TXT E-SOLUTIONS SPA (TXT.MI) Fundamental Analysis & Valuation

BIT:TXT • IT0001454435

Current stock price

31 EUR
+0.2 (+0.65%)
Last:

This TXT.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. TXT.MI Profitability Analysis

1.1 Basic Checks

  • TXT had positive earnings in the past year.
  • TXT had a positive operating cash flow in the past year.
  • 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.
TXT.MI Yearly Net Income VS EBIT VS OCF VS FCFTXT.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 2024 0 20M 40M 60M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.37%, TXT is in line with its industry, outperforming 57.89% of the companies in the same industry.
  • TXT's Return On Equity of 16.28% is fine compared to the rest of the industry. TXT outperforms 68.42% of its industry peers.
  • With a decent Return On Invested Capital value of 9.58%, TXT is doing good in the industry, outperforming 71.93% of the companies in the same industry.
  • TXT had an Average Return On Invested Capital over the past 3 years of 6.81%. This is significantly below the industry average of 12.77%.
  • The last Return On Invested Capital (9.58%) for TXT is above the 3 year average (6.81%), which is a sign of increasing profitability.
Industry RankSector 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%
TXT.MI Yearly ROA, ROE, ROICTXT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

  • The Profit Margin of TXT (5.22%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of TXT has grown nicely.
  • Looking at the Operating Margin, with a value of 8.89%, TXT is in line with its industry, outperforming 59.65% of the companies in the same industry.
  • In the last couple of years the Operating Margin of TXT has grown nicely.
  • The Gross Margin of TXT (60.58%) is worse than 62.28% of its industry peers.
  • In the last couple of years the Gross Margin of TXT has declined.
Industry RankSector 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%
TXT.MI Yearly Profit, Operating, Gross MarginsTXT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 50 100 150

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3

2. TXT.MI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TXT is still creating some value.
  • Compared to 1 year ago, TXT has more shares outstanding
  • The number of shares outstanding for TXT has been increased compared to 5 years ago.
  • The debt/assets ratio for TXT is higher compared to a year ago.
TXT.MI Yearly Shares OutstandingTXT.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
TXT.MI Yearly Total Debt VS Total AssetsTXT.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

  • An Altman-Z score of 2.67 indicates that TXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • TXT's Altman-Z score of 2.67 is in line compared to the rest of the industry. TXT outperforms 56.14% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 7.16, TXT is in line with its industry, outperforming 43.86% of the companies in the same industry.
  • A Debt/Equity ratio of 0.86 indicates that TXT is somewhat dependend on debt financing.
  • TXT's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. TXT is outperformed by 80.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 7.16
Altman-Z 2.67
ROIC/WACC1.25
WACC7.69%
TXT.MI Yearly LT Debt VS Equity VS FCFTXT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M

2.3 Liquidity

  • TXT has a Current Ratio of 1.52. This is a normal value and indicates that TXT is financially healthy and should not expect problems in meeting its short term obligations.
  • TXT has a Current ratio (1.52) which is in line with 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.
  • TXT's Quick ratio of 1.36 is in line compared to the rest of the industry. TXT outperforms 50.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 1.36
TXT.MI Yearly Current Assets VS Current LiabilitesTXT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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7

3. TXT.MI Growth Analysis

3.1 Past

  • TXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.95%.
  • 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 quite strong growth in Revenue. The Revenue has grown by 16.65% in the last year.
  • Measured over the past years, TXT shows a very strong growth in Revenue. The Revenue has been growing by 38.81% on average per year.
EPS 1Y (TTM)-15.95%
EPS 3Y22.63%
EPS 5Y115.26%
EPS Q2Q%-37.68%
Revenue 1Y (TTM)16.65%
Revenue growth 3Y46.75%
Revenue growth 5Y38.81%
Sales Q2Q%-29.85%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.38% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 13.60% on average over the next years. This is quite good.
EPS Next Y5.77%
EPS Next 2Y13.91%
EPS Next 3Y14.38%
EPS Next 5YN/A
Revenue Next Year29.48%
Revenue Next 2Y19.74%
Revenue Next 3Y16.17%
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.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
TXT.MI Yearly Revenue VS EstimatesTXT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M
TXT.MI Yearly EPS VS EstimatesTXT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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6

