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TXT e-solutions SPA (IT:TXT)
:TXT
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TXT e solutions SPA (TXT) AI Stock Analysis

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IT:TXT

TXT e solutions SPA

(TXT)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
€57.00
▲(10.89% Upside)
Action:Reiterated
Date:08/17/26
The score is driven mainly by solid growth and improving cash flow, but it is held back by notable margin compression and rising leverage. Technically, the uptrend is strong, though momentum is overbought, and valuation is a key constraint due to the high P/E and low dividend yield.
Positive Factors
Sustained Revenue Growth
Continued revenue expansion indicates sustained customer demand and market reach. Growth provides a foundation for operating scale and future cash generation, although its durability will depend on maintaining demand in the company’s engineering software and digital services markets.
Negative Factors
Sharp Margin Compression
Lower gross and net margins weaken earnings quality and reduce the benefit of revenue growth. If pricing, delivery costs or project mix remain unfavorable, sustained margin pressure could constrain reinvestment, profitability and the company’s ability to convert growth into shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Continued revenue expansion indicates sustained customer demand and market reach. Growth provides a foundation for operating scale and future cash generation, although its durability will depend on maintaining demand in the company’s engineering software and digital services markets.
Read all positive factors

TXT e solutions SPA (TXT) vs. iShares MSCI Italy ETF (EWI)

TXT e solutions SPA Business Overview & Revenue Model

Company Description
TXT e-solutions S.p.A., along with its subsidiary companies, delivers a comprehensive suite of software and professional services, catering to clients both within Italy and across international markets. The firm's activities are structured into tw...
How the Company Makes Money
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TXT e solutions SPA Financial Statement Overview

Summary
Growth is solid (TTM revenue +5.3%) and cash generation improved (TTM free cash flow ~35.1M, +~7.5%), but profitability weakened with sharp gross margin decline and net margin compressing to ~2.8% (from ~5.9% in 2025). Leverage is elevated and rising (debt-to-equity ~1.37) with lower ROE (~7.2%), increasing risk if margin pressure persists.
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue433.28M394.33M304.54M224.39M150.76M96.36M
Gross Profit110.00M152.37M76.28M35.20M109.32M75.60M
EBITDA68.14M58.94M38.27M35.80M24.06M15.31M
Net Income11.93M23.29M15.90M15.51M11.99M7.87M
Balance Sheet
Total Assets569.97M536.58M448.38M302.24M300.78M226.06M
Cash, Cash Equivalents and Short-Term Investments119.45M114.17M75.53M61.99M81.50M84.37M
Total Debt220.53M215.76M183.03M112.80M114.53M87.95M
Total Liabilities404.47M362.85M296.55M188.37M191.40M132.99M
Stockholders Equity161.12M169.58M149.76M113.85M109.37M92.65M
Cash Flow
Free Cash Flow35.06M25.96M16.66M8.03M16.37M7.07M
Operating Cash Flow59.28M45.45M26.76M22.19M18.16M8.53M
Investing Cash Flow-42.29M-31.18M-49.02M11.09M-32.48M-10.27M
Financing Cash Flow5.58M30.22M42.64M-28.77M11.01M25.88M

TXT e solutions SPA Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price51.40
Price Trends
50DMA
46.64
Positive
100DMA
40.94
Positive
200DMA
34.83
Positive
Market Momentum
MACD
1.65
Positive
RSI
53.87
Neutral
STOCH
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TXT, the sentiment is Neutral. The current price of 51.4 is below the 20-day moving average (MA) of 52.66, above the 50-day MA of 46.64, and above the 200-day MA of 34.83, indicating a neutral trend. The MACD of 1.65 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:TXT.

TXT e solutions SPA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
€4.56B17.7917.20%1.35%6.01%10.21%
63
Neutral
€617.55M55.387.17%0.77%21.90%-34.51%
58
Neutral
€1.47B20.1715.88%1.08%10.91%16.01%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
46
Neutral
€688.38M-8.69-30.92%-11.84%-2033.56%
45
Neutral
€717.21M84.3252.67%0.99%-2.05%-11.70%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:TXT
TXT e solutions SPA
51.50
21.24
70.19%
IT:REY
Reply SPA
122.60
5.24
4.47%
IT:SES
Sesa S.p.A.
94.20
22.22
30.87%
IT:TNXT
Tinexta SpA
14.94
0.39
2.68%
IT:WIIT
WIIT SpA
27.80
9.72
53.78%
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: Aug 17, 2026