TXT E-SOLUTIONS SPA (TXT.MI) Fundamental Analysis & Valuation
BIT:TXT • IT0001454435
Current stock price
35.375 EUR
-0.37 (-1.05%)
Last:
This TXT.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TXT.MI Profitability Analysis
1.1 Basic Checks
- TXT had positive earnings in the past year.
- 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 (5.31%) is better than 62.18% of its industry peers.
- TXT has a Return On Equity of 17.03%. This is in the better half of the industry: TXT outperforms 72.27% of its industry peers.
- With a decent Return On Invested Capital value of 10.11%, TXT is doing good in the industry, outperforming 72.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 17.03% | ||
| ROIC | 10.11% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 5.08%, TXT is in line with its industry, outperforming 57.98% of the companies in the same industry.
- TXT's Profit Margin has declined in the last couple of years.
- TXT has a Operating Margin (9.31%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of TXT has grown nicely.
- TXT has a worse Gross Margin (61.52%) than 63.03% of its industry peers.
- In the last couple of years the Gross Margin of TXT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | 5.08% | ||
| GM | 61.52% |
OM growth 3Y-0.01%
OM growth 5Y16.89%
PM growth 3Y-9.44%
PM growth 5Y-1.92%
GM growth 3Y-18.06%
GM growth 5Y-13.83%
2. TXT.MI Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TXT is creating some value.
- TXT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 2.73 indicates that TXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TXT has a Altman-Z score of 2.73. This is comparable to the rest of the industry: TXT outperforms 52.94% of its industry peers.
- TXT has a debt to FCF ratio of 7.59. This is a slightly negative value and a sign of low solvency as TXT would need 7.59 years to pay back of all of its debts.
- TXT has a Debt to FCF ratio of 7.59. This is comparable to the rest of the industry: TXT outperforms 43.70% of its industry peers.
- A Debt/Equity ratio of 1.06 is on the high side and indicates that TXT has dependencies on debt financing.
- The Debt to Equity ratio of TXT (1.06) is worse than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.59 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.32
WACC7.68%
2.3 Liquidity
- A Current Ratio of 1.63 indicates that TXT should not have too much problems paying its short term obligations.
- TXT has a Current ratio (1.63) which is in line with its industry peers.
- TXT has a Quick Ratio of 1.63. 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 1.63, TXT is in line with its industry, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. TXT.MI Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 31.35% 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 36.79% on average per year.
- Looking at the last year, TXT shows a very strong growth in Revenue. The Revenue has grown by 27.78%.
- The Revenue has been growing by 41.81% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)31.35%
EPS 3Y21.88%
EPS 5Y36.79%
EPS Q2Q%70.89%
Revenue 1Y (TTM)27.78%
Revenue growth 3Y37.78%
Revenue growth 5Y41.81%
Sales Q2Q%23.37%
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 13.05% yearly.
- The Revenue is expected to grow by 9.67% on average over the next years. This is quite good.
EPS Next Y17.19%
EPS Next 2Y15.27%
EPS Next 3Y13.05%
EPS Next 5YN/A
Revenue Next Year11.41%
Revenue Next 2Y10.07%
Revenue Next 3Y9.35%
Revenue Next 5Y9.67%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. TXT.MI Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.09, the valuation of TXT can be described as correct.
- Based on the Price/Earnings ratio, TXT is valued cheaper than 89.08% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.47. TXT is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 13.36 indicates a correct valuation of TXT.
- 82.35% of the companies in the same industry are more expensive than TXT, based on the Price/Forward Earnings ratio.
- TXT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TXT is valued cheaper than 87.39% of the companies in the same industry.
- TXT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TXT is cheaper than 78.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.91 | ||
| EV/EBITDA | 8.26 |
4.3 Compensation for Growth
- TXT's 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 13.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)0.38
EPS Next 2Y15.27%
EPS Next 3Y13.05%
5. TXT.MI Dividend Analysis
5.1 Amount
- TXT has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
- TXT's Dividend Yield is a higher than the industry average which is at 0.84.
