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TXT e-solutions

BIT:TXT
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TXT
BIT
€109M
Market Cap
  1. Home
  2. IT
  3. Software
Company description

TXT e-solutions S.p.A., together with its subsidiaries, provides software products and solutions in Italy and internationally. The last earnings update was 27 days ago. More info.


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TXT Share Price and Events
7 Day Returns
1%
BIT:TXT
-1.3%
IT Software
-0.2%
IT Market
1 Year Returns
-25.3%
BIT:TXT
-8.1%
IT Software
-8.5%
IT Market
TXT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TXT e-solutions (TXT) 1% 4.4% -1.1% -25.3% 24.8% 5.5%
IT Software -1.3% 1.8% 11.7% -8.1% 46.5% 35.9%
IT Market -0.2% 2.5% 10.1% -8.5% -7.6% -34.5%
1 Year Return vs Industry and Market
  • TXT underperformed the Software industry which returned -8.1% over the past year.
  • TXT underperformed the Market in Italy which returned -8.5% over the past year.
Price Volatility
TXT
Industry
5yr Volatility vs Market

TXT Value

 Is TXT e-solutions undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TXT e-solutions to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TXT e-solutions.

BIT:TXT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 15.4%
Perpetual Growth Rate 10-Year IT Government Bond Rate 2.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BIT:TXT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IT Govt Bond Rate 2.9%
Equity Risk Premium S&P Global 9%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.135 (1 + (1- 24%) (49.73%))
1.378
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.38
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.93% + (1.378 * 9.02%)
15.37%

Discounted Cash Flow Calculation for BIT:TXT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TXT e-solutions is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BIT:TXT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 15.37%)
2019 0.12 Est @ -83.51% 0.10
2020 0.05 Est @ -57.58% 0.04
2021 0.03 Est @ -39.42% 0.02
2022 0.02 Est @ -26.72% 0.01
2023 0.02 Est @ -17.82% 0.01
2024 0.02 Est @ -11.59% 0.01
2025 0.01 Est @ -7.24% 0.01
2026 0.01 Est @ -4.19% 0.00
2027 0.01 Est @ -2.05% 0.00
2028 0.01 Est @ -0.55% 0.00
Present value of next 10 years cash flows €0.20
BIT:TXT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €0.01 × (1 + 2.93%) ÷ (15.37% – 2.93%)
€0.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €0.11 ÷ (1 + 15.37%)10
€0.03
BIT:TXT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €0.20 + €0.03
€0.23
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €0.23 / 11.59
€0.02
BIT:TXT Discount to Share Price
Calculation Result
Value per share (EUR) From above. €0.02
Current discount Discount to share price of €9.40
= -1 x (€9.40 - €0.02) / €0.02
-47130.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of TXT e-solutions is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TXT e-solutions's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TXT e-solutions's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BIT:TXT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €0.05
BIT:TXT Share Price ** BIT (2019-04-23) in EUR €9.4
Italy Software Industry PE Ratio Median Figure of 7 Publicly-Listed Software Companies 31.01x
Italy Market PE Ratio Median Figure of 242 Publicly-Listed Companies 15.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TXT e-solutions.

BIT:TXT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:TXT Share Price ÷ EPS (both in EUR)

= 9.4 ÷ 0.05

195.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TXT e-solutions is overvalued based on earnings compared to the IT Software industry average.
  • TXT e-solutions is overvalued based on earnings compared to the Italy market.
Price based on expected Growth
Does TXT e-solutions's expected growth come at a high price?
Raw Data
BIT:TXT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 195.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
61%per year
Europe Software Industry PEG Ratio Median Figure of 75 Publicly-Listed Software Companies 2.12x
Italy Market PEG Ratio Median Figure of 160 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

BIT:TXT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 195.47x ÷ 61%

3.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TXT e-solutions is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on TXT e-solutions's assets?
Raw Data
BIT:TXT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €7.41
BIT:TXT Share Price * BIT (2019-04-23) in EUR €9.4
Italy Software Industry PB Ratio Median Figure of 9 Publicly-Listed Software Companies 2.9x
Italy Market PB Ratio Median Figure of 317 Publicly-Listed Companies 1.54x
BIT:TXT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:TXT Share Price ÷ Book Value per Share (both in EUR)

