BIT:LIT

Stock Analysis Report

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Executive Summary

Retelit S.p.A., together with its subsidiary, Retelit Digital Services S.p.A., provides data and infrastructure services to the telecommunications market in Italy and internationally.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.2%

LIT

2.3%

IT Telecom

1.2%

IT Market


1 Year Return

31.2%

LIT

-15.6%

IT Telecom

-9.0%

IT Market

Return vs Industry: LIT exceeded the Italian Telecom industry which returned -13.7% over the past year.

Return vs Market: LIT exceeded the Italian Market which returned -6.7% over the past year.


Shareholder returns

LITIndustryMarket
7 Day4.2%2.3%1.2%
30 Day9.0%-1.1%-2.4%
90 Day28.8%-1.2%10.3%
1 Year32.6%31.2%-11.4%-15.6%-6.7%-9.0%
3 Year48.9%43.9%-11.5%-22.4%-6.2%-14.7%
5 Year260.8%248.7%-17.8%-33.5%-7.6%-36.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LIT (€1.97) is trading below our estimate of fair value (€2.1)

Significantly Below Fair Value: LIT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LIT is poor value based on its PE Ratio (26.6x) compared to the XE Telecom industry average (17.5x).

PE vs Market: LIT is poor value based on its PE Ratio (26.6x) compared to the Italian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: LIT is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: LIT's PB Ratio (1.9x) is in line with the IT Telecom industry average.


Next Steps

Future Growth

How is Retelit forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIT's forecast earnings growth (20% per year) is above the savings rate (2%).

Earnings vs Market: LIT's earnings (20% per year) are forecast to grow slower than the Italian market (26% per year).

High Growth Earnings: LIT's earnings are forecast to grow, but not significantly.

Revenue vs Market: LIT's revenue (21% per year) is forecast to grow faster than the Italian market (5.4% per year).

High Growth Revenue: LIT's revenue (21% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LIT's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Retelit performed over the past 5 years?

48.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIT has a large one-off gain of €4.3M impacting its March 31 2020 financial results.

Growing Profit Margin: LIT's current net profit margins (12.6%) are lower than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: LIT has become profitable over the past 5 years, growing earnings by 48.3% per year.

Accelerating Growth: LIT's earnings growth over the past year (8.2%) is below its 5-year average (48.3% per year).

Earnings vs Industry: LIT earnings growth over the past year (8.2%) underperformed the Telecom industry 19.6%.


Return on Equity

High ROE: LIT's Return on Equity (7%) is considered low.


Next Steps

Financial Health

How is Retelit's financial position?


Financial Position Analysis

Short Term Liabilities: LIT's short term assets (€104.4M) exceed its short term liabilities (€87.1M).

Long Term Liabilities: LIT's short term assets (€104.4M) do not cover its long term liabilities (€145.6M).


Debt to Equity History and Analysis

Debt Level: LIT's debt to equity ratio (51.5%) is considered high.

Reducing Debt: LIT's debt to equity ratio has increased from 0.03% to 51.5% over the past 5 years.

Debt Coverage: LIT's debt is well covered by operating cash flow (48.4%).

Interest Coverage: LIT's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LIT's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.89%).

High Dividend: LIT's dividend (1.02%) is low compared to the top 25% of dividend payers in the Italian market (5.11%).


Stability and Growth of Payments

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

Growing Dividend: LIT 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: LIT is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

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

0.8yrs

Average management tenure


CEO

Federico Mario Protto (53 yo)

5.58yrs

Tenure

€505,771

Compensation

Mr. Federico Silvano Mario Protto has been the Chief Executive Officer and Director of Retelit SpA since January 2015. Mr. Mario Protto has been General Manager of Retelit S.p.A. since January 07, 2015.


CEO Compensation Analysis

Compensation vs Market: Federico's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD837.71K).

Compensation vs Earnings: Insufficient data to compare Federico's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Federico Mario Protto
GM, CEO & Director5.58yrs€505.77kno data
Mirko Endrizzi
Chief Financial Officer0.75yrno datano data
Ennio Baracetti
CEO of Partners Associates S.p.A. & Board Member of Retelit Digital Services S.p.A.0.58yrno datano data

0.8yrs

Average Tenure

Experienced Management: LIT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Federico Mario Protto
GM, CEO & Director5.58yrs€505.77kno data
Ennio Baracetti
CEO of Partners Associates S.p.A. & Board Member of Retelit Digital Services S.p.A.0.58yrno datano data
Gianbeppi Fortis
Independent Director2.58yrsno datano data
Marina Rubini
Independent Director2.58yrsno datano data
Dario Pardi
Chairman5.58yrs€365.00kno data
Patrizia Mantoan
Independent Director2.58yrsno datano data
Faisel Gergab
Non-Executive Director2.58yrsno datano data
Fabio Monti
Chairman of Board of Auditorsno datano datano data
Paola Bruno
Independent Director2.58yrsno datano data
Gianluca Ferrari
Non-Executive Director2.58yrsno datano data
Ignazio Carbone
Statutory Auditor2.58yrsno datano data
Luca Sintoni
Non-Executive Director0.83yrno datano data

2.6yrs

Average Tenure

53yo

Average Age

Experienced Board: LIT's board of directors are not considered experienced ( 2.6 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: 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Retelit S.p.A.
  • Ticker: LIT
  • Exchange: BIT
  • Founded: 1999
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: €316.018m
  • Shares outstanding: 160.42m
  • Website: https://www.retelit.it

Number of Employees


Location

  • Retelit S.p.A.
  • Via Pola 9
  • Milan
  • Milan
  • 20124
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LITBIT (Borsa Italiana)YesCommon StockITEURAug 2000
EAENDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2000
0J03LSE (London Stock Exchange)YesCommon StockGBEURAug 2000
LITMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURAug 2000
LITOPABIT (Borsa Italiana)NPV OPAITEURJul 2020

Biography

Retelit S.p.A., together with its subsidiary, Retelit Digital Services S.p.A., provides data and infrastructure services to the telecommunications market in Italy and internationally. The company offers in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 21:33
End of Day Share Price2020/08/06 00:00
Earnings2020/03/31
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.