BIT:WIIT

Stock Analysis Report

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Executive Summary

Wiit S.p.A. provides cloud services for various businesses in Italy and internationally. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.

Share Price & News

How has Wiit's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WIIT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.7%

WIIT

-1.8%

IT IT

-3.7%

IT Market


1 Year Return

193.3%

WIIT

77.4%

IT IT

-15.8%

IT Market

Return vs Industry: WIIT exceeded the Italian IT industry which returned 77.4% over the past year.

Return vs Market: WIIT exceeded the Italian Market which returned -15.8% over the past year.


Shareholder returns

WIITIndustryMarket
7 Day11.7%-1.8%-3.7%
30 Day39.1%11.8%-4.6%
90 Day34.4%16.8%-2.3%
1 Year197.2%193.3%77.8%77.4%-13.7%-15.8%
3 Year222.4%206.9%93.8%88.9%-14.1%-21.9%
5 Yearn/a67.6%51.7%-4.5%-26.3%

Price Volatility Vs. Market

How volatile is Wiit's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wiit undervalued compared to its fair value and its price relative to the market?

90.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WIIT (€176) is trading above our estimate of fair value (€42.46)

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


Price To Earnings Ratio

PE vs Industry: WIIT is poor value based on its PE Ratio (90.5x) compared to the IT IT industry average (27.1x).

PE vs Market: WIIT is poor value based on its PE Ratio (90.5x) compared to the Italian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: WIIT is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: WIIT is overvalued based on its PB Ratio (23x) compared to the IT IT industry average (2.6x).


Next Steps

Future Growth

How is Wiit forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WIIT's forecast earnings growth (29% per year) is above the savings rate (2%).

Earnings vs Market: WIIT's earnings (29% per year) are forecast to grow faster than the Italian market (23.6% per year).

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

Revenue vs Market: WIIT's revenue (15.1% per year) is forecast to grow faster than the Italian market (3.5% per year).

High Growth Revenue: WIIT's revenue (15.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WIIT's Return on Equity is forecast to be high in 3 years time (36.4%)


Next Steps

Past Performance

How has Wiit performed over the past 5 years?

38.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WIIT has high quality earnings.

Growing Profit Margin: WIIT's current net profit margins (11.7%) are lower than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: WIIT's earnings have grown significantly by 38.6% per year over the past 5 years.

Accelerating Growth: WIIT's earnings growth over the past year (4.7%) is below its 5-year average (38.6% per year).

Earnings vs Industry: WIIT earnings growth over the past year (4.7%) underperformed the IT industry 9.6%.


Return on Equity

High ROE: Whilst WIIT's Return on Equity (28.37%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Wiit's financial position?


Financial Position Analysis

Short Term Liabilities: WIIT's short term assets (€25.5M) do not cover its short term liabilities (€25.9M).

Long Term Liabilities: WIIT's short term assets (€25.5M) do not cover its long term liabilities (€44.1M).


Debt to Equity History and Analysis

Debt Level: WIIT's debt to equity ratio (232%) is considered high.

Reducing Debt: WIIT's debt to equity ratio has reduced from 248.2% to 232% over the past 5 years.

Debt Coverage: WIIT's debt is well covered by operating cash flow (28.9%).

Interest Coverage: WIIT's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Wiit current dividend yield, its reliability and sustainability?

0.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WIIT's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.65%).

High Dividend: WIIT's dividend (0.85%) is low compared to the top 25% of dividend payers in the Italian market (5.43%).


Stability and Growth of Payments

Stable Dividend: WIIT is not paying a notable dividend for the Italian market, therefore no need to check if payments are stable.

Growing Dividend: WIIT is not paying a notable dividend for the Italian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WIIT'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?


CEO

Alessandro Cozzi

no data

Tenure

Mr. Alessandro Cozzi serves as Chief Executive Officer of Wiit S.p.A. and also serves as its Director.


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

Wiit S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wiit S.p.A.
  • Ticker: WIIT
  • Exchange: BIT
  • Founded: 2001
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: €443.765m
  • Shares outstanding: 2.52m
  • Website: https://www.wiitgroup.com

Number of Employees


Location

  • Wiit S.p.A.
  • Via Muzio Attendolo detto Sforza n. 7
  • Milan
  • Milan
  • 20141
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WIITBIT (Borsa Italiana)YesOrdinary SharesITEURJun 2017
WIITMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2017

Biography

Wiit S.p.A. provides cloud services for various businesses in Italy and internationally. It offers hybrid, hosted private, and public cloud services; cloud services for critical applications; business cont ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 04:22
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.