TXT E-SOLUTIONS SPA (TXT.MI) Stock Fundamental Analysis
Europe - BIT:TXT - IT0001454435 - Common Stock
31.4 EUR
-0.3 (-0.95%)
Taking everything into account, TXT scores 5 out of 10 in our fundamental rating. TXT was compared to 103 industry peers in the Software industry. While TXT is still in line with the averages on profitability rating, there are concerns on its financial health. TXT has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
In the past year TXT was profitable.
In the past year TXT had a positive cash flow from operations.
TXT had positive earnings in each of the past 5 years.
TXT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of TXT (5.37%) is comparable to the rest of the industry.
TXT's Return On Equity of 16.28% is fine compared to the rest of the industry. TXT outperforms 73.79% of its industry peers.
TXT has a better Return On Invested Capital (9.58%) than 73.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXT is significantly below the industry average of 12.80%.
The 3 year average ROIC (6.81%) for TXT is below the current ROIC(9.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 16.28% | ||
| ROIC | 9.58% |
ROA(3y)4.22%
ROA(5y)3.74%
ROE(3y)11.73%
ROE(5y)9.79%
ROIC(3y)6.81%
ROIC(5y)5.41%
1.3 Margins
TXT has a Profit Margin of 5.22%. This is comparable to the rest of the industry: TXT outperforms 51.46% of its industry peers.
In the last couple of years the Profit Margin of TXT has grown nicely.
TXT's Operating Margin of 8.89% is in line compared to the rest of the industry. TXT outperforms 56.31% of its industry peers.
TXT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.58%, TXT is doing worse than 60.19% of the companies in the same industry.
In the last couple of years the Gross Margin of TXT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.89% | ||
| PM (TTM) | 5.22% | ||
| GM | 60.58% |
OM growth 3Y-3.82%
OM growth 5Y8.08%
PM growth 3Y-13.88%
PM growth 5Y57.89%
GM growth 3Y-7.56%
GM growth 5Y-5.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TXT is creating some value.
Compared to 1 year ago, TXT has more shares outstanding
TXT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TXT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.70 indicates that TXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
TXT has a Altman-Z score (2.70) which is comparable to the rest of the industry.
TXT has a debt to FCF ratio of 7.16. This is a slightly negative value and a sign of low solvency as TXT would need 7.16 years to pay back of all of its debts.
TXT has a Debt to FCF ratio (7.16) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that TXT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, TXT is not doing good in the industry: 72.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 7.16 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.27
WACC7.55%
2.3 Liquidity
A Current Ratio of 1.52 indicates that TXT should not have too much problems paying its short term obligations.
TXT has a Current ratio of 1.52. This is in the better half of the industry: TXT outperforms 62.14% of its industry peers.
TXT has a Quick Ratio of 1.36. This is a normal value and indicates that TXT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.36, TXT is in the better half of the industry, outperforming 60.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.80% over the past year.
Measured over the past years, TXT shows a very strong growth in Earnings Per Share. The EPS has been growing by 115.26% on average per year.
Looking at the last year, TXT shows a very strong growth in Revenue. The Revenue has grown by 39.14%.
The Revenue has been growing by 38.81% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)1.8%
EPS 3Y22.63%
EPS 5Y115.26%
EPS Q2Q%13.89%
Revenue 1Y (TTM)39.14%
Revenue growth 3Y46.75%
Revenue growth 5Y38.81%
Sales Q2Q%37.28%
3.2 Future
TXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.10% yearly.
TXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.60% yearly.
EPS Next Y16.82%
EPS Next 2Y17.21%
EPS Next 3Y16.1%
EPS Next 5YN/A
Revenue Next Year29.65%
Revenue Next 2Y19.46%
Revenue Next 3Y15.84%
Revenue Next 5Y13.6%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.02, TXT is valued correctly.
Based on the Price/Earnings ratio, TXT is valued cheaply inside the industry as 90.29% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.38. TXT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.08 indicates a correct valuation of TXT.
TXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. TXT is cheaper than 90.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. TXT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXT is valued cheaply inside the industry as 85.44% of the companies are valued more expensively.
81.55% of the companies in the same industry are more expensive than TXT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.82 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TXT's earnings are expected to grow with 16.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)0.14
EPS Next 2Y17.21%
EPS Next 3Y16.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, TXT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.08, TXT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.84, TXT pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of TXT decreases each year by -13.34%.
Dividend Growth(5Y)-13.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TXT pays out 11.78% of its income as dividend. This is a sustainable payout ratio.
DP11.78%
EPS Next 2Y17.21%
EPS Next 3Y16.1%
BIT:TXT (9/19/2025, 7:00:00 PM)
31.4
-0.3 (-0.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners12.99%
Inst Owner ChangeN/A
Ins Owners30.25%
Ins Owner ChangeN/A
Market Cap408.51M
Analysts80
Price Target48.35 (53.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend0.24
Dividend Growth(5Y)-13.34%
DP11.78%
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%
PT rev (3m)0.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.48%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 12.08 | ||
| P/S | 0.85 | ||
| P/FCF | 16.82 | ||
| P/OCF | 15.02 | ||
| P/B | 2.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.55 |
EPS(TTM)1.96
EY6.24%
EPS(NY)2.6
Fwd EY8.28%
FCF(TTM)1.87
FCFY5.94%
OCF(TTM)2.09
OCFY6.66%
SpS36.75
BVpS11.79
TBVpS-0.41
PEG (NY)0.95
PEG (5Y)0.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.37% | ||
| ROE | 16.28% | ||
| ROCE | 14.15% | ||
| ROIC | 9.58% | ||
| ROICexc | 13.24% | ||
| ROICexgc | 42.04% | ||
| OM | 8.89% | ||
| PM (TTM) | 5.22% | ||
| GM | 60.58% | ||
| FCFM | 5.08% |
ROA(3y)4.22%
ROA(5y)3.74%
ROE(3y)11.73%
ROE(5y)9.79%
ROIC(3y)6.81%
ROIC(5y)5.41%
ROICexc(3y)9.67%
ROICexc(5y)9.18%
ROICexgc(3y)33.06%
ROICexgc(5y)80.72%
ROCE(3y)9.63%
ROCE(5y)7.61%
ROICexcg growth 3Y-23.28%
ROICexcg growth 5YN/A
ROICexc growth 3Y-5.19%
ROICexc growth 5Y-5.55%
OM growth 3Y-3.82%
OM growth 5Y8.08%
PM growth 3Y-13.88%
PM growth 5Y57.89%
GM growth 3Y-7.56%
GM growth 5Y-5.53%
F-Score5
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 7.16 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 22.92% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 10.47 | ||
| Cash Conversion | 49.25% | ||
| Profit Quality | 97.25% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.7 |
F-Score5
WACC7.55%
ROIC/WACC1.27
Cap/Depr(3y)26.41%
Cap/Depr(5y)25.59%
Cap/Sales(3y)1.18%
Cap/Sales(5y)1.17%
Profit Quality(3y)135.77%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.8%
EPS 3Y22.63%
EPS 5Y115.26%
EPS Q2Q%13.89%
EPS Next Y16.82%
EPS Next 2Y17.21%
EPS Next 3Y16.1%
EPS Next 5YN/A
Revenue 1Y (TTM)39.14%
Revenue growth 3Y46.75%
Revenue growth 5Y38.81%
Sales Q2Q%37.28%
Revenue Next Year29.65%
Revenue Next 2Y19.46%
Revenue Next 3Y15.84%
Revenue Next 5Y13.6%
EBIT growth 1Y35.31%
EBIT growth 3Y41.15%
EBIT growth 5Y50.03%
EBIT Next Year97.62%
EBIT Next 3Y35.8%
EBIT Next 5YN/A
FCF growth 1Y1.24%
FCF growth 3Y44.99%
FCF growth 5YN/A
OCF growth 1Y4.92%
OCF growth 3Y46.37%
OCF growth 5YN/A