Expert System

MI: EXSY

€121.4m market cap

€3.04 last close

Expert System has developed and patented technology that extracts useful information from unstructured text using semantic-based techniques and applies it to verticals such as enterprise search, customer experience management and big data analytics.

Investment summary

While H119 revenues were slightly below those reported a year ago, Expert System is confident of meeting full year revenue expectations, which imply year-on-year growth of 13%. Management is using the funds raised in April to accelerate investment in sales and support. Although this reduces our EBITDA forecasts for FY19/FY20, it should lead to stronger revenue growth in the medium term as Expert takes advantage of the strong interest in the practical application of artificial intelligence in business processes.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 27.8 1.7 (5.4) (18.3) N/A N/A
2018A 30.5 4.6 (0.6) (1.4) N/A 42.1
2019E 34.5 5.6 (0.9) (2.0) N/A 23.9
2020E 38.5 7.6 0.7 1.5 202.7 18.1
Industry outlook

Ever-increasing amounts of data are being produced, 80% of which are estimated to be unstructured. The need to derive useful insights from this growing body of data is driving the demand for cognitive computing and smarter artificial intelligence solutions, such as those offered by Expert System. Allied Market Research estimates that the global text analytics market could be worth as much as US$6.5bn by 2020, growing at a CAGR of 25.2% from 2014, with North America expected to be the largest regional market.

Last updated on 19/11/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 6.6
Forecast gearing ratio (%) 35
Price performance
%
1m
3m
12m
Actual 0.7 9.4 150.2
Relative* (3.7) (2.7) 103.7
52-week high/low €3.7/€1.1
*% relative to local index
Key management
Stefano Spaggiari CEO
Claudio Palmolungo Executive VP Europe
Daniel Mayer Expert System Enterprise
Marco Varone CTO