Price Target Changed • Apr 17
Price target decreased by 13% to €3.65 Down from €4.20, the current price target is an average from 2 analysts. New target price is 109% above last closing price of €1.75. Stock is up 4.8% over the past year. The company is forecast to post earnings per share of €0.24 for next year compared to €0.067 last year. New Risk • Apr 12
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 32% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks High level of debt (69% net debt to equity). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Market cap is less than US$100m (€12.2m market cap, or US$14.4m). Valuation Update With 7 Day Price Move • Sep 05
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to €2.24, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 18x in the Telecom industry in Italy. Total loss to shareholders of 14% over the past three years. New Risk • Sep 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 6.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (72% net debt to equity). Share price has been volatile over the past 3 months (6.5% average weekly change). Market cap is less than US$100m (€15.5m market cap, or US$18.0m). New Risk • Jul 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 5.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (72% net debt to equity). Share price has been volatile over the past 3 months (5.9% average weekly change). Market cap is less than US$100m (€14.7m market cap, or US$17.2m). Upcoming Dividend • May 26
Upcoming dividend of €0.02 per share Eligible shareholders must have bought the stock before 02 June 2025. Payment date: 04 June 2025. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Italian dividend payers (5.4%). Lower than average of industry peers (5.1%). Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to €2.06, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 18x in the Telecom industry in Italy. Total loss to shareholders of 23% over the past three years. Declared Dividend • Mar 31
Dividend of €0.02 announced Dividend of €0.02 is the same as last year. Ex-date: 2nd June 2025 Payment date: 4th June 2025 Dividend yield will be 1.2%, which is lower than the industry average of 3.3%. Sustainability & Growth Dividend is well covered by both earnings (14% earnings payout ratio) and cash flows (17% cash payout ratio). The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. EPS is expected to remain steady over the next 2 years, which should provide adequate earnings cover for the dividend. Announcement • Mar 30
Convergenze S.p.A. Società Benefit announces Annual dividend, payable on June 04, 2025 Convergenze S.p.A. Società Benefit announced Annual dividend of EUR 0.0200 per share payable on June 04, 2025, ex-date on June 02, 2025 and record date on June 03, 2025. Reported Earnings • Mar 30
Full year 2024 earnings released Full year 2024 results: Revenue: €26.6m (up 18% from FY 2023). Net income: €1.25m (up 145% from FY 2023). Profit margin: 4.7% (up from 2.3% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.5% p.a. on average during the next 2 years, compared to a 3.3% growth forecast for the Telecom industry in Italy. Major Estimate Revision • Oct 08
Consensus EPS estimates increase by 29% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from €0.14 to €0.18. Revenue forecast unchanged at €25.6m. Net income forecast to grow 25% next year vs 15% growth forecast for Telecom industry in Italy. Consensus price target of €3.88 unchanged from last update. Share price was steady at €1.71 over the past week. Reported Earnings • Oct 02
First half 2024 earnings released: EPS: €0.082 (vs €0.006 in 1H 2023) First half 2024 results: EPS: €0.082 (up from €0.006 in 1H 2023). Revenue: €12.0m (up 15% from 1H 2023). Net income: €605.7k (up €558.4k from 1H 2023). Profit margin: 5.0% (up from 0.5% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Telecom industry in Italy. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Announcement • Aug 29
Convergenze S.p.A. Società Benefit to Report First Half, 2024 Results on Sep 27, 2024 Convergenze S.p.A. Società Benefit announced that they will report first half, 2024 results on Sep 27, 2024 Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to €1.50, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Telecom industry in Italy. Total loss to shareholders of 49% over the past three years. Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €1.75, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Telecom industry in Italy. Total loss to shareholders of 43% over the past three years. Reported Earnings • May 05
Full year 2023 earnings released Full year 2023 results: Revenue: €22.9m (down 19% from FY 2022). Net income: €511.9k (up €1.31m from FY 2022). Profit margin: 2.2% (up from net loss in FY 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Telecom industry in Italy. New Risk • Apr 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.4x net interest cover). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Share price has been volatile over the past 3 months (7.5% average weekly change). Market cap is less than US$100m (€11.8m market cap, or US$12.5m). Price Target Changed • Apr 04
