BIT:SIT

Stock Analysis Report

Executive Summary

SIT S.p.A. develops, manufactures, and sells measuring devices and systems for the domestic gas equipment worldwide.

Rewards

PE ratio (7.1x) is below the Italian market (18.4x)

Earnings grew by 442.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -9.1% per year for the next 3 years

Interest payments are not well covered by earnings

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.2%

SIT

2.0%

IT Electronic

0.2%

IT Market


1 Year Return

-14.4%

SIT

25.7%

IT Electronic

18.6%

IT Market

Return vs Industry: SIT underperformed the Italian Electronic industry which returned 25.7% over the past year.

Return vs Market: SIT underperformed the Italian Market which returned 18.6% over the past year.


Shareholder returns

SITIndustryMarket
7 Day6.2%2.0%0.2%
30 Day-4.2%8.5%-0.9%
90 Day-7.4%20.2%4.3%
1 Year-11.5%-14.4%28.7%25.7%23.9%18.6%
3 Yearn/a47.4%37.8%25.5%6.6%
5 Yearn/a155.9%129.7%30.4%-15.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SIT (€6.85) is trading above our estimate of fair value (€6.14)

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


Price To Earnings Ratio

PE vs Industry: SIT is good value based on its PE Ratio (7.1x) compared to the Electronic industry average (14.1x).

PE vs Market: SIT is good value based on its PE Ratio (7.1x) compared to the Italian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: SIT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SIT is good value based on its PB Ratio (1.2x) compared to the IT Electronic industry average (1.8x).


Next Steps

Future Growth

How is SIT forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIT's earnings are forecast to decline over the next 3 years (-9.1% per year).

Earnings vs Market: SIT's earnings are forecast to decline over the next 3 years (-9.1% per year).

High Growth Earnings: SIT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SIT's revenue (0.6% per year) is forecast to grow slower than the Italian market (3% per year).

High Growth Revenue: SIT's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SIT's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has SIT performed over the past 5 years?

53.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIT has high quality earnings.

Growing Profit Margin: SIT's current net profit margins (6.8%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: SIT's earnings have grown significantly by 53.2% per year over the past 5 years.

Accelerating Growth: SIT's earnings growth over the past year (442.8%) exceeds its 5-year average (53.2% per year).

Earnings vs Industry: SIT earnings growth over the past year (442.8%) exceeded the Electronic industry 12.4%.


Return on Equity

High ROE: SIT's Return on Equity (16.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SIT's financial position?


Financial Position Analysis

Short Term Liabilities: SIT's short term assets (€165.4M) exceed its short term liabilities (€111.2M).

Long Term Liabilities: SIT's short term assets (€165.4M) exceed its long term liabilities (€129.2M).


Debt to Equity History and Analysis

Debt Level: SIT's debt to equity ratio (80.3%) is considered high.

Reducing Debt: Insufficient data to determine if SIT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SIT's debt is well covered by operating cash flow (38.1%).

Interest Coverage: SIT's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: SIT has a high level of physical assets or inventory.

Debt Coverage by Assets: SIT's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is SIT's current dividend yield, its reliability and sustainability?

4.09%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.0%markettop25%4.3%industryaverage1.9%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: SIT's dividend (4.09%) is higher than the bottom 25% of dividend payers in the Italian market (1.96%).

High Dividend: SIT's dividend (4.09%) is low compared to the top 25% of dividend payers in the Italian market (4.3%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SIT has been paying a dividend for less than 10 years.

Growing Dividend: SIT's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.1%), SIT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIT's dividends in 3 years are forecast to be well covered by earnings (33.5% payout ratio).


Next Steps

Management

What is the CEO of SIT's salary, the management and board of directors tenure and is there insider trading?


CEO

SIT has no CEO, or we have no data on them.


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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.9%.


Management Team

  • Federico de' Stefani

    Executive Chairman

    • Tenure: 0yrs

Board Members

  • Giovanni Cavallini (69yo)

    Director

    • Tenure: 0yrs
  • Attilio Arietti (69yo)

    Director

    • Tenure: 0yrs
  • Fabio Buttignon

    Director

    • Tenure: 0yrs
  • Bruno Pavesi (78yo)

    Director

    • Tenure: 0yrs
  • Bettina Campedelli (57yo)

    Lead Independent Director

    • Tenure: 1.2yrs
  • Chiara de’ Stefani (54yo)

    Director

    • Tenure: 0yrs
  • Federico de' Stefani

    Executive Chairman

    • Tenure: 0yrs
  • Franco Stevanato

    Independent Director

    • Tenure: 0yrs
  • Saverio Bozzolan

    Chairman of Board of Statutory Auditors

    • Tenure: 0yrs
  • Antonio Dall'Orto

    Independent Director

    • Tenure: 1.2yrs

Company Information

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


Key Information

  • Name: SIT S.p.A.
  • Ticker: SIT
  • Exchange: BIT
  • Founded:
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: €170.493m
  • Shares outstanding: 24.89m
  • Website: https://www.sitgroup.it

Location

  • SIT S.p.A.
  • Viale dell’Industria 31-33
  • Padua
  • Padova
  • 35129
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SITBIT (Borsa Italiana)YesShare CapitalITEURJul 2017

Biography

SIT S.p.A. develops, manufactures, and sells measuring devices and systems for the domestic gas equipment worldwide. The company offers mechanical controls, such as electrical on off, electrical and air/ga ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 22:25
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
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.