TXT E-SOLUTIONS SPA (TXT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TXT - IT0001454435 - Common Stock
30.5 EUR
-0.1 (-0.33%)
We assign a fundamental rating of 5 out of 10 to TXT. TXT was compared to 105 industry peers in the Software industry. TXT has a medium profitability rating, but doesn't score so well on its financial health evaluation. TXT is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year TXT was profitable.
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.
1.2 Ratios
TXT has a Return On Assets (5.37%) which is comparable to the rest of the industry.
TXT has a better Return On Equity (16.28%) than 66.67% of its industry peers.
TXT's Return On Invested Capital of 9.58% is fine compared to the rest of the industry. TXT outperforms 68.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXT is significantly below the industry average of 13.30%.
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 50.48% of its industry peers.
TXT's Profit Margin has improved in the last couple of years.
TXT has a Operating Margin (8.89%) which is in line with its industry peers.
TXT's Operating Margin has improved in the last couple of years.
TXT has a Gross Margin of 60.58%. This is in the lower half of the industry: TXT underperforms 63.81% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TXT is still creating some value.
The number of shares outstanding for TXT has been increased compared to 1 year ago.
Compared to 5 years ago, TXT has more shares outstanding
Compared to 1 year ago, TXT has a worse debt to assets ratio.
2.2 Solvency
TXT has an Altman-Z score of 2.67. This is not the best score and indicates that TXT is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.67, TXT perfoms like the industry average, outperforming 47.62% of the companies in the same 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 of 7.16. This is comparable to the rest of the industry: TXT outperforms 42.86% of its industry peers.
TXT has a Debt/Equity ratio of 0.86. This is a neutral value indicating 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: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 7.16 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.33
WACC7.21%
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.
The Current ratio of TXT (1.52) is comparable to the rest of the industry.
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 48.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for TXT have decreased strongly by -15.95% in the last year.
The Earnings Per Share has been growing by 115.26% on average over the past years. This is a very strong growth
Looking at the last year, TXT shows a quite strong growth in Revenue. The Revenue has grown by 16.65% in the last year.
TXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.81% yearly.
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
TXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.38% yearly.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.94 indicates a rather expensive valuation of TXT.
83.81% of the companies in the same industry are more expensive than TXT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TXT to the average of the S&P500 Index (26.77), we can say TXT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.42, TXT is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 90.48% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.35. TXT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXT is valued cheaply inside the industry as 83.81% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 81.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 8.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as TXT's earnings are expected to grow with 14.38% in the coming years.
PEG (NY)3.11
PEG (5Y)0.16
EPS Next 2Y13.91%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, TXT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.70, TXT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, TXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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%
BIT:TXT (12/30/2025, 5:26:48 PM)
30.5
-0.1 (-0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners15.64%
Inst Owner ChangeN/A
Ins Owners30.25%
Ins Owner ChangeN/A
Market Cap396.81M
Revenue(TTM)436.82M
Net Income(TTM)24.97M
Analysts83.33
Price Target44.57 (46.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)-7.81%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-9.09%
EPS NY rev (3m)-9.46%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 12.42 | ||
| P/S | 0.83 | ||
| P/FCF | 16.34 | ||
| P/OCF | 14.59 | ||
| P/B | 2.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.29 |
EPS(TTM)1.7
EY5.57%
EPS(NY)2.45
Fwd EY8.05%
FCF(TTM)1.87
FCFY6.12%
OCF(TTM)2.09
OCFY6.85%
SpS36.75
BVpS11.79
TBVpS-0.41
PEG (NY)3.11
PEG (5Y)0.16
Graham Number21.24
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%
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 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 | 2.67 |
F-Score5
WACC7.21%
ROIC/WACC1.33
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 FAQ
Can you provide the ChartMill fundamental rating for TXT E-SOLUTIONS SPA?
ChartMill assigns a fundamental rating of 5 / 10 to TXT.MI.
What is the valuation status for TXT stock?
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.
How financially healthy is TXT E-SOLUTIONS SPA?
The financial health rating of TXT E-SOLUTIONS SPA (TXT.MI) is 3 / 10.
What is the earnings growth outlook for TXT E-SOLUTIONS SPA?
The Earnings per Share (EPS) of TXT E-SOLUTIONS SPA (TXT.MI) is expected to grow by 5.77% in the next year.