's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet

Inventory Level: TXT has a low level of unsold assets or inventory.

Debt Coverage by Assets: TXT's debt is covered by short term assets (assets are 2.666570x debt).


Next Steps

Dividend

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

6.11%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.1%markettop25%4.4%industryaverage1.4%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TXT's dividend (6.11%) is higher than the bottom 25% of dividend payers in the Italian market (2.12%).

High Dividend: TXT's dividend (6.11%) is in the top 25% of dividend payers in the Italian market (4.37%)

Stable Dividend: TXT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TXT's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (329.4%), TXT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of TXT e-solutions's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Enrico Magni (63yo)

2.4yrs

Tenure

0

Mr. Enrico Magni is the Chief Executive Officer of TXT e-solutions S.p.A. since May 10, 2017 and has been its Director since April 19, 2018. Mr. Magni has founded and developed several enterprises in the l ...


Management Age and Tenure

3.6yrs

Average Tenure

60.5yo

Average Age

Experienced Management: TXT's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

1.5yrs

Average Tenure

54.5yo

Average Age

Experienced Board: TXT's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Paolo Colombo (63yo)

    Executive Vice President

    • Tenure: 0yrs
    • Compensation: €207.47k
  • Paolo Matarazzo (53yo)

    Chief Compliance Officer & Investor Relations Manager

    • Tenure: 0yrs
    • Compensation: €198.90k
  • Francesco Cusaro (58yo)

    Group Director of Human Resources

    • Tenure: 8.4yrs
  • Luca Galbiati

    COO of Continental Europe & Senior VP

    • Tenure: 4.8yrs
  • Bernd Näther

    Senior Vice President of Product & Operations - Germany

    • Tenure: 0yrs
  • Riccardo Proni

    Senior Vice President of Solution Center & Product

    • Tenure: 4.8yrs
  • Enrico Magni (63yo)

    CEO & Director

    • Tenure: 2.4yrs
  • Jens Fabian

    Senior Vice President of Business Development

    • Tenure: 0yrs
  • Daniele Misani

    MD & Director

    • Tenure: 0.3yrs
  • Eugenio Forcinito

    Chief Financial Officer

    • Tenure: 0.8yrs

Board Members

  • Alvise Braga Illa (80yo)

    Chairman of the Board

    • Tenure: 2.5yrs
    • Compensation: €326.90k
  • Stefania Saviolo (54yo)

    Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: €25.00k
  • Enrico Magni (63yo)

    CEO & Director

    • Tenure: 2.4yrs
  • Luisa Cameretti (54yo)

    Standing Auditor

    • Tenure: 0yrs
    • Compensation: €21.00k
  • Fabienne Anne Schwalbe (55yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: €25.00k
  • Mario Basilico (59yo)

    Chairman of Board of Statutory Auditors

    • Tenure: 2.4yrs
  • Giampaolo Vianello (49yo)

    Standing Auditor

    • Tenure: 2.4yrs
  • Valentina Cogliati (38yo)

    Independent Director

    • Tenure: 1.5yrs
  • Daniele Misani

    MD & Director

    • Tenure: 0.3yrs
  • Alessandro Arrigoni

    Independent Director

    • Tenure: 0.3yrs

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: €96.320m
  • Shares outstanding: 11.78m
  • 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 & Transportation; and Finte ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:40
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.