TINEXTA SPA (TNXT.MI) Stock Fundamental Analysis
BIT:TNXT - Borsa Italiana Milan - IT0005037210 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to TNXT. TNXT was compared to 30 industry peers in the Professional Services industry. TNXT has a medium profitability rating, but doesn't score so well on its financial health evaluation. TNXT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TNXT had positive earnings in the past year.
TNXT had a positive operating cash flow in the past year.
TNXT had positive earnings in each of the past 5 years.
Each year in the past 5 years TNXT had a positive operating cash flow.
1.2 Ratios
TNXT's Return On Assets of 1.85% is on the low side compared to the rest of the industry. TNXT is outperformed by 70.37% of its industry peers.
TNXT has a worse Return On Equity (5.14%) than 70.37% of its industry peers.
The Return On Invested Capital of TNXT (4.31%) is worse than 70.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TNXT is significantly below the industry average of 11.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 5.14% | ||
| ROIC | 4.31% |
ROA(3y)6.17%
ROA(5y)6.36%
ROE(3y)18.41%
ROE(5y)19.3%
ROIC(3y)5.49%
ROIC(5y)7.75%
1.3 Margins
Looking at the Profit Margin, with a value of 3.28%, TNXT is in line with its industry, outperforming 55.56% of the companies in the same industry.
In the last couple of years the Profit Margin of TNXT has grown nicely.
TNXT has a better Operating Margin (7.80%) than 62.96% of its industry peers.
TNXT's Operating Margin has declined in the last couple of years.
TNXT's Gross Margin of 68.14% is fine compared to the rest of the industry. TNXT outperforms 62.96% of its industry peers.
TNXT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.8% | ||
| PM (TTM) | 3.28% | ||
| GM | 68.14% |
OM growth 3Y-8.77%
OM growth 5Y-5.97%
PM growth 3Y4.86%
PM growth 5Y3.35%
GM growth 3Y0.42%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
TNXT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TNXT has been reduced compared to 1 year ago.
The number of shares outstanding for TNXT has been reduced compared to 5 years ago.
The debt/assets ratio for TNXT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that TNXT is in the distress zone and has some risk of bankruptcy.
TNXT has a worse Altman-Z score (1.39) than 85.19% of its industry peers.
The Debt to FCF ratio of TNXT is 6.50, which is on the high side as it means it would take TNXT, 6.50 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.50, TNXT is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that TNXT is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, TNXT perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.76
WACC5.71%
2.3 Liquidity
TNXT has a Current Ratio of 0.88. This is a bad value and indicates that TNXT is not financially healthy enough and could expect problems in meeting its short term obligations.
TNXT has a worse Current ratio (0.88) than 66.67% of its industry peers.
A Quick Ratio of 0.87 indicates that TNXT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, TNXT is in line with its industry, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
TNXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -87.44%.
TNXT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.75% yearly.
The Revenue has grown by 13.35% in the past year. This is quite good.
The Revenue has been growing by 10.56% on average over the past years. This is quite good.
EPS 1Y (TTM)-87.44%
EPS 3Y20.48%
EPS 5Y14.75%
EPS Q2Q%-110.89%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y13.72%
Revenue growth 5Y10.56%
Sales Q2Q%17.97%
3.2 Future
The Earnings Per Share is expected to grow by 17.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.53% on average over the next years. This is quite good.
EPS Next Y-30.48%
EPS Next 2Y-18.05%
EPS Next 3Y-5.91%
EPS Next 5Y17.02%
Revenue Next Year16.79%
Revenue Next 2Y14.28%
Revenue Next 3Y12.11%
Revenue Next 5Y10.53%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.24 indicates a rather expensive valuation of TNXT.
Compared to the rest of the industry, the Price/Earnings ratio of TNXT is on the same level as its industry peers.
TNXT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.39, the valuation of TNXT can be described as very reasonable.
85.19% of the companies in the same industry are more expensive than TNXT, based on the Price/Forward Earnings ratio.
