New Risk • May 03
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: Major Risk High level of non-cash earnings (45% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.5% average weekly change). Profit margins are more than 30% lower than last year (11% net profit margin). Market cap is less than US$100m (€53.5m market cap, or US$62.6m). Announcement • Apr 16
Franchetti S.p.A., Annual General Meeting, Apr 30, 2026 Franchetti S.p.A., Annual General Meeting, Apr 30, 2026, at 11:30 W. Europe Standard Time. New Risk • Apr 06
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 11% Last year net profit margin: 26% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (43% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (11% net profit margin). Market cap is less than US$100m (€56.6m market cap, or US$65.3m). Announcement • Apr 01
Franchetti S.p.A. announces Annual dividend, payable on July 01, 2026 Franchetti S.p.A. announced Annual dividend of EUR 0.0400 per share payable on July 01, 2026, ex-date on June 29, 2026 and record date on June 30, 2026. Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to €6.50, the stock trades at a trailing P/E ratio of 42.2x. Average forward P/E is 17x in the Infrastructure industry in Italy. Total returns to shareholders of 127% over the past three years. New Risk • Mar 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 5.8% 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 High level of non-cash earnings (55% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (5.8% average weekly change). Market cap is less than US$100m (€50.7m market cap, or US$59.1m). New Risk • Nov 29
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 5.7% 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 High level of non-cash earnings (55% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (5.7% average weekly change). Market cap is less than US$100m (€40.4m market cap, or US$46.9m). Price Target Changed • Oct 29
Price target decreased by 12% to €9.40 Down from €10.70, the current price target is provided by 1 analyst. New target price is 79% above last closing price of €5.25. Stock is down 24% over the past year. The company posted earnings per share of €0.17 last year. Reported Earnings • Apr 01
Full year 2024 earnings released Full year 2024 results: Revenue: €5.80m (down 7.2% from FY 2023). Net income: €1.50m (up 21% from FY 2023). Profit margin: 26% (up from 20% in FY 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Infrastructure industry in Europe. Announcement • Mar 25
Franchetti S.p.A. has filed a Follow-on Equity Offering in the amount of €3.999 million. Franchetti S.p.A. has filed a Follow-on Equity Offering in the amount of €3.999 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 453,500
Price\Range: €6.2
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 191,500
Price\Range: €6.2
Transaction Features: Subsequent Direct Listing Valuation Update With 7 Day Price Move • Jan 31
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to €7.70, the stock trades at a trailing P/E ratio of 41.5x. Average forward P/E is 15x in the Infrastructure industry in Italy. Total returns to shareholders of 79% over the past year. Simply Wall St's valuation model estimates the intrinsic value at €5.64 per share. Buy Or Sell Opportunity • Jan 29
Now 27% overvalued after recent price rise Over the last 90 days, the stock has risen 3.6% to €7.15. The fair value is estimated to be €5.65, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • Jan 02
Now 21% overvalued Over the last 90 days, the stock has fallen 6.0% to €7.05. The fair value is estimated to be €5.81, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • Nov 05
Now 22% overvalued Over the last 90 days, the stock has fallen 6.1% to €6.95. The fair value is estimated to be €5.71, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • Oct 15
Now 18% overvalued Over the last 90 days, the stock has fallen 5.6% to €6.80. The fair value is estimated to be €5.76, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Price Target Changed • Oct 15
Price target increased by 39% to €10.00 Up from €7.20, the current price target is provided by 1 analyst. New target price is 47% above last closing price of €6.80. Stock is up 93% over the past year. The company posted earnings per share of €0.18 last year. New Risk • Oct 06
New major risk - Revenue and earnings growth Revenue has declined by 0.1% over the past year. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If revenues are declining, then it is difficult for the company to prevent its earnings from declining as well. A trend of falling revenue can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Revenue has declined by 0.1% over the past year. High level of non-cash earnings (51% accrual ratio). Minor Risks Shareholders have been diluted in the past year (17% increase in shares outstanding). Market cap is less than US$100m (€60.1m market cap, or US$65.9m). Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to €7.55, the stock trades at a trailing P/E ratio of 42.5x. Average forward P/E is 14x in the Infrastructure industry in Italy. Total returns to shareholders of 91% over the past year. Price Target Changed • Apr 03
Price target increased by 10% to €7.70 Up from €7.00, the current price target is provided by 1 analyst. New target price is 32% above last closing price of €5.85. Stock is up 110% over the past year. New Risk • Apr 01
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 High level of non-cash earnings (79% accrual ratio). 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 (6.0% average weekly change). Shareholders have been diluted in the past year (2.3% increase in shares outstanding). Market cap is less than US$100m (€39.7m market cap, or US$42.8m). Buy Or Sell Opportunity • Mar 26
Now 20% undervalued Over the last 90 days, the stock has risen 38% to €5.60. The fair value is estimated to be €7.01, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • Feb 22
Now 20% undervalued Over the last 90 days, the stock has risen 64% to €5.68. The fair value is estimated to be €7.13, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • Feb 13
Now 20% undervalued Over the last 90 days, the stock has risen 56% to €5.58. The fair value is estimated to be €6.99, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €4.84, the stock trades at a trailing P/E ratio of 27.7x. Average forward P/E is 16x in the Infrastructure industry in Italy. Total returns to shareholders of 54% over the past year. New Risk • Jan 25
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (79% accrual ratio). Minor Risks Shareholders have been diluted in the past year (2.3% increase in shares outstanding). Market cap is less than US$100m (€30.8m market cap, or US$33.5m). Valuation Update With 7 Day Price Move • Dec 07
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to €4.17, the stock trades at a trailing P/E ratio of 23.3x. Average forward P/E is 16x in the Infrastructure industry in Italy. Total returns to shareholders of 25% over the past year. New Risk • Sep 22
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 79% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (79% accrual ratio). Minor Risks Less than 3 years of financial data is available. Share price has been volatile over the past 3 months (5.1% average weekly change). Market cap is less than US$100m (€25.3m market cap, or US$27.0m). Reported Earnings • Sep 15
First half 2023 earnings released First half 2023 results: Revenue: €2.34m (up 59% from 1H 2022). Net income: €171.3k (up 15% from 1H 2022). Profit margin: 7.3% (down from 10% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 33% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Construction industry in Italy. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €4.04, the stock trades at a trailing P/E ratio of 23x. Average forward P/E is 12x in the Construction industry in Italy. Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to €3.70, the stock trades at a trailing P/E ratio of 21.1x. Average trailing P/E is 16x in the Construction industry in Italy. Announcement • May 11
Franchetti S.p.A. (BIT:FCH) acquired 67% stake in GalloTechnics Srl. Franchetti S.p.A. (BIT:FCH) acquired 67% stake in GalloTechnics Srl on May 10, 2023.Franchetti S.p.A. (BIT:FCH) completed the acquisition of 67% stake in GalloTechnics Srl on May 10, 2023. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Stefano Granati was the last independent 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.