WIIT SPA (WIIT.MI) Stock Fundamental Analysis
BIT:WIIT - Euronext Milan - IT0005440893 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to WIIT. WIIT was compared to 71 industry peers in the IT Services industry. While WIIT is still in line with the averages on profitability rating, there are concerns on its financial health. WIIT is quite expensive at the moment. It does show a decent growth rate.
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.
Of the past 5 years WIIT 4 years were profitable.
In the past 5 years WIIT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.88%, WIIT is in the better half of the industry, outperforming 60.56% of the companies in the same industry.
The Return On Equity of WIIT (44.39%) is better than 94.37% of its industry peers.
WIIT has a Return On Invested Capital of 9.39%. This is in the better half of the industry: WIIT outperforms 61.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WIIT is significantly below the industry average of 10.64%.
The 3 year average ROIC (5.22%) for WIIT is below the current ROIC(9.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 44.39% | ||
| ROIC | 9.39% |
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 better Profit Margin (6.84%) than 77.46% of its industry peers.
WIIT's Profit Margin has declined in the last couple of years.
WIIT has a Operating Margin of 14.64%. This is amongst the best in the industry. WIIT outperforms 90.14% of its industry peers.
WIIT's Operating Margin has declined in the last couple of years.
WIIT's Gross Margin of 67.88% is in line compared to the rest of the industry. WIIT outperforms 57.75% of its industry peers.
In the last couple of years the Gross Margin of WIIT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.64% | ||
| PM (TTM) | 6.84% | ||
| GM | 67.88% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WIIT is destroying value.
Compared to 1 year ago, WIIT has less shares outstanding
The number of shares outstanding for WIIT has been increased compared to 5 years ago.
Compared to 1 year ago, WIIT has an improved debt to assets ratio.
2.2 Solvency
WIIT has an Altman-Z score of 1.97. This is not the best score and indicates that WIIT is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.97, WIIT is not doing good in the industry: 66.20% of the companies in the same industry are doing better.
WIIT has a debt to FCF ratio of 6.64. This is a slightly negative value and a sign of low solvency as WIIT would need 6.64 years to pay back of all of its debts.
WIIT's Debt to FCF ratio of 6.64 is on the low side compared to the rest of the industry. WIIT is outperformed by 67.61% of its industry peers.
A Debt/Equity ratio of 5.84 is on the high side and indicates that WIIT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.84, WIIT is doing worse than 90.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.84 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.84
WACC11.23%
2.3 Liquidity
A Current Ratio of 0.78 indicates that WIIT may have some problems paying its short term obligations.
The Current ratio of WIIT (0.78) is worse than 85.92% of its industry peers.
A Quick Ratio of 0.78 indicates that WIIT may have some problems paying its short term obligations.
WIIT's Quick ratio of 0.78 is on the low side compared to the rest of the industry. WIIT is outperformed by 85.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.60% over the past year.
Measured over the past years, WIIT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.68% on average per year.
Looking at the last year, WIIT shows a very strong growth in Revenue. The Revenue has grown by 21.57%.
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)13.6%
EPS 3YN/A
EPS 5Y12.68%
EPS Q2Q%3.67%
Revenue 1Y (TTM)21.57%
Revenue growth 3Y26.61%
Revenue growth 5Y35.67%
Sales Q2Q%22.33%
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 10.67% on average per year.
Based on estimates for the next years, WIIT will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y1.42%
EPS Next 2Y13.6%
EPS Next 3Y14.29%
EPS Next 5Y10.67%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.61, which indicates a rather expensive current valuation of WIIT.
WIIT's Price/Earnings is on the same level as the industry average.
WIIT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.14 indicates a rather expensive valuation of WIIT.
WIIT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, WIIT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 19.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WIIT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WIIT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.16 | ||
| EV/EBITDA | 8.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WIIT 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)17.34
PEG (5Y)1.94
EPS Next 2Y13.6%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, WIIT has a reasonable but not impressive dividend return.
WIIT's Dividend Yield is comparable with the industry average which is at 6.93.
Compared to an average S&P500 Dividend Yield of 2.42, WIIT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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 48.55% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of WIIT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.55%
EPS Next 2Y13.6%
EPS Next 3Y14.29%
BIT:WIIT (7/3/2025, 5:29:43 PM)
15.26
-0.08 (-0.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners9.31%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap427.59M
Analysts83.64
Price Target24.09 (57.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend0.3
Dividend Growth(5Y)26.91%
DP48.55%
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)-0.84%
PT rev (3m)-4.83%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-9.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 19.14 | ||
| P/S | 1.81 | ||
| P/FCF | 12.16 | ||
| P/OCF | 10.27 | ||
| P/B | 11.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.73 |
EPS(TTM)0.62
EY4.06%
EPS(NY)0.8
Fwd EY5.23%
FCF(TTM)1.25
FCFY8.22%
OCF(TTM)1.49
OCFY9.74%
SpS8.42
BVpS1.3
TBVpS-5.3
PEG (NY)17.34
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 44.39% | ||
| ROCE | 13.79% | ||
| ROIC | 9.39% | ||
| ROICexc | 10.13% | ||
| ROICexgc | 40.68% | ||
| OM | 14.64% | ||
| PM (TTM) | 6.84% | ||
| GM | 67.88% | ||
| FCFM | 14.91% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.84 | ||
| Debt/FCF | 6.64 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | 17.44% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.04% | ||
| Profit Quality | 218.07% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.97 |
F-Score8
WACC11.23%
ROIC/WACC0.84
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)13.6%
EPS 3YN/A
EPS 5Y12.68%
EPS Q2Q%3.67%
EPS Next Y1.42%
EPS Next 2Y13.6%
EPS Next 3Y14.29%
EPS Next 5Y10.67%
Revenue 1Y (TTM)21.57%
Revenue growth 3Y26.61%
Revenue growth 5Y35.67%
Sales Q2Q%22.33%
Revenue Next Year9.27%
Revenue Next 2Y7.57%
Revenue Next 3Y7.02%
Revenue Next 5Y5.77%
EBIT growth 1Y11.42%
EBIT growth 3Y60.98%
EBIT growth 5Y32.41%
EBIT Next Year124.98%
EBIT Next 3Y38.34%
EBIT Next 5Y23.1%
FCF growth 1Y440.66%
FCF growth 3Y23.95%
FCF growth 5Y37.89%
OCF growth 1Y110.59%
OCF growth 3Y16.84%
OCF growth 5Y30.53%