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TXT e solutions SPA
(TXT)
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Rating:69Neutral
Price Target:
€47.00
▲(31.84% Upside)
Action:Reiterated
Date:05/23/26
The score is supported by strong technical momentum and a solid operating performance profile. Offsetting this are balance-sheet leverage increasing faster than equity and less-than-ideal cash conversion, while valuation appears fair with only a modest dividend yield.
Positive Factors
Mission-critical software + services
TXT's combined proprietary software platforms and specialized engineering/IT services for aerospace, defense and complex industrial clients create high switching costs and long, programmatic engagements. This durable model supports multi-year revenue visibility, repeatable services and cross-sell of maintenance and upgrades.
Negative Factors
Rising leverage
Leverage increasing faster than equity reduces financial flexibility and elevates refinancing and interest-rate risk. With debt at ~1.42x equity, TXT is more exposed if earnings soften or funding costs rise, potentially constraining investment in products or acquisitions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Mission-critical software + services
TXT's combined proprietary software platforms and specialized engineering/IT services for aerospace, defense and complex industrial clients create high switching costs and long, programmatic engagements. This durable model supports multi-year revenue visibility, repeatable services and cross-sell of maintenance and upgrades.
Read all positive factors
TXT e solutions SPA (TXT) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€505.80M
Dividend Yield0.8%
Average Volume (3M)32.66K
Price to Earnings (P/E)22.1
Beta (1Y)0.67
Revenue Growth24.82%
EPS Growth36.04%
CountryIT
Employees3,282
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.83
Shares Outstanding13,006,250
10 Day Avg. Volume40,963
30 Day Avg. Volume32,662
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)2.34
Price to Sales (P/S)1.00
P/FCF Ratio15.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€44.00Price Target Upside23.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.62
Revenue Forecast (FY)€437.22M
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
TXT makes money primarily by selling (1) professional services and engineering/IT consulting and (2) software and software-related services to enterprise and institutional clients. A significant portion of revenue typically comes from time-and-mat...
TXT e solutions SPA Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 411.36M | 394.33M | 304.54M | 224.39M | 150.76M | 96.36M |
| Gross Profit | 105.51M | 152.37M | 76.28M | 35.20M | 109.32M | 75.60M |
| EBITDA | 63.99M | 58.94M | 38.27M | 35.80M | 24.06M | 15.31M |
| Net Income | 23.59M | 23.29M | 15.90M | 15.51M | 11.99M | 7.87M |
Balance Sheet | ||||||
| Total Assets | 568.20M | 536.58M | 448.38M | 302.24M | 300.78M | 226.06M |
| Cash, Cash Equivalents and Short-Term Investments | 125.60M | 114.17M | 75.53M | 61.99M | 81.50M | 84.37M |
| Total Debt | 245.80M | 215.76M | 183.03M | 112.80M | 114.53M | 87.95M |
| Total Liabilities | 390.04M | 362.85M | 296.55M | 188.37M | 191.40M | 132.99M |
| Stockholders Equity | 173.68M | 169.58M | 149.76M | 113.85M | 109.37M | 92.65M |
Cash Flow | ||||||
| Free Cash Flow | 32.61M | 25.96M | 16.66M | 8.03M | 16.37M | 7.07M |
| Operating Cash Flow | 51.61M | 45.45M | 26.76M | 22.19M | 18.16M | 8.53M |
| Investing Cash Flow | -51.74M | -31.18M | -49.02M | 11.09M | -32.48M | -10.27M |
| Financing Cash Flow | 31.25M | 30.22M | 42.64M | -28.77M | 11.01M | 25.88M |
TXT e solutions SPA Technical Analysis
Positive
35.65
Price Trends
35.87
Positive
32.29
Positive
31.54
Positive
Market Momentum
1.15
Negative
77.52
Negative
93.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TXT, the sentiment is Positive. The current price of 35.65 is below the 20-day moving average (MA) of 37.27, below the 50-day MA of 35.87, and above the 200-day MA of 31.54, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 77.52 is Negative, neither overbought nor oversold. The STOCH value of 93.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:TXT.
TXT e solutions SPA Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | €3.65B | 14.61 | 18.54% | 1.00% | 6.71% | 18.66% | |
69 Neutral | €505.80M | 22.10 | 11.82% | 0.80% | 24.82% | 36.04% | |
64 Neutral | €1.49B | 20.58 | 15.29% | 1.15% | 9.35% | 4.41% | |
62 Neutral | €877.97M | 87.58 | 33.79% | 1.54% | 1.27% | 11.09% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | €688.84M | -14.92 | -1.19% | 2.02% | -5.69% | -379.74% |
* General Sector Average
IT:TXT
TXT e solutions SPA
42.85
8.03
23.07%
IT:REY
Reply SPA
97.50
-42.04
-30.13%
IT:SES
Sesa S.p.A.
96.55
11.95
14.13%
IT:TNXT
Tinexta SpA
15.00
2.94
24.38%
IT:WIIT
WIIT SpA
36.00
20.69
135.20%
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.