Tesmec S.p.A. (TES) AI Stock Analysis

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Tesmec S.p.A.

(Milan:TES)

Select Model

Rating:58Neutral

Price Target:EUR 0.42▲(4.50% Upside)

Action:reiterated

Date:09/30/26

The score is held back mainly by high leverage (debt-to-equity ~2.49x) and very thin/volatile profitability, despite improving revenue and free cash flow. Technically, the stock has strong positive trend momentum (price above all key moving averages with positive MACD), but overbought indicators (RSI ~72.7, Stoch ~82.9) add near-term risk. Valuation is also a drag due to a very high P/E (146) and no stated dividend yield.

Positive Factors

Revenue GrowthThe return to solid top-line growth indicates that Tesmec continues to gain demand for its infrastructure equipment and solutions. Sustained revenue expansion can improve operating leverage, support investment in the business, and provide a stronger base for earnings improvement over the next several quarters.

Negative Factors

High LeverageDebt remains high relative to shareholders’ equity, increasing financial risk and reducing flexibility in a cyclical industrial environment. Elevated leverage can absorb a larger share of future cash generation through financing needs and leave less capacity to fund growth or withstand weaker operating conditions.

Tesmec S.p.A. (TES) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 242.20M
Dividend Yield: ―
Average Volume (3M): 9.34M
Price to Earnings (P/E): 138.1
Beta (1Y): 1.17
Revenue Growth: 19.45%
EPS Growth: ―
Country: Italy
Employees: 937
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

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

Company Description

Tesmec S.p.A., headquartered in Grassobbio, Italy since its founding in 1951, develops, manufactures, and distributes specialized solutions globally. The company focuses on the construction, maintenance, and optimization of critical infrastructure fo...

Tesmec S.p.A. Financial Statement Overview

Summary

Improving operations and cash generation, but balance-sheet risk is a major constraint. TTM revenue grew 9.5% and operating margins are reasonable (EBIT ~7.5%, EBITDA ~14.7%), yet profitability remains very thin (TTM net margin ~0.7%) with recent history of net losses. Free cash flow is positive (~€29.0M) and improving, but leverage is elevated (debt-to-equity ~2.49x), reducing flexibility in a cyclical industrial setting.

Income Statement

56Neutral

Balance Sheet

39Negative

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	296.89M	257.61M	235.64M	251.92M	217.30M	180.49M
Gross Profit	43.62M	74.56M	129.52M	41.10M	94.02M	77.98M
EBITDA	43.77M	41.46M	40.28M	26.03M	43.32M	29.79M
Net Income	2.06M	-2.43M	-5.18M	-2.97M	7.86M	1.20M
Balance Sheet
Total Assets	437.85M	402.38M	423.95M	440.11M	407.69M	358.13M
Cash, Cash Equivalents and Short-Term Investments	48.24M	40.98M	29.64M	53.75M	51.06M	50.29M
Total Debt	193.13M	193.30M	212.03M	235.06M	196.51M	187.88M
Total Liabilities	357.06M	328.64M	346.34M	361.86M	324.32M	285.49M
Stockholders Equity	77.56M	70.75M	74.53M	75.70M	80.85M	72.57M
Cash Flow
Free Cash Flow	28.96M	27.64M	-16.80M	-30.46M	-8.20M	-26.18M
Operating Cash Flow	53.64M	48.43M	16.09M	9.50M	24.95M	9.08M
Investing Cash Flow	-45.38M	-18.16M	-26.04M	-44.31M	-35.35M	-28.70M
Financing Cash Flow	-5.29M	-18.37M	-3.63M	37.98M	10.64M	-1.08M

Tesmec S.p.A. Technical Analysis

Technical Analysis SentimentNeutral

Last Price0.40

Price Trends

50DMA0.46Negative

100DMA0.42Negative

200DMA0.31Positive

Market Momentum

MACD-0.02Positive

RSI42.81Neutral

STOCH25.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TES, the sentiment is Neutral. The current price of 0.40 is below the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.46, and above the 200-day MA of 0.31, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 25.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:TES.

Tesmec S.p.A. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IT:TES against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IT:IP	71Outperform	EUR 4.25B	19.60	10.06%	0.89%	0.99%	-0.11%
IT:DANR	67Neutral	EUR 3.41B	11.51	7.93%	0.87%	-7.57%	1.55%
IT:TES	58Neutral	EUR 242.20M	138.10	3.09%	―	19.45%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IT:BSS	42Neutral	EUR 118.93M	-5.49	-9.32%	―	-4.54%	-75.92%

* General Sector Average

Performance Comparison

IT:TES and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:TES	Tesmec S.p.A.	0.40	0.28	225.20%
IT:BSS	Biesse SPA	4.30	-1.52	-26.03%
IT:DANR	Danieli & C.Officine Meccaniche SPA (0N4I)	38.10	5.40	16.51%
IT:IP	Interpump Group SPA	39.40	-3.02	-7.11%
IT:ESAU	Esautomotion SpA	2.82	-0.42	-12.96%
IT:MARP	Marzocchi Pompe S.p.A.	2.24	-0.02	-0.80%

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 30, 2026

Tesmec S.p.A. AI Stock Analysis