Price target increased by 14% to €3.88 Up from €3.39, the current price target is an average from 2 analysts. New target price is 150% above last closing price of €1.55. Stock is down 32% over the past year. The company is forecast to post earnings per share of €0.03 next year compared to a net loss per share of €0.11 last year. New Risk • Mar 26
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Italian stocks, typically moving 7.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.4x net interest cover). Share price has been highly volatile over the past 3 months (7.9% average weekly change). Minor Risks Shareholders have been diluted in the past year (5.0% increase in shares outstanding). Market cap is less than US$100m (€11.9m market cap, or US$12.9m). New Risk • Nov 13
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: €8.92m (US$9.54m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.4x net interest cover). Share price has been highly volatile over the past 3 months (7.3% average weekly change). Market cap is less than US$10m (€8.92m market cap, or US$9.54m). Minor Risk Shareholders have been diluted in the past year (5.0% increase in shares outstanding). New Risk • Oct 28
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Italian stocks, typically moving 5.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.4x net interest cover). Minor Risks Share price has been volatile over the past 3 months (5.1% average weekly change). Shareholders have been diluted in the past year (5.0% increase in shares outstanding). Market cap is less than US$100m (€12.7m market cap, or US$13.4m). Buying Opportunity • Oct 26
Now 21% undervalued Over the last 90 days, the stock is up 2.3%. The fair value is estimated to be €2.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Oct 05
First half 2023 earnings released First half 2023 results: Revenue: €10.4m (down 17% from 1H 2022). Net income: €47.3k (up €477.1k from 1H 2022). Profit margin: 0.5% (up from net loss in 1H 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Telecom industry in Italy. Price Target Changed • May 16
Price target decreased by 16% to €4.64 Down from €5.53, the current price target is an average from 2 analysts. New target price is 125% above last closing price of €2.06. Stock is down 21% over the past year. The company posted a net loss per share of €0.11 last year. Reported Earnings • Mar 29
Full year 2022 earnings released Full year 2022 results: Revenue: €28.4m (up 54% from FY 2021). Net loss: €799.2k (down 435% from profit in FY 2021). Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Telecom industry in Italy. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 6 non-independent directors. Standing Auditor Massimo Tartaro was the last director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 03
First half 2022 earnings released: EPS: €0 (vs €0 in 1H 2021) First half 2022 results: EPS: €0 (in line with 1H 2021). Revenue: €12.7m (up 45% from 1H 2021). Net loss: €429.8k (down 205% from profit in 1H 2021). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Telecom industry in Italy. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment improved over the past week After last week's 16% share price gain to €2.63, the stock trades at a trailing P/E ratio of 78.8x. Average forward P/E is 14x in the Telecom industry in Italy. Total loss to shareholders of 12% over the past year. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. No highly experienced directors. 1 independent director (6 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Apr 18
Full year 2021 earnings released: EPS: €0.033 (vs €0.099 in FY 2020) Full year 2021 results: EPS: €0.033 (down from €0.099 in FY 2020). Revenue: €18.4m (up 13% from FY 2020). Net income: €238.4k (down 66% from FY 2020). Profit margin: 1.3% (down from 4.3% in FY 2020). Over the next year, revenue is forecast to grow 27%, compared to a 6.5% growth forecast for the industry in Italy. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improved over the past week After last week's 18% share price gain to €2.83, the stock trades at a trailing P/E ratio of 35.1x. Average trailing P/E is 36x in the Telecom industry in Italy. Total returns to shareholders of 2.9% over the past year. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improved over the past week After last week's 17% share price gain to €3.60, the stock trades at a trailing P/E ratio of 52.7x. Average trailing P/E is 42x in the Telecom industry in Italy. Announcement • Dec 30
Convergenze S.p.A. has completed an IPO. Convergenze S.p.A. has completed an IPO.
Security Name: Shares
Security Type: Common Stock
Price\Range: €1.75