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WIIT SPA (WIIT.MI) Stock Fundamental Analysis

BIT:WIIT - Euronext Milan - IT0005440893 - Common Stock - Currency: EUR

16.92  +0.04 (+0.24%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to WIIT. WIIT was compared to 70 industry peers in the IT Services industry. WIIT scores excellent on profitability, but there are concerns on its financial health. WIIT is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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7

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.
WIIT.MI Yearly Net Income VS EBIT VS OCF VS FCFWIIT.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 10M 20M 30M

1.2 Ratios

WIIT has a better Return On Assets (5.36%) than 66.67% of its industry peers.
With an excellent Return On Equity value of 50.24%, WIIT belongs to the best of the industry, outperforming 94.67% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.28%, WIIT is doing good in the industry, outperforming 61.33% of the companies in the same industry.
WIIT had an Average Return On Invested Capital over the past 3 years of 3.66%. This is significantly below the industry average of 11.01%.
The last Return On Invested Capital (9.28%) for WIIT is above the 3 year average (3.66%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.36%
ROE 50.24%
ROIC 9.28%
ROA(3y)1.64%
ROA(5y)2.58%
ROE(3y)14.32%
ROE(5y)15.74%
ROIC(3y)3.66%
ROIC(5y)4%
WIIT.MI Yearly ROA, ROE, ROICWIIT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20 25

1.3 Margins

WIIT's Profit Margin of 8.41% is amongst the best of the industry. WIIT outperforms 85.33% of its industry peers.
In the last couple of years the Profit Margin of WIIT has declined.
WIIT's Operating Margin of 16.93% is amongst the best of the industry. WIIT outperforms 93.33% of its industry peers.
In the last couple of years the Operating Margin of WIIT has declined.
WIIT has a Gross Margin (67.80%) which is in line with its industry peers.
WIIT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 16.93%
PM (TTM) 8.41%
GM 67.8%
OM growth 3Y16.05%
OM growth 5Y-4.64%
PM growth 3Y28.05%
PM growth 5Y-14.06%
GM growth 3Y5.58%
GM growth 5Y3.02%
WIIT.MI Yearly Profit, Operating, Gross MarginsWIIT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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1

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.
The number of shares outstanding for WIIT has been reduced compared to 1 year ago.
WIIT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WIIT is higher compared to a year ago.
WIIT.MI Yearly Shares OutstandingWIIT.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M 25M
WIIT.MI Yearly Total Debt VS Total AssetsWIIT.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2.2 Solvency

WIIT has an Altman-Z score of 2.02. 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.
WIIT's Altman-Z score of 2.02 is in line compared to the rest of the industry. WIIT outperforms 41.33% of its industry peers.
The Debt to FCF ratio of WIIT is 10.85, which is on the high side as it means it would take WIIT, 10.85 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WIIT (10.85) is worse than 66.67% of its industry peers.
WIIT has a Debt/Equity ratio of 6.12. This is a high value indicating a heavy dependency on external financing.
WIIT has a worse Debt to Equity ratio (6.12) than 82.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.12
Debt/FCF 10.85
Altman-Z 2.02
ROIC/WACC1.36
WACC6.8%
WIIT.MI Yearly LT Debt VS Equity VS FCFWIIT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M

2.3 Liquidity

A Current Ratio of 0.92 indicates that WIIT may have some problems paying its short term obligations.
WIIT has a Current ratio of 0.92. This is in the lower half of the industry: WIIT underperforms 73.33% of its industry peers.
A Quick Ratio of 0.92 indicates that WIIT may have some problems paying its short term obligations.
WIIT's Quick ratio of 0.92 is on the low side compared to the rest of the industry. WIIT is outperformed by 69.33% of its industry peers.
Industry RankSector Rank
Current Ratio 0.92
Quick Ratio 0.92
WIIT.MI Yearly Current Assets VS Current LiabilitesWIIT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 45.10% over the past year.
WIIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.24% yearly.
Looking at the last year, WIIT shows a quite strong growth in Revenue. The Revenue has grown by 10.80% in the last year.
The Revenue has been growing by 39.51% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)45.1%
EPS 3Y69.77%
EPS 5Y19.24%
EPS Q2Q%23.39%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y35.26%
Revenue growth 5Y39.51%
Sales Q2Q%26.11%

3.2 Future

WIIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.49% yearly.
WIIT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.67% yearly.
EPS Next Y8.68%
EPS Next 2Y21.59%
EPS Next 3Y20.78%
EPS Next 5Y23.49%
Revenue Next Year23.02%
Revenue Next 2Y17.8%
Revenue Next 3Y13.95%
Revenue Next 5Y10.67%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
WIIT.MI Yearly Revenue VS EstimatesWIIT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 50M 100M 150M 200M 250M
WIIT.MI Yearly EPS VS EstimatesWIIT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0.2 0.4 0.6 0.8 1