= 9.4 ÷ 7.41

1.27x

* Primary Listing of TXT e-solutions.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TXT e-solutions is good value based on assets compared to the IT Software industry average.
X
Value checks
We assess TXT e-solutions's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. TXT e-solutions has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TXT Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
61%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TXT e-solutions expected to grow at an attractive rate?
  • TXT e-solutions's earnings growth is expected to exceed the low risk savings rate of 2.9%.
Growth vs Market Checks
  • TXT e-solutions's earnings growth is expected to exceed the Italy market average.
  • TXT e-solutions's revenue growth is expected to exceed the Italy market average.
Annual Growth Rates Comparison
Raw Data
BIT:TXT Future Growth Rates Data Sources
Data Point Source Value (per year)
BIT:TXT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 61%
BIT:TXT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 10.8%
Italy Software Industry Earnings Growth Rate Market Cap Weighted Average 42.4%
Italy Software Industry Revenue Growth Rate Market Cap Weighted Average 12.3%
Italy Market Earnings Growth Rate Market Cap Weighted Average 10.4%
Italy Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BIT:TXT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BIT:TXT Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 50 3 1
2019-12-31 46 2 1
BIT:TXT Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 40 1 1
2018-09-30 38 3 1
2018-06-30 37 3 2
2018-03-31 36 2 2
2017-12-31 36 0 2
2017-09-30 36 5 2
2017-06-30 18 10 1
2017-03-31 64 6 5
2016-12-31 33 9 3
2016-09-30 40 5 2
2016-06-30 64 2 4
2016-03-31 61 6 4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TXT e-solutions's earnings are expected to grow significantly at over 20% yearly.
  • TXT e-solutions's revenue is expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BIT:TXT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from TXT e-solutions Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:TXT Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.22 0.22 0.22 1.00
2019-12-31 0.17 0.17 0.17 1.00
BIT:TXT Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 0.05
2018-09-30 0.12
2018-06-30 0.14
2018-03-31 0.15
2017-12-31 0.15
2017-09-30 0.17
2017-06-30 0.13
2017-03-31 0.44
2016-12-31 0.22
2016-09-30 0.20
2016-06-30 0.30
2016-03-31 0.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if TXT e-solutions will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess TXT e-solutions's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Italy market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Italy market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TXT e-solutions has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TXT Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TXT e-solutions's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TXT e-solutions's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • TXT e-solutions's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • TXT e-solutions's 1-year earnings growth is negative, it can't be compared to the IT Software industry average.
Earnings and Revenue History
TXT e-solutions's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TXT e-solutions Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:TXT Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 39.96 0.56 0.48
2018-09-30 38.45 1.36 1.68
2018-06-30 36.94 1.65 1.46
2018-03-31 36.29 1.78
2017-12-31 35.85 1.75 1.68
2017-09-30 35.62 1.98 1.17
2017-06-30 17.80 1.48 0.16
2017-03-31 63.70 5.19 2.69
2016-12-31 33.06 2.52 1.17
2016-09-30 39.61 2.38 2.68
2016-06-30 63.60 3.56 2.67
2016-03-31 61.27 3.79 2.68
2015-12-31 61.54 3.88 2.68
2015-09-30 59.60 4.00 2.64
2015-06-30 58.03 3.85 2.65
2015-03-31 56.57 4.16 2.64
2014-12-31 55.88 4.17 2.64
2014-09-30 54.63 5.36 2.79
2014-06-30 55.27 5.19 2.74
2014-03-31 53.34 4.66 2.79
2013-12-31 52.56 4.64 2.79
2013-09-30 52.01 4.26 2.53
2013-06-30 49.31 4.21 2.83
2013-03-31 48.10 4.53 2.50
2012-12-31 46.50 5.00 2.53
2012-09-30 44.08 20.03 1.88
2012-06-30 42.64 16.44 3.11

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TXT e-solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TXT e-solutions used its assets less efficiently than the IT Software industry average last year based on Return on Assets.
  • TXT e-solutions's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TXT e-solutions's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TXT e-solutions has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TXT Health

 How is TXT e-solutions's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TXT e-solutions's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TXT e-solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • TXT e-solutions's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of TXT e-solutions's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TXT e-solutions Company Filings, last reported 3 months ago.

BIT:TXT Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 86.35 54.19 109.54
2018-09-30 88.20 50.97 115.78
2018-06-30 86.47 4.66 78.69
2018-03-31 98.07 2.95 90.88
2017-12-31 99.89 2.36 86.53
2017-09-30 33.15 1.85 2.31
2017-06-30 32.29 1.89 7.36
2017-03-31 34.85 1.61 10.43
2016-12-31 34.28 2.20 7.57
2016-09-30 32.68 3.97 6.63
2016-06-30 31.40 5.72 6.18
2016-03-31 33.72 0.92 14.60
2015-12-31 33.62 0.82 9.08
2015-09-30 32.50 2.47 11.86
2015-06-30 31.97 0.96 10.42
2015-03-31 33.57 1.34 13.40
2014-12-31 28.97 3.84 12.30
2014-09-30 28.69 4.79 11.86
2014-06-30 27.69 4.95 11.58
2014-03-31 28.92 5.50 16.78
2013-12-31 27.94 6.25 14.82
2013-09-30 26.53 4.87 11.12
2013-06-30 25.83 5.20 11.98
2013-03-31 26.99 6.28 16.57
2012-12-31 26.02 9.80 15.82
2012-09-30 23.72 3.13 10.37
2012-06-30 22.93 3.03 17.75
  • TXT e-solutions's level of debt (62.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (22.3% vs 62.8% today).
  • Debt is not well covered by operating cash flow (2.6%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 30.2x coverage).
X
Financial health checks
We assess TXT e-solutions's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TXT e-solutions has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TXT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.32%
Current annual income from TXT e-solutions dividends. Estimated to be 1.49% next year.
If you bought €2,000 of TXT e-solutions shares you are expected to receive €106 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • TXT e-solutions's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (2.12%).
  • TXT e-solutions's dividend is above the markets top 25% of dividend payers in Italy (4.43%).
Upcoming dividend payment

