WIIT SPA (WIIT.MI) Stock Fundamental Analysis
BIT:WIIT - Euronext Milan - IT0005440893 - Common Stock - Currency: EUR
Overall WIIT gets a fundamental rating of 4 out of 10. We evaluated WIIT against 70 industry peers in the IT Services industry. There are concerns on the financial health of WIIT while its profitability can be described as average. While showing a medium growth rate, WIIT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WIIT had positive earnings in the past year.
WIIT had a positive operating cash flow in the past year.
WIIT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years WIIT had a positive operating cash flow.
1.2 Ratios
WIIT has a Return On Assets of 4.88%. This is comparable to the rest of the industry: WIIT outperforms 60.00% of its industry peers.
With an excellent Return On Equity value of 46.94%, WIIT belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
With a Return On Invested Capital value of 9.36%, WIIT perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WIIT is significantly below the industry average of 10.72%.
The last Return On Invested Capital (9.36%) for WIIT is above the 3 year average (5.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 46.94% | ||
| ROIC | 9.36% |
ROA(3y)2.7%
ROA(5y)1.76%
ROE(3y)24.1%
ROE(5y)16.26%
ROIC(3y)5.22%
ROIC(5y)4.01%
1.3 Margins
WIIT has a Profit Margin of 7.02%. This is in the better half of the industry: WIIT outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of WIIT has declined.
WIIT's Operating Margin of 14.97% is amongst the best of the industry. WIIT outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of WIIT has declined.
The Gross Margin of WIIT (67.31%) is comparable to the rest of the industry.
WIIT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.97% | ||
| PM (TTM) | 7.02% | ||
| GM | 67.31% |
OM growth 3Y27.14%
OM growth 5Y-2.4%
PM growth 3YN/A
PM growth 5Y-16.64%
GM growth 3Y4.45%
GM growth 5Y2.19%
2. Health
2.1 Basic Checks
WIIT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WIIT has less shares outstanding than it did 1 year ago.
WIIT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WIIT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.97 indicates that WIIT is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.97, WIIT is doing worse than 69.23% of the companies in the same industry.
The Debt to FCF ratio of WIIT is 6.40, which is on the high side as it means it would take WIIT, 6.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WIIT (6.40) is worse than 63.08% of its industry peers.
A Debt/Equity ratio of 6.22 is on the high side and indicates that WIIT has dependencies on debt financing.
The Debt to Equity ratio of WIIT (6.22) is worse than 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.22 | ||
| Debt/FCF | 6.4 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.36
WACC6.86%
2.3 Liquidity
A Current Ratio of 0.80 indicates that WIIT may have some problems paying its short term obligations.
WIIT's Current ratio of 0.80 is on the low side compared to the rest of the industry. WIIT is outperformed by 84.62% of its industry peers.
A Quick Ratio of 0.79 indicates that WIIT may have some problems paying its short term obligations.
WIIT has a Quick ratio of 0.79. This is amonst the worse of the industry: WIIT underperforms 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
WIIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.42%, which is quite impressive.
WIIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.68% yearly.
Looking at the last year, WIIT shows a quite strong growth in Revenue. The Revenue has grown by 18.77% in the last year.
Measured over the past years, WIIT shows a very strong growth in Revenue. The Revenue has been growing by 35.67% on average per year.
EPS 1Y (TTM)20.42%
EPS 3YN/A
EPS 5Y12.68%
EPS Q2Q%-37.23%
Revenue 1Y (TTM)18.77%
Revenue growth 3Y26.61%
Revenue growth 5Y35.67%
Sales Q2Q%27.35%
3.2 Future
Based on estimates for the next years, WIIT will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.19% on average per year.
The Revenue is expected to grow by 5.77% on average over the next years.
EPS Next Y1.42%
EPS Next 2Y13.6%
EPS Next 3Y14.29%
EPS Next 5Y13.19%
Revenue Next Year9.27%
Revenue Next 2Y7.57%
Revenue Next 3Y7.02%
Revenue Next 5Y5.77%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WIIT is valuated quite expensively with a Price/Earnings ratio of 26.13.
WIIT's Price/Earnings ratio is in line with the industry average.
WIIT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.78.
Based on the Price/Forward Earnings ratio of 25.44, the valuation of WIIT can be described as expensive.
