Sesa S.p.A. (SES) AI Stock Analysis

• Market Cap: €1.24B
• Dividend Yield: 1.25%
• Average Volume (3M): 57.25K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.06
• Revenue Growth: 3.50%
• EPS Growth: -19.19%
• Country: IT
• Employees: 6,367
• Sector: Services
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 1.39
• Shares Outstanding: 15,494,590
• 10 Day Avg. Volume: 27,604
• 30 Day Avg. Volume: 57,248
• PEG Ratio: -0.80
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 16.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €116.37
• Price Target Upside: 45.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €91.00 ▲(14.04% Upside)

Sesa S.p.A. has a stable financial performance with consistent revenue growth and improved leverage management. The positive sentiment from the recent earnings call, highlighting significant growth in key sectors and strong financial management, enhances the outlook. However, technical indicators suggest short-term bearish momentum, and valuation metrics indicate moderate pricing. The company should focus on improving operating cash flow and addressing sector-specific challenges to sustain long-term growth.

Positive Factors

Revenue Growth

The 8% year-on-year revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Debt Management

Improved debt management enhances financial flexibility and reduces interest burden, supporting sustainable growth and investment capacity.

Digital Green VAS Growth

Strong growth in Digital Green VAS reflects successful adaptation to market trends and positions Sesa as a leader in sustainable tech solutions.

Negative Factors

ICT VAS Revenue Decline

Declining ICT VAS revenues suggest challenges in maintaining competitiveness in this segment, potentially impacting overall growth.

Margin Pressure

Decreasing gross profit margins indicate cost management challenges, which could affect profitability if not addressed.

Software and System Integration Challenges

Challenges in the Software and System Integration sector, with declining EBITDA, highlight potential operational inefficiencies and market demand issues.

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

Company Description

SeSa S.p.A., through its subsidiaries, distributes value-added information technology (IT) products and solutions in Italy and internationally. Its Software and System Integration sector provides software, technological innovation, and digital transformation solutions for end user companies in the SME and enterprise segments; IT infrastructure and IoT solutions; artificial intelligence and machine learning solutions; digital and business application services; and HR management solutions, as well as operates solutions on the Microsoft Dynamics platform. This sector also provides cloud services; digital security services; digital manufacturing, processing, and transformation solutions; management, maintenance, technical assistance, and repair services for computers and IT products; and strategic outsourcing services, as well as operates in the cloud computing and systems assistance sectors. In addition, this sector develops and markets ERP software and applications; offers solutions and integrated services on the SAP Business One platform; develops 3cad products for the furniture industry; produces and markets software products, as well as provides IT services for the retail sector; offers project management services; and provides product lifecycle management solutions for manufacturing sector. The company's Business Services sector offers business process outsourcing, security, and digital transformation services for the finance segment. Its Value-Added Distribution sector engages in the value-added distribution of technological, enterprise software and datacenter solutions; management of networking solutions; provision of design services for IT solutions, as well as digital media Adobe solutions; and market of Hitachi data systems solutions. The company's Corporate sector offers logistic services, and marketing and promotion services for the ICT channel. SeSa S.p.A. is headquartered in Empoli, Italy. SeSa S.p.A. operates as a subsidiary of ITH SpA.

How the Company Makes Money

Sesa generates revenue primarily through the provision of IT services and solutions, including software development, system integration, and consulting. The company's revenue model is built on a combination of service contracts, project-based engagements, and recurring services such as maintenance and support. Key revenue streams include payments from clients for customized software solutions, subscription fees for cloud services, and consulting fees for strategic IT guidance. Significant partnerships with major technology providers and a diverse client portfolio across various sectors further contribute to its earnings, allowing Sesa to capitalize on emerging trends in digital transformation and IT innovation.

Sesa S.p.A. Financial Statement Overview

Summary

Sesa S.p.A. demonstrates steady financial performance with consistent revenue growth and profitability. The company has improved its leverage position, enhancing financial stability. While cash flow metrics show positive trends, there is a need to strengthen operating cash flow. Overall, the company is on a stable trajectory, but should focus on improving margins and cash flow efficiency to support long-term growth.

Income Statement

Sesa S.p.A. shows a stable revenue growth with a TTM increase of 1.89%, although this is a slowdown compared to previous years. The gross profit margin has decreased to 6.56% in the TTM, indicating pressure on cost management. The net profit margin remains modest at 1.90%, reflecting consistent profitability. EBIT and EBITDA margins are stable, suggesting operational efficiency, but there's room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.90 in the TTM, indicating better leverage management compared to previous periods. Return on equity is healthy at 14.06%, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a balanced capital structure, but the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Free cash flow growth is positive at 12.35% in the TTM, a significant improvement from previous declines. The operating cash flow to net income ratio is low at 0.10, suggesting potential cash flow constraints. The free cash flow to net income ratio is strong at 0.67, indicating good cash generation relative to profits, but the company should focus on enhancing operating cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.29B	3.21B	3.16B	2.87B	2.02B	1.76B
Gross Profit	215.87M	389.57M	263.91M	235.29M	151.59M	83.72M
EBITDA	225.04M	235.04M	241.55M	201.26M	159.32M	119.64M
Net Income	62.54M	62.20M	78.27M	84.45M	52.27M	37.91M
Balance Sheet
Total Assets	2.23B	2.24B	2.12B	1.92B	1.22B	1.10B
Cash, Cash Equivalents and Short-Term Investments	498.95M	576.88M	585.76M	545.50M	426.90M	368.94M
Total Debt	419.72M	475.67M	422.88M	356.08M	332.22M	314.24M
Total Liabilities	1.71B	1.74B	1.64B	1.50B	920.18M	844.61M
Stockholders Equity	463.79M	445.92M	429.58M	374.93M	278.63M	236.39M
Cash Flow
Free Cash Flow	80.07M	60.14M	98.57M	78.96M	120.89M	78.64M
Operating Cash Flow	119.14M	117.23M	137.62M	115.45M	147.89M	95.24M
Investing Cash Flow	-104.86M	-114.91M	-103.75M	-85.19M	-37.76M	-21.10M
Financing Cash Flow	-47.73M	-17.83M	6.10M	10.94M	-51.93M	45.25M

Sesa S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SES, the sentiment is Negative. The current price of 79.8 is below the 20-day moving average (MA) of 82.06, below the 50-day MA of 84.38, and above the 200-day MA of 75.94, indicating a neutral trend. The MACD of -1.27 indicates Positive momentum. The RSI at 39.49 is Neutral, neither overbought nor oversold. The STOCH value of 28.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:SES.

Sesa S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SES	71 Outperform	€1.24B	19.80	13.73%	1.25%	3.50%	-19.19%
DGV	71 Outperform	€290.18M	15.39	―	2.82%	-24.28%	-57.55%
TNXT	60 Neutral	€676.44M	168.84	1.04%	2.03%	17.21%	-80.93%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Sesa S.p.A. Corporate Events

Sesa S.p.A. Earnings Call Highlights Growth and Sustainability

The recent earnings call of Sesa S.p.A. painted a generally positive picture, highlighting significant revenue and profit growth, particularly in the Digital Green VAS and Business Services sectors. Despite facing some hurdles in the ICT VAS and Software and System Integration sectors, the company showcased robust financial management and a strong commitment to sustainability, aiming to enhance shareholder value.