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SECO S.p.A. (IT:IOT)
:IOT
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SECO S.p.A. (IOT) AI Stock Analysis

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IT:IOT

SECO S.p.A.

(IOT)

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Neutral 56 (OpenAI - Gpt-5.6Sol)
Rating:56Neutral
Price Target:
€4.50
▲(19.05% Upside)
Action:Reiterated
Date:09/09/26
The score is held back primarily by weak financial performance trends (steep TTM revenue contraction and still-negative net profitability, with earnings-quality questions despite high operating margins). Technicals provide meaningful support (price above major moving averages and positive MACD), but valuation is a major drag due to the very high P/E and no dividend yield support.
Positive Factors
Positive Cash Generation
Positive operating and free cash flow provide SECO with internally generated funding for product development, customer support, and investment in its embedded-computing platform. This cash generation offers a meaningful buffer even while reported net income remains weak.
Negative Factors
Severe Revenue Contraction
A 52.1% TTM revenue contraction signals substantial pressure on customer demand, project volumes, or the timing of sales. Persistent top-line weakness can reduce operating leverage, weaken market momentum, and make it harder for SECO to sustain investment across its IoT and embedded-computing portfolio.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive Cash Generation
Positive operating and free cash flow provide SECO with internally generated funding for product development, customer support, and investment in its embedded-computing platform. This cash generation offers a meaningful buffer even while reported net income remains weak.
Read all positive factors

SECO S.p.A. (IOT) vs. iShares MSCI Italy ETF (EWI)

SECO S.p.A. Business Overview & Revenue Model

Company Description
Seco S.p.A. specializes in the development of embedded micro-computers, integrated systems, and Internet of Things (IoT) solutions. The company's comprehensive portfolio includes various modules, single-board computers, boxed systems, Human-Machin...
How the Company Makes Money
SECO makes money primarily by selling embedded and edge-computing products and related software/services to business customers that integrate these components into their own connected devices, machines, and digital solutions. Key revenue streams ...

SECO S.p.A. Financial Statement Overview

Summary
Mixed fundamentals: a sharp TTM revenue decline (-52.1%) and slightly negative net margin (~-0.4%) weigh on results. Positives include a more stable balance sheet (debt-to-equity ~0.43) and positive TTM operating cash flow (~31.6M) and free cash flow (~19.7M), though free cash flow fell ~30% YoY and unusually high operating margins (EBIT ~54.8%) that do not translate into net profitability raise earnings quality/consistency risk.
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue197.90M197.58M184.40M210.04M202.46M113.66M
Gross Profit103.55M34.58M93.52M55.38M77.51M41.70M
EBITDA162.63M32.01M20.72M48.62M39.66M16.35M
Net Income-3.40M-2.69M-21.03M11.86M11.04M4.15M
Balance Sheet
Total Assets512.99M486.08M490.93M538.50M495.23M403.50M
Cash, Cash Equivalents and Short-Term Investments60.56M68.69M72.58M74.82M39.59M58.83M
Total Debt120.23M115.94M125.08M139.90M168.39M168.30M
Total Liabilities213.33M191.62M199.20M226.00M258.68M240.50M
Stockholders Equity274.64M272.72M271.91M290.62M215.78M145.40M
Cash Flow
Free Cash Flow19.71M25.73M14.41M5.98M-11.51M-40.00K
Operating Cash Flow31.60M34.79M34.89M25.69M6.76M13.61M
Investing Cash Flow-32.71M-26.02M-20.20M-19.99M-18.42M-143.81M
Financing Cash Flow3.42M-12.86M-18.13M30.73M-7.06M164.72M

SECO S.p.A. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.78
Price Trends
50DMA
3.95
Positive
100DMA
3.53
Positive
200DMA
3.14
Positive
Market Momentum
MACD
0.15
Positive
RSI
51.83
Neutral
STOCH
16.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IOT, the sentiment is Neutral. The current price of 3.78 is below the 20-day moving average (MA) of 4.44, below the 50-day MA of 3.95, and above the 200-day MA of 3.14, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 16.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:IOT.

SECO S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
€3.10B33.6019.25%0.71%16.82%49.68%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
€577.31M-850.98-1.24%―6.07%78.18%
48
Neutral
€40.67B96.662.66%0.68%3.00%-33.57%
45
Neutral
€722.16M88.5752.67%1.03%-2.05%-11.70%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:IOT
SECO S.p.A.
4.34
1.05
32.12%
IT:STMMI
STMicroelectronics NV
45.58
21.06
85.94%
IT:CRL
Carel Industries SpA
27.55
6.19
28.99%
IT:WIIT
WIIT SpA
29.20
9.64
49.26%
IT:E9IA
e-Novia SpA
2.00
0.00
0.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 09, 2026