TNXT is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 9.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNXT is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TNXT is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
TNXT's earnings are expected to decrease with -5.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y-18.05%
EPS Next 3Y-5.91%
5. Dividend
5.1 Amount
TNXT has a Yearly Dividend Yield of 5.78%, which is a nice return.
Compared to an average industry Dividend Yield of 2.85, TNXT pays a better dividend. On top of this TNXT pays more dividend than 92.59% of the companies listed in the same industry.
TNXT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
5.2 History
On average, the dividend of TNXT grows each year by 23.23%, which is quite nice.
Dividend Growth(5Y)23.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
157.66% of the earnings are spent on dividend by TNXT. This is not a sustainable payout ratio.
TNXT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP157.66%
EPS Next 2Y-18.05%
EPS Next 3Y-5.91%
TINEXTA SPA
BIT:TNXT (2/5/2025, 1:30:46 PM)
7.893
-0.02 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners19.48%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap372.63M
Analysts78.33
Price Target13.99 (77.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
Yearly Dividend0.73
Dividend Growth(5Y)23.23%
DP157.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-121.01%
Min EPS beat(2)-184.03%
Max EPS beat(2)-57.98%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.71%
Min Revenue beat(2)-5.21%
Max Revenue beat(2)-2.21%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.37%
PT rev (3m)-41.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.48%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.85%
Revenue NY rev (3m)-1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 9.39 | ||
| P/S | 0.62 | ||
| P/FCF | 10.2 | ||
| P/OCF | 5.56 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.9 |
EPS(TTM)0.39
EY4.94%
EPS(NY)0.84
Fwd EY10.65%
FCF(TTM)0.77
FCFY9.8%
OCF(TTM)1.42
OCFY17.97%
SpS12.75
BVpS8.14
TBVpS-6.08
PEG (NY)N/A
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 5.14% | ||
| ROCE | 6.16% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.77% | ||
| ROICexgc | 186.16% | ||
| OM | 7.8% | ||
| PM (TTM) | 3.28% | ||
| GM | 68.14% | ||
| FCFM | 6.07% |
ROA(3y)6.17%
ROA(5y)6.36%
ROE(3y)18.41%
ROE(5y)19.3%
ROIC(3y)5.49%
ROIC(5y)7.75%
ROICexc(3y)7.33%
ROICexc(5y)10.01%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.85%
ROCE(5y)11.08%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-16.87%
ROICexc growth 5Y-13.08%
OM growth 3Y-8.77%
OM growth 5Y-5.97%
PM growth 3Y4.86%
PM growth 5Y3.35%
GM growth 3Y0.42%
GM growth 5Y-0.15%
F-Score4
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 6.5 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 70.32% | ||
| Cap/Sales | 5.06% | ||
| Interest Coverage | 9.13 | ||
| Cash Conversion | 74.2% | ||
| Profit Quality | 184.94% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.39 |
F-Score4
WACC5.71%
ROIC/WACC0.76
Cap/Depr(3y)71.18%
Cap/Depr(5y)69.47%
Cap/Sales(3y)7.26%
Cap/Sales(5y)6.51%
Profit Quality(3y)91.08%
Profit Quality(5y)120.15%
High Growth Momentum
Growth
EPS 1Y (TTM)-87.44%
EPS 3Y20.48%
EPS 5Y14.75%
EPS Q2Q%-110.89%
EPS Next Y-30.48%
EPS Next 2Y-18.05%
EPS Next 3Y-5.91%
EPS Next 5Y17.02%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y13.72%
Revenue growth 5Y10.56%
Sales Q2Q%17.97%
Revenue Next Year16.79%
Revenue Next 2Y14.28%
Revenue Next 3Y12.11%
Revenue Next 5Y10.53%
EBIT growth 1Y-25.21%
EBIT growth 3Y3.76%
EBIT growth 5Y3.96%
EBIT Next Year85%
EBIT Next 3Y35.86%
EBIT Next 5Y34.6%
FCF growth 1Y-26.72%
FCF growth 3Y-17.93%
FCF growth 5Y4%
OCF growth 1Y-3.41%
OCF growth 3Y-2.72%
OCF growth 5Y11.59%