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.88 indicates a rather expensive valuation of WIIT.
WIIT's Price/Earnings ratio is in line with the industry average.
WIIT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
WIIT is valuated rather expensively with a Price/Forward Earnings ratio of 20.13.
WIIT's Price/Forward Earnings ratio is in line with the industry average.
WIIT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.88
Fwd PE 20.13
WIIT.MI Price Earnings VS Forward Price EarningsWIIT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as WIIT.
WIIT's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 21.86
EV/EBITDA 10.07
WIIT.MI Per share dataWIIT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 6

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.
A more expensive valuation may be justified as WIIT's earnings are expected to grow with 20.78% in the coming years.
PEG (NY)2.87
PEG (5Y)1.29
EPS Next 2Y21.59%
EPS Next 3Y20.78%

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3

5. Dividend

5.1 Amount

WIIT has a Yearly Dividend Yield of 1.78%.
WIIT's Dividend Yield is comparable with the industry average which is at 4.29.
WIIT's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
Industry RankSector Rank
Dividend Yield 1.78%

5.2 History

On average, the dividend of WIIT grows each year by 25.99%, which is quite nice.
Dividend Growth(5Y)25.99%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

WIIT pays out 44.18% 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.
DP44.18%
EPS Next 2Y21.59%
EPS Next 3Y20.78%
WIIT.MI Yearly Income VS Free CF VS DividendWIIT.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 5M 10M 15M 20M
WIIT.MI Dividend Payout.WIIT.MI Dividend Payout, showing the Payout Ratio.WIIT.MI Dividend Payout.PayoutRetained Earnings

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WIIT SPA

BIT:WIIT (3/7/2025, 7:00:00 PM)

16.92

+0.04 (+0.24%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-07 2024-11-07
Earnings (Next)03-10 2025-03-10/amc
Inst Owners10.68%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap474.10M
Analysts80
Price Target25.27 (49.35%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.78%
Yearly Dividend0.3
Dividend Growth(5Y)25.99%
DP44.18%
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)-2.33%
PT rev (3m)-2.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.68%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.78%
Valuation
Industry RankSector Rank
PE 24.88
Fwd PE 20.13
P/S 2.25
P/FCF 21.86
P/OCF 15.3
P/B 13.44
P/tB N/A
EV/EBITDA 10.07
EPS(TTM)0.68
EY4.02%
EPS(NY)0.84
Fwd EY4.97%
FCF(TTM)0.77
FCFY4.57%
OCF(TTM)1.11
OCFY6.54%
SpS7.52
BVpS1.26
TBVpS-5.13
PEG (NY)2.87
PEG (5Y)1.29
Profitability
Industry RankSector Rank
ROA 5.36%
ROE 50.24%
ROCE 13.95%
ROIC 9.28%
ROICexc 10.13%
ROICexgc 37.08%
OM 16.93%
PM (TTM) 8.41%
GM 67.8%
FCFM 10.3%
ROA(3y)1.64%
ROA(5y)2.58%
ROE(3y)14.32%
ROE(5y)15.74%
ROIC(3y)3.66%
ROIC(5y)4%
ROICexc(3y)4.2%
ROICexc(5y)4.74%
ROICexgc(3y)18.16%
ROICexgc(5y)18.72%
ROCE(3y)5.41%
ROCE(5y)6.04%
ROICexcg growth 3Y14.27%
ROICexcg growth 5Y-2.78%
ROICexc growth 3Y20.83%
ROICexc growth 5Y-12.43%
OM growth 3Y16.05%
OM growth 5Y-4.64%
PM growth 3Y28.05%
PM growth 5Y-14.06%
GM growth 3Y5.58%
GM growth 5Y3.02%
F-Score8
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 6.12
Debt/FCF 10.85
Debt/EBITDA 3.25
Cap/Depr 30.1%
Cap/Sales 4.41%
Interest Coverage 250
Cash Conversion 46.57%
Profit Quality 122.41%
Current Ratio 0.92
Quick Ratio 0.92
Altman-Z 2.02
F-Score8
WACC6.8%
ROIC/WACC1.36
Cap/Depr(3y)50.13%
Cap/Depr(5y)47.16%
Cap/Sales(3y)10.81%
Cap/Sales(5y)10.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)45.1%
EPS 3Y69.77%
EPS 5Y19.24%
EPS Q2Q%23.39%
EPS Next Y8.68%
EPS Next 2Y21.59%
EPS Next 3Y20.78%
EPS Next 5Y23.49%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y35.26%
Revenue growth 5Y39.51%
Sales Q2Q%26.11%
Revenue Next Year23.02%
Revenue Next 2Y17.8%
Revenue Next 3Y13.95%
Revenue Next 5Y10.67%
EBIT growth 1Y26.73%
EBIT growth 3Y56.97%
EBIT growth 5Y33.05%
EBIT Next Year108.97%
EBIT Next 3Y38.85%
EBIT Next 5Y24.84%
FCF growth 1Y36.59%
FCF growth 3Y26.11%
FCF growth 5Y43.88%
OCF growth 1Y10.94%
OCF growth 3Y37.51%
OCF growth 5Y33.07%