Purchase TXT e-solutions before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BIT:TXT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Europe Software Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 1.5%
Italy Market Average Dividend Yield Market Cap Weighted Average of 185 Stocks 4%
Italy Minimum Threshold Dividend Yield 10th Percentile 1.2%
Italy Bottom 25% Dividend Yield 25th Percentile 2.1%
Italy Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BIT:TXT Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.15 1.00
2019-12-31 0.13 1.00
BIT:TXT Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-27 0.500 5.427
2019-03-07 0.500 5.456
2018-11-09 0.000 0.000
2018-11-06 0.000 0.000
2018-08-03 0.000 0.000
2018-08-02 0.000 0.000
2018-05-16 0.000 0.000
2018-03-08 0.000 0.000
2017-03-08 0.300 2.793
2017-01-02 0.300 3.494
2016-03-14 0.250 3.362
2016-03-08 0.250 3.201
2015-05-12 0.227 2.902
2014-06-25 0.227 2.992
2014-03-04 0.227 2.634
2013-03-06 0.182 3.387

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, TXT e-solutions has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but TXT e-solutions only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of TXT e-solutions's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess TXT e-solutions's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TXT e-solutions afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TXT e-solutions has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TXT Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Enrico Magni
CEO Bio

Mr. Enrico Magni serves as the Chief Executive Officer of TXT e-solutions S.p.A. and has been its Director since April 19, 2018. Mr. Magni has founded and developed several enterprises in the last 30 years. He is Chairman of several companies, including Laserline Safety, Laserfin, Laserline Digital Signage, Laserline Lighting Solutions, HSPI, RT Radio Trevisan, Nanotech Analysis. Mr. Magni has acquired and developed the Lutech Group for 10 years, realising a strong development in revenues and profitability through solid organic growth and several acquisitions, prior to recently selling the group to an international fund.

CEO Compensation
  • Insufficient data for Enrico to compare compensation growth.
  • Insufficient data for Enrico to establish whether their remuneration is reasonable compared to companies of similar size in Italy.
Management Team Tenure

Average tenure and age of the TXT e-solutions management team in years:

4.3
Average Tenure
57
Average Age
  • The tenure for the TXT e-solutions management team is about average.
Management Team

Paolo Colombo

TITLE
Executive Vice President
COMPENSATION
€207K
AGE
62

Marco Guida

TITLE
CEO of Aerospace & Aviation and Executive Director
COMPENSATION
€307K
AGE
57
TENURE
0.3 yrs

Enrico Magni

TITLE
CEO & Director

Paolo Matarazzo

TITLE
CFO, Chief Compliance Officer
COMPENSATION
€199K
AGE
52

Jens Fabian

TITLE
Senior Vice President of Business Development

Francesco Cusaro

TITLE
Group Director of Human Resources
AGE
57
TENURE
7.9 yrs

Luca Galbiati

TITLE
COO of Continental Europe & Senior VP
TENURE
4.3 yrs

Bernd Näther

TITLE
Senior Vice President of Product & Operations - Germany

Riccardo Proni

TITLE
Senior Vice President of Solution Center & Product
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the TXT e-solutions board of directors in years:

1.9
Average Tenure
53.5
Average Age
  • The average tenure for the TXT e-solutions board of directors is less than 3 years, this suggests a new board.
Board of Directors

Alvise Braga Illa

TITLE
Chairman of the Board
COMPENSATION
€327K
AGE
79

Marco Guida

TITLE
CEO of Aerospace & Aviation and Executive Director
COMPENSATION
€307K
AGE
57

