Piteco

MI: PITE

€97.2m market cap

€5.35 last close

Piteco is Italy’s leading company in the design, development and implementation of software for treasury, finance and financial planning management.

Investment summary

Piteco’s traditional corporate treasury business returned to growth in FY18 after a flat FY17, with growth accelerating in H2 and momentum continuing in FY19. Juniper Payments, the group’s US payments software business, recorded solid FY18 results while Myrios, acquired late in 2018, made an impressive initial contribution. In February, Myrios Switzerland was established to target European corporates with the group’s software solutions. In June Piteco announced a partnership between its US subsidiary Juniper Payments and ViViPAY to provide a mobile app for thousands of community, independent banks and credit unions. Given Piteco’s growth profile and strong margins we believe the shares look attractive on c 10x our FY20e earnings.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 17.0 6.5 5.6 30.3 17.7 17.1
2018A 20.2 8.3 7.5 38.8 13.8 13.4
2019E 25.0 10.7 9.5 45.5 11.8 8.9
2020E 27.3 11.7 10.6 49.7 10.8 8.1
Last updated on 16/09/2019
Industry outlook

Piteco is the leading player in the Italian treasury management systems (TMS) market. TMS are software solutions used by corporate treasuries and finance departments to manage transactions and support decision-making. The software and ICT solutions market in Italy is valued at €6.3bn (Assinform 2016). A small slice of this (Piteco suggests c 5%) represents the treasury and financial planning software market. IDC forecasts the worldwide treasury and risk management applications market to grow by 4.9% to reach $2.7bn in 2022.

Last updated on 16/09/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (€m) 20.4
Forecast gearing ratio (%) 56
Price performance
%
1m
3m
12m
Actual (0.9) 2.9 17.8
Relative* (8.2) (3.1) 14.1
52-week high/low €5.5/€3.6
*% relative to local index
Key management
Marco Podini Chairman
Paolo Virenti CEO
Riccardo Veneziani CFO
Andrea Guillermaz Sales Director