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 Analysis

Reasonable growth potential with imperfect 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.1%

TXT

8.6%

IT Software

6.8%

IT Market


1 Year Return

-31.8%

TXT

1.4%

IT Software

-24.5%

IT Market

Return vs Industry: TXT underperformed the Italian Software industry which returned 2% over the past year.

Return vs Market: TXT underperformed the Italian Market which returned -24.1% over the past year.


Shareholder returns

TXTIndustryMarket
7 Day19.1%8.6%6.8%
30 Day-23.0%-8.4%-22.4%
90 Day-35.4%-15.9%-27.8%
1 Year-28.0%-31.8%2.5%1.4%-21.2%-24.5%
3 Year-28.1%-38.5%-16.7%-20.1%-12.2%-20.9%
5 Year-15.9%-32.0%37.1%25.9%-23.0%-49.3%

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?

232.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TXT (€6.24) is trading above our estimate of fair value (€1.22)

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 (232.9x) compared to the Software industry average (36.8x).

PE vs Market: TXT is poor value based on its PE Ratio (232.9x) compared to the Italian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: TXT is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: TXT is good value based on its PB Ratio (0.9x) compared to the IT Software industry average (3.2x).


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?

81.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXT's forecast earnings growth (81.5% per year) is above the savings rate (1.2%).

Earnings vs Market: TXT's earnings (81.5% per year) are forecast to grow faster than the Italian market (11.2% per year).

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

Revenue vs Market: TXT's revenue (7% per year) is forecast to grow faster than the Italian market (1.8% per year).

High Growth Revenue: TXT's revenue (7% 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?

-26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TXT has high quality earnings.

Growing Profit Margin: TXT's current net profit margins (0.5%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: TXT's earnings have declined by -26.9% 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 (-44.4%) over the past year, making it difficult to compare to the Software industry average (-42.7%).


Return on Equity

High ROE: TXT's Return on Equity (0.5%) 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 (€127.1M) exceed its short term liabilities (€43.1M).

Long Term Liabilities: TXT's short term assets (€127.1M) exceed its long term liabilities (€36.5M).


Debt to Equity History and Analysis

Debt Level: TXT's debt to equity ratio (62.8%) is considered high.

Reducing Debt: TXT's debt to equity ratio has increased from 13.1% to 62.8% over the past 5 years.

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

Interest Coverage: TXT's interest payments on its debt are not well covered by EBIT (2.8x coverage).


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 2.5x debt).


Next Steps

Dividend

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

1.76%

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 payouts.

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

4.0yrs

Average management tenure


CEO

Enrico Magni (63yo)

2.83s

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Paolo Colombo
Executive Vice Presidentno data€207.47kno data
Enrico Magni
CEO & Director2.83yrsno datano data
Eugenio Forcinito
Chief Financial Officer1.17yrsno datano data
Paolo Matarazzo
Chief Compliance Officer & Investor Relations Managerno data€198.90kno data
Jens Fabian
Senior Vice President of Business Developmentno datano datano data
Francesco Cusaro
Group Director of Human Resources8.83yrsno datano data
Luca Galbiati
COO of Continental Europe & Senior VP5.17yrsno datano data
Bernd Näther
Senior Vice President of Product & Operations - Germanyno datano datano data
Riccardo Proni
Senior Vice President of Solution Center & Product5.17yrsno datano data
Daniele Misani
MD & Director0.67yrno datano data

4.0yrs

Average Tenure

60.5yo

Average Age

Experienced Management: TXT's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Enrico Magni
CEO & Director2.83yrsno datano data
Daniele Misani
MD & Director0.67yrno datano data
Alvise Braga Illa
Chairman of the Board2.92yrs€326.90k5.29% 3.9m
Stefania Saviolo
Lead Independent Director1.92yrs€25.00kno data
Luisa Cameretti
Standing Auditorno data€21.00kno data
Fabienne Anne Schwalbe
Independent Director4.83yrs€25.00kno data
Mario Basilico
Chairman of Board of Statutory Auditors2.83yrsno datano data
Giampaolo Vianello
Standing Auditor2.83yrsno datano data
Valentina Cogliati
Independent Director1.92yrsno datano data
Alessandro Arrigoni
Independent Director0.67yrno datano data

1.9yrs

Average Tenure

54.5yo

Average Age

Experienced Board: TXT's board of directors are not considered experienced ( 1.9 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: TXT insiders have only sold shares 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: €73.540m
  • Shares outstanding: 11.79m
  • 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 Fintech. It provides on-board software, flight simulators, training systems, flight support systems, and advanced manufacturing solutions, as well as specialized engineering services to aerospace companies and airline operators. The company also offers on-board software and systems for the automotive and transport sectors. It also offers solutions and services for the banking and finance industry, including software quality services; solutions for consumer credit and non-performing loans management; risk management and AML solutions; treasury and payments solutions; and consulting services. The company was formerly known as TXT Ingegneria Informatica S.p.A. and changed its name to TXT e-solutions S.p.A. in March 2000. TXT e-solutions S.p.A. was founded in 1989 and is headquartered in Milan, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 20:56
End of Day Share Price2020/03/30 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.