WIIT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WIIT is more expensive than 61.54% of the companies in the same industry.
WIIT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.13 | ||
| Fwd PE | 25.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WIIT is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as WIIT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.34 | ||
| EV/EBITDA | 9.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WIIT does not grow enough to justify the current Price/Earnings ratio.
WIIT has a very decent profitability rating, which may justify a higher PE ratio.
WIIT's earnings are expected to grow with 14.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)18.41
PEG (5Y)2.06
EPS Next 2Y13.6%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
WIIT has a Yearly Dividend Yield of 1.90%.
Compared to an average industry Dividend Yield of 7.37, WIIT has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.46, WIIT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of WIIT is nicely growing with an annual growth rate of 26.91%!
Dividend Growth(5Y)26.91%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WIIT pays out 48.84% of its income as dividend. This is a bit on the high side, but may be sustainable.
WIIT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.84%
EPS Next 2Y13.6%
EPS Next 3Y14.29%
BIT:WIIT (4/25/2025, 7:00:00 PM)
15.94
+0.18 (+1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners10.68%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap446.64M
Analysts80
Price Target24.3 (52.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend0.3
Dividend Growth(5Y)26.91%
DP48.84%
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)-3.85%
PT rev (3m)-6.1%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-9.43%
EPS NY rev (3m)-26.01%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.13%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.13 | ||
| Fwd PE | 25.44 | ||
| P/S | 1.96 | ||
| P/FCF | 12.34 | ||
| P/OCF | 10.5 | ||
| P/B | 13.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.18 |
EPS(TTM)0.61
EY3.83%
EPS(NY)0.63
Fwd EY3.93%
FCF(TTM)1.29
FCFY8.11%
OCF(TTM)1.52
OCFY9.52%
SpS8.15
BVpS1.22
TBVpS-5.36
PEG (NY)18.41
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 46.94% | ||
| ROCE | 13.71% | ||
| ROIC | 9.36% | ||
| ROICexc | 10.2% | ||
| ROICexgc | 42.62% | ||
| OM | 14.97% | ||
| PM (TTM) | 7.02% | ||
| GM | 67.31% | ||
| FCFM | 15.85% |
ROA(3y)2.7%
ROA(5y)1.76%
ROE(3y)24.1%
ROE(5y)16.26%
ROIC(3y)5.22%
ROIC(5y)4.01%
ROICexc(3y)5.8%
ROICexc(5y)4.54%
ROICexgc(3y)23.93%
ROICexgc(5y)19.83%
ROCE(3y)7.55%
ROCE(5y)5.77%
ROICexcg growth 3Y34.16%
ROICexcg growth 5Y2.01%
ROICexc growth 3Y47.89%
ROICexc growth 5Y-4.74%
OM growth 3Y27.14%
OM growth 5Y-2.4%
PM growth 3YN/A
PM growth 5Y-16.64%
GM growth 3Y4.45%
GM growth 5Y2.19%
F-Score8
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.22 | ||
| Debt/FCF | 6.4 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 18.01% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.4% | ||
| Profit Quality | 225.92% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.97 |
F-Score8
WACC6.86%
ROIC/WACC1.36
Cap/Depr(3y)42.11%
Cap/Depr(5y)39.29%
Cap/Sales(3y)8.83%
Cap/Sales(5y)8.51%
Profit Quality(3y)256.88%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.42%
EPS 3YN/A
EPS 5Y12.68%
EPS Q2Q%-37.23%
EPS Next Y1.42%
EPS Next 2Y13.6%
EPS Next 3Y14.29%
EPS Next 5Y13.19%
Revenue 1Y (TTM)18.77%
Revenue growth 3Y26.61%
Revenue growth 5Y35.67%
Sales Q2Q%27.35%
Revenue Next Year9.27%
Revenue Next 2Y7.57%
Revenue Next 3Y7.02%
Revenue Next 5Y5.77%
EBIT growth 1Y15.04%
EBIT growth 3Y60.98%
EBIT growth 5Y32.41%
EBIT Next Year127.18%
EBIT Next 3Y38.4%
EBIT Next 5Y23.1%
FCF growth 1Y72.91%
FCF growth 3Y23.95%
FCF growth 5Y37.89%
OCF growth 1Y20.22%
OCF growth 3Y16.84%
OCF growth 5Y30.53%