Enrico Magni

TITLE
CEO & Director
TENURE
1 yrs

Paolo Matarazzo

TITLE
CFO, Chief Compliance Officer
COMPENSATION
€199K
AGE
52
TENURE
1.9 yrs

Stefania Saviolo

TITLE
Lead Independent Director
COMPENSATION
€25K
AGE
53
TENURE
1 yrs

Fabienne Anne Schwalbe

TITLE
Independent Director
COMPENSATION
€25K
AGE
54
TENURE
3.9 yrs

Mario Basilico

TITLE
Chairman of Board of Statutory Auditors
TENURE
1.9 yrs

Valentina Cogliati

TITLE
Independent Director
TENURE
1 yrs

Luisa Cameretti

TITLE
Standing Auditor
COMPENSATION
€21K
AGE
53

Giampaolo Vianello

TITLE
Standing Auditor
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
14. May 18 Sell Marco Guida Individual 11. May 18 14. May 18 -85,000 €12.96 €-1,057,967
X
Management checks
We assess TXT e-solutions's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TXT e-solutions has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TXT News

Simply Wall St News

TXT e-solutions S.p.A. (BIT:TXT) Delivered A Weaker ROE Than Its Industry

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every €1 worth of shareholders' equity, it generated €0.015 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does TXT e-solutions SpA (BIT:TXT)'s Capital Return Make The Cut?

and looking to gauge the potential return on investment in TXT e-solutions SpA (BIT:TXT). … Your return is tied to TXT’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … Therefore, looking at how efficiently TXT e-solutions is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Who Are The Top Investors In TXT e-solutions SpA (BIT:TXT)?

In this article, I will take a quick look at TXT e-solutions SpA’s (BIT:TXT) recent ownership structure – an unconventional investing subject, but an important one. … The impact of a company's ownership structure affects both its short- and long-term performance. … Therefore, it is beneficial for us to examine TXT's ownership structure in more detail.

Simply Wall St -

TXT e-solutions SpA (BIT:TXT): Risks You Need To Consider Before Buying

The second type is market risk, one that you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks in the market. … Not all stocks are expose to the same level of market risk. … The most widely used metric to quantify a stock's market risk is beta, and the market as a whole represents a beta of one.

Simply Wall St -

Is It Too Late To Buy TXT e-solutions SpA (BIT:TXT) At Its July Price?

TXT e-solutions SpA (BIT:TXT) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of €9.9 is based on unrealistic expectations. … Let’s look into this by assessing TXT's expected growth over the next few years. … TXT e-solutions's growth potential is very attractive

Simply Wall St -

TXT e-solutions SpA (BIT:TXT): What Can We Expect From Future Profit Margins?

As analysts expect … earnings growth of 28.22% annualised … it's necessary to take a moment

Simply Wall St -

Is It The Right Time To Buy TXT e-solutions SpA (BIT:TXT)?

saw significant share price volatility over the past couple of months on the BIT, rising to the highs of €13.52 and falling to the lows of €10.34. … A question to answer is whether TXT e-solutions's current trading price of €10.5 reflective of the actual value of the? … Let’s take a look at TXT e-solutions’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

What Investors Should Know About TXT e-solutions SpA's (BIT:TXT) Financial Strength

TXT e-solutions SpA (BIT:TXT) is a small-cap stock with a market capitalization of €127.64m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

TXT e-solutions SpA (BIT:TXT): Commentary On Fundamentals

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on TXT e-solutions SpA (BIT:TXT) due to its excellent fundamentals in more than one area.

Simply Wall St -

Does TXT e-solutions SpA's (BIT:TXT) PE Ratio Warrant A Sell?

and want to better understand how you can grow your money by investing in TXT e-solutions SpA (BIT:TXT). … TXT e-solutions SpA (BIT:TXT) is trading with a trailing P/E of 72.9x, which is higher than the industry average of 28.7x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind.

Simply Wall St -

TXT Company Info

Description

TXT e-solutions S.p.A., together with its subsidiaries, provides software products and solutions in Italy and internationally. The company provides software, flight simulators, training systems, flight support services, and advanced manufacturing solutions to aerospace companies and airline operators. 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.

Details
Name: TXT e-solutions S.p.A.
TXT
Exchange: BIT
Founded: 1989
€108,951,010
11,590,533
Website: http://www.txtgroup.com
Address: TXT e-solutions S.p.A.
Via Frigia, 27,
Milan,
Milan, 20126,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT TXT Ordinary Shares Borsa Italiana IT EUR 12. Jul 2000
DB TXE Ordinary Shares Deutsche Boerse AG DE EUR 12. Jul 2000
BST TXE Ordinary Shares Boerse-Stuttgart DE EUR 12. Jul 2000
LSE 0NLD Ordinary Shares London Stock Exchange GB EUR 12. Jul 2000
Number of employees
Current staff
Staff numbers
481
TXT e-solutions employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 20:43
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/03/21
Last earnings filing: 2019/03/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.