TINEXTA SPA (TNXT.MI) Stock Fundamental Analysis
BIT:TNXT - Euronext 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TNXT was profitable.
TNXT had a positive operating cash flow in the past year.
TNXT had positive earnings in each of the past 5 years.
TNXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.56%, TNXT is doing worse than 62.07% of the companies in the same industry.
TNXT has a worse Return On Equity (4.59%) than 62.07% of its industry peers.
The Return On Invested Capital of TNXT (4.23%) is worse than 68.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TNXT is significantly below the industry average of 11.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 4.59% | ||
| ROIC | 4.23% |
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
TNXT has a Profit Margin (2.82%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TNXT has grown nicely.
Looking at the Operating Margin, with a value of 7.60%, TNXT is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
TNXT's Operating Margin has declined in the last couple of years.
TNXT has a better Gross Margin (68.06%) than 65.52% of its industry peers.
In the last couple of years the Gross Margin of TNXT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.6% | ||
| PM (TTM) | 2.82% | ||
| GM | 68.06% |
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.
Compared to 5 years ago, TNXT has less shares outstanding
TNXT has a better debt/assets ratio than last year.
2.2 Solvency
TNXT has an Altman-Z score of 1.36. This is a bad value and indicates that TNXT is not financially healthy and even has some risk of bankruptcy.
TNXT's Altman-Z score of 1.36 is on the low side compared to the rest of the industry. TNXT is outperformed by 75.86% of its industry peers.
TNXT has a debt to FCF ratio of 9.98. This is a negative value and a sign of low solvency as TNXT would need 9.98 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.98, TNXT is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
TNXT has a Debt/Equity ratio of 0.66. This is a neutral value indicating TNXT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, TNXT is in line with its industry, outperforming 58.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 9.98 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.69
WACC6.16%
2.3 Liquidity
TNXT has a Current Ratio of 0.85. This is a bad value and indicates that TNXT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.85, TNXT is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
TNXT has a Quick Ratio of 0.85. 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's Quick ratio of 0.84 is in line compared to the rest of the industry. TNXT outperforms 41.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.84 |
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%.
Measured over the past years, TNXT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.75% on average per year.
TNXT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.35%.
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%-110.84%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y13.72%
Revenue growth 5Y10.56%
Sales Q2Q%17.97%
3.2 Future
TNXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.02% yearly.
TNXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.53% yearly.
EPS Next Y-30.48%
EPS Next 2Y-18.05%
EPS Next 3Y-5.91%
EPS Next 5Y17.02%
Revenue Next Year16.53%
Revenue Next 2Y14.11%
Revenue Next 3Y11.96%
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
Based on the Price/Earnings ratio of 23.29, the valuation of TNXT can be described as rather expensive.
TNXT's Price/Earnings is on the same level as the industry average.
TNXT is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.81, which indicates a very decent valuation of TNXT.
TNXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. TNXT is cheaper than 82.76% of the companies in the same industry.
TNXT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TNXT indicates a somewhat cheap valuation: TNXT is cheaper than 65.52% of the companies listed in the same industry.
68.97% of the companies in the same industry are more expensive than TNXT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.57 | ||
| EV/EBITDA | 7.6 |
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)1.58
EPS Next 2Y-18.05%
EPS Next 3Y-5.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.90%, TNXT is a good candidate for dividend investing.
TNXT's Dividend Yield is rather good when compared to the industry average which is at 2.84. TNXT pays more dividend than 89.66% of the companies in the same industry.
TNXT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
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
TNXT pays out 166.50% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TNXT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP166.5%
EPS Next 2Y-18.05%
EPS Next 3Y-5.91%
BIT:TNXT (3/7/2025, 7:00:00 PM)
9.085
-0.31 (-3.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners22.61%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap428.90M
Analysts78.33
Price Target13.67 (50.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
Yearly Dividend0.73
Dividend Growth(5Y)23.23%
DP166.5%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)-2.31%
PT rev (3m)-4.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 10.81 | ||
| P/S | 0.69 | ||
| P/FCF | 10.57 | ||
| P/OCF | 5.6 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.6 |
EPS(TTM)0.39
EY4.29%
EPS(NY)0.84
Fwd EY9.25%
FCF(TTM)0.86
FCFY9.46%
OCF(TTM)1.62
OCFY17.85%
SpS13.08
BVpS8.05
TBVpS-7.12
PEG (NY)N/A
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 4.59% | ||
| ROCE | 6.05% | ||
| ROIC | 4.23% | ||
| ROICexc | 4.85% | ||
| ROICexgc | N/A | ||
| OM | 7.6% | ||
| PM (TTM) | 2.82% | ||
| GM | 68.06% | ||
| FCFM | 6.57% |
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-Score3
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 9.98 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 77.24% | ||
| Cap/Sales | 5.83% | ||
| Interest Coverage | 6.29 | ||
| Cash Conversion | 81.9% | ||
| Profit Quality | 232.79% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.36 |
F-Score3
WACC6.16%
ROIC/WACC0.69
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%-110.84%
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 Year16.53%
Revenue Next 2Y14.11%
Revenue Next 3Y11.96%
Revenue Next 5Y10.53%
EBIT growth 1Y-22.42%
EBIT growth 3Y3.76%
EBIT growth 5Y3.96%
EBIT Next Year85%
EBIT Next 3Y35.86%
EBIT Next 5Y34.6%
FCF growth 1Y-17.49%
FCF growth 3Y-17.93%
FCF growth 5Y4%
OCF growth 1Y10.57%
OCF growth 3Y-2.72%
OCF growth 5Y11.59%