- Compared to an average S&P500 Dividend Yield of 1.81, TXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 11.60% of its income as dividend. This is a sustainable payout ratio.
DP11.6%
EPS Next 2Y15.27%
EPS Next 3Y13.05%
TXT.MI Fundamentals: All Metrics, Ratios and Statistics
BIT:TXT (4/24/2026, 5:29:46 PM)
35.375
-0.37 (-1.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-12 2026-03-12
Earnings (Next)05-14 2026-05-14
Inst Owners15.46%
Inst Owner ChangeN/A
Ins Owners30.5%
Ins Owner ChangeN/A
Market Cap460.23M
Revenue(TTM)578.89M
Net Income(TTM)27.44M
Analysts83.33
Price Target44.57 (25.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.24
Dividend Growth(5Y)-13.34%
DP11.6%
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)7.86%
EPS NY rev (3m)7.86%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 13.36 | ||
| P/S | 0.85 | ||
| P/FCF | 15.91 | ||
| P/OCF | 15.81 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.26 |
EPS(TTM)2.51
EY7.1%
EPS(NY)2.65
Fwd EY7.48%
FCF(TTM)2.22
FCFY6.29%
OCF(TTM)2.24
OCFY6.33%
SpS41.51
BVpS12.39
TBVpS-1.24
PEG (NY)0.82
PEG (5Y)0.38
Graham Number26.4488 (-25.23%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 17.03% | ||
| ROCE | 14.51% | ||
| ROIC | 10.11% | ||
| ROICexc | 13.73% | ||
| ROICexgc | 40.17% | ||
| OM | 9.31% | ||
| PM (TTM) | 5.08% | ||
| GM | 61.52% | ||
| FCFM | 5.36% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-0.01%
OM growth 5Y16.89%
PM growth 3Y-9.44%
PM growth 5Y-1.92%
GM growth 3Y-18.06%
GM growth 5Y-13.83%
F-Score6
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.59 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 1.07% | ||
| Cap/Sales | 0.03% | ||
| Interest Coverage | 8.82 | ||
| Cash Conversion | 43.29% | ||
| Profit Quality | 105.43% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.73 |
F-Score6
WACC7.68%
ROIC/WACC1.32
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.35%
EPS 3Y21.88%
EPS 5Y36.79%
EPS Q2Q%70.89%
EPS Next Y17.19%
EPS Next 2Y15.27%
EPS Next 3Y13.05%
EPS Next 5YN/A
Revenue 1Y (TTM)27.78%
Revenue growth 3Y37.78%
Revenue growth 5Y41.81%
Sales Q2Q%23.37%
Revenue Next Year11.41%
Revenue Next 2Y10.07%
Revenue Next 3Y9.35%
Revenue Next 5Y9.67%
EBIT growth 1Y37.01%
EBIT growth 3Y37.77%
EBIT growth 5Y65.77%
EBIT Next Year76.71%
EBIT Next 3Y28.25%
EBIT Next 5YN/A
FCF growth 1Y203.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y76.08%
OCF growth 3YN/A
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.
What is the valuation status of TXT E-SOLUTIONS SPA (TXT.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to TXT E-SOLUTIONS SPA (TXT.MI). This can be considered as Fairly Valued.
What is the profitability of TXT stock?
TXT E-SOLUTIONS SPA (TXT.MI) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for TXT stock?
The Earnings per Share (EPS) of TXT E-SOLUTIONS SPA (TXT.MI) is expected to grow by 17.19% in the next year.
How sustainable is the dividend of TXT E-SOLUTIONS SPA (TXT.MI) stock?
The dividend rating of TXT E-SOLUTIONS SPA (TXT.MI) is 3 / 10 and the dividend payout ratio is 11.6%.