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TXT e solutions SPA
(TXT)
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Rating:63Neutral
Price Target:
€50.00
▼(-2.72% Downside)
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
Revenue Growth
Continued revenue growth indicates that TXT is expanding demand for its engineering, digital, and mission-critical solutions. Sustained top-line progress can support operating scale, deepen customer relationships, and provide a foundation for future earnings improvement if profitability stabilizes.
Negative Factors
Margin Compression
Sharp gross-margin deterioration and lower net profitability weaken the earnings benefit from revenue growth. If this pressure persists, TXT may have less capacity to reinvest, absorb cost increases, or generate shareholder returns, making earnings recovery dependent on operational improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Continued revenue growth indicates that TXT is expanding demand for its engineering, digital, and mission-critical solutions. Sustained top-line progress can support operating scale, deepen customer relationships, and provide a foundation for future earnings improvement if profitability stabilizes.
Read all positive factors
TXT e solutions SPA (TXT) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€558.15M
Dividend Yield0.73%
Average Volume (3M)27.54K
Price to Earnings (P/E)51.7
Beta (1Y)0.70
Revenue Growth21.90%
EPS Growth-34.51%
CountryIT
Employees3,493
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.93
Shares Outstanding13,006,250
10 Day Avg. Volume18,832
30 Day Avg. Volume27,541
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.8
Revenue Forecast (FY)€477.96M
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 software, IT services, and consulting/implementation work related to its engineering and mission‑critical solutions. Key revenue streams typically include: (1) software revenues from proprietary platforms (e.g....
TXT e solutions SPA Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 433.28M | 394.33M | 304.54M | 224.39M | 150.76M | 96.36M |
| Gross Profit | 110.00M | 152.37M | 76.28M | 35.20M | 109.32M | 75.60M |
| EBITDA | 71.04M | 58.58M | 38.27M | 36.40M | 24.06M | 15.13M |
| Net Income | 11.93M | 23.29M | 15.90M | 15.51M | 11.99M | 7.87M |
Balance Sheet | ||||||
| Total Assets | 569.97M | 536.58M | 448.38M | 302.24M | 300.78M | 226.06M |
| Cash, Cash Equivalents and Short-Term Investments | 119.45M | 114.17M | 75.53M | 61.99M | 81.50M | 84.37M |
| Total Debt | 220.53M | 215.76M | 183.03M | 112.80M | 114.53M | 87.95M |
| Total Liabilities | 404.47M | 362.85M | 296.55M | 188.37M | 191.40M | 132.99M |
| Stockholders Equity | 161.12M | 169.58M | 149.76M | 113.85M | 109.37M | 92.65M |
Cash Flow | ||||||
| Free Cash Flow | 35.06M | 25.96M | 16.66M | 8.03M | 16.37M | 7.07M |
| Operating Cash Flow | 59.28M | 45.45M | 26.76M | 22.19M | 18.16M | 8.53M |
| Investing Cash Flow | -42.29M | -31.18M | -49.02M | 11.09M | -32.48M | -10.27M |
| Financing Cash Flow | 5.58M | 30.22M | 42.64M | -28.77M | 11.01M | 25.88M |
TXT e solutions SPA Technical Analysis
Negative
51.40
Price Trends
51.89
Negative
47.14
Negative
38.76
Positive
Market Momentum
-1.23
Positive
33.06
Neutral
18.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TXT, the sentiment is Negative. The current price of 51.4 is above the 20-day moving average (MA) of 50.83, below the 50-day MA of 51.89, and above the 200-day MA of 38.76, indicating a neutral trend. The MACD of -1.23 indicates Positive momentum. The RSI at 33.06 is Neutral, neither overbought nor oversold. The STOCH value of 18.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | €4.78B | 19.03 | 17.20% | 1.03% | 6.01% | 10.21% | |
68 Neutral | €1.45B | 19.58 | 16.11% | 1.41% | 10.60% | 18.44% | |
63 Neutral | €558.15M | 51.67 | 7.17% | 0.73% | 21.90% | -34.51% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | €714.74M | 87.66 | 52.67% | 1.04% | -2.05% | -11.70% |
* General Sector Average
IT:TXT
TXT e solutions SPA
46.65
12.18
35.33%
IT:REY
Reply SPA
129.80
11.06
9.32%
IT:SES
Sesa S.p.A.
92.60
11.11
13.64%
IT:WIIT
WIIT SpA
28.45
9.04
46.61%
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.