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

• Market Cap: €33.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -4.91%
• EPS Growth: -75.51%
• Country: IT
• Employees: 967
• Sector: Industrials
• Sector Strength: 82
• Industry: Industrial - Machinery
• EPS (TTM): >-0.01
• Shares Outstanding: 606,460,200
• 10 Day Avg. Volume: 1,443,865
• 30 Day Avg. Volume: 1,004,260
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €0.08
• Price Target Upside: 33.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Tesmec S.p.A.'s overall stock score is influenced by its operational improvements and positive cash-generating ability, though its high leverage and ongoing profitability challenges weigh heavily. Technical analysis suggests a neutral to slightly bearish trend. Valuation metrics, particularly the negative P/E ratio and absence of dividends, further detract from the stock's appeal.

Positive Factors

Debt Reduction

The transaction with OT Engineering has a material positive impact on Tesmec, leading to a reduction of Eu9.5mn in net debt.

Market Growth

Management expressed confidence in expected performance, driven by growth in reference markets such as the energy transition and manufacturing flexibility between Italian and US plants.

Profitability

EBIT almost doubled year over year to Eu20.4mn, leading to a pre-tax profit of Eu3.8mn, reversing the Eu4.8mn loss posted previously.

Negative Factors

Debt Concerns

There is a need to strengthen the company's capital structure due to high net debt and significant interest charges impacting profitability.

Market Performance

The Trenchers business is experiencing weak performance in key markets such as the US, Australia, and France, affecting overall sales.

Sales Decline

The company's financial results for the nine months show a declining sales trend, with a net loss incurred during this period.

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

Company Description

Tesmec S.p.A. (TES) is an Italian company that operates in the design, production, and sale of specialized machinery and systems for the construction, maintenance, and efficiency of infrastructures related to the transmission and distribution of energy, data, and material transport. The company is organized into three main business sectors: stringing equipment for power lines and fiber optic cables, railway electrification and maintenance, and surface mining & quarrying equipment. Tesmec's products and services cater to energy and telecommunications companies, infrastructure developers, and industrial clients worldwide.

How the Company Makes Money

Tesmec S.p.A. generates revenue primarily through the sale and leasing of its specialized equipment and systems across its three business sectors. The stringing equipment segment provides substantial income through the manufacturing and sale of machinery used in the installation of power lines and fiber optic cables. In the railway electrification sector, the company earns by supplying equipment and services for the construction and maintenance of railway infrastructures. The surface mining segment contributes to revenue through the sale and rental of trenchers and surface miners used in mining and quarrying operations. Additionally, Tesmec offers after-sales services, including maintenance, spare parts, and support, which provide a recurring revenue stream. Strategic partnerships and collaborations with major energy and telecom companies, as well as their global presence, further bolster their market reach and revenue potential.

Tesmec S.p.A. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
251.92M	217.30M	180.49M	173.94M	192.29M
	Gross Profit
41.10M	94.02M	77.98M	63.08M	77.25M
	EBIT
11.06M	13.12M	8.83M	-2.66M	8.37M
	EBITDA
26.03M	36.78M	22.64M	9.55M	19.25M
	Net Income Common Stockholders
-2.97M	7.86M	1.20M	-6.81M	2.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.75M	51.06M	50.29M	70.53M	17.99M
	Total Assets
440.11M	407.69M	358.13M	362.95M	296.55M
	Total Debt
235.06M	196.51M	187.88M	188.40M	148.04M
	Net Debt
181.38M	145.53M	137.69M	117.98M	130.11M
	Total Liabilities
361.86M	324.32M	285.49M	293.50M	250.40M
	Stockholders Equity
75.70M	80.85M	72.57M	69.39M	46.10M
Cash Flow		Free Cash Flow
-30.46M	-8.20M	-26.18M	-1.64M	-24.86M
	Operating Cash Flow
9.50M	24.95M	9.08M	20.58M	-1.06M
	Investing Cash Flow
-44.31M	-35.35M	-28.70M	-32.42M	-22.30M
	Financing Cash Flow
37.98M	10.64M	-1.08M	64.73M	-1.78M

Tesmec S.p.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TES, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.39 is Neutral, neither overbought nor oversold. The STOCH value of 25.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:TES.

Tesmec S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	74 Outperform	€17.58B	9.65	10.53%	4.13%	-14.41%	-44.84%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.06%	-10.21%
PRY	62 Neutral	€14.74B	19.54	16.44%	1.52%	10.89%	32.38%
TES	58 Neutral	€33.64M	―	-0.17%	―	-4.91%	-75.51%