4. TXT.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.24, the valuation of TXT can be described as rather expensive.
  • Based on the Price/Earnings ratio, TXT is valued cheaply inside the industry as 81.58% of the companies are valued more expensively.
  • TXT is valuated rather cheaply when we compare the Price/Earnings ratio to 25.96, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 12.63, which indicates a correct valuation of TXT.
  • 87.72% of the companies in the same industry are more expensive than TXT, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 24.04. TXT is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.24
Fwd PE 12.63
TXT.MI Price Earnings VS Forward Price EarningsTXT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • TXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TXT is cheaper than 85.09% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, TXT is valued cheaply inside the industry as 80.70% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.61
EV/EBITDA 8.34
TXT.MI Per share dataTXT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TXT does not grow enough to justify the current Price/Earnings ratio.
  • TXT's earnings are expected to grow with 14.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.16
PEG (5Y)0.16
EPS Next 2Y13.91%
EPS Next 3Y14.38%

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3

5. TXT.MI Dividend Analysis

5.1 Amount

  • TXT has a yearly dividend return of 0.87%, which is pretty low.
  • TXT's Dividend Yield is a higher than the industry average which is at 0.78.
  • Compared to an average S&P500 Dividend Yield of 1.91, TXT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.87%

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 2Y13.91%
EPS Next 3Y14.38%
TXT.MI Yearly Income VS Free CF VS DividendTXT.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M
TXT.MI Dividend Payout.TXT.MI Dividend Payout, showing the Payout Ratio.TXT.MI Dividend Payout.PayoutRetained Earnings

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TXT.MI Fundamentals: All Metrics, Ratios and Statistics

TXT E-SOLUTIONS SPA

BIT:TXT (3/16/2026, 5:29:24 PM)

31

+0.2 (+0.65%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-12
Earnings (Next)05-14
Inst Owners16.36%
Inst Owner ChangeN/A
Ins Owners30.5%
Ins Owner ChangeN/A
Market Cap403.31M
Revenue(TTM)436.82M
Net Income(TTM)24.97M
Analysts83.33
Price Target44.57 (43.77%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.87%
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%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 18.24
Fwd PE 12.63
P/S 0.84
P/FCF 16.61
P/OCF 14.83
P/B 2.63
P/tB N/A
EV/EBITDA 8.34
EPS(TTM)1.7
EY5.48%
EPS(NY)2.45
Fwd EY7.92%
FCF(TTM)1.87
FCFY6.02%
OCF(TTM)2.09
OCFY6.74%
SpS36.75
BVpS11.79
TBVpS-0.41
PEG (NY)3.16
PEG (5Y)0.16
Graham Number21.24
Profitability
Industry RankSector 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%
ROICexgc growth 3Y-23.28%
ROICexgc 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 RankSector 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 2.67
F-Score5
WACC7.69%
ROIC/WACC1.25
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)-15.95%
EPS 3Y22.63%
EPS 5Y115.26%
EPS Q2Q%-37.68%
EPS Next Y5.77%
EPS Next 2Y13.91%
EPS Next 3Y14.38%
EPS Next 5YN/A
Revenue 1Y (TTM)16.65%
Revenue growth 3Y46.75%
Revenue growth 5Y38.81%
Sales Q2Q%-29.85%
Revenue Next Year29.48%
Revenue Next 2Y19.74%
Revenue Next 3Y16.17%
Revenue Next 5Y13.6%
EBIT growth 1Y35.31%
EBIT growth 3Y41.15%
EBIT growth 5Y50.03%
EBIT Next Year106.58%
EBIT Next 3Y37.76%
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

TXT E-SOLUTIONS SPA / TXT.MI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for TXT E-SOLUTIONS SPA?

ChartMill assigns a fundamental rating of 5 / 10 to TXT.MI.


Can you provide the valuation status for TXT E-SOLUTIONS SPA?

ChartMill assigns a valuation rating of 6 / 10 to TXT E-SOLUTIONS SPA (TXT.MI). This can be considered as Fairly Valued.


Can you provide the profitability details for TXT E-SOLUTIONS SPA?

TXT E-SOLUTIONS SPA (TXT.MI) has a profitability rating of 5 / 10.


What are the PE and PB ratios of TXT E-SOLUTIONS SPA (TXT.MI) stock?

The Price/Earnings (PE) ratio for TXT E-SOLUTIONS SPA (TXT.MI) is 18.24 and the Price/Book (PB) ratio is 2.63.


Can you provide the financial health for TXT stock?

The financial health rating of TXT E-SOLUTIONS SPA (TXT.MI) is 3 / 10.